The evolution of Franchising

Franchising today is a huge industry providing jobs to million all across the globe. But was franchising always as organized as it is today? No, the journey of franchising has been an interesting one, a journey filled with innovation and ingenious plans. The earliest and the most rudimentary form of franchising was practiced by the kings who allowed powerful individuals to guard their territory in return for a substantial amount of money. Since then franchising has come a long way, so let’s have a look at the evolution of franchising.

• The earliest form of franchising was practiced in UK where brewers sold rights for selling their beer to a particular pub owner and in return the pub owner would get financial assistance. But in these times the franchisor only used to provide financial support and no other kind of service. • The concept of franchising got a big boost in 1910 due to the auto-mobile revolution. Also the manufacturers themselves started franchising in a major way to sell their products to far and wide places. • Due to the auto-mobile revolution, transportation became easier and now the franchisors could easily pay routine visits to their franchisees and maintain quality controls. • Around 1915, the concept of providing the franchisee with additional services such as designing commercial space, marketing programs, training and hiring staff came into being. This was the earliest cousin of franchising, the way it is today. • Also small-business owners introduced the concept of low-risk franchise. • It was in early 1950’s that franchising got a big boost because of enforcement of Intellectual Property Rights across developed countries. Once people were assured about the safety of their intellectual property, more and more people took to franchising • Slowly the concept of forming a network of franchisees came into being which has been of great help to new and emerging franchisees, who are vital to the growth of the industry. • As globalization takes full effect, the franchising business is expected to evolve further because of more and more competition for the same set of consumers. The last major change took place a few decades back, so now the time is just right for another revolution in franchising.