The reason Apple executives will never franchise their Apple stores has to do with two things:
Allow me to explain…
Just last quarter, Apple earned $8.8 billion in net profit. From their Press page:
“The Company sold 26.0 million iPhones in the quarter, representing 28 percent unit growth over the year-ago quarter. Apple sold 17.0 million iPads during the quarter, an 84 percent unit increase over the year-ago quarter. The Company sold 4.0 million Macs during the quarter, a two percent unit increase over the year-ago quarter. Apple sold 6.8 million iPods, a 10 percent unit decline from the year-ago quarter.”
And, according to this CNET report, Apple may be just warming up.
Apple Store Franchises Will Never Happen And I Know Why
It really ,em>is all about control at Apple headquarters.
That’s why Apple Store franchises will never happen. The entire Apple team likes to have serious control over everything. They wouldn’t entrust their brand with non-Apple humans. especially ones that were located all the way on the other side of the country.
The late Steve Jobs was known to be a control freak of the highest order. And, it’s a safe bet that today’s top-level Apple executives are too.
I don’t know of any US corporation that runs a tighter ship than the one in Cupertino, California.
Update: In India, Apple is kind of starting to franchise.
Apple has no need to approach a franchise development company. None at all.
That’s because they aren’t feeling any pain. One of the reasons that independent small business owners are attracted to the idea of franchising is that they can use other peoples money, (OPM) to grow their businesses-by going the franchise route, instead of just using their own. Apple doesn’t need other peoples money to expand.
And, they’re a greedy company.
That’s right…I said it. And, they’ve proved how greedy they are again and again.
One more thing; in order to become a franchisor, one must reveal the company’s secret sauce. Otherwise, the franchisees can’t replicate the original business.
For example, if Ray Kroc didn’t choose to share his business system with his franchisees, there wouldn’t be any. (Franchisees) There would be hundreds…maybe thousands of McDonald’s restaurants around, but they would be company stores.
The Apple way is one of control. There’s no way that Apple would reveal their own secret sauce to people that were interested in taking a shot at The American Dream.
That’s because they don’t seem to care about America, anyway.
Overpriced And Outsourced
Why do we continue to put Apple on such a high pedestal? I really don’t get it.
1. Their products are way overpriced.
2. They’re not made in the US.
Do you realize how many manufacturing jobs could be filled if Apple had American workers assembling their products in American plants?
How is it okay for Apple to continue to outsource their work to China where the average Foxconn worker makes less than $17 a day?
What the heck is wrong with this country? Why aren’t more people speaking out?
And, finally, why would Apple want to help anyone in the US become a franchisee of one of their stores?
Maybe one day, Apple will decide to do the right thing. Because if they did, other US companies that are outsourcing their labor to China would consider doing it too.
And then, our economy would get a whole lot better.