Though franchises are in all aspects of the business world today, they were less prevalent a few decades ago. Franchising is the procedure of using someone else's, or another company's business practices, with their permission of course. The company or person, often referred to as franchisor, gives the rights to operate under their name and to sell their products.
The person who is thought to be the first franchisor and who had the first franchise company was Isaac Singer in the 1850's. Isaac Singer made technological advancements in the realm of sewing machines and began to sell his Singer model. Another early franchising attempt was by a popular telecommunications and telegraph company. This company had its telegraph system operating in many railroad companies.
Some of the early franchising that let to what we now know as modern day franchising started with the food service/ restaurant industry. A&W Root Beer was one of the first to start with the idea of making a restaurant into a franchise business. Some of the other franchises that became popular were those such as McDonald's and other fast food restaurants.
One of the types of businesses that began to really take flight when its products became popular was the auto industry. Car manufacturers wanted to be able to meet the needs of customers who were inquiring about their products. People wanted to have cars all over the nation so the manufacturers had to make them readily available to people throughout the country.
When the art of convenience really became a selling point with customers, and whether or not they were going to partake in the services of your business, franchising in the motel and fast food industries really started to see an increase in their success. People were looking for an easy place to be able to go and rest their head or a quick bite to eat and those wanting to open a franchise understood this, thus investing in motel and diner or fast food chains.
Franchising is one of the top business opportunities in the country today. If more people were to invest in franchise businesses it could really stimulate the economy as it did when it was first starting out.
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