Rancor

On Saturday morning, Chen Taitong was standing at the door of Stars Pet Chain Supermarket with a big smile. He was wearing a vinous new Chinese traditional shirt to welcome his customers. Behind him stood his staff with new clothes and colorful ribbons in hand. A red carpet extended from the sidewalk to the door.

It was the first promotion day. The whole store was well decorated as if it was Chinese New Year. He called in all the staff for today’s big promotion. No one was allowed to take today off. He also promised twice the commission for every pet sold. The staff were all excited about the new commission plan, so everyone was extremely happy and ready for a big day of sales.

This was the benefit of having a franchise store. Promotions in a directly operated store needed to be filed and approved from the regional general manager; however, a franchise store could control daily operations and was much more flexible.