Resources.

By all accounts, franchising is a popular way of starting a business for yourself yet not by yourself. It offers a person the freedom to own, manage, and direct his/her own business with the assistance of the franchisor on such concerns as site selection, financial support, management support, personnel training, business setup, advertising, and product supply. In addition, the franchisee gets

the use of a well-established name. The franchisee pays an up-front fee and on-going royalty for these services. Thus, franchising allows a company to expand its brand by using the resources of others, that is, the funds and hard work of those who buy franchises, and in return, the franchisees gain the right to use the company's trade name and to distribute its products.

Most shopping centers and retail strip malls contain franchise outlets. Almost every type of goods and service business can be owned through a franchise from a fast food business to pet care. Approximately one out of every three dollars spent by Americans for goods and services is spent in a franchise business.

The items listed here (as well as other publications on this topic) can be obtained through the local library, through the library's interlibrary loan service or by contacting the publisher directly. Items to include in this column can be sent to Cynthia C. Ryans, Libraries and Media Services, Kent State University, Kent, Ohio 44262.

Periodicals

Booth, Lisa. "Franchising in Russia," East European Business Law 96 (December 1996), pp. 2-3. The recent introduction of Chapter 54 of the Civil Code (March 1996) introduced many specific regulations to the governance of the relationship between franchisors and franchisees in Russia. While many franchise operations have proved successful in Russia, some of the new specific franchising regulations provide a further challenge to franchisors for foreign business. This article looks at how competition law, tax considerations, and intellectual property rights apply to franchising in Russia.

Fladmoe-Lindquist, Karin. "International Franchising: Capabilities and Development," Journal of Business Venturing 11 (September 1996), pp. 419-438. This article looks at the international capabilities of franchisors. They are categorized as administrative efficiency and risk management capabilities.

Grunberg, Daniel B. "Intranets and Franchising," Franchising World 29 (May/June 1997), p. 45. This article briefly discusses intranets, which are secure Web sites set up on the Internet for the exclusive use of a company's franchisees and corporate personnel.

Harsh, Bruce. "Expanding Internationally? Call Commerce!" Franchising World 29 (March/April, 1997), p. 53. The U.S. market is becoming more saturated by certain franchises. New opportunities for worldwide franchising are emerging. To help U.S. franchisers in the worldwide market, the International Trade Association provides many resources such as identification of franchise opportunities, commercial information, etc.

Jones, Ian. "What To Do (Or Not To Do) About Going International," World Trade 10 (February 1997), pp. 76-78. When thinking about starting an international franchise operation, there are several important factors that must be considered: the franchiser should have a good plan and a strong concept to sell; should make a feasibility study; make a market trip to the country; select a joint venture partner and work together on finalizing the plans; have a good international lawyer and accounting firm; and finally, choose a knowledgeable investment banker.

Kotkin, Joel. "The Best 4 Small-Business Neighborhoods in America," Inc. 19 (May 20, 1997), pp. 58-72. The author of this article lists the priorities desired in a business community for a growth-minded entrepreneur: the right workforce, undervalued resources, a hungry market, no distractions, and eager capital. Some success stories are included.

Light, David A. "Franchising: Getting It Right From the Start," Harvard Business Review 75 (May/June 1997), pp. 14-15. The author of this article provides some insight into the choices that franchisors must make: build a brand name; let the locals do the groundwork, and earn your franchisees' trust. He states that many franchisors cease to franchise within 12 years.

McCollum, Tim. "High-Tech Marketing Hits the Target," Nation's Business 86 (June 1997), pp. 39-42. Relative inexpensive software and computerized databases are now used to gather large amounts of information regarding customers, markets, and industries. These resources help the entrepreneur to provide more effective marketing practices.

Maynard, Roberta. "Choosing a Franchise," Nation's Business 84 (October 1996), pp. 56-63. One common mistake that prospective franchise buyers make is not knowing what the day-to-day business is about. One source from which to get this information is a franchise owner. Some questions that should be asked are: Is the company always available to answer your questions? What kind of training and development will you receive? Is the business generating a profit? How do you spend the majority of your time? Would you buy this franchise again?

Rosenberg, William. "How to Build a Franchise Business," Franchising World 28 (November/December 1996), pp. 12-17. Five suggestions for creating and building a world-wide franchising business are included in this article. These are: (1) seek out the best people for your organization; (2) compensate them well; (3) share profits and equity with employees; (4) share goals and strategies with employees; and (5) set the highest of standards for the organization.

Shakespeare, Tonia L. "Pros and Cons of Franchising," Black Enterprise 27 (January 1997), p. 31. This brief article points out the fact that while the owner of a franchise may take in all the profits and can react quickly to any problem, he/she is also assuming greater risk.

"Taking the First Steps," Nation's Business 85 (January 1997), p. 50. Nine issues that should be considered before becoming a franchisor are given in this article. These are: the operating plan, the financial plan, dispute procedures, growth strategy, franchise cost, franchise sales, franchise territories, franchisee qualifications, operations manual, and self-evaluation.

Williams, Gordon. "Roadside Attraction," Financial World 165 (October 1996), pp. 96-98. According to this author, the business of franchising continues to grow at a steady rate. It has many new trends and directions. The author lists several steps for a person who wants to franchise: know everything about your business and iron out all the "kinks"; and have marketing and operating plans that cover everything from how to sell franchises to how to Supply and support them once the franchisees are signed up and open for business. Successful franchising plans depend on finding people who are willing to perform the way the entrepreneur tells them to.

Zwisler, Carl E., III. "How to Select a Franchise Supplier," Franchising World 28 (July/August 1996), pp. S2-S7. There are two categories of franchise suppliers: those that provide specialized professional services to franchisers and those who provide products or services that may be specifically modified to be used through a franchise system. Since franchising is a regulated industry, it is important that the new franchise executive develop an ongoing relationship with the suppliers of products and services.

Books

Felstead, Alan. The Corporate Paradox: Power and Control in the Business Franchise. New York: Routledge, 1993. This book defines franchising, describes its development and scope, and explains how and why franchising works. In addition, the author includes a chapter on how to set the legal contours of franchising, how to change franchisor ownership, and how to manage a franchise in a changing commercial environment. The appendix includes some franchise opportunities listed by business category in the United Kingdom, the United States, and Australia.

Franchise Opportunities Guide. International Franchise Association. Annual. The Franchise Opportunities Guide provides information that is helpful in the search for the best franchise opportunity that will meet the potential franchisee's qualifications and personal goals. The book contains a listing of the members of the International Franchise Association, arranged by industry. Each entry includes information about the company's history, the number of units, the cash investment required, and the contact person. Another section in the book lists the "Council of Franchise Suppliers," including attorneys, accountants, marketing consultants, banks, and financial services as well as firms and individuals who specialize in the franchising field.

Hurwitz, Ann and Rochelle Buchsbaum Spandorf, eds. Building Franchise Relationships: A Guide to Anticipating Problems, Resolving Conflicts, and Representing Clients. Chicago, Illinois: Forum on Franchising, American Bar Association, 1996. This compilation of articles provides insightful information on how to manage franchise relationships. These articles were selected because they are particularly relevant to the practitioner.

Kaufmann, Patrick J. and Rajiv P. Dant, eds. Franchising: Contemporary Issues and Research. New York: Haworth Press, 1995. As franchising becomes more popular and business issues change, the various aspects of starting and owning a franchise continue to change and need to be updated. This book contains a series of articles on these changes and tells how to approach them and make them work for the business owner/manager.

Ludden, LaVerne L. Franchise Opportunities Handbook: A Complete Guide for People Who Want to Start and Own Franchise. Indianapolis, Indiana: Park Avenue Publishers, 1996. Included in this book is information on 1,500 franchises in 39 business categories. Each entry gives contact information along with details on business type, number of outlets, how long the business has been in operation, start-up money required, fees, types of financial assistance available, training provided, etc.

Powers, Mike. How to Open a Franchise Business. New York: Avon Books, 1995. In order to enter the fast-moving growth industry of franchising, there are many facets that need to be examined. This book shows the reader how to select a franchise, how to analyze and evaluate a potential franchiser, how to get financing, how to protect the investment, and how to understand what the franchiser offers.

Vines, Leonard D. Mergers & Acquisitions of Franchise Companies. Chicago, Illinois: Forum on Franchising, American Bar Association, 1996. This readings book discusses some practical problems associated with buying or selling a franchise company as well as what is required of a franchisee, real estate issues, trademark considerations, tax issues, etc. A disk accompanies the book which is convertible to WordPerfect files.

Additional Resources

Banning, Kent B. Opportunities in Franchising Careers. Lincolnwood, Illinois: VGM Career Horizons, 1996.

Franchise and Business Opportunities. Washington, D.C.: Bureau of Consumer Protection, Office of Consumer & Business Education, 1996. (One folded sheet.)

Hurwitz, Ann and Rochelle Buchsbaum Spandorf. Building Franchise Relationships: A Guide to Anticipating Problems, Resolving Conflicts, and Representing Clients. Chicago, Illinois: Forum on Franchising, American Bar Association, 1996.

Lafontaine, Francine and Kathryn L. Shaw. The Dynamics of Franchise Contracting: Evidence from Panel Data. Cambridge, Massachussets: National Bureau of Economic Research, 1996.

Schaeffer, Bruce S. and John L. Allbery. Accounting and Tax Aspects of Franchising. Boston, Massachussets: Little, Brown, 1995. Annual.

Vines, Leonard D. Mergers & Acquisitions of Franchise Companies. Chicago, Illinois: Forum on Franchising, American Bar Association, 1996. Contains computer disk.