Origin of Franchising
Have you ever thought about how the whole concept of franchising began?
The origin of franchising goes back. Franchising, which began in the US around the time of civil war, was used originally by large firms.
Franchising has its roots in the feudal world, where lords of the manor would grant
rights to hold markets or draw water in return for fees
The first recognizable name associated with franchising is Albert Singer.
In the early
1850's as he was looking for an efficient method of marketing his sewing machines
across the United States, he began to grant others the right to sell his sewing machines.
Going forward into the late 1800's and early 1900's, franchising took on many other
forms. In the late 19th century, national brands and nationally known vendors came into
being and reworked the American economic landscape. There was an overwhelming
need for all types of products and services, and franchising was the ideal business model
for the rapid expansion of the hotel/motel and fast food industries.
Around the 60's and 70's there were many problems and some abuses in franchising.
Some companies got into trouble because of poor management or lack of capital.
The outstanding growth potential of the Franchise method and its benefits to the buyer
and seller were truly realized in the United States by the 1960's and it is around this
time the International Community also embraced the true potential of business format
franchising.
