Unlocking Franchise Economics – Part 3
March 26, 2009 by e-Partner · Leave a Comment
Syndicated from REALonomics
Have we ever wondered how the consumer views our real estate industry franchises? If we are going to unlock franchise economics and truly understand the value propositions inherent in franchising we must also see them (franchises) as the consumer sees them and we must ONLY value them as does the consumer.
If you were to create a list of distinctions…real ones…dynamic ones…that separate one franchise brand from another in the eyes of the only true client, the consumer, what would those distinctions be and how are they manifest in the process of transacting business?
Enjoy the PhotoBlog below. Read it carefully and ask yourself what might happen if the consumer could place all franchises into one blender and extract the best. What would the “best” be? What are the clear distinctions between franchise A, B and C?
If franchises have any value, and REALonomics believes they do, what is the empirical value to the consumer? Is franchise value a black-and-white proposition or, will we see living color coming out of the recession in 2009 and beyond? What changes do franchisors need to make to create distinction in local markets? Can distinction even be created and sustained? Do we need to blend the franchises? Do we need fewer franchises? Will franchises be blended out of economic necessity and through mergers and acquisitions?
If a Broker/Owner adopts a franchise model what is the set of “measureable” distinctions derrived from the relationship that will impact the consumer? Specifically, how do franchise distinctions create revenue for Broker/Owners in the crowded marketplace?
