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Introduction to




© 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,


Introduction to



By Barbara Beshel
The Money Institute

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 canbe purchased, 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 theIFA Educational 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 toexpress our sincere 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, authorof 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 thecooperation 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
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 a dedicated 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
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