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Preface to the Fourth Edition - Pg. ix

P R E FA C E T O T H E F O U R T H E D I T I O N It is hard to believe that 20 years have passed since the publication of the first edition of Franchising & Licensing in 1991. The impact of technology and globalization has had a permanent effect on the dynamics of the fran- chise relationship. When the manuscript was being written for the first edi- tion in the late 1980s, I could not have envisioned the many changes in today's franchise relationships or the diversity in the number of industries and companies that would pursue franchising as their primary growth strat- egy. It has been my honor to work with companies launching franchising programs in dozens of different industries and at various stages of growth-- ranging from start-up to Fortune 500 companies--all over the globe. A wide variety of recent events and trends are affecting the growth and development of domestic and international franchising: From the franchisor's perspective, the weak capital markets have lim- ited access to the resources needed for more organic or traditional growth strategies, thereby making franchising the strategy of choice to accomplish such objectives and brand building, provided that the pro- spective franchisee can access the capital they need to develop the terri- tory. From the franchisee's perspective, more families in a recessionary envi- ronment (and with job losses averaging 300,000 per month) want to have greater control over their own destiny and are pursuing many different types of franchised opportunities as a way of owning their own busi- nesses. The very weak residential real estate market has fueled the growth of many different types of home improvement and home services fran- chisors, as Americans invest less resources into the pursuit of making their homes more comfortable. Trust building, proper governance, and leadership have become hyper- critical in this post-Madoff era. Franchisors must have integrity when interacting with franchisees, or their systems will fail. ix