Chapter 14: The Uniqueness of Franchising Opportunities: Workforce Challenges, Technology Impacts and Policy Implications

Franchising represents an attractive business opportunity for many folks along with the prospect of running one’s own business but under the umbrella of a supportive system. By virtue of its relationship to the franchisor, the franchisee gains access to an enormous amount of training, marketing and other technical resources that increase the likelihood of business success. There are two kinds of franchising models, an owner-operator model and an absentee investor model. Franchises cut across many different industry sectors with hospitality being the largest (19%), followed by professional services (13%) and manufacturing (11%). In recent decades, franchisors have expanded into other populations. Males still represent the majority of franchisors (69%), but they have expanded into other populations (11% female, 15% Latino, 6% Asian, and 6% black). Franchises typically face many challenges including staffing, competition, operating costs and business location, The author takes an in-depth look at McDonald’s as a prime example of what a franchising opportunity might look like recognizing that, despite the cost ($1.3 to $2.3M) to get in, McDonald’s franchisees have generally enjoyed success. As applied to McDonald’s, the author examines proposed solutions, technology impact, service providers, best practices, and policy implications.