If franchisees refuse to participate when price promotions are mandatory as per their franchise agreement, they could lose their franchise or risk being sued by the franchisor for breach of contract, says Zarco.
What the Department for Transport appears to have got chronically wrong in the case of the West Coast Main Line franchise is its assessment of the risk that attaches to projections by bidders of revenues in the latter years of the 15-year franchise.
By going upscale Schwab faces a huge risk to the franchise he created.
They had to make sure that the conversion on Potter was significantly better than on Titans or risk the biggest franchise in Warner Bros. history.
In turn, they are a high risk for the franchise, who, despite all manner of available tools, is ultimately left to estimate what message is sent, how it is interpreted, and what are its real results.
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One big reason:ESPN owns the games outright, paying nothing for TVrights, sidestepping bidding wars and avoiding any risk of losing a franchise it created to a rival channel.
The risk to Microsoft lies in seeing its enterprise franchise undermined by mobile, as other operating systems are dominant in this one sphere where people and companies are buying more.
In particular, it tells a bidder how much capital its so-called Train Operating Company (TOC) would have to hold as a protection for taxpayers against the risk that in the course of operating the franchise the TOC went bust or risked going bust.
The transport secretary said the investigation by Mr Laidlaw - who will give evidence to the House of Commons Transport Select Committee on 18 December - found department officials "wrongly calculated the amount of risk capital bidders would have to offer to guarantee their franchise proposals".
Yet despite the money-losing proposition, many franchise owners feel they have little choice in the matter: If they forgo the promotion, they risk a backlash from their customers -- and from headquarters.
And JPMorgan ( JPM) is a big messy bank, carrying loads of risk and lacking a history of being any good at extracting industry-leading profits from its franchise.
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Beyond drawing the ire of unsatisfied customers, franchisees also risk falling out of favor with the mother ship, says Christopher A. McElgunn, a franchise attorney in Wichita, Kan.
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