THE FRANCHISE SYSTEM

A quote from Paul Taylor

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Paul Taylor, chief economist, National Automobile Dealers Association
 
September 25, 2006 - 12:01 am ET
The franchise system appears to be the superior way to bring satisfaction to consumers over the long-term ownership of a new car. That means in the sales experience and in the longer relationship, which is the service experience. And in the trade-in process, which simplifies the purchase of a new car and the sale of an existing car, the franchise system also has proved to be the superior model.

It focuses incentives to make sure the business is well run. There is generally one person at the top who really feels responsibility for making the relationship with the customer work. In some cases, where ownership has changed to a larger group, there was still a need in the dealership for making sure the relationship with the customer is positive and goes well for the entire ownership experience.

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