3. Strategy and Concept of Brand Franchise
For franchisors, franchise systems serve as a powerful and budget-saving tool for market development. Franchise must not be mistaken as an enterprise purpose, goal and/or business segment. Franchise is "only" one among other tools for market development that has to yield the business results.
The market development via franchise works out with
- Local self-employed entrepreneurs (and their capital) as well as
- A standardized brand world (which is provided by the franchisor).
Whether franchise is the adequate tool for the national, europeanwide and later on, worldwide market development, depends on the business goals, business segments and capacity opportunities of the enterprise (the future franchisor). As far as McDonald's, Town & Country, Joey's Pizza, Morgengold Fruestuecksdienste and 200 to 300 other businesses are concerned, franchise is the formula for success in the German market. Whereas for Porst, Aufina, Kleenothek, Spinnrad, Ihr Platz, Biffar and especially many smaller businesses, franchise was the beginning of the end.
The Peckert Brand Goal Hierarchy (core element of the intensive workshop "Brand Franchise") helps the franchisor to frame his goals and develop a useful strategy with the appropriate concept for the market development. Franchise can be the result, but does not necessarily have to.
