Franchising & Licensing

Two Powerful Ways to Grow Your Business in Any Economy

 Franchising & Licensing

Author: Andrew J. Sherman
Pub Date: April 2011
Print Edition: $45.00
Print ISBN: 9780814415566
Page Count: 464
Format: Hardback
Edition: Fourth Edition
e-Book ISBN: 9780814415696

Buy the book:

Buy the book thru Barnes and Noble. Buy the book thru AMAZON. Buy the book thru indiebound. Buy the eBook.
See other vendors.


Excerpt

PREFACE TO THE FOURTH EDITION

It is hard to believe that 20 years have passed since the publication of the

first edition of Franchising & Licensing in 1991. The impact of technology

and globalization has had a permanent effect on the dynamics of the franchise

relationship. When the manuscript was being written for the first edition

in the late 1980s, I could not have envisioned the many changes in

today’s franchise relationships or the diversity in the number of industries

and companies that would pursue franchising as their primary growth strategy.

It has been my honor to work with companies launching franchising

programs in dozens of different industries and at various stages of growth—

ranging from start-up to Fortune 500 companies—all over the globe.

A wide variety of recent events and trends are affecting the growth and

development of domestic and international franchising:

❒ From the franchisor’s perspective, the weak capital markets have limited

access to the resources needed for more organic or traditional

growth strategies, thereby making franchising the strategy of choice to

accomplish such objectives and brand building, provided that the prospective

franchisee can access the capital they need to develop the territory.

❒ From the franchisee’s perspective, more families in a recessionary environment

(and with job losses averaging 300,000 per month) want to have

greater control over their own destiny and are pursuing many different

types of franchised opportunities as a way of owning their own businesses.

❒ The very weak residential real estate market has fueled the growth of

many different types of home improvement and home services franchisors,

as Americans invest less resources into the pursuit of making

their homes more comfortable.

❒ Trust building, proper governance, and leadership have become hypercritical

in this post-Madoff era. Franchisors must have integrity when

interacting with franchisees, or their systems will fail.

❒ The ease of access to technology, as well as a desire to avoid the hassles

(and fears) of going to a shopping mall, have fueled an increase in online

sales of products and services. Franchising systems are forced to offer

sites that facilitate e-commerce and that create a balance for sharing

these new sales and customers with the franchisees in their systems.

❒ The improvements in Internet technology and smartphones, as well as

travel/logistics concerns, have changed how franchisees are recruited,

meetings are held, and data is gathered.

❒ The impact of the Internet on franchise sales (as well as related legal

implications) are discussed in new sections in Chapters 6 and 10 of this

fourth edition.

Yet, as volatile as the global and domestic economies have been since the

publication of the third edition, franchising has remained relatively stable.

Each year, hundreds of new companies launch new franchising programs,

and tens of thousands of families invest in franchised businesses as the first

step in their journey toward achieving the American dream. Even with all of

the new technology and all of the new developments, franchising is, and

always will be, about mutual commitment, trust, fairness, and communication

in a uniquely interdependent relationship that has helped fuel our economy

for nearly 100 years.

History has shown that the leveraging of intellectual capital can be an

effective and capital-efficient way to perpetrate business growth whether

economic conditions are weak or strong. Companies of all sizes and in many

different industries are realizing that their intangible assets can be a source

of new revenue and profit centers and that they can thereby bring greater

control, predictability, and loyalty to their distribution channels. The critical

importance of adopting this more strategic perspective to the management

and leveraging of intellectual capital is discussed in greater detail in the first

chapter.

Andrew J. Sherman

Bethesda, Maryland

Spring 2010

Search the full text of this book

Share

Order Now!

For single copy purchases of any AMACOM title, you can connect directly to the online retailer of your choice, from the list below, to buy the title you have selected. Most of our links will take you directly to that title on the site, making your shopping experience easier. You can also visit your local retailer, and if the book is not on their shelves they can special order it for you.

Retailers: Please contact us to change or add a listing.

Buying in Bulk?

We have very competitive discounts starting at 5 copies, as well as personal service, for bulk orders. Simply contact our Special Sales Department. Call 800-250-5308 or 212-903-8420 and ask for Special Sales. You can also email: SpecSlsWeb@amanet.org