Independent project franchising: why big software companies should spin out innovation instead of killing it

Large software firms frequently drop internal tools that no longer align with their roadmap, creating maintenance burdens and loss of expertise. Robert Brownstein suggests “independent project franchising,” where the original engineers spin out the tool as a separate venture, with the parent company remaining an anchor customer and licensing partner. This arrangement preserves ownership, caps risk, and allows the product to mature while giving the parent a clear path to license, acquire, or reintegrate successful solutions.