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Show 8 U The Salt Lake Tribune, Sunday, May 20, 1973 Sale Sends Firm Small Business Beyond Hawaii Franchises Bring Identity Problem By Mark Stevens boom in The tremendous franchising has led to an increasingly common and difficult business condition: The small firm trapped between a large corporation and the public. ev- Although ery retail busi-nes- s mi achieve continued public ac- - t ceptance, the Mr. Stevens truly independent firm may tailor its operations solely for this purpose. The small firm bound to a franchise agreement, however, is somewhat limited in freedom of action. Management in this case must seek a dual objective: Satisfying the demands of the supplier arid the customer. When these demands are alike, there is no problem. If, however, they conflict, the small firm is caught between opposing forces. Who suffers? Usually it is the small firm and the consumer. Auto Dealership The automobile typical dealership represents an excellent example. Do the dealers, as small businessmen, feel trapped as middlemen between the manufacturers and the public? The National Automobile Dealers Assn., a trade group representing approximately car dealers U.S. 21,000 claims that its members are indeed tom between opposing forces. You have a classic case here of small companies trapped between the public and large corporations," an association spokesman said. The dealers are often blamed for every automobile even though the problem, fault probably lies with the manufacturer. Basic Problem Identity is the basic problem facing small firms bound to franchise agreements, in particular companies such as automobile who dealers depend on a single product group with strong brand association. According to the dealers association, the public often believes that car dealers are simply extensions of the manunits of the same ufacturer corporate entity. This leaves the dealers open to criticism for the mistakes of the manu- - HONOLULU A ternational major TULSA, O! LA. (AP) The Telex Corp wa aitiscl f copyir.g an ill mui.. design which an ofiiaal of International Business Machines Corp. said was produced by his company. in- expansion of a Hawaii-basecompany was reported with purchase by Sunvan Hawaii, Inc. c Karev-an- , internaInc., Seattle-basetional forwarding company operating in 35 countries. d The te:nony ome f: m .s .'.I U trge A. .ear:.. syst month log r:i..nager, in t? legal wrangle between the two companies. He was the 30th witness in the U.S. District Coort trial that began Apri 16 1 ory E sociation spokesman added. The customer sees the dealer and the manufacturer as one and blames them equally for the poor quality. Tied to Franchise Stockholders of 23 and June contained formats that were very similar to ones 21. 1971, to Vs ACRE BUILDING SITES. COMPLETE FHA AND VA APPROVAL. UTILITIES (GAS, UNDERGROUND POWER, TELEPHONE). FOR EACH SEWER CONNECTION LOT. PAVED STREETS, SIDEWALKS, CURB AND GUTTER. Vs 355-465- 1 Ired A. Moreton & Co. "What many people fail to understand is that dealers are independent businessmen tied to a franchise agreement. They simply buy the cars from the factory and sell them to the public. If a car is a lemon, the dealer cant give it back because the factory wont take it. The dealers would like to see better cars produced, but (they) have no control over ' manufacturing techniques. The association claims that cases of poor dealer service, another sore point among consumers, are primarily the fault of manufacturers who discourage good warranty service by placing all the emphasis on sales. Franchise agreements specify the number of cars a dealer is expected to sell. This, the association says, puts the dealership under pressure to achieve sales results above all else. 645 East South Salt Lake City, Utah Temple more than $11 million to devel- op. at S220 South in beautiful West Jordan. GARDEN VALLEY ESTATES offers: Do you have ordinary insurance or Moreton insurance? ex- processor IBM spent in a data GAQDHCJ VALLEY ESTATES Located between 2200 and 2700 West Sunvan to agreed to the acquisition, be accomplished by an change of stock. randa dated Feb. BEFORE YOU BUY OR BUILD d facturer, as well as their own. If a new car is a lemon, the dealer is blamed as well as the manufacturer, the as- CALL CLOSE PROXIMITY TO SCHOOLS, CHURCHES, AND MANY RECREATIONAL FACILITIES. MORE THAN 1 00 LOTS TO CHOOSE FROM. NO IRRIGATION NO HORSES WATER PRICES START AT $4,650 AND UP. WILL SUBORDINATE ANYTIME DAY OR NIGHT 532-2- 0 1 1 Source of Trouble The National Automobile Dealers Assn, claims the new car warranties represent another source of trouble for dealers. The warranties are poorly written, the spokesman said. They are not specific as to which services will be actually covered, and are therefore open to varying interpretations. This can lead to customer conflict and the manufacturer has to make the final decision. If the company agrees to cover the service, it so informs the consumer. If it refuses, it leaves the dealership the responsibility of handing out bad news. G 14 r The Motor Vehicle Manufac- turers Assn, refused to comment on the associations statements. A spokesman for General Motors, the nations largest auto manufacturer, however, said the statements are classic dealer complaints and must be labeled as generalizations. Seeks Improvements But the association believes that present conditions are unsatisfactory for the dealers and consumers. It is reportedly working to improve service incentives, product quality, and warranty language. This organizational approach to common problems seems to be the wisest course of action for every type of small firm engaged in a similar business relation- LONDON Commodity Options Puts Calls ship. 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