Marketing: The Rise of Franchising

Because he felt that "it might be fun to operate a restaurant," a Californian named Al Lapin Jr. eight years ago quit a job in television and opened a Burbank restaurant that specialized in pancakes. Lapin's venture has been good for profits as well as pleasure. The single place has expanded into 152 pancake houses in 26 states, all under Lapin's International Industries, Inc., which last year grossed $30 million.

Entrepreneur Lapin, 38, is on the way to becoming a millionaire, thanks mostly to franchising, one of the fastest-growing facets of U.S. business. Franchisers build national chains dealing in everything...