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Chapter 2. The Franchise Relationship Mo... > Establishing the Service Delivery Sy...

Establishing the Service Delivery System (SDS): How Does the FRM Provide a Framework for Marshaling Resources?

Why is the SDS, which is also called the business format, often a proprietary design? Because it is not only the fundamental means by which customers’ needs will be served, but it is also the way in which the service delivery resources are arrayed to create competitive advantage in the marketplace. Highly successful and visible examples of business format innovations are the drive-through windows in fast-food restaurants and bi-level facilities in quick-oil-change facilities. Every franchise has a well-defined SDS, however overt or transparent it may seem to an outside observer.

Don’t underestimate the value of carefully planning the SDS. The expression “The devil is in the details” never takes on greater meaning than during the design of the franchise delivery mechanism. This was very clear from experiences that Jiffy Lube encountered while expanding the franchise. One particular component of the expansion plans paints a vivid picture of the intricacy of SDS development and reveals what a great benefit this design was to the founders over time. Steve Spinelli recalls the following:


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