The UNH Rosenberg Center Franchise 50 Index, which tracks publicly traded companies in the United States engaged in business format franchising, rose 8.1 percent in the first quarter of 2012, extending its strong rebound from the dip in the third quarter of 2011.

"The debt crisis in Europe with Greece on the verge of default, political gridlock in Washington, a historical downgrade of the U.S.

Out of the University of New Hampshire's Rosenberg Center list of 50 publicly-traded franchisors, 44 franchisors lost market value in the third quarter of 2011. These firms are typically the largest and most well-established of the thousands of franchising companies. Most franchising firms incurred double-digit losses. Only six of the 50 index components managed to make positive gains, with large gains by SFN Group (+48.9 percent) and Midas (+31.7 percent).

The University of New Hampshire Rosenberg Center Franchise 50 Index, which tracks publicly traded companies in the United States engaged in business format franchising, dropped 9.5 percent in the third quarter of 2011, weighed down by mounting domestic and global economic and political uncertainties.

Panera Bread rebounded from last year's poor performance and was the top performer in the first quarter of 2005 in the Rosenberg Center Franchise 50 Index while Krispy Kreme's downward slide continued during the same period, making it the worst performer, according to The William Rosenberg International Center for Franchising at the University of New Hampshire.

Mr. Blue MauMau caught up with Professor Udo Schlentrich, director of the University of New Hampshire's William Rosenberg International Franchise Center, to ask a few questions on how franchise owners and potential owners should look at the Franchise 50 Index.

The University of New Hampshire Rosenberg Center Franchise 50 Index outperformed the S&P 500 in 2006, and ended the year with a record 13.3 percent jump in the fourth quarter of 2006. The Rosenberg Center Franchise 50 Index, which was created by UNH William Rosenberg International Center of Franchising, was up 17.8 percent over the year, compared to 13.6 percent for the S&P 500.

Fears of a recession and economic woes pushed the Rosenberg Center Franchise 50 Index down in the fourth quarter of 2007, with the index of the top 50 U.S. public franchisors falling 5.5 percent amid a broad market decline. "Many of the components of the index are in business sectors (restaurants, lodging, etc.) that are highly correlated with the economy, and the economic woes have negatively impacted them.

Professor Udo Schlentrich, director of the University of New Hampshire’s William Rosenberg International Franchise Center has this to say about the performance of the RCF 50 Index during and interview with Blue MauMau: “Although the Fran 50 companies have out-performed the S&P 500 companies for the past 5 years, there is no guarantee that they will continue to do so in the future..."

"At times, the relationship between a franchisor and its franchise can seem at odds with one another," said Udo Schlentrich, director of the Rosenberg International Center of Franchising at the University of New Hampshire's Whittemore School of Business and Economics. "It's a licensing agreement," Schlentrich said. "We're both parties, or partners, and there can easily be tension, but it varies."