Kinda discussed this in several other threads, but wanted to make a dedicated thread to it. Over the years I have worked for several major franchises, be it fast food, restaurants, or miscellaneous. I still have many friends who work at various head offices, so I have a little insight into how some of them do business.
So what I wanted to know, is your guys opinions on whether franchises are a good thing or a bad thing. In North America, you see FAR more franchises than in other parts of the world. Sure, when you go to France and find a McDonalds, you pretty much know the menu before you even step into the store. But what other good do they do?
It used to be that fast food meant lower prices (I realized this was untrue the other day when I went to a little family run restaurant in my neighbourhood and treated myself to a fantastically huge burger and fries for far less than any fast food restaurant charges).
Franchises have the problem that when they earn money (or even if they DONT earn money), they still have to pay their corporate offices for the rights to continue being a franchise. They HAVE to buy specific objects from them (if you wanna buy a spatula, it has to be a Wendy’s/McDonalds/etc spatula, etc). Franchises also buy things in such large supply that they completely fuck up supply and demand. Wendy’s is bad for this…the reason they have to sell their specialty burgers such as the fish sandwich or mushroom melt, is because they could deplete all available sources of the mushrooms or fish in their region if they sold all year long.
How about some non food examples? Take a look at the business practices of Blockbuster, Future Shop, etc etc etc.