The success rate of franchised businesses has been phenomenal. More than 90 percent of all franchise outlets survive at least five years, whereas two thirds of all other independently owned businesses fail, most in a year or less. Franchising ideally taps the entrepreneurial motives of individuals who seek financial independence, while generating an ongoing source of income to franchisors. From the franchisor's perspective, franchising offers the ability to expand and diversify at reduced capital risk. To a franchisee, a franchise business offers self-esteem, an opportunity for self-management, and an asset of lasting value.
From a cultural perspective, the franchise phenomenon is both a driving force and a reflection of public tastes in food, fashion, and lodging. In some way or another, franchising has managed to make its way into almost every corner of the earth. From Bangor, Maine to Bangkok, Thailand, franchising has captured the public imagination and, in doing so, recruited to its ranks hundreds of thousands of aspiring entrepreneurs.
However, franchising is about more than retail sales, employment, and small business survival. It is also about self-fulfillment, personal expression, and creativity. Franchisors and franchisees alike are motivated by accomplishment and driven by a dream . . . a dream of self-management, financial independence, and personal enrichment.
Nevertheless, a franchise offering is a dual-edged sword. At its best, a franchise marketing system is capitalism's finest hour, a time for transforming simple ideas and bold ambitions into fulfilled dreams of personal enrichment and financial independence. At its worst, it is "vulture capitalism" run amok, in which every conceivable type of quick-buck scam and pyramid sales scheme is foisted on an unsuspecting public. The difference is often less visible than the writing on an oral contract. Franchising: The Promise and the Peril was written to help aspiring entrepreneurs sort out the facts about franchising today and to distinguish the signposts of success from the danger signals of fraud or failure.
Franchising: The Promise and the Peril presents an objective, factual, and sweeping profile of the franchise method of business ownership, while exploring the risks, pitfalls, benefits, and consequences. This easy-to-read and easy-to-understand book takes the reader step-by-step from responding to a franchise offering and choosing the right franchising company to negotiating the contract and opening the doors to the outlet. Written from the perspective of an experienced and knowledgeable insider, the book covers every aspect of the investment decision, from evaluating personal goals and specific offerings, to the practical marketing, operational, and legal aspects of negotiating, funding, and establishing a franchise business.
