International Law

: Misleading Advertising Law

Odd Franchise.

Here is a bit of an odd franchise, reported on from the Globe and Mail, A womb with a view (and some controversy)

"With more than two months left before she was due to give birth, Kathy Stewardson wanted a sneak preview.

She had had a standard ultrasound much earlier in her pregnancy at a local hospital in Vancouver. It was difficult to make out the image on the screen, and hospital technicians didn't explain what parts of the baby they were examining. She took home a single blurry picture.

So Ms. Stewardson, 33, and her husband booked a session for a "fetal tour" at Vancouver's new Som Visao Urban Ultrasound Spa and Wellness Centre, where they spent a luxurious 30 minutes watching their baby through a three-dimensional ultrasound hooked up to a 42-inch plasma TV.

"It was a different atmosphere and not clinical at all," Ms. Stewardson said. "They were trying to show us as much as possible, trying to capture moments when she was yawning or [making] facial expressions."

Here is a list of ultra-sound franchises.

What possible benefit is there to franchising this business opportunity?

Your clients are series of one off transactions- the are no network effects, as far as I can see.

A network effect occurs when the service provided to A is more valuable when the service is provided to more people.

A telephone system, a railway system, IM messaging, and the internet are examples of network effects.

Franchising requires network effects - otherwise there is no reason not to have a simple economic co-operative or purchasing group for the distributors.

But why benefits does a single franchisee of an ultra sound business gain when there are more owners of other similar businesses?

I don't see it; am I wrong on this one?

Full post as published by Misleading Advertising Law on February 07, 2008 (boomark / email).