I would think about this issue in terms of the owner’s personality.
For example, franchisors use OPM (other people’s money), and OPT (other people’s talent) to open and operate franchised locations, and they must be comfortable in the role of teacher, mentor, and coach. They must have the interpersonal skills to help others build a business.
On the other hand, if management is less inclined to mentor and teach, and more inclined toward an employer/employee mentality, then perhaps expanding via company owned locations makes more sense.
It is all about one’s approach to business and one’s comfort zone in terms of dealing with people.
By: Nick Bibby AllBusiness.com
FATHER, FRIEND, FRANCHISOR, FRANCHISE CONSULTANT & FEARLESS ADVOCATE
As the longstanding President and CEO of The Franchise Builders and other businesses, I leverage my expertise in franchise consulting, development, marketing and technology to bring an entirely new level of customer experience to the franchise industry. I work with a rare personal involvement that is rooted in the genuine desire to help others succeed.