FOR THE 25TH ANNIVERSARY OF ENTREpreneur's Franchise 500[R], we asked franchising veteran David J. Kaufmann for his perspective on how franchising has changed the economy and opportunities for entrepreneurs over the past quarter-century. Among his accomplishments, Kaufmann, senior partner at law firm Kaufmann, Feiner, Yamin, Gildin & Robbins LLP in New York City, is author of the New York Franchise Act. He and his firm represent some of America's largest and best-known franchisor. Here are his thoughts:

The year was 1980.

Dallas, M*A*S*H and Three's Company ruled the television airwaves. People were boogieing (how's that for a 1980 word?) to Billy Joel's new release, It's Still Rock and Roll to Me. Jimmy Carter was president; Ronald Reagan only a candidate. The phrase "word processing" was largely unknown, as most folks were still banging out documents on their IBM electric typewriters. And Entrepreneur magazine published its first Franchise 500 [R] ranking of the nation's leading franchisors, the first ever in the industry.

How far franchising's come since then! Defying the law of both physics and business cycles--that everything that goes up must inevitably come down--franchising over the past 25 years kept accelerating upward, dominating certain industries entirely (such as guest lodging, real estate brokerage, quick-serve restaurants and convenience stores), while propelling itself to the forefront of not only the American economy, but increasingly, the global economy as well.