Market Dominators: Franchisees who rule their territories - and how they do it

Vast amounts of energy and treasure have been invested to understand why customers do--or don't--come back. Few questions are more important, since same-store sales growth is built on the backs of loyal customers.

The franchise business model is under unprecedented attack by anti-business activists launching a coordinated campaign in cities, states, and at the federal level.

Alvaro Garcia epitomizes the proverbial American dream. With 21 Jersey Mike's Subs locations in Southern California already under his belt, Garcia is in the midst of an aggressive 70-store development plan that matches an equally fierce work ethic.

Historically in franchising, real estate was coveted as a key strategic asset. Most franchisees overwhelmingly preferred to acquire the real estate as part of any new development and/or acquisition they were contemplating.

Throughout modern history, periods of heightened innovation and technological advance were followed by a relatively radical step up in the human condition as new industries, processes, routines, and services became commonplace.

When evaluating a brand, experienced operators have two big advantages over first-time prospects. First, they know what questions to ask. Second, most of the time they know what a good answer looks like.

Franchise relations are in the midst of powerful, fundamental change. Driven by the maturity of franchising, the rise of large multi-unit operators...