At first glance, this method seems advantageous for the brand owner, who pays only “for the result” . However, the price of this apparent convenience is a long series of critical issues that put at risk not only the quality of the result, but also the credibility and sustainability of the project.
The Success Fee model, while promising simplicity and immediate benefits, often turns out to be counterproductive for franchising. Relying on compensation tied exclusively to results can generate dynamics that are not very transparent and superficial, where quantity prevails over quality. This approach rich people data not only reduces the brand's control over strategic choices, but it also fuels a short-term vision that is difficult to marry with the needs of sustainable growth and the construction of a solid network.
Let's look in detail at the main reasons why this methodology is to be considered obsolete and ineffective .
De-responsibilization of the parties
A Success Fee system encourages a mindset of de-responsibilization. The brand owner tends to completely delegate the development of the network without committing to strategic choices, while the consultant has no incentive to pursue long-term goals. The result? If the consultant fails, the project remains at a standstill; if instead it is “successful”, the openings could prove inadequate or not in line with the brand’s vision.
Why the Success Fee is a model to avoid
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