Restaurant Franchising, 3rd Edition

Introduction to Franchising 21

Several companies turned to franchising in order to build national market-

ing networks. An estimated 100,000 new franchise businesses were initiated

between the years 1964 and 1969. An additional 50,000 franchises were ini-

tiated between 1969 and 1973. In 1968, the franchise industry recorded sales

of over $100 billion, which amounted to more than ten percent of the U.S.

gross national product. It was during this period of rapid franchise growth

that it was observed that some franchisors were only interested in expanding

franchises, thereby requiring some legislation to curb such practices. Many

states passed legislation ...