API 21.1. Flow Measurement Using Electronic Metering by American Petroleum Institute

By American Petroleum Institute

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This, however, is hardly a serious disadvantage, more a case of the franchisor occasionally musing on what might have been had he or she chosen to expand without recourse to franchising. The franchisor would like to have it both ways – a string of energetic entrepreneurs building the business, and all the profit, too. Reality has other ideas. Insiders can become outsiders Ingratitude and treachery are two regrettable aspects of the human psyche that might bubble to the surface in a franchise relationship.

These restrictions are a source of cohesion and strength and present few problems provided the market is fairly stable. If, however, the parameters shift, as well they might, a franchise might be slow to respond. This is plainly a disadvantage to the franchisee, who has no control over the big policy decisions that will determine the response to change. This can be particularly frustrating when, as is inevitably the case, the individual franchisees are the first to spot changes in trading conditions but, under the terms of their agreement, can do nothing on their own initiative to adjust.

The franchisor would like to have it both ways – a string of energetic entrepreneurs building the business, and all the profit, too. Reality has other ideas. Insiders can become outsiders Ingratitude and treachery are two regrettable aspects of the human psyche that might bubble to the surface in a franchise relationship. It must always be in the back of the franchisor’s mind that a franchisee, having seen and experienced the business from the inside and mastered the know-how and systems, might depart to set up a rival company in the same business.

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