Friday, December 5, 2014
Dangers of Franchises
Chapter 4 is mainly concerned with franchises. Schlosser goes into detail about how difficult Ray Kroc was to some of his initial buyers to stay competitive. The fees for entry as a franchisee on top of pressure from the owners seems to put a lot of stress on new entries to the field. Schlosser mentioned the study done by Bates that proved that all these factors amounts to more pressure than starting a new business from the ground up. I have spoken to an owner of a Chick-Fil-A before and that seemed to be a very efficient system of starting new franchises. The corporation pays for the land and construction of a new building but limits the owners of each franchise to the top .1% of applicants because they ensure the person looking to start one has a background in business and a plan for the future.
Subscribe to:
Post Comments (Atom)
There is a lot of pressure for applicants attempting to run a single restaurant in a fast food franchise. Getting into an authority position in a fast food chain allows for advancement in the corporation. Corporations such as McDonald's and Burger King bring in massive amounts of revenue and movin up in one of these franchises could mean making millions of dollars. The number of applicants are surely in the hundreds for these such positions and it is no surprise to me that Chick-Fil-A only chooses the top .1% of applicants.
ReplyDelete