An American icon: some things just say "America," like baseball, apple pie and … franchises. Here are 5 big ways franchising has affected our nation

Entrepreneur, Jan, 2005 by April Y. Pennington

Up, Up and Away

FRANCHISING HAS COME a long way in terms of the overall
number of franchises sold each year, and this year, things are
looking up. So what's in store for the future? Stay tuned.

2000   274,265
2001   290,605
2002   310,044
2003   341,579
2004   337,693
2005   351,459

SOURCE: Entrepreneur's Franchise 500[R] (2000-2005)

THE GOLD STANDARD

What do experts pick as the most influential franchise ever? Overwhelmingly, McDonald's. It's no surprise. McDonald's is a franchising pioneer and is found in 119 countries with more than 30,000 locations. Why do the experts believe it has made such an impression?

Franchise consultant George Knauf puts it bluntly: "Absolute consistency in the system, even to the point that a lot of people can't consider it as a franchise option because it's too regimented." While he acknowledges other franchises have demonstrated innovation and growth, there's no disputing his claim that McDonald's is "the gold standard. It's a part of the history of franchising."

Robert Robicheaux, chair of the Department of Management, Marketing and Industrial Distribution at the University of Alabama, Birmingham, says, "McDonald's has shown a unique capacity to adapt and meet customers' expectations all over the world." And when it comes to what Robicheaux considers a cultural icon--Happy Meals--he adds, "McDonald's changed the way Americans fed their children."

The McDonald's sphere of influence has even affected other franchises. "Dave Thomas, founder of Wendy's, said he didn't invest a lot of money in market analysis and research when he first started the business. He just followed McDonald's," says Robicheaux.

Though International Franchise Association president Don DeBolt has a tougher time naming the "best" franchise, he admits that,"by pervasiveness and impact, it's McDonald's. They made franchising a household [word], and they grew faster and stronger."