Questions about defining a small business or locally owned enterprise.

We all know about the chains and how they have sucked the life out of so many of our towns and small cities...

So what I want to know, is how do people feel about franchises.

A lot of these are owned and operated by local investors even though they are affiliated with a large chain.

Now I am not talking about the Big Franchises like McDonald's or Burger King because most of those are now owned and operated by a corporation that owns dozens if not hundreds of locations.

But what about the Subway, or the Caribou Coffee shop.

There are a lot of small business people who own and operate a franchise of one or another.

Anyway, I don't often eat at the fast food chains but I do love to grab a donut at the Duncan Donut. The one I go to is owned and operated by an Indian Couple. They are there all the time, working their buts off I imagine so their kids can go to college.

So I consider that a small business that is locally owned.

It's so hard to find an actual business that is compete ly owned and operated locally outside of a restaurant.

Just curious.

Buying supplements at Vitamin Shoppe is visiting a franchise. Buying them at Midland Park Health Food Store is a local business.

They pay a percentage of sales to a corporation for branding, marketing, group buying power, etc., but they are local businesses.

Every one I know and I literally know hundreds. Do you know any franchisees?

bankruptcy.

Your one story is not the norm.

I gave several examples and you said it referring to which one I did not know.

Subway is a good example.

The owner gets name recognition and national ads and in return he has to pay a franchise fee and comply with corporate standards.

Do you ever wonder if it has anything to do with the
fact that The Carlyle Group owns Dunkin Donuts?

Do they find owners for the shops?

What is the mechanism behind the so many Indian-owned Dunkin Donuts?

Just curious.

They often invest their life savings and blood, sweat and tears in the success of their business. They pay start up fees and royalties to their franchisor and contribute to national marketing campaigns, but they are definitely small business owners in your community worthy of support.

If you're concerned about whether the money stays local, more of it does than a national chain, but less of it than a business that's completely local. Most franchises have ongoing costs as well as the buy-in, that go to corporate headquarters. I don't know how much.

If, on the other hand, you're concerned about the cultural influence, then franchises are corporate colonialism, and usually replace the diversity of local businesses with standardized products and recipes. In addition they often have more controlling policies regarding their relationship to the community, because of having to meet franchise standards.

As far as taste, I always prefer food designed by an individual over that designed by a committee, but that's because incompetent individuals don't get to keep restaurants for very long. In addition, I don't WANT to calibrate my taste to corporate food. I already know it's skillfully designed to be addictive.

Finding local businesses depends on where you live. Within fifteen miles of where I live, I can get groceries, clothes, shoes, computers, furniture, hardware, tools, building supplies, electronic music gear, bicycles and parts, cookware, books, CDs, art, ... hell, there's locally owned businesses that import machine tools from China, that build canoes and kayaks, that build giant backup power supplies for computer networks, and that make prosthetics. I can even get dried bull penises for dog chews or walking sticks.

I can't get car parts except from a chain. I can't get local internet any more. I can't get gasoline except from a franchise. I can't get utilities. That's about it.

And there are few local manufacturers. Some plastics, some sports gear, some vitamins, guitar makers, etc. but I can't get a computer built locally, or an appliance of any sort, or all kinds of other stuff. So even the locally owned stores are getting stuff from elsewhere.