Third wave franchising techniques can benefit many types of companies operating in many different kinds of industries. We are currently applying such techniques in both Fortune 100 industrial corporations and with start-up retail franchisors operating under business format franchising rules.
Can third wave franchising help your company achieve its goals? The answer lies in such factors as the nature of a company's distribution system, where it wants to put its capital and its preferred operating style or culture.
      Third wave techniques are particularly appropriate for companies in transition: companies which have downsized and are trying to become "lean and mean;" companies that seek to increase productivity, improve reaction time and become more entrepreneurial. And, of course, for companies which need to grow and compete more effectively in a global marketplace.
Companies with existing licensing, distributorship and franchise programs may also be able to benefit from re-engineering using third wave franchising techniques.
      A few third wave strategies that are applicable to many kinds of businesses are briefly described below.

Value-Engineered Royalty Structures
Traditional "percentage-of-sales" franchise royalty formats often create barriers that seriously constrain franchise sales and cause ongoing "what have you done for me lately" franchise management problems. In many cases, however, other royalty structures may be more appropriate. Value-engineered royalty designs can often be made virtually transparent to the franchisee, resulting in:

•      Increased franchise sales
•      Improved royalty collections
•      A more motivated franchise system
•      Improved franchise relationships.

Licensing Wholesalers and Distributors as Co-Franchisors
Co-franchising and master licensing can be attractive forms of alliance between a company and key wholesalers/distributors. This alliance structure can be highly beneficial for all parties. It can, for example:

•      Tap the entrepreneurial energy of proven partners
•      Provide regional settings to prototype and test franchise offerings before large-scale rollouts
•      Cement relationships with strongest distribution partners
•      Generate growth without significant head count and overhead      increases
•      Improve accountability and ability to effect quality standards.

Converting Existing Wholesalers/Retailers into Franchisees
Franchising can be superior to many existing forms of relationship between a company and independent wholesalers/retailers. It can, for example:

•      Increase accountability and control over the relationship
•      Better align incentives throughout the distribution system
•      Improve overall market penetration and competitiveness
•      Improve consumer quality perceptions at retail
•      Provide a predictable royalty revenue stream.

Spinning off Acquisitions as Franchises
Although acquisition is often an attractive and necessary growth strategy, assimilating acquisitions and obtaining adequate returns on capital can be a challenging, long term process. By breaking up an acquisition into territorial units and packaging them as turnkey spinoff franchise businesses, a number of benefits can be achieved, including:

•      Increased asset values
•      Short-term returns on capital invested
•      Rapid recycling of acquisition capital
•      Minimal head count and overhead required to manage the ongoing  royalty revenue stream.

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Eggs and fractals come in almost infinite variety, yet their functions remain the same: growth. Much like franchises. Third wave franchising techniques can be useful growth tools for many different kinds of companies.