Nearly 40 years after entering into its first franchise agreement, Caseyâ€™s General Stores Inc. closed that chapter of the companyâ€™s history. As of this year, Caseyâ€™s is 100 percent corporately ownedâ€”a move the Midwest convenience retailer said will bring greater consistency across its network of 1,470 stores.
“With franchising, you had dual operating models: an employee/employer relationship and an independent contractor relationship. A customer does not differentiate between the two and thus, with a dual operating model, you run the risk of losing consistency from your corporate stores to your franchise stores,” Bill Walljasper, the companyâ€™s chief financial officer, told CSNews Online in a recent interview.
Caseyâ€™s began franchising in the early 1970s as a way to expand its store base and gain critical mass, at a time when the company did not have the capital to grow. Eventually, this led to increased buying efficiency and ultimately, self-distribution, Walljasper said, noting franchising typically has a higher return due to the lower investment cost. More.
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