Consultancy Report

for

Quickest Deliveries

Jointly Prepared by Independent Analysts:

Jatin Mittal (34097953)

Gloria Manuel (34367829)

Atul Gangia (33994889)

Sameer Master (33645868)

Ho Ting Chan - Michael (34331379)

Abdelwahab Soliman (34333266)

 Executive Summary
Purpose How the questions were answered

Organisational Structure We propose that a tall, hierarchical one, which is split into different sub-departments
(Marketing, HR).

Operations Core practices include parcel delivery and courier service, with potential for
conglomerate expansion such as foreign exchange services and insurance

Recruitment & Training It is suggested that employment prospects be more flexible with personnel, and that
QD adopts a geographic quadrant model, and the stages of the change are
described. An outline of provided training is also provided.

Support End of the month meetings with the franchisees and a digital platform, in which the
franchisees can share ideas and concerns are also suggested. In addition to that, as
a competitive strategy, a loyalty programme should be introduced.

Financials It is recommended that the franchisor suggests receiving loans from banks they have
established relationships with. The royalty payments should be fixed at 5% of the
franchisee’s profits.

Territory Allocation and It is suggested that franchisees have the freedom to branch out across multiple
Franchise Agreement geographical locations. Alongside that, it is recommended that a 3-7 year franchise
contract is the best option for QD.

Challenges The challenges QD faces internally and externally, and how to mitigate them are
outlined in the report.

2
 `

TABLE OF CONTENT
Table of content

3
 Introduction
Within the delivery and parcel industry, Quickest Deliveries biggest competitors, Royal
Mail owns 47% of the total market share within the UK. Hermes, on the other hand, is
the second biggest competitor by holding 11% of UK’s total market share within the
industry and Yodel, their third competitor with 8% shares. They contributed £9.7bn to the
industry in 2016 which was 9.7% higher than 2015. This shows the existence of potential
growth within the delivering and parcel industry as well as Quickest Deliveries chances
of growing.

The recommendations mentioned are designed to contribute to the growth and

improvement of QD. Thus, we will first suggest an organisation structure for Quickest
Deliveries as they do not currently have one. Then will be looking at the main activities
between the franchisor and franchisee as well as how QD can improve its existing
recruitment process and training programme for franchisees. Next, it will look at the
support that QD as a franchisor can provide to their franchisee in order to maximise
productivity. We will also analyse the financial aspect of the company. Followed by an
assessment of the territory allocation and franchise agreement. Lastly, we will be looking
at the challenges that they might face in the future, as they could then prepare in
advance and minimise the harmful and risks of failing.

This report aims to develop a feasible strategy that will enable QD to achieve their
growth and development objectives related to all the points mentioned
above.

4
 1- Organisational Structure

1.1- Adaptation of existing organisational

Currently, at QD’s there exists a flat organisational
structure
structure which has few levels of hierarchy.
According to the smallbusiness.com, businesses
Lines of communication are short, making the firm
should maintain a specific structure or else
responsive to change. A wide span of control means
employees may easily get drifted away with the
that tasks must be delegated, and managers can feel
absence of a chain of command. The
overstretched. In this case, the 35 staff have a lot of
responsibility of each employee may also be
work and it is not feasible. It is also very centralised
misunderstood through lack of delegation and
where the 3 partners have a majority of the
target setting. Therefore, Quickest Deliveries
decision-making power and it is not known how well
should design and implement its own
equipped they are to make these decisions
organisational structure and dedicate
responsibility to each employee. At QD, there is
We propose a tall hierarchical structure whereby there
currently no formal organisational structure in
shall be many levels of hierarchy. The span of control is
place. As a growing company currently holding 60
narrow and there are opportunities for promotion.
franchise outlets with an initial plan to expand it
Drawing upon the suggestion above the following formal
further to 115 territories across the UK, it is
organisational structure is recommended for QD’s head
evident to implement a formal organisational
office under which four managers are structured at the
structure which will further help in assigning
top, each of them accountable for efficiently managing
accountability, empower employees to make
the functional area allocated based upon their field of
decisions, control business process efficiently and
expertise. Through implementing this structure, job
above all to deliver on promises.
classification of each employee can be well defined
hence enabling them to rapidly respond to opportunities
All the current 35 employees working on various
and threat at the business level further helping to cut
roles with no clear hierarchical reporting line make
down the duplication of work.
it difficult for an employee to know who they
officially report to in different situation making it
unclear who has final accountability for what.
Under the formal organisational structure, a
Functional structure is recommended for QD’s
Headquarters. It will help to group people for the
specific function with expertise in the desired field,
further clarity in whom to report.Implementation of
a Functional structure at QD can dramatically help
in increase of work productivity. 5
 Organisational Structure

1.2- Roles allocation

Role of existing staff members should change

drastically under the new suggested organizational
structure. Earlier all the employees were assigned to
various roles with no particular field of expertise.
Under the new structure four senior and experienced
staff members to be promoted to managers. Each
Manager (A, B, C & D) will be held accountable for
specific function.

Managers will also be responsible to work along with

all the employees at lower segment to achieve
desired business goals. It will set the clear chain of
hierarchy in the organisation. We propose Pam
retains her executive powers in the form of being a
Chief Executive Officer (C.E.O) for the company.

However, Brian and Mel establish new executive

positions taking the roles of Chief Financial Officer
(C.F.O) and Chief Operations Officer (C.O.O)
respectively. Brian (C.F.O) is responsible for looking
after Mangers A and B whose works include
Marketing and Finance respectively. Mel (C.O.O) is
solely responsible for manager’s C and D whose job
roles include International/National Operations and
Human Resources (H.R).

We strongly recommend QD to stick with the number

of employees they currently have i.e. 35, therefore
enhancing the chances of internal promotions and
minimized cost on recruitment and training which
would result in increased morale amongst staff for
effective and efficient results.

6

2.1- Main Operational Activities of
Franchise
At QD core operational activities include parcel
delivery and courier services which accounts for a
major proportion of total revenue, we mark this under
the bracket of ‘business model at risk’ considering the
volatility of return on investment caused due to
geopolitical tensions that occurred in the region (i.e.
Brexit). It is advisable for QD to adopt parts of growth
and expansion through conglomerate expansion,
including insurance products such as travel &
providing foreign currency exchange services to its
client base through a network of franchisees. This
conglomerate diversification of business operations
will help QD to reach its long-term financial goals
while minimizing risk. It must be noted that the
operational activities for each franchise have a
degree of tailoring to its customers as we have
recommended these locations to be split into
geographic quadrants of north, east, south and west.
2.2- Standardisation and adaptation
Standardisation Adaptation
Means of transport Payment methods
Price Promotional offers
Uniform Employee contracts
Training Foreign currency exchange
services
Financial Accounts Working hours
Insurance Policy
7 financial payments without any hassle or delay.
2- Operations
Standardisation
Means of transport: we would require franchisees to
use a hybrid or electric vehicle to be in line with
ethical standard and uphold corporate social
responsibility. This would also give a competitive
edge in terms of being environmentally friendly and
avoiding bad PR from pressure groups.
Price: we Recommend keeping price points the same
across all regions domestically, however, the
international deliveries should fall in line or slightly
below, their respective national rivals
Uniforms should be consistent as this is a symbol of
the business and a use of both conscious &
non-conscious promotion
Training should be consistent as we want all workers
to have a competent skill set in order to meet client’s
needs and uphold QD’s high standards of service
across all regions.
Accounting policy should be consistent to be true
and fair and report with transparency to stakeholders
of QD, e.g owners, government and suppliers
Insurance policy - There should be uniformity in
delivery insurance all over QD’s as delivery driver
requires delivery insurance as per the United
Kingdom legislation
Adaptation
Payment methods: we recommend QD’s adopt the
payment methods in respect to the location,
consideration of payment methods i.e Bank transfer
or Apple pay. In highly developed areas/cities such
as London, Birmingham; QD’s should adapt to such
payment methods to facilitate and accommodate the
needs of the customers by enabling easy access to
 Operations
Employment contracts: As this would fit in They should be free to set up these outlets in any
with the divisional structure ethos. Some geographic location as it allows for greater
regions may be heavily populated therefore it diversification of risk on their part. However, it
would be infeasible to have 1 or 2 drivers full could be said there is more risk as if a bad apple
time but rather a group of part-time employees. has 4 outlets that’s 4 bad apples. This, therefore, is
This would, of course, be different for different up to the HR department to recruit effectively.
locations and hence QD’s need to adapt Therefore we recommend them to branch out
according to the respective market in order to
fulfil their objectives in that particular region. A
major benefit of this is motivated staff and lower
employee turnover. promotional
policy - The policy QD should implement in
terms of promotional costs is that the
franchisees are responsible to provide
promotional support for their franchise.
Foreign currency exchange services - We
believe there might be areas which do not
require this particular service, however, on the
contrary, some areas may do; it should be left
on the franchisee if they wish to avail this
particular service to offer to their clients.

2.3- Outlets Distribution

The amount of outlets franchisee should allow
is a maximum of up to 4 in order to prevent
franchisee to have too much power and
authorisation within an organisation. It also
increases consistency across a region and
higher efficiency for the franchisee. On the
other hand, it reduces risks associated with
royalty default, training cost as it is given
non-standardisation of recruitment, and
personal flexibility as staffs may move
personnel freely.
8
 3- Recruitment and training

It is QD’s duty to ensure that their promise of However, for the age, although not compulsory, the
excellence is maintained in their courier business should have a preference for younger
service. Therefore, it is of utmost importance to drivers. Aged between 20-35. The rationale for this
the head office to properly promote, vet, train is that they are presumed to have a longer lifespan
and support applications in order to keep this than older applicants and thus would provide more
consistent as the network of franchise grows. years of service to the company and save on
Part of this is established in our recruitment employee turnover costs. The final benefit of their
manifesto below; youth is that they shall be more receptive to any
3.1- Profile of Franchisee technological changes we may implement now and,

We suggest QD to require the franchisee to have in the future, as they have been exposed and

academic qualifications amounting to a minimum become more adaptive to technological innovations

2:1 degree in a business related course, and/or thus saving time and costs of further training and

have experience in the operating in the courier support

market for a minimum of 2 years. Their age is of

Admin Staff
non-discrimination as we are open to recruiting
ages ranging between 20-65. The finances we We require applicants to have a minimum of 1
require would include the £126,500 for the year of experience in the courier business and or
licensing fee and a minimum of £30,000 needed have a university degree, with a minimum of a 2:2
by the franchisee to serve as a buffer. This is in required for business or IT related courses. The
aid for their ease in establishing themselves in rationale for this is to prove they have the
the market. One thing, however, we require for necessary skills sets and intellect to maintain
both the franchisee and franchisee personnel QD’s high standards of excellence. Finances and
profile would be a clean criminal conviction Age of applicants is an of non-discriminatory note.
record. Their skill set should be tailored to working in a
Franchisee personnel Profile fast-multi-tasking environment. This means key
skills in their CV must include Organisation,
Delivery Drivers
punctual, self-motivated and communication skills.
We suggest applicants to have a minimum of 2
years on their driver’s licence. The licence
should be for manual vehicles which allow the
potential employees to have access to both
automatic and manual vehicles. Finances for
the applicants are non-discriminatory.
9
 Recruitment and training
3.2- Franchisees Recruitment
We would recommend for QD to adopt the
Geographic quadrant model. This model will
divide the market based on four geographic
location i.e North, South, East and West. Each
respective geographic location will be run by its
own Manager namely geographic manager
whom would be answerable to the national
overseer. The national overseer would then
feedback to the HQ of QD where feedback
would flow in a two-way flow of communication
allowing for up to date information in regards to
specific geographic locations.
● Allows for a greater scope of expansion. This is
due to the vastness of the locations we are
expanding into and thus allows QD’s brand name
to become more nationally renowned.
● Give acknowledgement to territory rights. This is
because the likelihood of multiple franchisees
encroaching is greatly reduced given the
expansive model.
● A narrow span of control which reduces the need
for delegation and thus allows employees to take
the work into their own hands.
● Brand awareness
● Maintains a consistent chain of command
between the franchisor and the franchisee, which
allows for clarity should any issues arise.
● Spreads risk. This is due to the possibility of a
particular geographic locations having economic
hardships. Not putting all eggs in 1 basket.
● Convenience for existing and potential
customers, regardless of their location at the time

The main rationale for doing so include:

● Improves response to customer needs. This

is due to the locations being split into 4
parts whereby each geographic locations
needs and wants would have differences
and would want their needs to be
addressed.

10
 Recruitment and training

3.3- Training Provided Initial and Ongoing Training

Given below are the number of training techniques The initial training that the company should
we propose that QD must provide to their franchisees provide are:
based upon the fresh geographic quadrant model ● Customer service
suggested for QD. ● Simulation trials
By adopting the Geographic quadrant model each ● Driving test
geographic location would be run by its geographic ● Machinery training
manager who would then be answerable to the ● Label assortment
national overseer. We propose that the national ● Scanning
overseer be answerable to Mel (C.O.O). Before these ● Health and safety
respective individuals take the managerial position,
they must be made aware of the market, value, The On-going Training that should be provided
products and every aspect of services provided by by the company are:
QD’s. As these are crucial roles we propose that Mel ● Staff quality appraisal every two month
should educate and train the national overseer of ● Pay rise appraisal every half a year
QD’s to the best of her abilities, which can be
achieved through face to face meetings by providing
practical and theoretical training held by Mel. From
this point onwards, we suggest that the national
overseer train the four respective geographic
managers in relation to their roles and duties within
QD’s.

This can be done with national overseer holding

workshops and meetings among their quadrant
managers. This can also be achieved by the national
overseer organising a Learn as you go programme
(LAYGo) for newly appointed frontline managers
which have also been a common method of training
utilised by Royal Mail

11

4.1- Best practices and mechanisms to
improve support and communication As much as face to face in person interaction is
between franchisor and franchisees.
Communication between franchisees and franchisor
should be frequent and without constraints in order to be
effective. Thus, for franchisees to deliver feedback to
franchisors there should also be trust and opportunities
for them to express their ideas. We suggest following 2
practices QD can undertake to enhance feedback
mechanism.
A) End of month meetings
We suggest QD organise “end of month” meetings
between all franchisees and the franchisor whereby they
discuss and explain, if any, progress has been made in
running their outlet. During these discussions, there
should be detailed reports prepared by the management
of each individual franchise of the last
operations. They should have detailed self-assessed
audits whereby they are able to account for any beneficial
progress made and how this may be implemented by
other groups. Also, it must be noted should the franchisor
be wanting to implement any brand changes these should
be noted to the franchisee outlets so there is harmony
between the franchised outlets and those of QD itself.
B) Digital platform
We suggest that QD’s create an online forum so that the
franchisee not only shares ideas with the franchisor but
also with other franchisees, as long as it is not something
confidential that violates the franchisor-franchisee
agreement. Furthermore, with the help of online forum the
franchisees would be able to put on their feedback ideas,
views and concerns conveniently and in a time efficient
manner upon which the franchisor can later take
reasonable and actionable decisions to amend such
concern and build upon the suggested feedback ideas.
4- Support
Recommendation
important, considering today’s digital age we believe in
QD to have its online presence is also vital. We
strongly recommend QD to implement both the
above-suggested mechanisms as part of a single
strategy.
4.2- Strategies for franchisees competitive
edge in their industry
A competitive edge is simply what gives QD an
advantage over its competitors. The focus is one why
customers would choose QD rather than rivals such as
Royal Mail or Hermes.
Loyalty Program
In order to QD’s franchisees have a competitive edge
we recommend QD to develop a 10% off national
month's
delivery membership card, which could cost £20 a
year and a 10% off international membership card,
which could cost £50 a year. Customers can also
benefit from a 500 points free delivery, on each
delivery made by a customer they will collect 50 points
and once they reach 500 points they can get a free
delivery of an item up to 2kg valid for national delivery
services.
Compensation for loss and damage
To have a competitive edge and to stand out in the
market we suggest QD provide customers with
complimentary ‘product delivery insurance’ which will
further help QD to attain trust and healthy relationship
with their customer base, maintaining peace of mind
amongst customers on their delivery. Under the
scheme, QD will compensate for general damage and
loss of the product in the process of being delivered
for up to a maximum of £500 varying upon the weight
12 of the product.

5.1- Initial fee
For Quickest Deliveries, we recommend the initial
fee for every potential franchisee to remain the
same.
● The price is set to be £126,500:
● Franchising fee - £39,500;
● Additional costs for opening outlet - £62,000
● Working capital of approximately £25,000
and a minimum of £50,000 is needed by the
franchisee to serve as a buffer for cash flow
management to be solvent.
5.2- Franchisees’ franchise fund
In order to gather enough capital to open a new
franchise with QD, most franchisees are expected
to fund their franchise with bank loans. QD will
establish favourable terms with banks, which
means they (QD & its franchisees) will receive a
lower interest rate because QD is “repeat
customers’, and have worked with the bank(s)
before. Alternatively, they may use their own
personal capital.
5.3- Royalty payments
The royalty payment for the franchisees to
franchisor is fixed at 5% of the franchisee’s profit
after expenses. We decided that the company
should charge a 5% royalty because this low rate
enables franchisees to retain more profits.
13
5- Financials
We recommend QD to determine royalty payments
on the basis of profit after expenses, rather than
on turnover or sales considering the fact the
turnover and sales are unhinged by the reality of
costs of running the business day to day.
5.4- Other costs
Other than the royalty payment and general set up
cost, there are also external costs that franchisees
need to consider are:
● Cost of opening an outlet; that will be an
approximation of £62,000.
● The total working capital, we recommended
for franchisees to have is an approximation
of £25,000 and a £50,000 cash flow
available in case an issue arises within the
franchise.
● Marketing & promotional costs should also
be considered, and the initial marketing
investment should be approximately
between £20,000 and £70,000.
● Cost of the delivery vehicles
5.5-Vehicles Cost
In terms of transport costs that franchisees need to
consider: if a Nissan E-NV200 van or equivalent is
provided for free, as a “welcome” gift by QD then
franchisees will not incur the buying cost of the
transport, however, they would be expected to pay
for any maintenance and repair costs required.
And if they require a new vehicle in the future, they
ill have to purchase one for themselves, then they
will have to consider the buying cost of the new
vehicle.
 6- Territory allocation and Franchise
Agreement

6.1- Territories allocation 6.2- Duration of the franchise contract

The locations of the franchise model are stated in We would recommend a relatively small

the above geographic quadrant method. This franchise such as QD to opt for a minimum of 3

would work where the franchisor along with the years and a maximum of 7. The minimum

franchisees would set up the appropriate franchise requirement would allow for the franchisee to

locations in specific regions, such as the North. effectively establish itself in the region and gain

There is no quota limit on a number of franchisees customer confidence and in turn, consolidate

that may operate in a specific region as long as QD as a customer favourite for courier and

there is an adequate demand which would be delivery service. The maximum option of 7

researched through the head office. In case of years is used to yield a maximised return from

multiple potential franchisees are wanting the successful franchisees. The maximum term

same specific location, then QD should accept the would not be readily available to new

party with best qualifications and or experience to franchisees, however, but those who have

trade in the location. If a situation arises where the completed a minimum 3-year contract and have

candidates are evenly matched then there would been successful in terms of key factors such as

be a formal interview process whereby candidates profitability and brand awareness.

would be asked to justify their deserving to the

location. This would include a presentation made
by the potential franchisee of their long-term aim
for the location which would include the objectives
they expect to meet in order to achieve this along
with timeframes and costs of such endeavours.
The executives would chair this interview and
make a decision.

We have recommended that franchisees have the

freedom to branch out across multiple geographic
locations to diversify risk based on the
understanding that the management of these
franchisees are skilled and competent which again
is a task for HR recruitment.

14
 7- Challenges
With thousands of business being very keen to
deliver their products in the United Kingdom. The - Proof of delivery alerts
demand for delivery solutions providers has been -Invoices to customers
quite extraordinary. Over the course of business -Black box’s in vans to ensure compliance with laws
QD’s will face a number of expected and and safety
unexpected challenges due to the radical changing
environment and the seemingly unpredictable External Challenges
business world. We aim to highlight possibly the There may be situations which occur whereby QD
key challenges QD’s would face over the course of cannot readily preempt but rather manage
their business. followings its existence. These include;
Political & Legal - QD must be readily available to
Internal Challenges respond to legislative changes made by the
government, these may include a change in the
7.1 -Possible challenges and how to address insurance policy they have on their products. They
● Customer satisfaction and Issue can mitigate this risk through hiring a competent
Management. It is important for QD’s to be legal team to ensure they do not break laws and
transparent in its dealings with its customers hurt their brand image
and to make sure that all parties involved are
on the same page. QD’s offer the fastest
possible delivery services which include
domestic same day and next day courier. As
the business grows this will surely become
one of the crucial challenges faced by QD’s.
As their market supply grows i.e their
customers increase on a large scale there is
a need for B2C companies in our case QD’s ● Economical - QD must be responsive to

to provide feasible offers rather than economic changes. These include slumps and

unrealistic expectations. Examples include; recessions in the economy. There should be

contingency plans available whereby they can
turn to which includes pricing amendments,
effective store closures and planned
redundancies to ensure that QD is both solvent
and liquid during times of financial strain.

15
 Challenges

● Technological - Taking into account today’s

digital age and its importance to sustaining in a
market, courier delivery companies are
underpinned by technology solutions that help
to improve business.Technology is perhaps
one of the key challenges. We propose QD’s to
use Vehicle tracking in terms of estimating the
exact cost of fuel required from point A to B
and quash unwanted movement of vehicles for
no reason, which would, in turn, result in extra
costs. This will also allow the customer to know
in real - time where their goods are exactly
located from the point of order to delivery.

● Environmental/Social - The world is ever

changing as are its inhabitants through their
thought patterns and attitudes towards things.
QD must be prepared to facilitate change which
could be induced through public pressure or
through environmental need. This may include
QD implementing fully electric vehicles and
scrap their hybrid alternatives. QD is
environmentally conscious however so they
already have a head start compared to
competition

16
 Conclusion

To summarise, We feel QD is a brand with enormous

potential for expansion and the franchise model is a viable
option, providing they make astute decisions when it comes
to the technicalities of its growth. In a market with fierce
competition such as Royal Mail, QD must ensure they
stand out to have a unique selling point and competitive
advantage. Based on the analysis in the paper we feel that
having the geographic quadrant model in place for its
franchisees is a rather distinct feature that is more
customer focused and a tailored the service to its specific
market needs. This immediately opens an avenue of free
below the line promotion through positive word of mouth
advertising, whilst increasing QD’s profits with an increase
in repeat customers whom would have become brand loyal
to the business. This will allow QD not only to exist in this
market, but thrive, enabling them to achieve their targeted
expansion number of 115 outlets.

4956 Words

17
 References

Dada, L. (2017) ENSI311: Franchising, Module Handbook 2017-2018 [Accessed: 07/03/2018]

Dawson, C. (2017) Amazon takes major slice out of UK delivery market -

https://tamebay.com/2017/08/amazon-takes-major-slice-uk-delivery-market.html [Accessed:
08/03/2018]

Nissan (2018) The 100% Electric Van: Nissan E-NV200 -

https://www.nissan.co.uk/vehicles/new-vehicles/e-nv200.html [Accessed: 10/03/2018]

Pooler, M (2017) UK parcels market nears £10bn in annual turnover.

https://www.ft.com/content/eb23f45c-f508-11e6-95ee-f14e55513608 [Accessed: 02/03/2018]

Wallis, I. (2013) - Should you franchise? https://startups.co.uk/should-you-franchise/ [Accessed:

01/03/2018]
 This is the end of
our consultancy report

Thank You!
Declaration form
 Minutes of Meeting

Meetings:

1) 9th February, 2018 10:00 – 12:00 – All members attended

2) 16th February, 2018 10:00 – 12:00 – All members attended

3) 22th February, 2018 18:00 – 20:00 – All members attended

4) 1st March, 2018 14:00 – 16:00 – All members attended

5) 2nd March, 2018 12:00 – 16:00 – All members attended

6) 6th March, 2018 18:00 – 20:00 – All members attended

7) 8th March, 2018 18:00 – 20:00 – All members attended

8) 11th March, 2018 15:00 – 20:00 – All members attended

9) 12th March, 2018 13:00 – 17:00 – All members attended

10) 12th March, 2018 18:00 – 22:30 – All members attended

11) 13th March, 2018 09:00 – 11:00 – All members attended

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 Feedback comments

The ideas developed for accomplishing the client's growth ambitions are strong. The report shows
awareness of potential competitors and opportunities in the parcel delivery sector. The style used in
presenting the Executive Summary is original; thus, it is a very good idea to have done this - but
some of the sentences should have been phrased in a better manner.

Although the presentation of the report is very good in most parts, there were several parts with
typos, and these should have been corrected. Also, it would have been better to consistently develop
the justifications for the recommendations clearly. For example, it was recommended
that franchisees should be allowed to have a maximum of four outlets to prevent them from having
too much power. But it is not clear why an organisation where, having too much franchisee power
should be avoided. Another example is, where it was mentioned that franchisees' initial fees should
remain as it is - but there was no justification for why this is optimal.

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