Learning Center

From: TJ
14:00 EDT, 01.Jun.08

A franchisor may think they are in a certain business segement but needs to remember that the customer ultimately decides what business the franchisee is in. There is a MBE / The UPS Store franchise that put a Kinko's out of business because that franchise -- which is in the shipping business -- did a better job than the Kinko's at copying. So, clearly that The UPS Store was in the business of making copies, not, shipping, though they supplied both services. The franchisor of course must be concerned when certian volumes in the core of the business are not at average or better, but if the franchisee is clearly excelling in other areas, the franchisor needs to recognize that and let the franchisee continue to best serve that market. All 3, Franchisor, Franchisee and Customer, will then win.