Franchising is a unique business opportunity. To understand how franchising started, first you must understand what franchising is. Basically, when you own a franchise you are paying for the right or a license to market a company’s services in a particular territory.
THE FATHER OF FRANCHISING
Albert Singer, of Singer Sewing Machines, is considered by many to be the father of franchising. Singer used a form of franchising to distribute his sewing machines.
In the 1840s there was a beer brewer in Germany, SPATEN, who granted rights to some local taverns to serve their beer. These taverns were in a sense franchisees as they had to pay for the right to use the SPATEN name.
Franchising became more popular in the middle of the 1900s. This is because a new type of franchising developed in the form of retail and fast-food chains. The baby boom and the popularity of suburbs created a need for food and retail to develop in these areas.
In 1960 the International Franchise Association was formed as a membership organization for franchisors and franchisees with the purpose of establishing a framework for best practices in franchising. Today, the IFA works closely with the government and the FTC to improve how the franchise industry operates and has played a vital role in the growth of franchising throughout the world. Franchising is an industry with a rich history and a bright future. If you are interested in starting a franchise, Samurai Sam’s® offers a great opportunity.