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A New Business Model: Unfranchise
Meizi Li
AMM101
Mr. M. Lipitz, Instructor
November 11, 2008
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Meizi Li
AMM101(M/W)
Mr. M. Lipitz. Instructor
November 11, 2008
A New Business Model: Unfranchise
In a sharp economic downturn, fewer people are in the mood to
indulge. On Monday, the chain reported net income dropped 97 percent, capping a
turbulent year in which the company tried to get ahead of the economic slowdown by
closing stores and laying off employees. For its entire 2008 fiscal year, Starbucks
announced that net income fell to $315.5 million for the year, from $672.6 million
during 2007 on revenue of $10.38 billion(NYtimes). Although many Starbucks stores
are owned by the company, but Starbucks is also a franchise like SUBWAY,
McDonald’s. The reflection of the report above from NewYorkTimes is not only the
challenging of the business in the economic depression, but also the big possibility to
be unemployment and risky of start a business in the economic depression. Even if in
the bank industry, where people think is good place to work in, people starting losing
their jobs. Sara Kershaw reported: since August, banks worldwide have announced
plans to eliminate as many as 65,000 jobs. Many losing their jobs now have lived
through other crises on Wall Street — the 1987 market crash, the widespread layoffs
of the early 1990s and the financial upheaval of 1998. When people loss their jobs, or
feel stressful from their jobs, people might think about start their own business due to
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it is easy to start-up and closure, and be pride of ownership, retention of all profits,
flexibility of being your own boss, and no special taxes(Business, 9th edition).
However, because of the lack of money and limited management skills, choosing a
Franchise is better than start a new business alone. However, like it has been
mentioned above, the economic depression is washing out many franchise stores. In
the moment of the helpless in the economic downsize, a new business model called
Unfranchise came out to the world and give a crack of sunlight to the people who are
in the darkness of the economic.
What is an Unfranchise business？
Unfranchise is Market America’s vision and strength derives from the
solid foundation of the Unfranchise business development systems. This system provides
the benefits and support of franchising without the weaknesses like fees, monthly
royalties and territorial restrictions. It is systemization, standardization and uniformity
like franchising, meanwhile, it offers merchandising and marketing tools, you can have
multiple business locations, it has minimal startup costs $99.99 which is affordable for
most of people and makes little risks. According to the “What is an Unfranchise
Business” it says
From their first day in the business, Distributors are equipped with a detailed plan of action,
Custom Web Portal, and valuable tools, reports, and services through the UnFranchise
Management System. Market America provides the products and services, creates the
marketing materials, and handles the shipping and distribution. Ninety percent of the
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administrative and operational aspects of an UnFranchise Business are handled by the
company. This allows the Distributor to concentrate on customer satisfaction.
Why People Choose UnFranchise Business?
In one’s life, people generally work for 45 years until the retirement.
Nobody these days still believes in the old job for life of yesteryear, but it is
astounding how many people still believe that there is more security working for
someone else than starting up in business for yourself. Without even realizing it, most
people set off on the 45 Year Plan, also now commonly known as the Employment
Trap. This is where you leave full time education, get a good job, peak at 35 and then
work with no real increase in income until retirement. Even if you manage to achieve
this very ambitious plan you still eventually end up at retirement with the equivalent
income that you were earning at age 18! This is also assuming you have a very good
pension. People are generally living longer than ever before and many of us are
expecting to have as much as 25+ years of retirement. Some people are earning a lot
of money, but they don’t have free time like lawyers and doctors. But no matter how
much you earned monthly when you work, your retirement would not be how much
money you used to get. UnFranchise business provide a 2-3 Year Plan which ensure
your success in 2-3 years. When you retired you can keep earning those amount of
money up to $3,600 per week per store and it can keep forever.
What differences between Unfranchise and Franchise
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People like compare anything new to that something they already
familiar with. People like use a reference point. If you ask what is Market America
like, it is really doesn’t like anything else. James H. Ridinger, the president and chief
executive officer of market America says: “It is revolution of new business model” If
it has to be compare with anything, it would like to be compare with franchise,
because it has certain similarities but at meantime some differences make some much
more powerful than franchising. Most people would agree that franchising works, it’s
800 billion dollars model, and one out of three purchases are from franchise. Dr. W.
Edwards Deming is most credit Japanese post work technology logical and
manufacturing revolution. Systems under which people work account 95% of all areas
value. Therefore, the key the excellence is perfect the system. Kemmons
Wilson(hollyland) Ray Kroc(McDonald’s) name of the teaching and use them for the
model of the franchise industry. Unfranchise uses the same systemization uniformly
that character franchise. But unfranchise limited the weakness; that’s why Market
America call themself the unfranchise. While franchising work, give an example:
every small town has mom and pup restaurant that makes best hamburger and stack
fries in town. Mom and pup work themselves in the bone. Meanwhile, there is another
guy in the town who never know how to cook a hamburger, he never cooked a
hamburger in his life, he is making 100,000.00dollars a year because he bought a
system called McDonal’s. Market America do the exactly the same thing, but they
don’t charge 140,000 dollars upper to million dollars, they charge $99.99. They don’t
charge a monthly loyalty of amount 10%, instead they do the reverse, they pay
unfrancisee a weekly commission check of business you developed. With unfranchise,
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you don’t have to be in the store for 40-60 hours a week. You can do your business in
your home. You don’t need overhead the store front, you don’t have territorial
limitation, they just don’t need them. Lot of people think they have McDonald’s they
can make unlimited income. However, not be the further of the truth, it is limited.
There is so much trafit in a single location. Now the franchise order, the graph watch
the numbers very carefully, and they say to against the limitation, they open another
franchise under territory limit. Like say 2 miles down the road. Never see that happen?
You might have the first option, but it cost another 5 thousand dollars to get that
franchise. Unfortunately, the second franchise doesn’t cut in the first one’s business,
and even if you do have multiple franchises, you start yourself in.
In contract, with market America, when you successfully built your
first franchise, you get the second one free. What is more amazing is the second one
help support the secure of the income of first one. And each section unfranchise you
built supports and secures the income of the previous one. JR said:“The most
remarkable system depregation ever created”. So unfranchise system revise each
distributor anything they need to be successful. They support many kinds of tools,
sales tools you can ever imagine. Market America have required something there is
reason for. Market America don’t want to people do this by trailer, the company want
the distributors be success, so require them just like every franchise requires people to
do things certain way. Everything systemize and standardize has building message that
is uniformed. Such as basic five, when Market America show you the fundamental of
business, they formatting and showing the opportunity. With something they call stepby-step to make sure everything covered to make sure the organization grow. Market
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America want to take trial and error out of it. “We take the gas work out of it. We
provide the trail and prove . we provide the professional supporter to the field”. You
also have the experience team of managers working with you than have financial
interest in your success. Everything systemized, tenderized uniform, just like
McDonalds, all you want to do is plug in to the system and be coachable, then you will
success.
In conclusion, within the unstable work environment and economic
depression, there is no better way to concern start a new plan for your career life. You
might have many choices and consider starting your own business. However, it would
be extremely difficult to start anything new in the economic depression. There is this
kind of business new model called “UnFranchise” that need people testify it. It is new
business model, and few people are doing it. It is similar with Franchise, however, it
does not need a physical place for sale or work, and it does not have expensive loyalty
like Franchise do. It has some requirement just like some franchise require people do
in certain way.
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Bibliography

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s%202008&st=cse

Roha, Ronaleen R., and Marc L. Schulhof. "Making it, franchise style."
Kiplinger's Personal Finance Magazine 50, no. 7 (July 1996): 71. Academic
Search Premier, EBSCOhost (accessed November 12, 2008).

"Starbucks Upgrade." China Today 54, no. 2 (February 2005): 21-21. Academic
Search Premier, EBSCOhost (accessed November 12, 2008).

Ridinger, James H. “New vision-solid foundation” MarketAmerica Annual
Report (2007):

Kershaw, Sara. “Wall Street Exodus: Fear, Panic and Anger” New York Times
Newspaper, (May 2008): Business, retrieved November 12, 2008 from
http://www.nytimes.com/2008/05/25/business/25pain.html

“What is UnFranchise Business?” retrieved November 12, 2008 from
http://www.marketamerica.com/index.cfm?action=services.wpCorpBiz