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FRANCHISING
YOUR BUSINESS
An Owner’s Guide To Franchising As A Growth Option

By Donald D. Boroian and L. Patrick Callaway

Franchising Your Business
An Owner’s Guide To Franchising As A Growth Option
By Donald D. Boroian and L. Patrick Callaway

FRANCHISING YOUR BUSINESS A Francorp Publication All rights reserved. Copyright © MMVIII Francorp, Inc. This publication may not bereproduced in whole or in part by any means without the prior written permission of Francorp, Inc. ISBN: 978-0-9816488-0-4 Francorp, Inc. 20200 Governors Drive Olympia Fields, IL 60461 708-481-2900 800-372-6244 www.francorp.com Francorp Staff: Chairman: Donald D. Boroian President: L. Patrick Callaway Project Editor: Richard Gosswiller

Printed in the United States of America

Acknowledgement
To allthe exciting, dynamic entrepreneurs we have known.

Our special appreciation to Richard Gosswiller, who edited this and our previous two books. As a lifelong friend and former Senior Vice President of Francorp, he brought something very special to this book which could not have been done without him. Thanks Dick, The Authors

Contents

Introduction

Introduction Chapter 1 – The Rules HaveChanged Chapter 2 – The Way To Get Left Behind Chapter 3 – What Franchising Is and What It’s Not Chapter 4 – Creating a Franchiseable Business Chapter 5 – Getting Ready Chapter 6 – Determining Your Franchise Structure Chapter 7 – Making It Legal Chapter 8 – The Operations Manual Chapter 9 – Finding Your Franchise Prospects Chapter 10 – Telling Your Story Chapter 11 – Making the Sale Chapter 12 –Following Through Chapter 13 – What It Costs Chapter 14 – Going International Chapter 15 – Trends Worth Watching Chapter 16 – Considering the Possibilities

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In our first book, The Franchise Advantage, published in 1987, we attempted to broadly describe the franchise phenomenon, including its history and its impact upon the Americaneconomy and economies around the world. In it we predicted that “franchising will make the world smaller.” Thomas Friedman came up with a better metaphor twenty years later in The World is Flat, but we think that the “flat” world he described was not so different from the “smaller” one we foresaw. The Franchise Advantage was directed to business owners, prospective franchisees and the generalreader. It remains, in our humble opinion, as comprehensive a study of franchising as has been written. Although out of print, it can be downloaded free by anyone interested in the subject from our web site, francorp.com. In our second book, How to Buy and Manage a Franchise, co-authored with Joseph Mancuso and published in 1993, we addressed franchising from the franchisee’s perspective. It can alsobe downloaded at no cost from francorp.com. What has changed since publication of The Franchise Advantage? Many things cultural and economic, some of which we have attempted to address in Chapter 1. One thing not described in detail in Chapter 1 is the increased complexity of franchising itself. That subject is indeed the primary reason for this present volume and is dealt with at length in theremaining chapters.
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FRANCHISING YOUR BUSINESS

This book is not for the general reader. It is specifically designed to answer at length a critically important question that ought to be asked by any owner of a successful business who needs additional distribution outlets in order to grow. That question consists of three parts: • Should I consider franchising? • Is my businessfranchiseable? • If it is, how do I create a franchise program?

Chapter

If you are such a person and are curious about the answers, we invite you to read on.

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The Rules Have Changed

The author Isaac Asimov has said, “It is change, continuing change, inevitable change that is the dominant factor in society today.” Nowhere is that more true than in the business world, and...