Thursday, April 10, 2008

Independently Owned and Operated

As I checked into a hotel today, I was thinking about the sign on the wall behind the clerk saying that old term we all have heard, "Independently owned and operated". How can this be independent when it is a Holiday Inn Express and they all have the same logos, cups, priority club, cinnamon roll breakfast, advertising, etc? At what point are they independent and at what point are they a rank and file franchisee?

If you are looking at buying a franchise, this is an important point. You need to find out what is an "in stone" franchise operating system issue and what freedom do you have to change anything. Every franchise is different so you will have to ask before you buy.

I know that with some fast food franchises you get to choose your location to build, have some choices about interior, etc, but it is just a choice between this version of Jack in the Box interiors or that version of Jack in the Box interiors.

Are franchises independently owned or do they just have a license to do business as the franchise? Are they independently operated? Not really. Why would someone like me be coming around making sure that everything is done according to the operating plan for the franchise?

If you already have a franchise, just remember that you do not "own" anything except whatever you would take home if the the franchisor decided to take away your license and close your doors. Independently operated? Just as long as it is by the book.