The concept of franchise businesses started with the Singer Sewing Machine Company in the 1850’s. Isaac Singer had two problems that were keeping him from being successful. One, he didn’t have the capital to build a sales force and two, no one would buy a machine unless they were trained to use it. Singer’s solution was to charge a licensing fee to business people who would own rights to sell and train in certain geographical areas.
His licensing program was a huge success and was copied over the next several decades by many of America’s finest companies, such as Coca-Cola, KFC, McDonald’s and Burger King to name a few. By the 50’s and 60’s franchising achieved almost mystical stature exploding from the confines of food and beverage to Dry Cleaners, Carpet Cleaners, Hotels, Rental Cars, Commercial Cleaning and the entire range of Automotive aftermarket.
How Big is Franchising Today?
A new franchise opens every 8 minutes of every business day
40% of all retail business
1 in 12 businesses is a franchise
Franchises account for over $2.1 Trillion dollars in sales annualy
Franchises employ over 9 Million people
Franchises creating over 170,000 new jobs per year
Franchise opportunities are the most successful business opportunities on the planet with over 95% success rate