Franquicia

An

Introduction to

Franchising

SPONSORED BY THE

IFA EDUCATIONAL FOUNDATION

© 2001 The IFA Educational Foundation. All Rights Reserved. No part of this book may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise), without the written permission of the publisher. IFA Educational Foundation, 1350 New York Avenue, NW, Suite 900,Washington, DC 20005, (202) 662-0764, www.franchise.org.

An

Introduction to

Franchising
IFA EDUCATIONAL FOUNDATION

SPONSORED BY THE

By Barbara Beshel
The Money Institute www.themoneyinstitute2000.com

FOREWORD & ACKNOWLEDGEMENTS
An Introduction to Franchising is designed to introduce young people to the fascinating world of franchising. Many people think of fast foodrestaurants like McDonald’s, Burger King, and Wendy’s, when they think of franchising. But there are many more types of franchise businesses. One out of every three dollars spent by Americans for goods and services is spent in a franchised business. Homes are bought and sold through franchised real estate companies. The same homes can be cleaned, painted, and carpeted through a franchise. Cars can bepurchased, tuned and washed through franchises. We can have our hair cut, clothes cleaned, pets cared for – all in franchised businesses. We can travel from one area of the world to another through franchised businesses. The idea of this book was inspired by Ron Harrison, Senior Vice President, Global Diversity and Community Affairs, PepsiCo. At the time, Ron was serving as Chairman of the IFAEducational Foundation. The idea was to introduce young people to franchising, to the many facets of the franchising business, and to the many opportunities that franchising offers – for both employment and professional careers and for business opportunities and business ownership. There are many opportunities for people who want to explore careers and business ownership. We would like to express oursincere thanks to the many individuals who have worked on this project and to the PepsiCo Foundation for their sponsorship. Our sincere thanks to — Barbara Beshel, the author. To Catherine Marinoff, the graphic designer. To Peter Muth and Eastern Publishing for their permission to use graphics and materials from Franchising: Aspects of the Market Economy. To Philip Zeidman, author of Franchising:Aspects of the Market Economy, to Michael Seid and Dave Thomas, authors of Franchising For Dummies, for their assistance. We would like to express our thanks to the team of high school and college instructors who worked with us on the pilot project – Kay Frazier, Townview Magnet School, Dallas, TX, Jacques Leblanc, Youth Opportunity Movement, CDC of Tampa, FL, Robert Rubin, Norman Thomas High School,New York, NY, Chi Yansi-Archibong, North Carolina State University, Greensboro, NC, and William Ziegler, Bethune Cookman College, Ormond Beach, FL. Many thanks to Mat Burton, senior director-university relations, Students in Free Enterprise and Tim Coffey, director of corporate development, Distributive Education Clubs of America, for their assistance and for the cooperation of these organizations.Lastly, we would like to thank the Foundation staff for their efforts in coordinating the project – John Reynolds, president, Kathryn Morgan, director of research and education, and Rose DuPont, operations coordinator. Franchising is a wonderful way to go into business for yourself, but not by yourself. Franchising is an example of teamwork at its best, bringing together the talents of adedicated corporate staff and management team with the hard work, zeal and entrepreneurial spirt of franchisees at the local level to serve our customers here in the U.S. and around the world. We hope that you will enjoy reading this book and that you will learn more about this fascinating business and marketing system.

Sidney J. Feltenstein Chairman IFA Educational Foundation Chairman and CEO...