WikiWealth

The weakness of the no franchising model comes with added expenses. Every restaurant must be owned and operated by Darden, instead of signing franchise agreements and putting the burden of costs into the franchisee. Having cost decisions made at a lower level allows the franchisee more control over how best to save money. … "No Franchise Operations" has a significant impact, so an analyst should put more weight into it. "No Franchise Operations" is an easy qualitative factor to overcome, so the investment will not have to spend much time trying to overcome this issue.