You may have a basic idea of the concept of franchising and how it works, but that doesn’t mean that you know everything about franchising. Before you begin looking into franchising opportunities at Signarama, check out the following things that you may not have known about franchising:

franchising opportunities

1. Franchising Has Been Around for Hundreds of Years

The concept of franchising can be traced back to the Middle Ages. During this period, landowners would grant rights to the peasants to conduct business on their land, whether it was to hold a market or to hunt, in return for a consideration of some kind. These rights came with rules that became part of European Common Law.

2. Modern Franchising Began in the 1850s

The concept of a franchisor selling franchises to entrepreneurs and providing them with support was created in the 1850s by Isaac M. Singer. Singer built a sewing machine that improved upon existing models and wanted to distribute it throughout a large area. However, he faced several problems. First, he didn’t have enough money to handle distribution himself. Second, people wouldn’t purchase his sewing machine without training.

His solution was to charge licensing fees to entrepreneurs, giving them the rights to sell his sewing machines in specific geographical areas. These entrepreneurs were given money for manufacturing and were held responsible for teaching customers how to use the sewing machines.

3. Franchising as We Know It Started after World War II

Business format franchising, which includes licensing brand names and trademarks along with entire business concepts, gained traction after World War II. The baby boom that followed resulted in a huge need for all kinds of products and services throughout the country—and franchising proved to be an effective way to grow a business quickly.

Ray Kroc is typically considered the father of modern franchising. He discovered the McDonald brothers’ hamburger stand and showed the world how successful franchising could be.

4. Franchising Is an Important Part of the American Economy

In 2005, Entrepreneur ran a statement by the president of the IFA (International Franchise Association), who revealed that sales generated by franchises accounted for almost 50 percent of all American retail sales.

5. Franchising Isn’t Just an American Business Model

Although the United States has the greatest number of successful franchises according to Franchise Direct’s yearly Top 100 Global Franchises rankings, there are many successful franchises located all around the world. For example, the rankings from 2014 included two franchises from Spain, two franchises from the United Kingdom, six franchises from Canada, and six franchises from France.

6. Franchise Agreements Vary

Not all franchise agreements are the same. They depend significantly on the company, the country in which the company is located, the type of business, and the investment being made. Generally speaking, most franchise agreements provide investors with a product, the brand name and brand recognition, and a support system—all things that new startup businesses rarely have.

7. You Don’t Need Business Experience

To start a business from scratch, business experience is a must. However, if you’re thinking about taking advantage of franchising opportunities, you don’t necessarily need prior business experience. A good franchise will give you all the training and support you need to successfully run a franchise.

These are seven things that you may not have known about franchising. If you’re seeking franchising opportunities, be sure to contact us at Signarama for more information today.


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