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of Franchising 

 

Modern day franchising originates in the United States.  Franchising was first utilized in the United States by the Singer Sewing Machine Company during the 1860's.  This was followed by General Motors, who began using the franchising method in 1898, and finally by Rexall Drugs in 1902.  Following this introduction, other companies in the fields of auto manufacturing, petroleum, soft drink bottling, auto accessories, and variety merchandising followed with franchising programs. 

The franchising methods that proved so successful and beneficial in the automotive and petroleum industries soon spread to other business sectors as well.  Western Auto developed a franchise system in 1909 which enabled individuals to open their own stores if they had the money, ambition, even with no prior retail experience.  In 1925 Howard Johnson offered 3 flavors of "superior" blend ice-cream, and began expanding into franchise businesses. In 1940, the first Howard Johnson restaurant appeared on a turnpike and in 1954 the first motor lodge opened.  The 1950;s saw the big boom in franchising as Ray Kroc started McDonald's in 1955, stressing "quality, service, cleanliness, and value-QSCV."  Harland Sanders found a niche in the fast food industry with Kentucky Fried Chicken in the same year.  

In 1959 International House of Pancakes began selling franchise systems throughout the United States and opened their stores to serve countless millions of people their breakfast.  Franchising continues to grow and currently employs more than 8 million people in more than sixty major industries.   Each year new industries and businesses turn to the franchising format to distribute their products and services.