The Business Concept of Franchising

Franchising began more than 100 years ago with Singer Sewing Machine in 1890. Several other well-known companies followed: Firestone Tire & Rubber in 1900, Hertz Rent-a-Car in 1925, Dairy Queen in 1944, Servicemaster, Baskin-Robbins and Orange Julius in 1948 and Kentucky Fried Chicken in 1952. In spite of this early start, franchising didn't really "take off" as a viable method of business expansion until the late 1950's. However, since that time, franchising has experienced steady and continual growth.

Today, franchising accounts for $800 billion in retail sales and is responsible for providing more than 8 million jobs in this country. While other industries have been struggling through tough economic times, fighting a minimal increase of only 2-3%, franchising has enjoyed a growth rate more than double that!

Franchising is, by far, the most successful marketing strategy of the twentieth century. In fact, someone buys a franchise every 17 minutes!