Can a Cultural Resource Management Service be Franchised? An Inquiry into a Possible Business Model
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2014
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MA in Historic Preservation
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To view a complete copy of this thesis please contact Goucher College Special Collections & Archives at archives@goucher.edu or (410) 337-6075.
Abstract
The cultural resource management (CRM) industry does not currently utilize franchise-based business models. The benefits gained from a CRM consulting service franchise are brand recognition, unified systems of operation, and procedures that would benefit a CRM consultant’s business. Because a CRM consultant may want to start a business with a proven method of operation, this thesis explores whether or not a cultural resource management consulting service can be franchised effectively and, if franchising is possible, the most effective models for such a service. Cultural resource management, for the purpose of this study, is defined as the managing of historic properties such as archeological, architectural, and historical interests, while considering the impacts to such places under the environmental and historic preservation laws. This study examines two types of business format franchises: a fractional franchise and a conversion franchise. A fractional franchise is a franchise located within a business or an existing franchise that sells the same or similar type of goods. A conversion franchise adopts the franchise system by incorporating the franchisor’s trademark and brand name while keeping the franchisee’s business name as a secondary identity. Both franchise systems could be used for a CRM consulting service franchise system. The operations and services would be identical, excepting legal matters. This treatise explains the franchise system used by both franchise models. There are 1,300 CRM consulting service firms in the nation, and they generated over $1 billion in revenue during the 2012 calendar year. Among these, 29.2% are small businesses, of which 10% could be potential franchisees. This suggests there is a high potential of job opportunities for CRM consultants. A CRM consulting services franchise would offer back-office support, training, and networking opportunities for specialized services, contractors, and equipment providers. The services offered by a franchisor can give small business owners the potential of gaining specialty services they may not have been offered previously, such as paint analysis or 3D laser scanning, and special resources to work on certain projects that would be obtained through a contractor database. This thesis indicates a CRM consulting service might be franchisable under the fractional franchise or conversion franchise models provided that a larger market of potential franchisees were available. While the current size of the potential market is too small to make franchising CRM consulting services economically viable at this time, this study indicates that either the fractional or the conversion franchise has potential.