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Once upon a time in the realm of food retail, a company hungered for expansion through the omni-channel strategy, marrying digital sales with physical stores for an epic customer experience. To sprout multiple outlets, the founder faced a conundrum – how to avoid draining investor capital on retail setups? Enter the age-old franchise concept.
Franchises, a classic move, but not a perfect fit for a budding brand. The usual models, FOFO and FOCO, handed control to franchisees, a great deal for giants like Subway but a risky sandwich for newcomers. The challenge: get franchisees to invest, yet let the brand pull the strings from leasing to staffing.
Behold the brainchild of 2017: the FICO (Franchisee Invested Company Operated) model. Franchisees coughed up cash for capex and working capital, and in return, enjoyed a revenue share with a safety net over 5 years. Suddenly, the brand wasn’t just after big wallets; anyone with cash, a taste for alternative income, and no time for the nitty-gritty became the perfect match.
Result? A whopping 65 retail stores across three cities, all without tweaking the model. The FICO magic allowed the brand to steer operations, bask in the comfort of lease control, and most crucially, claim all retail sales in their books.
A tale of triumph for both franchisees and the brand, the FICO model turned a lone store into a legion of 65, showcasing the power of a brilliant idea brought to life by Halbe and the founder.
