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Old 08-03-2014, 04:25 PM   #41 (permalink)
peach
 
Join Date: Mar 18 2005
Location: GA
Posts: 1,153
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Re: Anyone use SMU Consulting to start up?

Quote:
Originally Posted by Wynwood View Post
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?
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