The Franchising Concept

First Interstate Bancorporation and First Nationwide Financial Corporation are offering franchises in an effort to incorporate smaller institutions into their system. First Interstate focused on the segment of the industry that was becoming outclassed by electronic developments in the industry. The franchise plan took a while to take off, but seems to be doing well now. Deregulation has made franchising more viable in the eyes of many smaller banks. Franchises point to greater deposits after acquiring a new name and image. They have been able to attract new corporate business. First Nationwide's program does not require franchisees to surrender their own identities, and no territorial rights are protected. The service packages of these franchises are analyzed.