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Franchising
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This article is about the business concept. For the cable television franchise fee in the United States, see Cable television franchise fee. For the concept of "franchising" in sports, see Major professional sports leagues in the United States and Canada.
The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (November 2014) (Learn how and when to remove this template message)
A McDonald's franchise.
Franchising is based on a marketing concept which can be adopted by an organisation as a strategy for business expansion. Where implemented, a franchiser licenses its know-how, procedures, intellectual property, use of its business model, brand; and rights to sell its branded products and services to a franchisee. In return the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a Franchise Agreement.
The word "franchise" is of Anglo-French derivation—from franc, meaning free—and is used both as a noun and as a (transitive) verb.[1] For the franchiser, use of a franchise system is an alternative business growth strategy, compared to say expansion through corporate owned outlets or "chain stores". Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchiser's capital investment and liability risk.
As with any business venture, franchising is not immune to risk. But if undertaken in the right way, franchising can be a vehicle of success for both the franchisor and franchisee.
Thirty-three countries have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect effect on franchising.[2] Franchising is also used as a foreign market entry mode.
Contents
[hide]
1 History
2 Largest franchised chains
3 Fees and contract arrangement
4 Rationale and risk shift
5 Advantages and disadvantages of franchising as an entry mode
6 Obligations of the parties
7 Regulations
7.1 Australia
7.1.1 Franchising code of conduct
7.2 New Zealand
7.3 Brazil
7.4 Canada
7.5 China
7.6 India
7.7 Kazakhstan
7.8 Europe
7.8.1 France
7.8.2 Italy
7.8.3 Norway
7.8.4 Russia
7.8.5 Spain
7.8.6 Turkey
7.8.7 United Kingdom
7.9 United States
8 Social franchises
9 Third-party logistics franchising
10 Event franchising
11 Home-based franchises
12 See also
13 References
14 External links
History[edit]
The boom in franchising did not take place until after World War II. Nevertheless, the rudiments of modern franchising date back to the Middle Ages when landowners made franchise-like agreements with tax collectors, who retained a percentage of the money they collected and turned the rest over.[3] The practice ended around 1562 but spread to other endeavors.[4] For example, in 17th century England franchisees were granted the right to sponsor markets and fairs or operate ferries. There was little growth in franchising, though, until the mid-19th century, when it appeared in the United States for the first time.
One of the first successful American franchising operations was started by an enterprising druggist named John S. Pemberton. In 1886, he concocted a beverage comprising sugar, molasses, spices, and cocaine (which is no longer an ingredient). Pemberton licensed selected people to bottle and sell the drink, which is now known as Coca-Cola. His was one of the earliest—and most successful—franchising operations in the United States.
The Singer Company implemented a franchising plan in the 1850s to distribute its sewing machines. The operation failed, though, because the company did not earn much money even though the machines sold well. The dealers, who had exclusive rights to their territories, absorbed most of the profits because of deep discounts. Some failed to push Singer products, so competitors were able to outsell the company. Under the existing contract, Singer could neither withdraw rights granted to franchisees nor send in its own salaried representatives. So, the company started repurchasing the rights it had sold. The experiment proved to be a failure. That may have been one of the first times a franchisor failed, but it was by no means the last. (Even Colonel Sanders did not initially succeed in his Kentucky Fried Chicken franchising efforts.) Still, the Singer venture did not put an end to franchising.
Other companies tried franchising in one form or another after the Singer experience. For example, several decades later, General Motors Corporation established a somewhat successful franchising operation in order to raise capital. Perhaps the father of modern franchising, though, is Louis Kroh Liggett. In 1902, Liggett invited a group of druggists to join a "drug cooperative." As he explained to them, they could increase profits by paying less for their purchases, especially if they set up their own manufacturing company. His idea was to market private label products. About 40 druggists pooled $4,000 of their own money and adopted the name "Rexall." Sales soared, and "Rexall" became a franchisor. The chain's success set a pattern for other franchisors to follow.
Although many business owners did affiliate with cooperative ventures of one type or another, there was little growth in franchising until the early 20th century, and what franchising there was did not take the same form as it does today. As the United States shifted from an agricultural to an industrial economy, manufacturers licensed individuals to sell automobiles, trucks, gasoline, beverages, and a variety of other products. The franchisees did little more than sell the products, though. The sharing of responsibility associated with contemporary franchising arrangement did not exist to any great extent. Consequently, franchising was not a growth industry in the United States.
It was not until the 1960s and 1970s that people began to take a close look at the attractiveness of franchising. The concept intrigued people with entrepreneurial spirit. However, there were serious pitfalls for investors, which almost ended the practice before it became truly popular.
Largest franchised chains[edit]
A Pizza Hut franchise
The following U.S. listing tabulates[5] the early 2010 ranking of major franchises along with the number of sub-franchisees (or partners) from data available for 2004.[6] The United States is a leader in franchising, a position it has held since the 1930s when it used the approach for fast-food restaurants, food inns and, slightly later, motels at the time of the Great Depression[7][citation needed]. As of 2005, there were 909,253 established franchised businesses, generating $880.9 billion of output and accounting for 8.1 percent of all private, non-farm jobs. This amounts to 11 million jobs, and 4.4 percent of all private sector output.[8]
1. Subway (sandwiches and salads) | startup costs $84,300 – $258,300 (41,916 locations worldwide in 2015).
2. McDonald's | startup costs in 2010, $995,900 – $1,842,700 (36,368 Locations in 2015)
3. 7-Eleven Inc. (convenience stores) | startup costs in 2010 $40,500- $775,300, (56,439 locations in 2015)
4. Hampton Inns & Suites (midprice hotels) | startup costs in 2010 $3,716,000 – $15,148,800
5. Great Clips (hair salons) | startup costs in 2010 $109,000 – $203,000 (3,694 locations in 2015)
6. H&R Block (tax preparation and now e-filing) | startup costs $26,427 – $84,094 (10,800 locations in 2015)
7. Dunkin' Donuts | startup costs in 2010 $537,750 – $1,765,300
8. Jani-King (commercial cleaning) | startup costs $11,400 – $35,050, (11,000 partners worldwide in 2004)
9. Servpro (insurance and disaster restoration and cleaning) | startup costs in 2010 $102,250 – $161,150
10. MiniMarkets (convenience store and gas station) | startup costs in 2010 $1,835,823 – $7,615,065
Mid-sized franchises like restaurants, gasoline stations and trucking stations involve substantial investment and require all the attention of a businessperson.
There are also large franchises like hotels, spas and hospitals, which are discussed further under technological alliances.
Fees and contract arrangement[edit]
Three important payments are made to a franchisor: (a) a royalty for the trademark, (b) reimbursement for the training and advisory services given to the franchisee, and (c) a percentage of the individual business unit's sales. These three fees may be combined in a single 'management' fee. A fee for "disclosure" is separate and is always a "front-end fee".
A franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves a specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with premature cancellations or terminations of most contracts bearing serious consequences for franchisees. A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for the purpose of ownership. It is classified as a wasting asset due to the finite term of the license.
Franchise fees are on average 6.7% with an additional average marketing fee of 2% [9] However, not all franchise opportunities are the same and many franchise organizations are pioneering new models that challenge antiquated structures and redefine success for the organization as well as the franchisee.
A franchise can be exclusive, non-exclusive or "sole and exclusive".
Although franchisor revenues and profit may be listed in a franchise disclosure document (FDD), no laws require an estimate of franchisee profitability, which depends on how intensively the franchisee "works" the franchise. Therefore, franchisor fees are typically based on "gross revenue from sales" and not on profits realized. See remuneration.
Various tangibles and intangibles such as national or international advertising, training and other support services are commonly made available by the franchisor.
Franchise brokers help franchisors find appropriate franchisees.[10] There are also main 'master franchisors' who obtain the rights to sub-franchise in a territory.
According to the International Franchise Association approximately 44% of all businesses in the United States are franchisee-worked.
Rationale and risk shift[edit]
Franchising is one of the few means available to access venture capital without the need to give up control of the operation of the chain and build a distribution system for servicing it. After the brand and formula are carefully designed and properly executed, franchisors are able to sell franchises and expand rapidly across countries and continents using the capital and resources of their franchisees while reducing their own risk.
There is also risk for the people buying the franchises. However, failure rates are much lower for franchise businesses than independent business startups.[11]
Franchisor rules imposed by the franchising authority are becoming increasingly strict. Some franchisors are using minor rule violations to terminate contracts and seize the franchise without any reimbursement.[11]
Advantages and disadvantages of franchising as an entry mode[edit]
Franchising brings with it several advantages and disadvantages for firms looking to expand into new areas and foreign markets. The primary advantage is that the firm does not have to bear the development cost and risks of opening a foreign market on its own, as the Franchisee is typically responsible for those costs and risks, putting the onus on the Franchisee to build a profitable operation as quickly as possible.[12] Through franchising a firm has the potential of building a global presence quickly and also at a low cost and risk.[12]
A primary disadvantage to franchising is quality control, as the franchisor wants the firm's brand name to convey a message to consumers about the quality and consistency of the firm's product.[12] They want the consumer to experience the same quality regardless of location or franchise status.[12] This can prove to be an issue with franchising, as a customer who had a bad experience at one franchise may assume that they will have the same experience at other locations with other services. Distance can make it difficult for firms to detect whether or not the franchises are of poor quality.[12] One way around this disadvantage is to set up extra subsidiaries in each country or state in which the firm expands. This creates a smaller number of franchisees to oversee, which will reduce the quality control challenges.[12]
Obligations of the parties[edit]
Each party to a franchise has several interests to protect. The franchisor is involved in securing protection for the trademark, controlling the business concept and securing know-how. The franchisee is obligated to carry out the services for which the trademark has been made prominent or famous. There is a great deal of standardization required. The place of service has to bear the franchisor's signs, logos and trademark in a prominent place. The uniforms worn by the staff of the franchisee have to be of a particular design and color. The service has to be in accordance with the pattern followed by the franchisor in the successful franchise operations. Thus, franchisees are not in full control of the business, as they would be in retailing.
A service can be successful if equipment and supplies are purchased at a fair price from the franchisor or sources recommended by the franchisor. A coffee brew, for example, can be readily identified by the trademark if its raw materials come from a particular supplier. If the franchisor requires purchase from her stores, it may come under anti-trust legislation or equivalent laws of other countries.[13] So too the purchase things like uniforms of personnel and signs, as well as the franchise sites, if they are owned or controlled by the franchisor.
The franchisee must carefully negotiate the license and must develop a marketing or business plan with the franchisor. The fees must be fully disclosed and there should not be any hidden fees. The start-up costs and working capital must be known before the license is granted. There must be assurance that additional licensees will not crowd the "territory" if the franchise is worked according to plan. The franchisee must be seen as an independent merchant. It must be protected by the franchisor from any trademark infringement by third parties. A franchise attorney is required to assist the franchisee during negotiations.[14]
Often the training period – the costs of which are in great part covered by the initial fee – is too short in cases where it is necessary to operate complicated equipment, and the franchisee has to learn on their own from instruction manuals. The training period must be adequate, but in low-cost franchises it may be considered expensive. Many franchisors have set up corporate universities to train staff online. This is in addition to providing literature, sales documents and email access.
Also, franchise agreements carry no guarantees or warranties and the franchisee has little or no recourse to legal intervention in the event of a dispute.[15] Franchise contracts tend to be unilateral and favor of the franchisor, who is generally protected from lawsuits from their franchisees because of the non-negotiable contracts that franchisees are required to acknowledge, in effect, that they are buying the franchise knowing that there is risk, and that they have not been promised success or profits by the franchisor. Contracts are renewable at the sole option of the franchisor. Most franchisors require franchisees to sign agreements that mandate where and under what law any dispute would be litigated.
Regulations[edit]
Australia[edit]
In 2016 there was an estimated 1,120 franchise brands operating in Australia and an estimated 79,000 units operating in business format franchises, with a total brand turnover of approximately $146 billion and a sales revenue of approximately $66.5 billion.[16] In 2016 the majority of franchise brands were retailers with the largest segment being non-food retailing, accounting for 26 percent of brands, a further 19 percent of brands were involved in food retailing, 15 percent of franchisors operated in administration and support services, 10 percent in other services, 7 percent in education and training and 7 percent in rental, hire and real estate services.[16]
Franchising in Australia commenced in a significant way in the early 1970's under the influence of the franchised US fast food systems such as KFC, Pizza Hut, and McDonald's.[17] It was however underway prior to this and a decade earlier in 1960 Leslie Joseph Hooker, considered a pioneer of franchising, created Australia’s first national real estate agency network of Hooker real estate agencies.[18][19]
In Australia, franchising is regulated by the Franchising Code of Conduct, a mandatory code of conduct concluded under the Trade Practices Act 1974.[20] The ACCC regulates the Franchising Code of Conduct, which is a mandatory industry code that applies to the parties to a franchise agreement.[21] This code requires franchisors to produce a disclosure document which must be given to a prospective franchisee at least 14 days before the franchise agreement is entered into.
The code also regulates the content of franchise agreements, for example in relation to marketing funds, a cooling-off period, termination, and the resolution of disputes by mediation.
Franchising code of conduct[edit]
On 1 January 2015, the old Franchising Code was repealed and replaced with a new Franchising Code of Conduct. The new Code applies to conduct on or after 1 January 2015.
The new Code:
introduces an obligation under the Code for parties to act in good faith in their dealings with one another
introduces financial penalties and infringement notices for serious breaches of the Code
requires franchisors to provide prospective franchisees with a short information sheet outlining the risks and rewards of franchising
requires franchisors to provide greater transparency in the use of and accounting for money used for marketing and advertising and to set up a separate marketing fund for marketing and advertising fees
requires additional disclosure about the ability of the franchisor and a franchisee to sell online
prohibits franchisors from imposing significant capital expenditure except in limited circumstances.
These are significant changes and it is important that franchisors, franchisees and potential franchises understand their rights and responsibilities under the Code.
For further information about the changes to the Code, please see the updated Franchisor Compliance Manual and the Franchisee Manual.
The Code explanatory materials are available from the ComLaw website (link is external).[22]
New Zealand[edit]
New Zealand is served by around 423 franchise systems operating 450 brands, giving it the highest proportion of franchises per capita in the world. Despite (or because of) the recession[which?], the total number of franchised units increased by 5.3% from 2009 to 2010.[23] There is no separate law covering franchises, so they are covered by normal commercial law. This functions very well in New Zealand and includes law as it applies to contracts, restrictive trade practices, intellectual property and the law of misleading or deceptive conduct.[24]
The Franchise Association of New Zealand introduced a self-regulatory code of practice for its members in 1996. This contains many provisions similar to those of the Australian Franchising Code of Practice legislation, although only around a third of all franchises are members of the association and therefore bound by the code.[25]
A case of fraud in 2007 perpetrated by a former master franchisee of the country's largest franchise system[26] led to a review of the need for franchise law by the Ministry of Economic Development.[27] The New Zealand Government decided there was no case for franchise-specific legislation at that time.[28] This decision was criticised by the opposition,[29] which had initiated the review when in power, and the review process was questioned by a leading academic.[30] The Franchise Association originally supported the positive regulation of the franchise sector[31] but its eventual submission to the review was in favour of the status quo – self-regulation.[32]
Brazil[edit]
By the end of 2012, there were about 2,031 franchise brands operating in Brazil, with approximately 93,000 locations,[33] making it one of the largest countries in the world in terms of number of units. Around 11 percent of this total were foreign-based franchisors.
The Brazilian Franchise Law (Law No. 8955 of December 15, 1994) defines the franchise as a system in which the franchisor licenses the franchisee, for a payment, the right to use a trademark or patent along with the right to distribute products or services on an exclusive or semi-exclusive basis. The provision of a "Franchise Offer Circular", or disclosure document, is mandatory before execution of agreement and is valid for all of the Brazilian territory. Failure to disclose voids the agreement, which leads to refunds and serious payments for damages. The Franchise Law does not distinguish between Brazilian and foreign franchisors. The National Institute of Industrial Property (INPI) is the registering authority. Indispensable documents are a Statement of Delivery (of disclosure documentation) and a Certification of Recording (INPI). The latter is necessary for payments. All sums may not be convertible into foreign currency. Certification may also mean compliance with Brazil's antitrust legislation.
Parties to international franchising may decide to adopt the English language for the document, as long as the Brazilian party knows English fluently and expressly acknowledges that fact, to avoid translation. The registration accomplishes three things:
* It make the agreement effective against third parties
* It permits the remittance of payments
* It qualifies the franchisee for tax deductions.
Canada[edit]
In Canada, recent legislation mandate better disclosure and fair treatment of franchisees. The regulations also ensure their right to form associations and launch collective action, even if they signed contracts prohibiting such moves. Franchising in Canada involves 1,300 brands, 80,000 franchise units accounting for about 20% of all consumer spending.[34]
China[edit]
China has the most franchises in the world but the scale of their operations is relatively small. Each system in China has an average of 43 outlets, compared to more than 540 in the United States. Together, there are 2600 brands in some 200,000 retail markets. KFC was the most significant foreign entry in 1987 and is widespread [35] Many franchises are in fact joint-ventures, as at their forming the franchise law was not explicit. For example, McDonald's is a joint venture. Pizza Hut, TGIF, Wal-mart, Starbucks followed a little later. But total franchising is only 3% of retail trade, which seeks foreign franchise growth.
The year 2005 saw the birth of an updated franchise law,[35] "Measures for the Administration of Commercial Franchise".[36] Previous legislation (1997) made no specific inclusion of foreign investors. Today the franchise law is much clearer by virtue of the 2007 law,[37] a revision of the 2005 law.
The laws are applicable if there are transactions involving a trademark combined with payments with many obligations on the franchisor. The law comprises 42 articles and eight chapters.
Among the franchisor obligations are:
The FIE (foreign-invested enterprise) franchisor must be registered by the regulator
The franchisor (or its subsidiary) must have operated at least two company-owned franchises in China (revised to "anywhere") for more than 12 months ("the two-shop, one-year" rule)
The franchisor must disclose any information requested by the franchisee
Cross-border franchising, with some caveats, is possible (2007 law).
The franchisor must meet a list of requirements for registration, among which are:
The standard franchise agreement, working manual and working capital requirements,
A track-record of operations, and ample ability to supply materials,
The ability to train the Chinese personnel and provide long-term operational guidance,
The franchise agreement must have a minimum three-year term.
Among other provisions:
The franchisor is liable for certain actions of its suppliers
Monetary and other penalties apply for infractions of the regulations.
The disclosure must take place 20 days in advance. It has to contain:
Details of the franchisor's experience in the franchised business with scope of business
Identification of the franchisor's principal officers
Litigation of the franchisor during the past five years
Full details about all franchise fees
The amount of a franchisee's initial investment
A list of the goods or services the franchisor can supply, and the terms of supply
The training franchisees will receive
Information about the trademarks,including registration, usage and litigation
Demonstration of the franchisor's capabilities to provide training and guidance
Statistics about existing units, including number, locations and operational results, and the percentage of franchises that have been terminated, and
An audited financial report and tax information (for an unspecified period of time).
Other elements of this legislation are:
The franchisee's confidentiality obligations continue indefinitely after termination or expiration of the franchise agreement
If the franchisee has paid a deposit to the franchisor, it must be refunded on termination of the franchise agreement; upon termination, the franchisee is prohibited from continuing to use the franchisor's marks.
India[edit]
The franchising of foreign goods and services to India is in its infancy. The first International Exhibition was only held in 2009.[38] India is, however, one of the biggest franchising markets because of its large middle-class of 300 million who are not reticent about spending and because the population is entrepreneurial in character. In a highly diversified society, (see Demographics of India) McDonald's is a success story despite its fare's differing from that of the rest of the world.[39]
So far, franchise agreements are covered under two standard commercial laws: the Contract Act 1872 and the Specific Relief Act 1963, which provide for both specific enforcement of covenants in a contract and remedies in the form of damages for breach of contract.
Kazakhstan[edit]
In Kazakhstan franchise turnover for 2013 is 2.5 billion US$ dollars per year. Kazakhstan is the leader in Central Asia in the franchising market. There is a special law on franchising which went into effect in 2002. There are more than 300 franchise systems and the number of franchised outlets approaches 2000.[40] Kazakhstan franchising began with the emergence of a "Coca-Cola" factory, opened to sublicense a Turkish licensor of the same brand. The plant was built in 1994. Other brands that are also present in Kazakhstan through the franchise system include Pepsi, Hilton, Marriott, Intercontinental, and Pizza Hut.
Europe[edit]
Franchising has grown rapidly in Europe in recent years, but the industry is largely unregulated. Unlike the United States, the European Union has not adopted a uniform franchise law.[41] Only six of the 28 member states have a pre-contractual disclosure law. They are France (1989), Spain (1996), Romania (1997), Italy (2004) Sweden ( 2004) and Belgium (2005).[42] Estonia and Lithuania have franchise laws that impose mandatory terms on franchise agreements. In Spain there is also mandatory registration on a public registry. Although they have no franchise specific laws, Germany and those countries with a legal system based upon that of Germany, such as Austria, Greece and Portugal, probably impose the greatest regulatory burden on franchisors due to their tendency to treat franchisees as quasi consumers in certain circumstances and the willingness of the judiciary to use the concept of good faith to make pro-franchisee decisions. In the UK, the recent[when?] Papa John case shows that there is also a need for pre-contractual disclosure and the Yam Seng case shows that there is a duty of good faith in franchise relationships.
The European Franchising Federation's Code of Ethics has been adopted by seventeen national franchise associations. However this has no legal force and enforcement by the national associations is neither uniform of rigorous. Commentators like Dr Mark Abell, in his book "The Law and Regulation of Franchising in the EU" ( Published in 2013 by Edward Elgar ISBN 978 1 78195 2207) consider this lack of uniformity to be one of the greatest barriers to the franchising realising its potential in the EU.
When adopting a European strategy it is important that a franchisor takes expert legal advice. Most often one of the principal tasks in Europe is to find retail space, which is not so significant a factor in the USA. This is where the franchise broker, or the master franchisor, plays an important role. Cultural factors are also relevant, as local populations tend to be heterogeneous.
France[edit]
France is one of Europe's largest markets. Similar to the United States, it has a long history of franchising, dating back to the 1930s. Growth came in the 1970s. The market is considered difficult for outside franchisors because of cultural characteristics, yet McDonald's and Century 21 are found everywhere. There are some 30 U.S. firms involved in franchising in France.[43]
There are no government agencies regulating franchises. The Loi Doubin Law of 1989 was the first European franchise disclosure law. Combined with Decree No. 91-337, it regulates disclosure, although the decree also applies to any person who provides to another person a corporate name, trademark or trade name or other business arrangements. The law applies to "exclusive or quasi-exclusive territory". The disclosure document must be delivered at least 20 days before the execution of the agreement or any payments are made.
The specific and important disclosures to be made are:[44]
The date of the founding of the franchisor's enterprise and a summary of its business history and all information necessary to assess the business experience of the franchisor, including bankers,
A description of the local market for the goods or services,
The franchisor's financial statements for the previous two years,
A list of all other franchisees currently in the network,
All franchisees who have left the network during the preceding year, whether by termination or non-renewal, and
The conditions for renewal, assignment, termination and the scope of exclusivity.
Initially, there was some uncertainty whether any breach of the provisions of the Doubin Law would enable the franchisee to walk away from the contract. However, the French supreme court (Cour de cassation) eventually ruled that agreements should only be annulled where missing or incorrect information affected the decision of the franchisee to enter into the agreement. The burden of proof is on the franchisee. [45]
Dispute settlement features are only incorporated in some European countries. By not being rigorous, franchising is encouraged.
Italy[edit]
Under Italian law franchise [46] is defined as an arrangement between two financially independent parties where a franchisee is granted, in exchange for a consideration, the right to market goods and services under particular trademarks. In addition, articles dictate the form and content of the franchise agreement and define the documents that must be made available 30 days prior to execution. The franchisor must disclose:
a) A summary of the franchise activities and operations,
b) A list of franchisees currently operating in the franchise system in Italy,
c) Year-by-year details of the changes in the number of franchisees for the previous three years in Italy,
d) A summary of any court or arbitral proceedings in Italy related to the franchise system, and
e) If requested by the franchisee, copies of franchisor's balance sheets for the previous three years, or since start-up if that period is shorter.
Norway[edit]
There are no specific laws regulating franchising in Norway. However, the Norwegian Competition Act section 10 prohibits cooperation which may prevent, limit or diminish the competition. This may also apply to vertical cooperation such as franchising..
Russia[edit]
In Russia, under chapter 54 of the Civil Code (passed 1996), franchise agreements are invalid unless written and registered, and franchisors cannot set standards or limits on the prices of the franchisee's goods. Enforcement of laws and resolution of contractual disputes is a problem:[citation needed] Dunkin' Donuts chose to terminate its contract with Russian franchisees who were selling vodka and meat patties contrary to their contracts, rather than pursue legal remedies.[47]
Spain[edit]
The legal definition of franchising in Spain is an activity in which an undertaking, the franchisor, grants to another party, the franchisee, for a specific market and in exchange for financial compensation (either direct, indirect or both), the right to exploit an owned system to commercialize products or services already exploited by the franchisor with enough success and experience.
The Spanish Retail Trading Act regulates franchising.[48] The contents of the franchise must include, at least:
The use of a common name or brand or any other intellectual property right and a uniform presentation of the premises or the transport means included in the agreement.
The communication by the franchisor to the franchise of certain technical knowledge or substantial and singular know-how that has to be owned by the franchisor, and
Technical or commercial assistance or both, provided by the franchisor to the franchisee during the agreement, without prejudice to any supervision faculty to which the parties could freely agree in the contract.
In Spain, the franchisor submits the disclosure information 20 days prior to signing the agreement or prior to any payment made by the franchisee to the franchisor. Franchisors are to disclose to the potential franchisee specific information in writing. This information has to be true and not misleading and include:
Identification of the franchisor;
Justification of ownership or license for use of any trademark or similar sign and judicial claims affecting them as well as the duration of the license;
General description of the sector in which the franchise operates;
Experience of the franchisor;
Contents and characteristics of the franchise and its exploitation;
Structure and extension of the network in Spain;
Essential elements of the franchise agreement.
Franchisors (with some exceptions) should be registered in the Franchisors' Register and provide the requested information. According to the regulation in force in 2010 this obligation has to be met within three months after the start of its activities in Spain.[49]
Turkey[edit]
Franchising is a sui generis contract which bears the characteristics of several explicitly regulated contracts such as; agency, sales contract and so forth. The regulations concerning these kinds of contracts in Turkish Commercial Code and in Turkish Code of Obligations are applied to franchising. Franchising is described in doctrine and has several essential components such as; the independence of the franchisee from the franchisor, the use of know-how and the uniformity of product and services, standard use of the brand and logo, payment of a royalty fee, increasement of sales by the franchisee and continuity. Franchising may be for a determined or undetermined period of time. The undetermined one can only be annulled either by a notice before a reasonable amount of time or by a just cause. The franchising agreement with a determined time period ends within the end of the time period if not specified otherwise in the agreement. However, termination based on just cause is also foreseen for franchising agreement with a determined time period.
United Kingdom[edit]
In the United Kingdom there are no franchise-specific laws; franchises are subject to the same laws that govern other businesses.[50] There is some self-regulation through the British Franchise Association (BFA).
There are a number franchise businesses which are not members of the BFA and many which do not meet the BFA membership criteria. Part of the BFA's role in self-regulation is to work with franchisors through the application process and recommend changes which will lead to the franchise business meeting BFA standards. A number of businesses that refer to themselves as franchises do not conform to the BFA Code of Ethics are therefore excluded from membership.
On 22 May 2007, hearings were held in the UK Parliament concerning citizen-initiated petitions for special regulation of franchising by the government of the UK due to losses incurred by citizens who had invested in franchises. The Minister of Industry, Margaret Hodge, conducted hearings but saw no need for any government regulation of franchising with the advice that government regulation of franchising might lull the public into a false sense of security. Mr Mark Prisk MP suggested that the costs of such regulation to the franchisee and franchisor could be prohibitive and would in any case provide a system which mirrored the work already being completed by the BFA. The Minister of Industry indicated that if due diligence were performed by the investors and the banks, the current laws governing business contracts in the UK offered sufficient protection for the public and the banks. The debate also made reference to the self-regulatory function performed by the BFA recognizing that the association "punched above its weight".[51]
United States[edit]
Isaac Singer, who made improvements to an existing model of a sewing machine in the 1850s, began one of the first franchising efforts in the United States, followed later by Coca-Cola, Western Union, etc.[52] and by agreements between automobile manufacturers and dealers.[53]
Modern franchising came to prominence with the rise of franchise-based food service establishments. In 1932, Howard Deering Johnson established the first modern restaurant franchise based on his successful Quincy, Massachusetts Howard Johnson's restaurant founded in the late 1920s.[54][55] The idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee. The growth in franchising accelerated in the 1930s when such chains as Howard Johnson's started to franchise motels.[56] The 1950s saw a boom in franchise chains in conjunction with the development of the U.S. Interstate Highway System and the growing popularity of fast food.[57]
In the United States, the Federal Trade Commission has oversight of franchising, rather than the U.S. Securities and Exchange Commission. The FTC administrates oversight via the FTC Franchise Rule.[58]
The FTC requires that the franchisee be furnished with a Franchise Disclosure Document (FDD) by the franchisor at least fourteen days before money changes hands or a franchise agreement is signed. The final agreement is always a negotiated document setting forth fees and other terms. Whereas elements of the disclosure may be available from third parties, only that provided by the franchisor can be depended upon. The U.S. Franchise Disclosure Document (FDD) is lengthy (300–700 pp +) and detailed (see Uniform Franchise Offering Circular (UFOC) for elements of disclosure), and generally requires audited financial statements from the franchisor in a particular format, except in some circumstances, such as where a franchisor is new. It must include such data as the names, addresses and telephone numbers of the franchisees in the licensed territory (who may be contacted and consulted before negotiations), estimate of total franchise revenues and franchisor profitability.
Individual states may require the FDD to contain their own specific requirements, but the requirements in state disclosure documents must be in compliance with the federal rule that governs federal regulatory policy. There is no private right of action of action under the FTC rule for franchisor violation of the rule, but fifteen or more of the states have passed statutes that provide this right of action to franchisees when fraud can be proven under these special statutes. The majority of franchisors have inserted mandatory arbitration clauses into their agreements with their franchisees, some of which the U.S. Supreme Court has dealt with.
There is no federal registry of franchises or any federal filing requirements for information. States are the primary collectors of data on franchising companies and enforce laws and regulations regarding their presence and their spread in their jurisdictions.
Where the franchisor has many partners, the agreement may take the shape of a business format franchise – an agreement that is identical for all franchisees.
Social franchises[edit]
In recent years, the idea of franchising has been picked up by the social enterprise sector, which hopes to simplify and expedite the process of setting up new businesses. A number of business ideas, such as soap making, wholefood retailing, aquarium maintenance, and hotel operation have been identified as suitable for adoption by social firms employing disabled and disadvantaged people.
The most successful examples are probably the Kringwinkel second-hand shops employing 5,000 people in Flanders, franchised by KOMOSIE,[59] the CAP Markets, a steadily growing chain of 100 neighbourhood supermarkets in Germany.[60] and the Hotel Tritone in Trieste, which inspired the Le Mat social franchise, now active in Italy and Sweden.[61]
Social franchising also refers to a technique used by governments and aid donors to provide essential clinical health services in the developing world.
Social Franchise Enterprises objective is to achieve development goals by creating self sustainable activities by providing services and goods in un-served areas. They use the Franchise Model characteristics to deliver Capacity Building, Access to Market and Access to Credit/Finance.[62]
Third-party logistics franchising[edit]
Third-party logistics has become an increasingly more popular franchise opportunity due the quickly growing transportation industry [63] and low cost franchising. In 2012, Inc. Magazine ranked three logistics and transportation companies in the top 100 fastest growing companies in the annual Inc. 5000 rankings.[64]
Event franchising[edit]
Event franchising is the duplication of public events in other geographical areas, retaining the original brand (logo), mission, concept and format of the event.[65] As in classic franchising, event franchising is built on precisely copying successful events. An example of event franchising is the World Economic Forum, also known as the Davos forum, which has regional event franchisees in China, Latin America, etc. Likewise, the alter-globalist World Social Forum has launched many national events. When The Music Stops is an example of an events franchise in the UK, in this case, running speed dating and singles events.
Home-based franchises[edit]
The franchising or duplication of another firm's successful home-based business model is referred to as a home-based franchise. Home-based franchises are becoming popular as they are considered to be an easy way to start a business as they may provide a low barrier for entry into entrepreneurship. It may cost little to start a home-based franchise, but experts say that "the work is no less hard."[66]
See also[edit]
American Association of Franchisees and Dealers
Franchise termination
Franchise agreement
Franchise consulting
Franchise Disclosure Document
Franchise fraud
List of franchises
The Franchise Rule
U.S. Securities and Exchange Commission
Martha Matilda Harper, another female franchising pioneer
Leslie Joseph Hooker, Australian pioneer of franchising of LJ Hooker real estate
References[edit]
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Jump up ^ "History of Franchising" (PDF). Franchoice.com. Retrieved 30 December 2017.
Jump up ^ "Where it all began. The evolution of franchising. | Franchise-chat Resource Archive". Franchise-chat.com. Retrieved 2017-06-06.
Jump up ^ "2015 Top Franchises from Entrepreneur's Franchise 500 List". Entrepreneur. Retrieved 22 March 2015.
Jump up ^ Patterns of Internationalization for Developing Country Enterprises (Alliances and Joint Ventures) United Nations Industrial Development Organization, Vienna, 2008, ISBN 978-92-1-106443-8, pp 65
Jump up ^ Kallianiotis, I. (2013-12-18). International Financial Transactions and Exchange Rates: Trade, Investment, and Parities. Springer. ISBN 9781137356932.
Jump up ^ "The Economic Impact of Franchised Businesses In the United States" (PDF). Price Waterhouse Coopers. 2012. Archived from the original (PDF) on 2012-06-17. Retrieved 2012-02-02.
Jump up ^ "The Profile of Franchising Report Series III – Royalty and Advertising Fees". International Franchise Association. 2006.
Jump up ^ Libava, Joel (5 January 2012). "What is a Franchise Broker". Small Business Administration. Retrieved 22 July 2017.
^ Jump up to: a b Noah, Timothy (4 March 2014). "Disenfranchised: Why are Americans Still Buying Into the Franchise Dream". Pacific Standard. The Social Justice Foundation. Retrieved 22 July 2017.
^ Jump up to: a b c d e f Hill, Charles W.L. (2015). International Business. New York: McGraw-Hill Education. p. 457. ISBN 978-0-07-811277-5.
Jump up ^ "Contractual and Business Aspects of Structuring Supplier Agreements" (PDF). Maslynlaw.com. Retrieved 30 December 2017.
Jump up ^ Manual on Technology Transfer Negotiation (A reference for policy-makers and practitioners on Technology Transfer), 1996, United Nations Industrial Development Organization, Vienna, 1990, ISBN 92-1-106302-7
Jump up ^ Larson, Aaron. "Should You Invest in a Franchise Opportunity". ExpertLaw. Retrieved 22 July 2017.
^ Jump up to: a b "Franchising Australia 2016". Franchise Council Of Australia. Retrieved 2 April 2018.
Jump up ^ "Franchising: An Introduction". Franchise Council Of Australia. Retrieved 2 April 2018.
Jump up ^ "L J Hooker, the man behind the brand". ABC. Retrieved 2 April 2018.
Jump up ^ "LJ Hooker's Heritage, History and Brand". LJ Hooker. Retrieved 2 April 2018.
Jump up ^ "Federal Register of Legislation – Australian Government". Legislation.gov.au. Retrieved 11 August 2017.
Jump up ^ [1][dead link]
Jump up ^ Commission, Australian Competition and Consumer (11 September 2012). "Franchising Code of Conduct". Accc.gov.au. Retrieved 11 August 2017.
Jump up ^ "survey finds franchise sector RESILIENT & GROWING – Franchise New Zealand". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "Legislation: Help Or Hindrance?". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "an introduction to FRANCHISING IN NEW ZEALAND". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "Green Acres master charged with fraud". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "Regulation Off the Agenda?". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "Government Decides AGAINST Franchise Regulation". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "National's failure to act on franchise regulation 'disappointing'". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "franchise regulation REVIEWING THE REVIEW – Franchise New Zealand". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "Franchise Association Calls For Positive Regulation". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ "Ministry receives submissions on regulation". Franchise.co.nz. Retrieved 22 March 2015.
Jump up ^ Geromel, Ricardo (27 July 2012). "Franchising: The Best Way of Investing in Brazil". Forbes. Retrieved 22 July 2017.
Jump up ^ Milner, Brian (21 November 2017). "Pity the franchisees". Report on Business. The Globe and Mail. Retrieved 22 November 2017.
^ Jump up to: a b "Franchising in China" Archived 2010-12-14 at the Wayback Machine. Franchise.org
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Jump up ^ "Franchise update – The Definitive Resource For Franchisors". Franchising.com. Retrieved 22 March 2015.
Jump up ^ "Franchise laws in India". Franchisebusiness.in. Retrieved 22 March 2015.
Jump up ^ Patterns of Internationalization for Developing Country Enterprises (Alliances and Joint Ventures) United Nations Industrial Development Organization, Vienna, 2008, ISBN 978-92-1-106443-8,
Jump up ^ B.Kissikov "Franchising in Kazakhstan", Kazakhstan Franchise Association
Jump up ^ "EUR-Lex – 31988R4087 – EN – EUR-Lex". eur-lex.europa.eu. Retrieved 11 August 2017.
Jump up ^ "Franchise Disclosure Laws in the European Union". Peralaw.com. Retrieved 22 March 2015.
Jump up ^ "France Serves as a Gateway to Europe – International Franchise Association". Franchise.org. Retrieved 30 December 2017.
Jump up ^ EU Franchise Disclosure Archived 2014-05-27 at the Wayback Machine. peralaw.com
Jump up ^ "Wayback Machine" (PDF). Web.archive.org. 10 July 2011. Retrieved 30 December 2017.
Jump up ^ "Archived copy" (PDF). Archived from the original (PDF) on 2011-07-10. Retrieved 2010-02-28. EuroFranchiseLawyers.com
Jump up ^ Anttonen, Noora, Mika Tuunanen, Ilan Alon (2005), "The International Business Environments of Franchising in Russia," Academy of Marketing Science Review, (5), 1–18.
Jump up ^ The offer and sale of franchises are governed in Spain by the Retail Trade Act 7/1996 of January 15 as amended by Act 1/2010 of March 1. Particularly Article 62 is applicable to franchise agreements. The Act is completed by the Royal Decree 210/2010 of February 26 on Franchise Agreements.
Jump up ^ See also Spain Chapter of Getting the Deal Through. Franchise 2011 by Ignacio Alonso
Jump up ^ However the recent Pappa Johns case shows that the courts will expect clear disclosure of relevant facts by the franchisor before the franchisee signs up and the recent Yam Seng case clearly establishes that the franchise relationship involves a duty of good faith. The Trading Schemes Act also regulates Multi tier franchises Franchise agreements subject to European Code of ethics (blog)
Jump up ^ "Franchise Industry". Daily Hansard: 363WH; part 1, part 2, part 3. 22 May 2007.
Jump up ^ "Franchising – benefits". Referenceforbusiness.com. Retrieved 22 March 2015.
Jump up ^ "It's Issac Singer's Fault". 'The Franchise King'. Retrieved October 28, 2015.
Jump up ^ Allen, kolin chakma.Foodservice's theory of evolution: Survival of the fittest (1998). Nation's Restaurant News 32(4), pp.14–17
Jump up ^ Howard, T. (1996). "Howard Johnson: Initiator of franchised restaurants". Nation's Restaurant News. 30 (2): 85–86. Archived from the original on 2012-07-11.
Jump up ^ "Franchising: A Brief History". State of Wisconsin Department of Financial Institutions. Retrieved 22 July 2017.
Jump up ^ "A Brief History of Franchising – American Franchise Attorney | Washington D.C., U.S. | Franchise Law". Franchise-law.com. Retrieved 2017-06-06.
Jump up ^ "Disclosure Requirements and Prohibitions Concerning Franchising & Disclosure Requirements Concerning Business Opportunities – 16 CFR Parts 436 and 437" (PDF). Ftc.gov. Retrieved 22 March 2015.
Jump up ^ "Home – Komosie". Komosie.be. Retrieved 22 March 2015.
Jump up ^ "CAP-Markt: CAP Märkte". Cap-markt.de. Retrieved 22 March 2015.
Jump up ^ "Le Mat Europe – Pagine Statiche – Le Mat Europe". Lemat.it. Retrieved 22 March 2015.
Jump up ^ Alvaro Hidalgo,The Franchise as a Development tool Archived 2014-05-13 at the Wayback Machine.
Jump up ^ "Trucking Industry Infographic – Business Insider". Business Insider. 9 April 2013. Retrieved 22 March 2015.
Jump up ^ "Top Logistics & Transportation Companies on the Inc. 5000". Inc.com. Retrieved 22 March 2015.
Jump up ^ Kissikov Beknur. Franchising.
Jump up ^ Issie Lapowsky (May 13, 2010). "How to Start a Home-Based Franchise". Inc. Mansueto Ventures. Retrieved August 13, 2012.
External links[edit]
Wikimedia Commons has media related to Franchises.
Look up franchise in Wiktionary, the free dictionary.
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Make It or Break It
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Make It or Break It
Genre
Family drama
Teen drama
Created by
Holly Sorensen
Starring
Josie Loren
Ayla Kell
Cassie Scerbo
Susan Ward
Neil Jackson
Candace Cameron Bure
Peri Gilpin
Chelsea Hobbs
Johnny Pacar
Anthony Starke
Dondre Whitfield
Theme music composer
Michael Suby
Opening theme
"Make It or Break It" by Michael Suby
Composer(s)
Michael Suby
Country of origin
United States
Original language(s)
English
No. of seasons
3
No. of episodes
48 (list of episodes)
Production
Executive producer(s)
Holly Sorensen
Paul Stupin
John Ziffren
Producer(s)
Kevin C. Slattery
David Hartle
Maria L. Melograne
Nancy Haas
Location(s)

Los Angeles, CA
California State University, Long Beach
Long Beach, CA<brSanta Monica Civic Auditorium
Santa Monica, CA
Santa Clarita Studios
The Ranch, Disney Studious
Santa Clarita, CA

Westlake Village, CA
Cinematography
Patrick Cady
Roy H. Wagner
Jonathan West
Editor(s)
Elena Malagini
Nathan Easterling
Lori Jane Coleman
David A. Simmons
Nicholas Erasmus
William Marrinson
Jan Northrop
Camera setup
Film; Single-camera
Running time
45 minutes
Production company(s)
Super Delicious! (pilot)
Pirates' Cove Entertainment
ProdCo Original
Hollycake (from season 2)
ABC Family Original Productions
Distributor
Disney–ABC Domestic Television
Release
Original network
ABC Family
Picture format
480i (SDTV)
720p (HDTV)
Audio format
Stereo
Original release
June 22, 2009 (2009-06-22) – May 14, 2012 (2012-05-14)
abcfamily.go.com/shows/make-it-break-it
Make It or Break It (a.k.a. MIOBI) is an American teen/family comedy-drama television series that focused on the lives of teen gymnasts who strived to make it to the Olympic Games. The series was inspired by Touchstone's 2006 teen comedy-drama film Stick It. It premiered on ABC Family on June 22, 2009, with 2.5 million viewers.[1] The show was picked up for an additional 10 episodes on July 27, 2009,[2] which started airing on January 4, 2010, bringing the total number of episodes in the first season to 20.[3][4] In January 2010, the show was renewed for a second season,[5] which premiered on June 28, 2010 at 10 pm.[6] Starting on July 13, 2010, new episodes aired following Pretty Little Liars.[7] The show's second season resumed after a six-month hiatus on March 28, 2011. The series was renewed for a third season on September 16, 2011, which premiered on March 26, 2012.[8] It was announced on April 26, 2012, that the series had ended and the third season would be the final season. The series finale aired on May 14, 2012.[9][10]
Internationally, the show aired on E4 in the United Kingdom,[11] Zee Café in India, Fox8 in Australia, ABC Spark in Canada, RTM2 in Malaysia, and on TV2 in New Zealand.
Make It or Break It was created by Holly Sorensen who, along with Paul Stupin and John Ziffren, served as the show's executive producers.[12] The stunt doubles were former elite, Olympian or NCAA champion gymnasts.[13][14][15]
Contents
[hide]
1 Plot
2 Cast and characters
2.1 Main cast and characters
2.2 Recurring cast and characters
3 U.S. Nielsen ratings
4 DVD releases
5 Awards and nominations
6 See also
7 References
8 External links
Plot[edit]
Main article: List of Make It or Break It episodes
In the season one premiere, Payson Keeler (Ayla Kell), Kaylie Cruz (Josie Loren), and Lauren Tanner (Cassie Scerbo) are elite-level gymnasts. They train at one of the best gyms in the country, the fictional "Rocky Mountain Gymnastics Training Center" (or "The Rock") in Boulder, Colorado, in hopes of winning gold at the 2012 Summer Olympics. The girls have been best friends and teammates for years. They are joined by newcomer Emily Kmetko (Chelsea Hobbs), an untrained gymnastics phenomenon plucked from obscurity. It is revealed that Emily's family is struggling for money, and she has to work at Pizza Shack to keep them afloat, and receives scholarship money to do gymnastics. The Rock's Athletes compete for places on the club's team for nationals. Emily ranks third ahead of Lauren, despite Lauren's attempt to sabotage her vault.
The girls' futures are thrown into turmoil when their head coach, Marty Walsh (Erik Palladino), is blackmailed out of his job at The Rock by Lauren's father Steve, who is angry that his daughter was beaten by Emily. Marty is forced to move to The Rock's rival gym in Denver, taking Lauren and other gymnasts with him. It is revealed later that Kaylie's mother (Rosa Blasi) and Marty were having an affair, and he left to keep the secret from being exposed. After a visit from an angry Payson (who is joined by Kaylie, Emily and her sister Becca), Marty tells Steve he is in charge from now on and will do things his way. Steve then goes in search of Sasha Belov, the only gymnast to have beaten Marty Walsh to an Olympic gold medal. Belov tells Tanner he isn't interested because Steve split up what could have been the greatest team in US history when he took Lauren to Denver. Steve and Lauren then return to the rock accompanied by Sasha.
While Payson appreciates Sasha's experience and drive, the other girls chafe at his demanding style. Kaylie and Emily decide to go to a party before Sasha's new regime is put in place. Payson agrees to go as a chaperone. At the party Emily meets Razor, a coworker from the pizza shack, and a drunk Kaylie is seen by her secret boyfriend Carter having told him she couldn't go out because her Dad wouldn't let her. Meanwhile, Lauren abandons her birthday meal with her father, after he brings his executive assistant (and girlfriend) Summer. She goes to the party and comforts Carter. The two sleep together, but it clearly doesn't mean as much to Carter as it does to Lauren. Throughout the season, Emily tries to hide the fact she has to work to support her family, fearing this news could jeopardize her scholarship. However, she is forced to confess this to the other girls while they are cleaning mats as punishment for going to the party. They help her climb out the window to get to work in time to avoid being fired. Kaylie hides her relationship with Carter Anderson, another gymnast at The Rock. Lauren is hiding the fact that she has lost her virginity to Carter from Kaylie, while trying to get him to go out with her instead and struggling to fight the feeling that Summer is trying to replace her mother or is after her father's money. Payson has back problems and tries to conceal this from her parents and Sasha because she is desperate not to lose her chance to become National Champion and beat her rival, Kelly Parker (Nicole Gale Anderson) in a pre-nationals club meet between The Denver Elite and The Rock. While Payson manages to beat Kelly, Emily attempts a more difficult dismount on bars than the one Sasha told her to do and falls. She is banned from competing at nationals and suspended from the rock. Damon, a friend of Razors who is covering his shifts at the Pizza Shack helps Emily break into the gym at night to perfect the move and prove herself to Sasha. However, she isn't allowed back until she get over her trust issues and lets Sasha help her. Lauren warms up to Summer who convinces Steve to give Lauren her mother's contact details so she can come to watch her at nationals. Lauren goes to the bus stop but her mother Leslie never arrives. Later at nationals Summer realizes that Steve threatened Leslie into not coming and their argument results in a break-up. Before nationals, Carter confesses to Kaylie that he cheated. She disappears, but Emily, Lauren and Payson find her at gymnastics camp. Lauren reveals it was her who slept with Carter, but eventually all the girls put aside their differences and return to Boulder in time to leave for nationals. Payson is favorite to win but after a fall on the uneven bars, she fractures her spine and is told she can never do gymnastics again. Kaylie receives the title of National Champion, beating Kelly Parker. Lauren places fifth and Emily places twelfth, meaning that all three receive spots on the National Team.
As season one resumes, Payson deals with what seems to be the end of her gymnastics career and dreams. Summer and Sasha begin a relationship, and Emily and Payson get closer. Payson undergoes cutting-edge surgery to fix her spine. Although the operation is successful, she does not want to return to gymnastics, fearing she will re-injure herself. Meanwhile, the three Rock girls find an enemy in the head of the National Gymnastics Committee, Ellen Beals (Michelle Clunie), who prizes obedience to her authority and feels threatened by The Rock girls' independence. Emily wrestles with her desire to be an Olympic gymnast and her love for Damon, a co-worker at The Pizza Shack where she works. Carter is allowed back in The Rock and finds support from Lauren after she learns he is living in his car, having been kicked out of the home by his father, who does not support his gymnastics career. Payson's father is laid off from his job and has to accept another one far from Boulder.
Payson's mother, Kim (Peri Gilpin) takes over managing The Rock, as the girls are shut out of the National Team. Kaylie and Emily are kept back from a USA vs. China meet. To get The Rock girls recognized as being international standard, The Rock holds a private meet between them and the Chinese National Team. Ellen Beals pressures Kaylie not to compete, telling her she might lose and damage her profile. Ellen also blackmails Emily, telling her if she competes she will have her scholarship revoked after Ellen finds out about Emily's job at the Pizza Shack. Working together, the girls get five medals, more than the U.S. National Team got in Beijing.
In the second season, the girls are joined at The Rock by superstar male gymnast Austin Tucker (Zane Holtz). Payson refuses to accept her body has changed since her injury and is encouraged to petition to the National Team by Ellen Beals against the advice of Sasha, who thinks she is not ready. Her petition is denied, and she is heartbroken until Sasha convinces her to return, hoping to revitalize her career by transitioning her into being an artistic gymnast. Payson, whose previous style emphasized power over grace, is skeptical but comes around and finds herself romantically attracted to Sasha. She impulsively kisses him, but he pushes her away. The Kmetko family struggles financially with the loss of Emily's scholarship, until Steve Tanner secretly organizes a private scholarship to fund her training, after beginning a relationship with Chloe. When Emily finds out where the money is coming from, she refuses to accept the charity. Chloe secretly begins work as a bartender in a strip club. Emily's brother begins to have seizures because his prescription has not been refilled. Discovering problems with their insurance and not having money to pay for the medication, Emily steals the medication and is arrested.
Lauren finds the tape of Sasha and Payson's kiss in the practice camera. In an effort to get rid of Sasha and have Summer get back with her father, she leaks the first part (showing only the kiss) to Ellen Beals and deletes the later part (showing Sasha pushing Payson away). This results in Sasha being dismissed and Steve Tanner becoming president of The Rock. Summer is behind Sasha and does not believe he would act inappropriately. Sasha and Summer break up because though Sasha respects Summer's values, he does not share them. Newly minted national champion Kaylie struggles with the demands of her position and develops an eating disorder. Her parents refuse to believe it, but Austin tries to convince Kaylie that she needs help. In the midseason finale, the girls compete at trials for the World Championships. Payson confronts the gymnastics committee, asking them to accept her as an artistic gymnast. Police arrive to take Emily away, as she has missed her court hearing. Kaylie collapses while competing and is rushed to the hospital. All four girls make the Worlds team.
When Season Two returns, the girls cope with the loss of Sasha Belov. After breaking down, Kaylie admits to having an eating disorder and seeks treatment. Austin supports her, and they begin a relationship. Emily is forced to wear an ankle monitor due to her probation after being caught stealing. The other girls train for the World Gymnastics Competition, a task made harder by the presence of their arch enemy, Kelly Parker, at The Rock. Sasha returns after the girls track him down in Romania, and Lauren starts to like him better as he begins coaching her directly. While in recovery, Kaylie offers her mother's old recording studio to Emily's boyfriend Damon, who has been struggling to make an album in order to impress his new record label.
After Emily witnesses Kaylie and Damon singing together at the Pizza Shack, she imagines Damon is unfaithful and breaks up with him. Emily learns that she is pregnant, and Damon is the father. After members of the NGO try to persuade her to have an abortion, she insists that they have controlled her life for too long. She ignores their suggestion, and she keeps the baby. After informing Damon of the baby, she insists that being teen parents together will be perfect. Emily returns immediately to pack but is interrupted by Kaylie. Kaylie tells her that after Damon and Emily broke up, Damon kissed Kaylie. Feeling betrayed, Emily leaves to live with her godmother in Las Vegas without telling Damon. Eventually, Damon finds Emily and decides to be there for her.
Summer and Steve Tanner become engaged. A new gymnast, Max (Josh Bowman), comes to The Rock, attracting the attention of Lauren and Payson. Though Max seems more interested in Payson, she is more focused on her dream. Lauren pursues him past the point of ridiculousness. She assures Payson that Max is her new boyfriend; Max denies this. Max, Austin, and Payson help Kaylie train in secret, as they try to convince Sasha that Kaylie is ready to compete at Worlds. In the wake of Emily's departure, Kelly Parker becomes closer to Kaylie, despite the scheming of her stage mother, Sheila (Kathy Najimy). Kaylie offers her comfort as Kelly's mom is only supportive of Kelly's fame and fortune. Kelly steals Kaylie's journal and is instructed by her mother to give it to Ellen Beals. The night before Worlds, Kelly returns the journal and admits to stealing it. This causes Kaylie's new trust in Kelly to falter. At a party before the team is about to head off to Worlds, Steve announces that Summer and he are planning to get married in Rio, where worlds is hosted. However, later, Summer finds out that Lauren sent in the kiss cam video and calls off the wedding, as she wants nothing to do with Lauren or Steve Tanner. At the same party, Lauren tries to convince Max to have sex with her while Payson admits to Max that she thinks she might be in love with him. Max gets drunk sitting on a couch and later Austin finds him. Max explains his situation with the two girls under the influence of alcohol and Austins helps him up. Max kisses Austin drunkly and when questioned about his sexuality by Austin, Max admits that he is bisexual. He goes on a drive with Lauren, and they get into a car accident. Lauren is fine, but Max breaks his collarbone. Payson wants to go professional so she can earn money to help support her family, as they are struggling with debt after Payson's medical bills and training, but her parents do not want her to forfeit her eligibility for a college scholarship. Payson tells Max she loves him and begs him to forget she said anything when his feelings are not confessed to her. In the season two finale, the four girls lead the team to the World Competition in Rio de Janeiro, where they win team gold.
Season Three opens with Payson, Lauren, and Kaylie heading to the American Olympic Training Center as they prepare for the 2012 London Olympics. They deal with a new coach and teammates, including upcoming gymnasts. Max and Payson have a relationship through letters; on the first day Payson receives a letter in which Max breaks up with her because he's confused. Later Payson, Lauren, Kaylie, and Austin are having a conversation based around the breakup and Austin admits to the group that Max was bisexual and that they shared a kiss on the night of the party which leaves all three girls stunned. An uninvited gymnast, Jordan Randall, convinces Coach MacIntire to let her train with the group, causing tension. Coach Mac pairs up the girls, forcing Kaylie to live and work with Kelly Parker and Lauren to work with Payson. They eventually become close friends. Kelly is not good enough for the Olympics and leaves gymnastics. Payson has a new romance with Rigo (Tom Maden). Payson finds out that Lauren has an irregular heart beat, but Lauren has heart surgery. Austin does not make the Olympic Team and blames Kaylie. Jordan reveals that a former coach, Coach Keagan, molested her when she was young. Desperate to ensure her spot on the team, Wendy drugs Kaylie with a cold medicine containing a banned substance. After Austin and Kaylie reunite, then Lauren, Payson, and Jordan tell the NGO that they are boycotting Olympic tryouts unless Kaylie is allowed to perform. Lauren discovers the secret Wendy has been hiding and exposes her, getting Wendy kicked out. The season three finale culminates with the five girls, Payson, Lauren, Kaylie, plus Jordan, and finally Colleen, being chosen to represent the U.S. in the Olympics.
Cast and characters[edit]
The main cast of Make It or Break It
Main article: List of Make It or Break It characters
Main cast and characters[edit]
Character
Cast member
Notes
Kaylie Cruz Josie Loren Seasons 1–3
Payson Keeler Ayla Kell Seasons 1–3
Lauren Tanner Cassie Scerbo Seasons 1–3
Emily Kmetko Chelsea Hobbs Seasons 1–2
Summer van Horne Candace Cameron Bure Seasons 1–2; recurring Season 3
Sasha Belov Neil Jackson Seasons 1–2; recurring Season 3
Steve Tanner Anthony Starke Seasons 1–2; recurring Season 3
Kim Keeler Peri Gilpin Seasons 1–2
Chloe Kmetko Susan Ward Seasons 1–2
Damon Young Johnny Pacar Seasons 1–2
Coach McIntire (Mac) Dondre Whitfield Season 3
Recurring cast and characters[edit]
Character
Cast member
Notes
Ronnie Cruz Rosa Blasi Seasons 1–3
Alex Cruz Jason Manuel Olazabal Seasons 1–3
Mark Keeler Brett Cullen Seasons 1–3
Kelly Parker Nicole Gale Anderson Seasons 1–3
Carter Anderson Zachary Burr Abel Seasons 1–2
Razor Nico Tortorella Seasons 1–2
Ellen Beals Michelle Clunie Seasons 1–2
Becca Keeler Mia Rose Frampton Seasons 1–2
Leo Cruz Marcus Coloma Season 1
Nicky Russo Cody Longo Season 1
Marty Walsh Erik Palladino Seasons 1–2
MJ Martin Marsha Thomason Season 1
Brian Kmetko Wyatt Smith Seasons 1–2
Darby Conrad Meagan Holder Season 2
Max Spencer Joshua Bowman Season 2
Marcus Sean Maher Season 2
Sheila Baboyon Kathy Najimy Seasons 2–3
Austin Tucker Zane Holtz Seasons 2–3
Jordan Randall Chelsea Tavares Season 3
Wendy Capshaw Amanda Leighton Season 3
Rigo Tom Maden Season 3
Jake Russell Pitts Season 3
U.S. Nielsen ratings[edit]
Main article: List of Make It or Break It episodes
The following is a table with the average estimated number of viewers per episode, each season of Make It or Break It on ABC Family.
Season
Timeslot (ET/PT)
# Ep.
Premiered
Ended
TV Season
Viewers
(in millions)
Date
Premiere
Viewers
(in millions)
Date
Finale
Viewers
(in millions)
Season 1
Monday 9:00 pm (2009–2010)
Monday 10:00 pm (2010)
Tuesday 9:00 pm (2010)
Monday 9:00 pm (2011–2012)
20
June 22, 2009
2.50[16]
March 8, 2010
2.50[17]
2009-2010
2.24
Season 2
20
June 28, 2010
1.83[18]
May 23, 2011
1.49[19]
2010-2011
1.68
Season 3
08
March 26, 2012
1.57[20]
May 14, 2012[21]
1.29[22]
2012
1.19
DVD releases[edit]
Walt Disney Studios Home Entertainment released the first ten episodes in a set entitled Make It or Break It – Volume 1: Extended Edition. Bonus material includes deleted scenes, the never-before-seen extended finale, and the featurette, "Making It", which shows how the stars manage the acting with the difficult stunts they do.[23][24]
DVD release dates for Make It or Break It
Name
Release dates
Ep #
Additional information
Season 1, Volume 1: Extended Edition January 12, 2010[24][25] 10 Deleted scenes, the never-before-seen extended finale, and the featurette "Making It".[23][24]
Season 1, Volume 2 January 4, 2011[26] 10 Deleted scenes
Season 2, Volume 3 May 3, 2011[27] 10 Deleted scenes
Awards and nominations[edit]
Awards and nominations for Make It or Break It
Year
Award
Category
Recipients and nominees
Result
2009 Teen Choice Awards Choice Summer TV Show Make It or Break It Nominated
2010 Gracie Allen Awards Outstanding Female Actor in a Supporting Role in a Drama Series Peri Gilpin Won
Teen Choice Awards Choice Summer TV Show Make It or Break It Nominated
Choice Summer TV Star Male Zachary Burr Abel Nominated
Choice Summer TV Star Female Josie Loren Nominated
2011 Choice TV Drama Make It or Break It Nominated
Choice TV Star Female Drama Josie Loren Nominated
See also[edit]
Stick It, an American teen-comedy drama film in 2006
Code of Points (artistic gymnastics)
References[edit]
Jump up ^ "ABC Family's "Secret Life" Returns at Record Levels, While "Make It Or Break It" Sets Time Period Highs". The Futon Critic. June 23, 2009. Archived from the original on March 11, 2010.
Jump up ^ Andreeva, Nellie (July 27, 2009). "ABC Family Orders More "Make It"". The Hollywood Reporter. Archived from the original on March 11, 2010.
Jump up ^ Gorman, Bill (July 27, 2009). "ABC Family Orders 10 More Episodes of Make It Or Break It". TVbytheNumbers. Archived from the original on March 11, 2010.
Jump up ^ Seidman, Robert (November 18, 2009). "The Secret Life of the American Teenager, Make It Or Break It return to ABC Family Monday, January 4". TVbytheNumbers. Archived from the original on March 11, 2010.
Jump up ^ Gorman, Bill (January 12, 2010). ""The Secret Life of the American Teenager" and "Make It or Break It" Renewed". TVbytheNumbers. Archived from the original on March 12, 2010.
Jump up ^ Seidman, Robert (March 29, 2010). "ABC Family Announces Summer Slate Including "Pretty Little Liars," "Huge," and "Melissa & Joey"". TVbytheNumbers. Retrieved March 29, 2010.
Jump up ^ "Breaking News - ABC Family to "Break It" on Tuesdays". TheFutonCritic.com. Retrieved 2011-05-02.
Jump up ^ Newcomb, Roger (January 9, 2012). "THE SECRET LIFE OF THE AMERICAN TEENAGER & MAKE IT OR BREAK IT Return on March 26 and 8 episodes of the Third Season will end on May 14". [1]. External link in |publisher= (help)
Jump up ^ Andreeva, N. "ABC Family’s ‘Make It Or Break It’ To End". Deadline.com (April 26, 2012)
Jump up ^ "'Make it Or Break It' Canceled, According to Executive Producer". TV By the Numbers. April 26, 2012. Retrieved May 1, 2012.
Jump up ^ "Make It or Break It - Make It or Break It". E4.com. Retrieved 2011-05-02.
Jump up ^ [2] Archived August 18, 2012, at the Wayback Machine.
Jump up ^ "Behind The Scenes Of 'Make It Or Break It' With Ayla Kell". Starpulse.com. 2011-05-09. Retrieved 2013-07-30.
Jump up ^ "Make It Or Break It: Stunt Doubles | Just About Every TV Show". Ax20.wordpress.com. Retrieved 2013-07-30.
Jump up ^ http://magazine.ucla.edu/features/stunts_and_circuses/
Jump up ^ "The Secret Life of the American Teenager Returns At Record Levels - Ratings | TVbytheNumbers". Tvbythenumbers.zap2it.com. Retrieved 2012-05-02.
Jump up ^ "Monday Cable Finals: Secret Life Beats Gossip Girl; Damages Down Slightly - Ratings | TVbytheNumbers". Tvbythenumbers.zap2it.com. March 9, 2010. Retrieved 2012-05-02.
Jump up ^ "Secret Life of the American Teenager ratings, Real Housewives of New Jersey ratings, American Pickers ratings, Pawn Stars ratings, Tori & Dean: Home Sweet Hollywood ratings, Nurse Jackie ratings, United States of Tara ratings, Neighbors from Hell ratings, WWE Raw ratings, Cake Boss ratings, All Worked Up ratings, Operation Repo ratings, Saving Grace ratings - Ratings | TVbytheNumbers". Tvbythenumbers.zap2it.com. June 29, 2010. Retrieved 2012-05-02.
Jump up ^ "Monday Cable Ratings: Mavs/Thunder Tops Night; ‘WWE Raw’ Up + ‘Sanctuary,’ ‘Real Housewives of NJ’, ‘American Chopper,’ ‘Secret Life’ & More - Ratings | TVbytheNumbers". Tvbythenumbers.zap2it.com. May 24, 2011. Retrieved 2012-05-02.
Jump up ^ "Monday Cable Ratings: ‘WWE RAW,’ ‘Basketball Wives’, ‘Secret Life of the American Teenager’, ‘Pawn Stars’ & More - Ratings | TVbytheNumbers". Tvbythenumbers.zap2it.com. March 27, 2012. Retrieved 2012-05-02.
Jump up ^ "Shows A-Z - make it or break it on abc family". TheFutonCritic.com. March 26, 2012. Retrieved 2012-05-02.
Jump up ^ Futon Critic Staff, The (May 15, 2012). "Monday's Cable Ratings: TNT Hits NBA Postseason High With Lakers/Thunder". TheFutonCritic.com. Retrieved May 15, 2012.
^ Jump up to: a b "Make It or Break It – ABC/Disney Announces a Volume 1: Extended Edition DVD". Tvshowsondvd.com. Retrieved 2012-05-02.
^ Jump up to: a b c "Make It or Break It – Volume 1: Extended Edition". Tvshowsondvd.com. Retrieved 2012-05-02.
Jump up ^ "Make It or Break It: Volume One - Extended Edition: Chelsea Hobbs, Ayla Kell, Josie Loren, Cassie Scerbo, Zachary Burr Abel, Mia Frampton, n/a: Movies & TV". Amazon.com. Retrieved 2011-05-02.
Jump up ^ "Make It or Break It: Season One, Volume Two: Chelsea Hobbs, Ayla Kell, Josie Loren, Cassie Scerbo, Candace Cameron Bure, Neil Jackson, Peri Gilpin, Holly Sorenson: Movies & TV". Amazon.com. Retrieved 2011-01-17.
Jump up ^ "Make It or Break It: Season Two, Volume Three: Chelsea Hobbs, Ayla Kell, Cassie Scerbo, Mia Frampton, Zachary Abel, Peri Gilpin, Candace Cameron Bure, Josie Loren, Susan Ward, ABC Family: Movies & TV". Amazon.com. Retrieved 2011-05-02.
External links[edit]
Make It or Break It on IMDb
Make It or Break It at TV.com
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values: Category:2009 American television series debuts

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values: 메이크 잇 오어 브레이크 잇 – Korean

values: Make It or Break It - Giovani campionesse – Italian

values: Za wszelką cenę (serial telewizyjny) – Polish

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values: Näytön paikka (televisiosarja) – Finnish

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