Franchise owners are almost always cheap because they only give a shit about their individual store, and not the brand.Originally Posted by Sanlmar
This is why In-N-Out owns so hard in California. They have no franchised units. They assert very tough standards upon each location. They overpay everyone, but will fire any employee who even shows the slightest sign of being lousy. They make bank, because people have learned to expect quality and excellent service.
The typical franchisee buys a known brand with dollar signs in his eyes, assuming that name recognition will be a free ticket to easy money rolling in. Then reality sets in.
He has so many expenses, much of which goes to the corporation, that it's often tough to make any kind of profit. This sometimes leads to the owner himself working as manager (thus cutting out one salary, and sometimes making the difference between being profitable and not profitable).
There are countless stories of franchise owners being laughably cheap with napkins, ketchups, and other mainstays of fast food which most people assume to be unlimited and easy to acquire for the customer.
My legendary tomatoes on the side story at Subway? That was a franchise (as are almost all Subways).
Franchise owners are also incredibly short-sighted. They will usually save a penny now, even if it means costing themselves ten dollars down the line. They don't think long term. When Willie asks for his $6 back, along with further concessions, the owner will likely see money out of his pocket rather than perhaps earning a customer for life.
Franchise owners also often suffer from "King of the Castle" syndrome -- where asserting power becomes more important than making money, even if the business is struggling. Of course, they don't believe their power trips are costing them money, but instead rationalize to themselves why it is so important to assert the power they think they have. Sometimes this is a defense mechanism to the business struggling. "I may be losing money here, but at least nobody is going to tell me what to do in my own restaurant!"
Corporate tends to be very different. They care about the brand. They don't pinch pennies on inexpensive, individual items such as napkins and ketchups.
Or, simply put:
Franchise owner: "I don't want to give Willie money out of my pocket, and I'm not sure I even want a guy like him as a customer in the future."
Corporate: "Giving Willie his money back and some gift cards will restore Willie's faith in the Arby's brand, and it will make him more likely to visit Arby's all over the country for the rest of his life."
If you ever have a choice between a franchised chain and a corporate chain of the same type, always go corporate.
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