Quasi-franchising is a relatively new type of business model. The model gives aspiring business owners the opportunity to become a part of a franchising venture in a much more flexible way. Entrepreneurs can reap the benefits of having a franchise without having to deal with the red tape.
What is quasi-franchising?
Simply put, quasi-franchising is a stripped down version of the franchise model. The business systems, marketing and other components remain completely intact. The quasi component comes in on the operations level. The owners are permitted to handle certain aspects of business on the local level. The managers are able to address the operations issues internally.
How does this form of franchising work?
The corporate structure is used as the framework for the business. The corporate structure acts as a safety net for the business. Depending on the franchisor, a group of decisions will be left to the owners. Décor may be a decision that is left to the franchisees. The business model resembles the typical turnkey operation. The fees must still be paid to the franchise periodically as with any other franchise opportunity. All of the back-of-the-house systems are available to the company and fully supported.
What are the advantages of a quasi-franchising model?
The top advantage to having this sort of model is that the owners get more latitude in their decision making. Empowering them with the ability to make their own decisions on a local level makes them much more effective in customer relations and internal matters. Providing this level of flexibility on the local level also gives owners a chance to be more responsive. In leaving certain matters to be handled on a local level, decisions and solutions can be implemented much quicker. This also offers a much more personal feel with customers. This presents a mom and pop feel and makes customers feel more connected to the brand. This model makes it possible for the business owner to create the brand that better reflects their identity. The state licensing requirements are lax because they aren’t required for each state. The group health plan benefits can be much more affordable because of the pricing available to larger groups.
Franchisees can enjoy more freedom in their branding while being supported by tested and proven corporate structures. Companies can increase their opportunities to expand across many states without having to contend with a lot of red tape. After making an initial investment, the owner participates in a turnkey management style business system.
Jonah Engler is a NYC based entrepreneur who owns and operates franchises in the Tri-State area – and understands the value in allowing franchisees to have freedom in branding their business.
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