The events in the movie The Bourne Legacy have some similarities to what can sometimes happen among and to franchise systems. Like the “Treadstone” organization, franchise systems/chains are only as strong as each of their links. When a link is broken, it can threaten the entire chain.
In response to last week’s post, I received a question about whether “Big Mac” provisions do, or should, build in compensation for the franchisee who creates a new innovation. I have seen this happen on rare occasions, but in my opinion it’s a bad idea because it discourages positive system change.
Big box retailer Best Buy is closing 50 large format stores and opening 100 smaller ones to respond to changing consumer tastes. Best Buy’s experience is an excellent lesson for franchisors in demonstrating how systems must evolve to survive.