The growth of franchising from sewing machines to modern fast food outlets
Franchising as a business venture has been in existence for many years now. Franchising has become eminently popular in recent times. Isaac Singer can be touted as the father of modern franchising. Isaac entered into a franchise agreement in order to provide his sewing services to a major part of the target audience. A selection of trained local employees ensured the unhindered supply of his products to the end customers.
Soon, many other companies followed his footsteps. General Motors, the car manufacturing company sold its cars through franchising. This enabled them to cut the costs and increase the profits.
The success of these organisations encouraged other businesses to set up their very own franchises. Fast food companies were the next to join the franchising bandwagon. McDonald’s is the pioneer of franchising in the fast food segment. The incomparable success of McDonald’s outlets propelled other fast food companies to initiate their own franchises. Almost all the fast food franchises have received an overwhelming response from the customers.
Franchising is now one of the most popular forms of conducting a business. Several companies from different fields have successfully launched their own franchises, spread across many continents.
The success of franchising led to the foundation of the British Franchise Association. This particular organisation provides the interested individuals or companies with necessary guidelines required to be followed for the setting up of a franchise.
One thing is certain, franchising as a business opportunity has indeed come a long way. Franchising is not an expenditure, but in fact is a healthy investment.