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patcat88
join:2002-04-05
Jamaica, NY
| karma
Karma finally came. If you get an exclusive franchise to use a brand name for a certain area, you don't want the franchisor to come in and compete with you and try to steal you own customers meanwhile collecting franchise fees for himself from you, then use those fees to compete with you.
Imagine if you owned a Starbucks franchise (doesn't actually exist), then corporate opened up a Kiosk in the park across from you, then opened up one in the supermarket 3 doors away from you, then opened another one in the Target 5 doors in the other direction, then opened another one at the closest intersection at a new shopping center, then put out sales reps in mascot costumes to stand in front of your store directing people to the corporate Starbucks a few doors down. | |
en102
Canadian, eh?
join:2001-01-26
Valencia, CA
 ·RoadRunner Cable
 ·DSL EXTREME
| That actually exists where I live.
There's a 'corporate' Starbucks, and ~ 200' away there's a VONS (grocery store in SoCal) with a Starbucks inside it.
The VONS Starbucks used to have a deal , where if you used a VONS card (free tracking info card), buy 7 drinks of any kind, and your 8th was free (any size, and kind!)
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Canada = Hollywood North | |
patcat88
join:2002-04-05
Jamaica, NY
| said by en102  :That actually exists where I live. There's a 'corporate' Starbucks, and ~ 200' away there's a VONS (grocery store in SoCal) with a Starbucks inside it. The VONS Starbucks used to have a deal , where if you used a VONS card (free tracking info card), buy 7 drinks of any kind, and your 8th was free (any size, and kind!) My example was fictitious, Starbucks doesn't franchise except under 1 condition, the Starbucks franchise is in restricted access space and does not appear to be a standalone/public operation, such a super market, another store, a university campus, or a sterile space like an office building cafeteria/military base.
But Starbucks has serious internal drama because of how middle management and rank and file blaming the franchises for stealing business/blame their own mistakes on the franchises.
I couldn't think of a well known franchise that has publically known franchise and saturation problems. Some call Coldstone a MLM scheme. I know 1/2 to 3/4s of the ones in NYC have closed. There are smaller localized spats over Subway franchises being too close, but that I think that was a much smaller problem than Coldstone, and the Subway franchise spats have gotten much less media/internet attention than Coldstone.
McDonalds I've never heard of having saturation/franchise problems, maybe corporate does its homework, or its fundamentally impossible to screw up a McDonalds franchise since your the bottom of the barrel and your market is as addicted reliable as sun rising aslong as (I'll stop this here to prevent a flame war) | |
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