TITLE : FRANCHISING: PATHWAY TO WEALTH CREATION.

 
Introduction														XV	
 
Chapter 1  Franchising as Entrepreneurship							 1
           Franchising												 2
		   What It Means to Be Entrepreneurial						 3
		   Franchising: Small and Big Business						 4
		   Modeling Entrepreneurship							     5
		   Opportunity Recognition: Market Structure
           and Competition											10
           Opportunity Recognition: Market Size						10
		   Opportunity Recognition: Margin Analysis					12
		   Resource Marshaling: The Establishment of the Service
	       Delivery System (SDS)									12
		   The Entrepreneurial Team									14
           Conclusion												15
           Endnotes													16
 
chapter 2  The Franchise Relationship Model							17
           The Customer: How Does Opportunity Recognition
	       Work in Franchising?										19
           Establishing the Service Delivery System (SDS):
	       How Does the FRM Provide a Framework
	       for Marshaling Resources?								20
		   Transaction Analysis: In the Franchise Relationship,
	       How Are Responsibilities of the Franchisor
	       and Franchisee Allocated?								22
           Financial Structure: What Is the Financial Model
	       of the Franchise Concept?								24
		   Agency Issues: How to Find the Right Franchise Partner   25
           Relational Dynamics: How Are Tasks Best Monitored?		27
           Information Systems										28
           The Dynamics of the Franchisee-Franchisor Relationship:
	       How Does the Franchise Entrepreneurial Alliance Adjust
	       for Changes in the Market?								30
           Conclusion												31
           Endnotes													32
 
Chapter 3  The Wealth-Creating Power of Franchising					33
           Understanding the Motivations of an Entrepreneur
           to Become a Franchisor									34
           Franchise Risk Profile Template: An Introduction			35
           Agency Problems and Administrative Efficiency			36
           Buy a franchise, or launch a standalone?                 40
           How Do Franchisors Determine the Amount of Franchisee
           Fees and Royalties?										41
           Size and Risk Management									42	
           Balancing Company and Franchised Outlets					44
           Resource Constraints										45
           Franchise Disclosure: An Insight Individual Franchisor
           Health and Wealth										45
           License Agreement: How the Franchise Shares
           Responsibilities and Wealth								46
           Key Factors in the Franchise Relationship				48
           Public Capitalization: An Expanded View of the
           Franchise Company										49
           Conclusion												50
           Endnotes													50
 
Chapter 4  Service Delivery System and Real Estate					51
           The Basics of Real Estate								53
           Platform for Service Delivery System and Influence of	
           Buyer Behavior    										53
           Purchase Behavior Quick Screen							56
           How to Select Real Estate.       						56
           The X Factors of Site Selection							63
           How to Value Real Estate  								64
           Construction												67
           Financing Alternatives									67
           Leasing Issues and Potential Traps						71
           Advantages of Real Estate Ownership						72
           Lowering the Cost of Capital								73
           Allocating Risk											75
           Conclusion												75
           Endnotes													76
 
Chapter 5  Selecting and Monitoring Franchisees						77
           Selection and Monitoring: Franchising's Dual Challenge	77
           The Tolerance Zone										79
           Monitoring and Controlling Execution of the SDS			82
           Monitoring Methods										84
           Monitoring and Controlling Financial Reporting			87
           Creating a Feedback Loop									89
           Conclusion												90
           Endnotes													91
 
Chapter 6  The Service Delivery System and Marketing				93
           Why is Marketing Important in a Franchise?				94
           What are the Forms of Marketing in Franchising?			95	
           Local Marketing											96
           Regional Advertising										97
           National Advertising										98
           Supplier Cooperative Advertising							99
           Production of Marketing Materials					   101	
           An Overview of Marketing and the License Agreement      102
           Potential Marketing Problems                            103
           Marketing and the Free Riding Risk                      104
           Conclusion											   104		
           Endnotes												   105	
 
Chapter 7  Transaction Analysis									   107	
           Using Transaction Analysis to Improve
           the Service Delivery System							   108
           Support Systems and the Franchisor-Franchisee
           Relationship											   110
           Introduction to Case Study: Bagelz					   112	
           Summation of Case Analysis: Bagelz and Transaction
           Analysis												   131
 
Chapter 8  Financial Analysis									   133		
           Focusing on the Key Transactions						   134
           Return on Investment									   137
		   PR Restaurants, LLC									   145
           Endnotes												   152	
 
Chapter 9  The Dynamics of the Franchisee- Franchisor
           Relationship											   155	
           Wealth Creation 										   156	
           Communication										   157	
           Value of Trademark or Brand							   158	
           Exit Costs  											   159	
           Introduction to Case Study: Quick Lube Franchisee
           Company (QLFC)										   161
 
Chapter 10 Understanding the Basics of U.S. Franchise Laws		   171	
           Recent Key Trends in U.S. Franchising				   171	
 
Chapter 11 International Franchising							   193	
           Franchising in a Foreign Country from a U.S. Base	   193	
           Conclusion											   206
 
Chapter 12 Harvest											       209
           Harvest Options										   212
           The Initial Public Offering							   212
           A Trade Sale or Merger with Another Company:
           A Franchisor's View									   214
           Increasing the Free Cash Flow						   216	
           Management Buyout									   219
           Employee Stock Ownership Plan (ESOP)				       220			
           Your Harvest Strategy and Valuation of the Franchise    220
           Conclusion										       221
 
Index															   223