Does the Asset Light Business Model Work?

Revolts from franchisees in major national franchises open the door for questions about best practices, says Restaurant Business “Bottom Line” columnist and opinions editor Jonathan Maze.

Maze acknowledges that franchising appears as an attractive option to many restaurant owners; the responsibility for building and hiring falls to the franchisee and allows franchisors to focus on brand strategy and development. The trade-off, he notes, can mean an increased risk of brand misalignment and the potential for cultural disconnect between owner-operators, unit employees and corporate decision makers.

Maze points to McDonald’s as a poignant case study. Last month the brand’s franchisees formed the National Operators Association and this month, the McDonald’s corporate office has paused remodeling mandates for some operators “willing to forgo some of the company’s contribution.” Maze calls this “a clear reaction to the franchisee discontent.”

“Franchisees don’t create independent associations if they’re happy,” Maze writes.

Read the full report at Restaurant Business.