Switching Over To Franchise

Entrepreneur.com:

In recent years, a significant trend has gone unnoticed in many business circles. Dealer-based manufacturers have been converting to franchises in significant numbers. In fact, not only have dealer organizations begun to convert to franchises, but we’ve also observed an increasing number of licensing organizations making this shift.

Manufacturers have found that franchising allows them to exercise more control at the unit level while increasing dealers’ overall commitment to both branding and to their product lines. Moreover, franchising allows manufacturers to develop additional revenue streams (fees, royalties etc.) needed to pay for enhanced support provided to converting dealers. Such support can help the new franchised channel to differentiate itself and outperform competitors.

If It’s Not Broke, Break It… and carry on reading.