Office for National Statistics
Franchising
Book

Franchising

Pathway to Wealth Creation

Stephen Spinelli Jr., Robert M. Rosenberg and Sue Birley
FT Prentice Hall, 2004

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Editorial Rating

9

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  • Applicable

Recommendation

Being an entrepreneur who sells a brand name product in a consumer-conscious marketplace is an appealing way to make a living. It must be: the U.S. franchise market hit $1 trillion in sales in 2003. But franchising is a deceptively complex business for both the franchisee and for the franchiser who creates the idea, builds the brand, tunes the delivery system and maintains sensitive franchisee relationships. Franchisers build, deconstruct and syndicate businesses to those who may lack the experience to offer a specific service or product. Entrepreneurs with business acumen and a keen desire to build something for themselves often find that franchising offers many ways to create wealth. This meaty book thoroughly explains how you can succeed in a franchise business. Its nuts-and-bolts presentation is enlivened by case studies from Jiffy Lube, Bagelz, Dunkin’ Donuts, Subway, Pizza Hut and McDonald’s. getAbstract.com recommends it as essential reading for anyone considering buying or starting a franchise.

Summary

The Entrepreneurial Spirit of Franchising

Franchising is the practice of developing a business model and then selling the rights to operate it to another entrepreneur. The franchising process involves constructing a successful business or product and then deconstructing its essential elements to identify its most profitable parts and replicate them to create wealth — for the franchisee and the franchiser.

Brand ownership and operating capabilities reside with the franchiser, who creates and executes the overall business plan, monitors its competition and establishes the brand. The franchisee executes the business plan locally. Successful franchises reward both parties with earnings and with the benefits of accumulated knowledge. Franchising shortens the learning curve so the franchisee can focus on building the business. Aside from mutual financial interest, successful franchising systems are bonded by the entrepreneurial spirit. A successful franchise relies on market demand. To ascertain your odds of success if you buy into a franchise, ask the franchiser: can you describe the customer? How do we reach the customer? How quickly can customers recognize the price-value...

About the Authors

Stephen Spinelli Jr. co-founded Jiffy Lube International and became its largest franchisee with 47 stores that posted 39 consecutive profitable quarters. He now teaches entrepreneurial studies at Babson College. Robert Rosenberg, CEO of Dunkin’ Donuts for 35 years, led the firm’s growth from 300 units to more than 3,000. He is now on the Board of Directors of Sonic, America’s Drive-In. He is also a member of the International Franchise Hall of Fame. Sue Birley is the former director at National Westminster Bank, the world’s largest franchise lender.

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