The continued growth of the franchise industry has been especially impressive. In 1996, franchised businesses, including both home-based and non-home-based, accounted for over $700 billion, up from $335 billion in 1980.

An important reason for the franchising boom is a steady supply of eager franchisees —people who desire to go into their own businesses. For them, purchasing a franchise minimizes the risks which often cause new businesses to fail. A franchise gives them the li- cense to do business using the name and image of a large company. They hitch their wagon to a starring franchisor, and rely on that franchisor for creating widespread name identification that will attract consumers to the franchisees. Fewer than five percent of franchise outlets have failed over the past ten years, significantly less than figures for other self-started small businesses.

Typical franchise buyers are formerly rebellious baby boomers tired of hierarchical corporate life, and female executives lacking upward mobility. For their investment, franchisees get a marketing plan, site selection assistance, field and promotion support, discounts on supplies and merchandise, conventions to exchange ideas and to discuss common problems, participation in effective joint advertising and other assistance.

Franchising eliminates much of the guesswork and risk of owning a new business. The Federal Trade Commission (FTC) produced Regu- la- tion 436 in 1979 to protect prospective franchisees. Firms wishing to franchise do not register with the Federal Government. Rather, they are required to have disclosure statements and franchise agreements, presented in a timely manner to prospective buyers, which meet certain criteria and expose pertinent facts and franchisor information. In addition, many states have their own registration laws, requiring, for example, financial statements for franchisees at least 10 business days before the sale is made. Fortunately for franchisors, states are becoming more uniform in requirements for offering circulars, which saves franchisors time and expense. To be successful as a franchisor, you must start with a unique concept. Then, you need a viable marketing plan. Nothing is more important than sound planning. The franchisor should bring in the best consulting help they can afford right from the start. Consultants will help in communications, public relations, sales and in establishing strong franchisee relations. Keeping franchisees happy and satisfied has practical benefits. When franchisors continue to expand and improve services and respond to franchisees' needs, franchisors build a tremendous sales force with their franchisees.

Who will be the home-based franchisor of the 2000s? There will be new successes bringing impressive financial rewards to those who will take a risk. Franchising brings adventure, excitement and challenges.