What Does Your Franchise Fee Pay For? Work Levels 5, 4, and 3

By Michelle Malay Carter on October 18, 2009 

The franchise model has been responsible for many an American dream (insert your country here as well).? And what are you buying when you purchase a franchise?

A Single Franchise Unit Can Be Managed at Level Two
Franchising allows someone currently capable of level 2 work to run an effective business by “outsourcing” the higher level work.?

What is Level Two Work?
Level 2 work consists of day to day operations, dealing with customers, scheduling and training staff, and this is the accountability of the franchise owner.

When you consider that Elliott Jaques, the father of the Requisite Organization model, estimated that only 10% of the world’s adult?population has capability at level three or higher, the franchise model allows a large percentage of people to complement their natural gifts in a way that allows them to earn a generous living for themselves and their families.

Da, da, da, da, daaaa.? I’m lovin’ it.

Filed Under Organization Design, Requisite Organization, Strategy, Talent Management, Work Levels


2 Responses to “What Does Your Franchise Fee Pay For? Work Levels 5, 4, and 3”

  1. Forrest Christian on October 19th, 2009 12:49 pm

    Surely with populations that are older there are greater numbers of higher level capable people? That 10% being capable at level three seems a bit dynamical.One would expect that a larger percentage of, say, Japan (with a mean age of 44) than in Iraq (mean age of 22).

  2. Michelle Malay Carter on October 19th, 2009 12:57 pm

    Hi Forrest,

    Yes, I agree. I’ve always thought that percentage seemed low, but those were the estimates Elliott gave.