The Future of Franchise

When Ray Kroc invented the franchising business with his restaurant McDonalds, his venture succeeded, but with a new marketing age, franchises might not be such a wonderful idea. When a company hits a franchise, the business wants to get more people to come to their store in order to make more sales, but when a business decides to franchise, they've begun to lose the relationship between their customer. And in a day of age where relationships run the more profitable businesses, this can be a problem.

The idea of franchising is an original funnel way of creating a business. To get as much people as you can to get to your store to make higher profits. In other words, as time goes by, the more amount of advertising you do for your business. Whether it's through commercials, or setting up another store.



The smaller each layer becomes, the less amount of emphasis you need to put in to it. As time passes, the wider the top of the funnel becomes (more emphasis), trying to get more and more people to their store. But as the top of the funnel gets wider, the bottom of the funnel gets thinner (less emphasis).



When was the last time you went to a McDonalds and had a wonderful visit, and created a strong relationship with the workers? When was the last time you went to a McDonalds and saw the workers happier than they ever were? Not likely. The relationship with the customers at McDonalds has faded away. It's like a restaurant of depression.

This is the very same reason why Starbucks has been closing a lot of it's stores down. They've gotten too carried away with their publicity, that they completely forgot about the relationship between the customer, and the business. When was the last time you went to a Starbucks and had a unique experience that you couldn't have again with the Starbucks right next to the one you just exited from?

Here's a 3-year graph of Starbucks's stocks:



Relationship matters to people, not how easily they can find the products they want. Prospects actually care about the relationship they have with a business, and how fun, and unique their visit to the store was. Businesses think that by mass producing their products, they'll create more profits. In retrospect, you do. But when you become too greedy, and start trying to get even more people to your stores, it could turn out to be something horrible.

Franchises need to re-prioritize their business. Stop letting any average Joe invest in to a franchise. Be selective, and only choose the few that are die hard fans of the business.

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