Franchising in Private Aviation… Could It Work?

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petermontgomery

New Member
So, I just came across something kinda wild—apparently, there’s a push to franchise private jet charter brokerages, and a company is even giving away a few turn-key agencies to experienced folks in the industry.

I’ve never really thought about franchising in private aviation before. Other industries (freight, travel, etc.) have made it work, but private jet charter has always felt pretty relationship driven. Think something like this could actually take off, or is charter too niche for a franchise model to make sense?

Check it out for yourself - Franchise Giveaway - Stratos Jet Charters, Inc.

Curious to hear thoughts from others who’ve been around the industry. Would this be a legit opportunity, or just another buzzword trend?
 
petermontgomery said:
So, I just came across something kinda wild—apparently, there’s a push to franchise private jet charter brokerages, and a company is even giving away a few turn-key agencies to experienced folks in the industry.

I’ve never really thought about franchising in private aviation before. Other industries (freight, travel, etc.) have made it work, but private jet charter has always felt pretty relationship driven. Think something like this could actually take off, or is charter too niche for a franchise model to make sense?

Check it out for yourself - Franchise Giveaway - Stratos Jet Charters, Inc.

Curious to hear thoughts from others who’ve been around the industry. Would this be a legit opportunity, or just another buzzword trend?
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It sounds like a horrible opportunity. This makes multi-level marketing schemes look attractive.

You’re adding two more layers to the game, franchise corp and franchise owner. This is on top of a transaction that might already involve a broker. There’s too many mouths to feed and the franchise brings little to the table in terms of clients or buying power. There are no competitive advantages.

Also, it would be tough to keep clients. A client can figure out who operates the aircraft. That client will contact the operator and deal direct with the operator or their broker.

When I want Taco Bell, I go to Taco Bell. Nobody else sells Taco Bell. If I want a jet for four people, I have dozens and dozens of options.

Think about the folks that charter planes. It’s likely they have chartered before and have an existing relationship with a carrier or broker. Or, they know a friend or colleague that has chartered before and will ask for a recommendation.

Sounds like a bad idea.
 
Beep said:
Nah, charter brokers are scum sucking parasites as far as I’m concerned.
The world doesn’t need a centralized conglomerate of…. Them.
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I think there are some good brokers out there, a franchise network of new brokers offers nothing attractive to anyone.
 
Murdoughnut said:
Aviation margins are razor thin, and mostly negative. Add a franchise % cut on top of that and you're toast.
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Two layers are added if an existing broker isn’t displaced. It could work if the franchise owner is happy living in his parents’ basement.

This concept also assumes that crews and equipment are interchangeable. Many clients are picky about aircraft and crew. A buddy of mine is requested by a number of celebrity clients. One of those clients wanted my buddy typed in another aircraft and it happened. That level of client interaction is unlikely to happen at McCharters. Actually, that’s kind of unfair to McDonalds. I know exactly what I can expect from a McDonalds.
 
Seems like a "share cropping" type scheme to me. And there was no money in share cropping.
 
petermontgomery said:
So, I just came across something kinda wild—apparently, there’s a push to franchise private jet charter brokerages, and a company is even giving away a few turn-key agencies to experienced folks in the industry.

I’ve never really thought about franchising in private aviation before. Other industries (freight, travel, etc.) have made it work, but private jet charter has always felt pretty relationship driven. Think something like this could actually take off, or is charter too niche for a franchise model to make sense?

Check it out for yourself - Franchise Giveaway - Stratos Jet Charters, Inc.

Curious to hear thoughts from others who’ve been around the industry. Would this be a legit opportunity, or just another buzzword trend?
Click to expand...
It's just an attempt at a brokerage. That might work for freight but I suspect it won't be profitable for private travel. First of all the companies that manage customers airplanes already have plenty of resources to sell their empty legs, most of the big shops do this in house, but there are already brokerages that sell empty leg seats on an another companies empty flights for a fee, this is not a new concept. This sounds like a horrible idea and if you're considering investing I'd suggest you don't. But what do I know? I'm just a dumb mechanic.
 
Pilot Fighter said:
Two layers are added if an existing broker isn’t displaced. It could work if the franchise owner is happy living in his parents’ basement.

This concept also assumes that crews and equipment are interchangeable. Many clients are picky about aircraft and crew. A buddy of mine is requested by a number of celebrity clients. One of those clients wanted my buddy typed in another aircraft and it happened. That level of client interaction is unlikely to happen at McCharters. Actually, that’s kind of unfair to McDonalds. I know exactly what I can expect from a McDonalds.
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I wonder how many people fall into trap franchises because they have it in their head that people that own McDonald's franchises do so well? Not taking into account the corporate discipline that McDonald's has. Say what you will about taste preferences for Mickey D's vs. Whataburger/In-n-Out and the like - but over the long-term they've been a model of corporate excellence regarding their franchises vs other franchised places.
 
WacoFan said:
I wonder how many people fall into trap franchises because they have it in their head that people that own McDonald's franchises do so well? Not taking into account the corporate discipline that McDonald's has. Say what you will about taste preferences for Mickey D's vs. Whataburger/In-n-Out and the like - but over the long-term they've been a model of corporate excellence regarding their franchises vs other franchised places.
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In-N-Out is not and never has been a franchise, it's still owned by the family that started it and the company has never had an IPO. I think that's why so many folks are so loyal (I'm one). They own every store, every distribution center and they treat their employees well enough that slinging Double-Doubles isn't a drag. Despite their recalcitrant method they continue to expand slowly into new markets. If I ruled the world they would've stayed in LA, but that's just me. I'm glad everyone thinks it's some travel destination but honestly for me growing up it was just the best version of a fast food burger at a reasonable price that was available. I think I had my first Double-Double at the In-N-Out at the corner of Lowell Ave and Foothill Blvd at age 11 or 12, I still order the same thing and it is exactly like what I got over 40 years ago. I'd suggest you not lump In-N-Out into the the franchises like McDonalds or any of those other fast food places. I'm not saying you're wrong, I just think you shouldn't include them on your list of corporate franchises for fast food.
 
knot4u said:
In-N-Out is not and never has been a franchise, it's still owned by the family that started it and the company has never had an IPO. I think that's why so many folks are so loyal (I'm one). They own every store, every distribution center and they treat their employees well enough that slinging Double-Doubles isn't a drag. Despite their recalcitrant method they continue to expand slowly into new markets. If I ruled the world they would've stayed in LA, but that's just me. I'm glad everyone thinks it's some travel destination but honestly for me growing up it was just the best version of a fast food burger at a reasonable price that was available. I think I had my first Double-Double at the In-N-Out at the corner of Lowell Ave and Foothill Blvd at age 11 or 12, I still order the same thing and it is exactly like what I got over 40 years ago. I'd suggest you not lump In-N-Out into the the franchises like McDonalds or any of those other fast food places. I'm not saying you're wrong, I just think you shouldn't include them on your list of corporate franchises for fast food.
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Most every McDonalds in America is independently-owned.

In-N-Out’s are all corporate stores. Aren’t we supposed to hate corporations? 😂
 
Pilot Fighter said:
Most every McDonalds in America is independently-owned.

In-N-Out’s are all corporate stores. Aren’t we supposed to hate corporations? 😂
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You need some education. McDonalds are franchises owned by a either a person or a group, the corporation owns almost all of the land any franchise sits on. McDonalds owns an enormous amount of real estate, burgers are not even half of their business, the franchisees pay rent. You can buy stock in McDs (MCD). You can not buy stock in I-N-O. Who is the corporate overlord? There's no BOD trying to maximize profits to keep their shareholders happy, that's how a good thing gets spoiled.
 
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knot4u said:
You need some education. McDonalds are franchises owned by an either a person or a group, the corporation owns almost all of the land any franchise sits on. McDonalds owns an enormous amount of real estate, burgers are not even half of their business. You can buy stock in McDs (MCD). You can not buy stock in I-N-O. Who is the corporate overlord? There's no BOD trying to maximize profits to keep their shareholders happy, that's how a good thing get's spoiled.
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Educate yourself. There are no factual errors in my post.

95% of McDonalds locations in America are independently-owned franchise stores. If you were truly educated you would know that most independent businesses, especially retail and restaurants, don’t own their real estate. There is nothing unique about an independently-owned business leasing their property.

100% of I-N-O stores are corporately owned, like Walmart and Target, only without publicly-traded stock. They certainly have shareholders. Those shareholders, even if they are all family members, have expectations with regards to the performance of their investment.

You don’t think I-N-O is trying to maximize profits? Some businesses treat their employees well because it’s the best way to have a stable and enthusiastic workforce … to maximize profits.
 
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Pilot Fighter said:
Educate yourself. There are no factual errors in my post.

95% of McDonalds locations in America are independently-owned franchise stores. If you were truly educated you would know that most independent businesses, especially retail and restaurants, don’t own their real estate. There is nothing unique about an independently-owned business leasing their property.

100% of I-N-O stores are corporately owned, like Walmart and Target, only without publicly-traded stock. They certainly have shareholders. Those shareholders, even if they are all family members, have expectations with regards to the performance of their investment.

You don’t think I-N-O is trying to maximize profits? Some businesses treat their employees well because it’s the best way to have a stable and enthusiastic workforce … to maximize profits.
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Don't cuss at me. You're gaslighting. Why should we hate corporations? Why do In-N-Out employees always seem a lot happier than McDonalds employees. I understand the scale disparity, if I was given a chance and I could afford it I'd buy a an In-N-Out franchise (that doesn't exist) or I'd invest (can't do that either), I'd do neither for McDonalds. Don't get me wrong, McDs has it's place and I'll eat there a couple of times a year but I prefer the place with the happy faces rather than someone who gets mad when they forget napkins and I remind them of it.
 
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Pilot Fighter said:
I guess you failed to recognize sarcasm, even when delivered with perfect comedic timing and emoji for the humor-impaired.

You were cussed at because you were insulting. You know, the you need some education thing?
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So I can cuss at you as well? Has the game changed? @SteveC can we get a ruling here? I'll preemptively apologize, In-N-Out was a big part of my youth although I never worked there. It seems as if it's gotten so much "fame" in recent years that people show up and expect a $20 burger for $7 and they crap all over it. No one said In-N-Out is better than Whataburger, five guys, or shake shack. But it's better than McDs and costs about the same. You'll get what you pay for, nothing more, nothing less. And the fries have always sucked.
 
knot4u said:
So I can cuss at you as well? Has the game changed? @SteveC can we get a ruling here? I'll preemptively apologize, In-N-Out was a big part of my youth although I never worked there. It seems as if it's gotten so much "fame" in recent years that people show up and expect a $20 burger for $7 and they crap all over it. No one said In-N-Out is better than Whataburger, five guys, or shake shack. But it's better than McDs and costs about the same. You'll get what you pay for, nothing more, nothing less. And the fries have always sucked.
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Go ahead and cuss at me. I don’t care. You will look silly because it’s clear you were insulting.

I don’t mind if a moderator removes that sentence from my post. It’s too late to edit.
 
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