Franchising Dreams: The Lure of Entrepreneurship in America

Another problem with this book is that he's an "outsider". He decided to do his thesis on this topic and that's all the book is. He goes around and talks to franchisees in three (and only three) franchises and gives you his findings in that book. So the book is full of observations with no answers. He can't tell you how to overcome the problems he's finding because he has no experience being a franchisee. For example, he makes the observation that social capital (networking with other franchisees) is critical to the success and prosperity. He takes about 12 pages to tell you this, but doesn't tell you one thing about how or in what way the successful franchisees networked with others. Did they just talk on the phone, did they set up a softball team, what?

Probably the most common type of franchises are restaurants, yet he does not visit a single restaurant franchise. And, as Brazos49 stated, three franchises is too small a section to draw any sound conclusions. This is even more true if you consider that he left out restaurant franchising.

I would recommend that you read Newchapter's review. You'll learn all you can from this book by reading that review and you'll save yourself 180 pages of really dry reading.


Good insight to franchising   May 29, 2003
Mongoose (MA United States)
2 out of 2 found this review helpful

I've read books on all the rules and technical issues of franchising and thought this would be a good book to give insight to the people in franchises. It does a good job at explaining what people thought franchising would be like and what it turned out to really be. It explains how franchisors and franchisees interact which I found to be suprising. Overall a very good book to read if you are interested in franchising.


Based on a PhD Dissertation, Negative on Franchise Industry   August 27, 2002
newchapter (Atlanta, GA USA)
15 out of 15 found this review helpful

This book was originally a PhD dissertation that focuses on the franchise culture, and more specifically, "how conflicts are resolved and how the system is controlled." (pg. 10). Although the research was based on only three franchises, it makes many generalizations. Overall, it portrays franchising in a very negative light. Some points from the book:

1) Franchising has low barriers to entry, numerous competitors, low switching costs for customers, reliance on part-time and low paid employees, limited alternative suppliers

2) The franchising system creates uniformity among the outlets, which is good for the brand, but creates perfect substitutes among the franchisees. Little opportunity to differentiate.

3) Franchisors write the contracts and consequently it is slanted in their favor.

4) Good prospective franchisees: A students, people without speeding tickets, people with long careers with one company, people with good credit, women, people who are risk averse.

5) Many people enter franchising expecting a free ride, but it is just as demanding as starting your own business. All you get is a brand, and some best known methods.

6) "Operational factors are more critical than geographic factors." (pg 120)

7) "In the technical areas, in products, and in sales, franchisees had greater knowledge about the business than the franchisor." (pg 125)

8) Franchisees might think they are entrepreneurs, but they are not. As on franchisor said, "We need people who will follow our system." (pg 141)


A worthwhile book, but not based on much of a data set   July 31, 2002
brazos49 (Sugar Land, TX USA)
2 out of 2 found this review helpful

First, let me say this is a book worth reading for anyone who may ever consider buying a franchise or becoming a franchisor of a business model or for anyone else who might have an interest in how franchising differs from other business arrangements. The author picked three fairly small franchise businesses for his study - a muffler shop, a cleaning business and a sign making business. By interviewing and observing the franchisors and a group of the franchisees he makes observations and draws conclusions about franchising overall and characteristics of the key players - those who sell and administer franchise business opportunities and those who buy and operate the franchise sites. I thought he did a pretty good job overall and his writing style was engaging.

Now for my criticism. This really wasn't much of a sample to work with to make a broad study and draw the kind of broad conclusions in the book. It would have been interesting to me and valuable to the study to have a lot more data - bigger enterprises like McDonald's and many restaurants, other industries and types of business, etc. Without more data, I'd analogize this study to a study of the stock market based on the performance of 3 small cap stocks. Interesting, but not really that much of a study of franchising overall.

Still, read this book if you have stars in your eyes about buying a franchise. You'll learn a lot - widely used and greatly overblown claims about success of franchises versus individually started businesses, wildly one sided franchise contracts, hard to deal with franchisors and franchisees, etc. You'll also learn how some have succeeded and see if you can project yourself into that scenario.