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Originally Posted by Wynwood Do you think franchisees pay the same price as the franchisor? Not in any franchise model I've seen. If you believe that, go talk to a Quizno's franchisee.
A better comparison would be in the hair cutting business. Do you think an independent hair salon is at a competitive disadvantage to Great Clips because they have 5000 salons?
My point is that the Blockbuster/Hollywood rollup has little to do with the problems in this industry. Totally different scenarios and challenges. The chains face the same problems we all do and getting a 10% better deal on lotions isn't going to overcome a government that wants to destroy our industry. |
Yes, large chains have several distinct advantages; 1) name recognition,2) buying power, 3)economy of scale, 4) friends in high places.
I can explain them in more detail if you want, but they are significant, and people complain on this site everyday about a big chain that is threatening them somewhere in the US. Are all of these owners mistaken?