The Dark Side of the FoFo Model: A Disadvantage for Employees
The franchise business model has gained significant traction worldwide, offering expansion opportunities for brands without the need for direct investment. One such model is the FoFo (Franchise-Owned, Franchise-Operated) model, where an independent business owner purchases the rights to operate under a well-known brand name. While this structure benefits corporations and franchise owners, it often leaves employees in a vulnerable position, especially when disputes arise over salaries, incentives, or unfair treatment. What is the FoFo Model? In a FoFo model, the franchisee (business owner) has full control over the operations, finances, and management of the business while using the brand’s name and reputation. The corporate company provides branding, marketing support, and operational guidelines but does not interfere in daily decision-making. Unlike corporate-owned businesses, where employees can escalate issues directly to a central authority, FoFo employees have limited options...