A Brief Introduction to the History of Franchising

The earliest signs of franchising in the United States dates back to the 1850's just after Isaac Singer invented the Singer Sewing Machine. During his search for an effective and affordable way to distribute his product for his company, the Singer Sewing Centre, Singer ran into problems that prevented his company from becoming successful.

His first problem was a lack of capital for manufacturing his machines. Secondly, no one was willing to buy his sewing machines without first being taught how to use them, which required effort that most traditional retailers could not provide. Singer's solution was to charge licensing fees to business people who would own the rights to sell his machines in certain geographical areas.

They would also be responsible for teaching consumers how to use his machines, thereby creating sales opportunities. Using the licensing fees to fund manufacturing, he was then able to afford to build his machines and then ship them directly to his newly formed distribution network.

Like most prosperous business ventures, Singer's idea got noticed; and over the next several decades, many other companies began to copy and enhance his business model. At first, companies like Coca-Cola introduced franchising into their bottling and manufacturing areas in order to reduce financial risk.

Later, companies such as McDonald's and Burger King took franchising to a whole new level by creating some of the largest franchise networks in the world. Today, there are thousands of successful franchise companies with outstanding business models that provide products and services to consumers and businesses all around the world!

FNBC provides consulting and advisory services to entrepreneurs who may wish to investigate acquiring a business. We represent over 100 different franchisors in the marketing of their opportunities to the public. FNBC also offers marketing services to business owners who may wish to expand their enterprise through franchising.

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