Franchising
topic on 6 shows · 13 statements across 10 episodes
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the Knowledge Project 
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How I Built This
13 statements about Franchising, every show
Huang: Seagrass Pottery cannot reach $1B scale without franchising locations
“I don't think, I cannot imagine a world where, and I'm not saying this is your end result that you want, but I can't imagine seagrass pottery being a billion dollar business if you don't scale the physical locations via franchising.”
Franchising builds company value by using franchisee capital to scale proprietary IP
“If you want to build a company that's worth a lot of money, Franchising is a way to build it, and it's primarily the growth of the company is funded by other people. It's funded by the franchisee, and as long as I could control all the intellectual property an…”
Franchising requires managing inherent tension over franchisor fees versus franchisee profits
“Franchising isn't just about the food or the product in as much as it's about relationship management. You're managing the relationship with the franchisee and the franchisor, and the franchisee believes that they've invested all this money, and you get your m…”
Webb: Hybrid franchise and company-owned models create competing organizational needs
“I wouldn't recommend it, what, the way we did it, because what we did was, like, we were basically now running two different organizations. One was, like, franchise, and one was company owned, and so the needs of those two stores were quite different, and mana…”
Franchises account for 8% of US retail businesses but 40% of revenue
“The little known fact is, is that franchising only makes up eight percent of retail businesses in America, only eight percent. But They produce 40% of the revenue.”
Rose: US franchise industry generates over $800B annually
“You've heard of franchising. It does over eight hundred billion dollars domestically every year.”
Rose: Employee turnover is the biggest problem in franchising
“You know, the biggest problem in franchising is employee turnover, and it makes sense because there's no upward mobility and there's no benefits.”
Rose: Franchising employs over 9 million people across 800,000 locations
“And you know, it's a massive part of the economy employs almost over nine million people. It's over 800,000 locations.”
Sam Lessin: Slow Ventures Is Actively Backing New Franchise Models
“Franchise models, which historically VCs hate, we've started doing a bunch of them, right? And financing interesting new franchising models are really cool”
Orfalea: Franchisors and franchisees are just people flipping each other off
“Franchisees and franchisors are two people flipping each other off all the time. In other words, if I told the franchisee to do something, they would say, well, he's not, his motivation isn't cure. He just wants more six percent from the top.”
Franchising is essentially a capital-free financing tool for rapid growth
“The way to grow a business without capital is through franchising. Franchising is really a financing tool.”
Cole: US franchise law prohibits franchisors from mandating retail prices in most cases
“And oh, by the way, and franchising in the United States, in most cases, it is illegal to mandate pricing.”