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The History of Franchising - The Creation of the Franchise BusinessPaul Stuart
Where did franchises originate? Discover the beginning of
franchise opportunities.
The franchise business has been around a long time, in fact they
go back as far back as the 1850's. The notion of selling off a
business or a part of a business in order to expand into new
areas usually came from the lack of investment funds from the
business owner. Through their creativity they were able to keep
the business alive by selling franchise opportunities to
would-be entrepreneurs.
While the business of franchising has grown over the years it
all had to start somewhere. The concept of franchise businesses
began with none other than the sewing machine manufacturer,
Singer.
The Singer Franchise Business Opportunity
In the 1850's the Singer Company produced sewing machines but
didn't have enough capital to actually pay their salesmen
salaries. Instead, they created a network of dealers. These
first franchise owners paid Singer a fee to work in a particular
territory and earned money for each sale of a sewing machine
they bought from the company and resold.
Their significance in the start of the franchise and the
opportunities it created came from the creation of the contract
that is still used today between the original business owner and
the new entrepreneur. Many feel the contract was what really
sparked the creation of franchises in the future as it allowed
business owners to keep some control over how the franchisees
were run.
The Coca-Cola Company Franchise Business Opportunity
When Coca-Cola was originally created, it was only sold as a
fountain drink. In 1899 two men obtained a short 600-word
contract and the permission to bottle the soda.
Thomas and Whitehead soon realized that even though they had a
great idea, they couldn't afford to actually create a bottling
company. As an alternative, they created a franchise company
selling the right to bottle the product to individual bottling
plants.
The KFC Franchise Business Opportunities
One of the most famous start-ups in the franchise industry was
Kentucky Fried Chicken. The franchise opportunity began when
Harlin Saunders, or the 'Colonel' was about to go under. His
business started to fail when a highway was created seven miles
away from his restaurant. With his business going under, Sanders
had to find new ways to get his famous chicken to people.
When Sanders finally lost his business, he went practically
door-to-door to sell his chicken recipe. His popularity improved
with time and within a few years he had restaurant owners coming
to him. He set up franchises and today there are over 10,000 KFC
restaurants all over the world.
Companies Leading The Way For Franchise Business Opportunities
The establishment of KFC and others like it led the way for
businesses to expand all over the world. It also gave the
opportunity for new entrepreneurs to find the path to success.
Many of KFC's first franchise owners became millionaires. People
who joined in with similar companies like McDonald's also found
success.
Thanks to these companies, we now have the opportunity to share
in the success of other businesses and business owners have the
opportunity to expand their dream. By reaching out to others,
they can build a franchise empire out of a business opportunity.
About the author:
Paul Stuart is a writer for whichfranchise.org.
whichfranchise.org provides potential franchisees with free and
impartial information, advice and opportunities. For more
information visit http://www.whichfranchise.org
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