The franchise method of distribution offers a promising chemistry for combining the economies of scale enjoyed by the franchisor with the entrepreneurial drive and spirit of the franchisee. Until recently, there was little empirical research-based knowledge of the precise socio-economic characteristics of franchising or the dynamics of the relationships involved in this method of distribution. We were reliant on anecdotal evidence. However, enough empirical evidence does now exist for us to address these issues more seriously. This paper presents that empirical evidence and argues that the conclusions drawn from it can be generalized to a range of economies on the grounds that, just as the franchise format is reasonably standard across national boundaries, so is enterprise culture and its underlying motivation.