Thursday, November 8, 2007

No Easy Answer

As a boy I recall my dad speaking about the then new "Chain" restaurants popping up all over. He was a private owner of several small businesses, a few which were restaurants, but he held his head high while he maintained his success.

It all started nearly a century ago, but the Franchise boom exploded in the 60's with McDonalds taking the lead. While it use to be primarily fast food joints, it has trickled into nearly every facet of modern day consumption. Almost every penny we spend as consumers, whether it be the gas we put in our cars or the junk we put in our mouths, is related to Franchise's.

Although, while there are still the few Mom and Pop country stores across mostly rural America and private individuals do still have some hold on small business, we are ruled by these giants. The little neighborhood stores that helped build this country struggle and dwindle in numbers while the Franchise industry continues to dominate and grow.

I agree that NASCAR's future is nearing a financial crisis. The "little guy" hardly stands a chance. Look at what we're seeing already... 3 teams from a 4 team owner in the Chase and it's possible it could be a 1, 2, 3 punch. I'm talking about Hendrick of course, Gordon, Johnson and Kyle Busch. Yes these guys are good, but they also have a huge advantage over many because of the mighty $$$.

So the question is... Is Franchising the way to go for NASCAR?? Will this level the playing field or will one Franchise be stronger than another? Say goodbye to the Robby Gordon's and say hello to corporate redundancy.

I do wish there were an easy answer, but there's not and the problem will only fester and eventually infect unless some genius comes up with a viable solution.


vroom said...

FranceCar's future is a scary thought...

Nascar and the Canadian Curmudgeon said...

They have painted themselves into a box...franchising will more than likely happen...Nascar has a tiger by the tail at the moment .. and I don't think the leadership can handle it...unless someone strong steps in.. it could turn into a can of worms

Charlie said...

I am willing to wait and see. Maybe franchising would help to level the field. Just looking at NASCAR, I don't see franchising being the way this will evolve. It may actually end up worse, with a few conglomerates with huge dollars controling more than a franchise holder would.

marc said...

"So the question is... Is Franchising the way to go for NASCAR??

Well, if the answer can be found by example... then look at the NFL, MLB and the NBA.

All operate under the franchise system.

And all three have decades long losing teams that are part of their leagues. Teams that are so mis-managed they couldn't win if given a 3 inning head start or played 5 quarters to their opponents 4.

It's not the business model that will solve NASCAR problems, their may be a valid answer but it sure isn't franchising.

RevJim said...

I have heard that a NASCAR franchise, if that were to become the system, would cost close to $80 million. That seems pretty high to me, and it would mean only a few teams for the entire series. It suprises me that Richard Petty is one of the strongest proponents for franchising.

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