Progress of cooperatives franchising farm machinery was evaluated, noting growth in sales, service, and net margins from 1970 to 1980. Cooperative dealer performance was measured by comparing machinery sales, operating margins, total expenses, and net margins with those of noncooperative farm machinery dealers of similar operation and sales volume. Cooperative dealers’ operating problems were evaluated for 1980, compared with those of 1970. Case studies of failed operations were made to determine the general causes.