Introduction to the franchise Business

The concept of franchising, because it is known today dates from the 1840s in Germany when it comes to important ale breweries, the exclusive rights to sell their products to certain taverns. But the real guru of the modern franchising is Isaac Singer, 1858, built on the market for Singer sewing machines with franchise agreements similar to today.

Singer's method of franchising, the product distribution method, was seen by many manufacturers, including Coca-Cola, which extended its product range in the United States by reversing the production, storage and distribution of its soda to local business people through the process of selling Filling them rights. The automobile manufacturers found they could relocate their distribution and sale of costs to local businessmen, wanted to car dealerships. Oil companies saw the light, and shifted their distribution and retail costs for local business people, running shops, gas stations and car repair workshops.

After the Second World War, when millions of U.S. soldiers and women returning from the war need jobs, the concept of business format franchising took hold. Many of these veterans decided they wanted their own businesses, but not necessarily have the knowledge or capital to develop a business idea from scratch. In addition to the need for jobs, there was also a dramatic need for the rapid expansion of service industries such as hotels, motels and fast-food restaurants.

These two forces drove the creation of the nature of the franchise that dominated the sector today - business format franchising. Companies, developed an ideal business model for operating one of these types of service companies sold their business model to local businessmen, wanted the companies in their own area. Unfortunately, at that time, not all franchise companies were legitimate, and many people find the franchise and bought the rights to the franchise found, the person who sold it to them nothing more than take their money and run.

Both the industry and increasingly on the government to restore the franchise industry to rescue the concept of franchising. The International Franchise Association, founded in 1960 and has since worked to increase the professionalism of the industry. The IFA is now the world's largest clearing and voice communication over franchising.

The U.S. Congress has required the Federal Trade Commission is responsible for the design of regulations of the federal government. The FTC developed the rules behind the Uniform Franchise Offering Circular (UFOC) in 1979, to give all interested entrepreneurs in buying a franchise company before the sale of the franchise can accept any money.

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