Although browser is free, most of the equipment and software , like computer hardware, netscape server still cost money. By forming a franchise, these cost can be cut down to wholesale price instead of retail price.
Although the starting point is simple, web site remains a highly technical business. The hard ware structurd speed changes quickly. Modems are going from 300bps 5 years ago to its theoritaical limit of 28.8kbps, ISDN line is wide spread now, cable and optical line will reach average household in the near future. Computer structure changes, computer speed doubles every year. Various hardware exist in the market, they become very bewildering for the indiviiduals who are trained only in one aspect of the computer technology. On the other hand, new ideas are churned and implemented into computer software daily. 5 years ago, who heard of Perl ? 3 years ago, who thought of use Perl use web page engine ? Even today (Oct, 1995) , a lot of people still don't realize that many libraries for cgi scripts are already developed and are developing , they don't need to plow though the hardness writing identical code again and again. And many of the web site designers still don't realize that actually many of the web site for business are very similiar or even nearly identical. Even if they realize that, they can't take advantage of it because they are scattered and can't copy and modify each other's code . And the last but not the least, web site design involves all aspects of business life that are not only related to computer : graphics and animation art, sound engineering, presentation style , consumer psychology, etc. which are very essential to attract the potential coustomer . One example is that a psychology study of web site viewer shows that if the text is too long and too small to see, most viewer will just skip though, only the very few viewer who are badly in need of the information will read though. It turns out that the best design is the one which are contained in one screen.
By forming a franchise, people relatively new to this business can get professional help to start their business, they can get consult on what hardware and software to buy and where to buy them cheap, they can automatically receive information about what software and library are coming to exist and to get them, they can copy and modify each other's site to suit their respect coustomer, they can get the cutting edge information by inviting big industry and acdemic professionals to give talk and presentation, and they can get guidlines and share experience and the art of web site design.
Like other business, web site design companies also need to do advertisement. Ironically, they can't only advertise though the web site they designed, because most of the business that will hire a web site design company are not in the computer network yet, and this is an age old egg and chicken problem. So, as we see in the real life, web site design companies has to advertise though convential media like newspaper, phone book, poster, etc. The cost for individual designer is comparatively high. By forming a franchise , these cost are all trimed down because one brand name is for all, and a big franchise name gets more trust from the coustomers.
Web site design is realtively new and booming business, a lot of individuals jump into it. In the beginning, everybody will get a share from the market, but as time goes on and the market get more mature, these individuals and small companies will have to compete fierecily against each other. And only the ones whose cost is low and profit margin is high can survive. Forming a franchise reduces cost and labor, thus ensures its branch's advantageous position in the market, fending off small companies' threat.
According to a business management study, half of the business fails in their first year, and 90 percent of the business fail within 5 years. The reason come from various aspects like incorrect decision, tight budget, market change, etc. A franchise can reduce this risk by providing management consulting ,temporary financial help, and market prediction. These are things that can't achieved by individuals. Another fact is, market Darwinism always results in several final winner at the cost of small business. A franchise essentially guaranteed every member's share inside the franchise it self.