Towards Franchising Mobilization Strategy in Large-Scale Energy Efficiency Retrofit Industry

Implementing large-scale energy retrofit projects for reducing residential energy consumption requires large scale mobilization and training of contractors with the appropriate skill sets for carrying out the retrofits. General contractors, one of the key parties in these types of projects, play a crucial role in facing the challenge of large-scale, national level mobilization. Most retrofit projects are performed in a fragmented manner, that is, a small percentage of contractors undertake executing all the retrofit tasks, and other contractors, typically trade subcontractors, prefer to operate only in their specific fields of proficiency. In addition, most general contractors operate in very geographically specific markets, limiting their market share and access. We propose a transition step in the conduct of energy efficiency retrofits by adopting a franchising business model as a leveraging strategy for general contractors in the retrofit industry. This study is being carried out to investigate the conceptual and practical benefits of franchising a mobilization option for large-scale energy retrofit industry. Based on the nature of this industry, a practical franchising arrangement is also proposed for this sector.