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22:44
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Originally posted by GiddyYup:
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The answer is in the nature of the franchise model. The master franchisor who owns the rights to the brand is the entity which sets the rules for opening and operating a franchise, including locations and pricing. Like most businesses the master franchisor wants to maximize their profit long term, this isn't entirely done by saturation of the market. In fact its a delicate balance of strategic positioning of franchises to compete for consumer dollars against competing brands whilst avoiding cannibalization of their own client base from other same branded franchises.
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Thats brilliant. Much appreciated. I dont believe you can read this stuff up anywhere. Ckf surly dont communicate this in annual reports. Is it just a matter of reading up biograhpies of franchisees? Being in the business? How did you gain this insight? Or am i just slow and dim witted?
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