The history of franchising has its roots attached to the middle-ages of Europe. The middle-ages of Europe tell us a lot about what is franchising. The feudal lords, during the middle-ages of Europe, used to grant the rights of using their privately-owned land to individuals for different earning purposes These individuals were then asked to give back a portion of their earnings in exchange for the land rights or they were required to pay a royalty for the land. 

Read through the entire blog to gain precise and brief knowledge on what is franchising and its history.

Early Ages of Franchising

In middle-ages, franchising was practiced as well. This was especially in terms of land rights and other privileges. The land owner or a higher authority used to grant rights of land usage to capable individuals for services or production. This process was completed under certain conditions which were to be obliged by the individual (franchisee).

Franchising was used in England and Europe, where the King owned land and granted its rights to powerful individuals, including the church. This was mostly done to manage the property. The powerful individuals and church officials were required to protect the territory of the property by establishing armies. In exchange for these land grants, the franchisees were free to set tolls and collect taxes, a portion of which was paid to the Royal Highness. These powerful people divided the land among the local farmers who paid a royalty for the right to use the land either as a portion of the crops they grew or the animals they hunted. This system of governmental control existed in England until being outlawed by the Council of Trent in 1562.

Modern Franchising

Towards the late 19th century, the concept of modern franchising started to become more prominent. This is because in 1851 an entrepreneur, named Isaac Singer, founded the Singer Sewing Machine Company. This was the first company that is mostly cited by many historians as the one to use the concept of franchise under the modern structure.

It is cited that the company had established a network of many independent agents. These agents further sold the sewing machines and also offered services for its maintenance. Hence, this system has a profound resemblance to the modern franchising system.

Furthermore, another example of the modern franchise system comes from the early 20th century. This example is of 1920 and onwards, when two partners Roy Allen and Frank Wright began to make A&W Root Beer. In 1924, Allen bought the shares of Wright and began franchising the business under the concept that is now regularly used. This was potentially the partnership that gave a structured approach to modern day franchising.

Conclusion

Franchising has had its fair share of evolution. The history of franchising is an exciting story. Through innovative companies and pioneers, the early forms of franchising transformed into the concept of modern franchising. The concept of modern franchising hints towards adding more dynamic and innovative styles in the continuing and growing opportunities of the franchising landscape. With new business techniques, international expansion, and unimagined concepts the future of franchising looks promising.

Modern concept of franchising started to take shape from the early 20th century. By knowing the initial stages of franchising, we get to understand the history of franchising with more clarity. Through the deep rooted history of franchising, we are easily able to understand the question of “what is franchising?” in the modern structure