The History of Franchise

Introduction

The first person to enter a franchise agreement is similar to what we have today, it was Isaac Singer, founder of the Singer Company. His arrangements were unique and provide a basis for contracts that we see today. Sewing machines were big sellers, but you need the local population in each area to service / repair of machinery and spare parts for them. It was very expensive and cumbersome to offer this service established. The franchise out of business and this method proved so successful that soon the local dealers had the opportunity to sell new machines.

Franchise Motor Industry

The next big enterprise, the franchise model has been used in the automotive industry. Selling companies such as General Motors, so that they can extend their franchise network of distributors quickly and at lower cost. Each franchisee is granted an exclusive territory, so I knew that if their business is not good, they reap the rewards. Like other car manufacturers realized how quickly grew, General Motors dealer network, they also began to closely look at the franchise, and soon their own franchise business models launched.

Fast Food Franchise

Like other industries saw the success of this has been a large network and sell more products, which began accession in the fast-food fast in the world, when McDonald's launched its franchise empire. The fast-food restaurants have been so successful that now you can buy a Big Mac from around the world! Other companies like KFC and Subway were also very quick to use the franchise model to reach new markets and attract more customers for its unique, low cost and low cost of fast food products. Some of the first franchisees of millions very quickly across several areas, working with these companies.

British Franchise Association

Now the franchise is a recognized form of business worldwide. Every country has its own rules and regulations for this type of business. In the United Kingdom is the British Franchise Association (BFA), the new franchisee with a set of rules and practices provides compliance before they reach the FBA to ensure the approved status.

International Franchise Association

In the U.S., the International Franchise Association (IFA) supports regulating the industry and works closely with the Federal Trade Commission (FTC). Here you can find more information about the franchise laws in the U.S., visit the website of the Federal Trade Commission. One goal is the U.S. company to protect consumers from fraudulent schemes and have issued guidelines for potential franchisees.

Abstract

From these small beginnings, the franchise is now huge in the UK and the USA! There are about 150 thousand in the United States, while franchisees in the UK there are thousands of franchises and the numbers are growing rapidly. Franchises are contributing many jobs that the government is prepared to help the franchise continues to economic growth. There are many different types of franchises available to a business model that will be adapted to the needs of employers. Ranging from Internet sites, retail outlets and opportunities to work home is a franchise company in almost all sectors of the economy. If you opt for a franchise, find someone who likes to run and that fits your lifestyle