By putting Dominos, McDo, Subway, Starbucks and Pizza Hut all under the label 'success stories', you've actually made my point that franchising is a good model, but not the best per se. Franchising is good, but so is the company owned model.
Why? Because Starbucks is the classic example of the 'company owned - no franchising' chain. They don't do any franchising. And they are the absolute success story of the 90s. Indeed, the strategy of Starbucks is really about having company employees that it can train and motivate appropriately (eg stock options are available to all levels of employees), not having to go through a franchisee layer. It's about control. (other examples include luxury brands like Gucci etc that moved away from franchising in the 90s, McDonalds' Chipotle chain in the US, etc).Also note that eg McDo had big service/quality problems at its McDo US franchisee locations in 2000-2001, becauses some franchisees were not being disciplined enough etc.
However, regardless of our 'How to grow your retail format' discussion, I agree with you that franchising brings in lots of money for CFE and that is definitely the right solution for them.
Lehman Abs Motorola stock quotes
Lehman Abs Motorola stock charts
Follow this thread
