And franchising was attempted, but not successfully. The site lease costs are (now) too high, the cost of goods has historically been waaaaay higher than industry expectations, and I believe that OLI has run their in-house distribution as a business unit that needs to generate profit. When all stacked together it would be next to impossible for a franchisee to make a profit. The corporate-owned stores have largely run at a loss, so a franchisee would not fare much better. The model sux (in my opinion).
Ann: PLACEMENT, RELAXATION OF DEBT COVENANTS & SPP, page-104
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