Financial expert Jonah Engler highlights the future of the Franchising industry.

1. Quasi-Franchise: The Future
of Franchising

2. Quasi-franchising is a relatively new type of business model. The model
gives aspiring business owners the opportunity to become a part of a
franchising venture in a much more flexible way. Entrepreneurs can
reap the benefits of having a franchise without having to deal with the
red tape.

3. What is quasi-franchising?
Simply put, quasi-franchising is a stripped down version of the
franchise model. The business systems, marketing and other
components remain completely intact. The quasi component comes in
on the operations level. The owners are permitted to handle certain
aspects of business on the local level. The managers are able to address
the operations issues internally.

4. How does this form of franchising work?
The corporate structure is used as the framework for the business. The
corporate structure acts as a safety net for the business. Depending on
the franchisor, a group of decisions will be left to the owners. Décor
may be a decision that is left to the franchisees. The business model
resembles the typical turnkey operation. The fees must still be paid to
the franchise periodically as with any other franchise opportunity. All of
the back-of-the-house systems are available to the company and fully
supported.

5. What are the advantages of a quasi-franchising model?
The top advantage to having this sort of model is that the owners get
more latitude in their decision making. Empowering them with the
ability to make their own decisions on a local level makes them much
more effective in customer relations and internal matters. Providing
this level of flexibility on the local level also gives owners a chance to
be more responsive. In leaving certain matters to be handled on a local
level, decisions and solutions can be implemented much quicker. This
also offers a much more personal feel with customers. This presents a
mom and pop feel and makes customers feel more connected to the
brand. This model makes it possible for the business owner to create
the brand that better reflects their identity. The state licensing
requirements are lax because they aren’t required for each state. The
group health plan benefits can be much more affordable because of
the pricing available to larger groups.

6. Franchisees can enjoy more freedom in their branding while being
supported by tested and proven corporate structures. Companies can
increase their opportunities to expand across many states without
having to contend with a lot of red tape. After making an initial
investment, the owner participates in a turnkey management style
business system.

7. Jonah Engler is a NYC based entrepreneur who owns and operates
franchises in the Tri-State area – and understands the value in allowing
franchisees to have freedom in branding their business.