1. #2251

    Join Date
    Oct 2008
    Location
    Ottawa
    Posts
    46
    Style
    ex-fsd
    1
    Hell yeah! Hell no!
    Quote Originally Posted by andrewa View Post
    It actually makes a lot of business sense to consolidate their efforts into less schools. In fact a lot of franchises do this.
    That's true only if the "head office" owns the locations. A franchise is independently owned and head office receives revenue from the owner based upon the franchisee contract; usually an up-front lump sum to start and some kind of volume based revenue arrangement. Fewer active franchises equals less revenue.

  2. #2252

    Join Date
    Mar 2006
    Location
    Canada
    Posts
    582
    Style
    Grappling/BJJ
    --
    Hell yeah! Hell no!
    And I understand that. But sometimes when franchises aren't doing well the head office reduces the number to focus their efforts on the strongest performing locations. The old Country Style donut franchise did this back in the 90's.

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