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Hi all,

I have some information about franchising, but do you think it is exactly? Please inform me.
Franchising dates back to at least the 1850s; Isaac Singer, who made improvements to an existing model of a sewing machine, wanted to increase the distribution of his sewing machines. His effort, though unsuccessful in the long run, was among the first franchising efforts in the U.S. A slightly later, yet much more successful, example of franchising was John S. Pemberton's franchising of Coca-Cola. Early American examples include the telegraph system, which was operated by various railroad companies but controlled by Western Union, and exclusive agreements between automobile manufacturers and operators of local dealerships.

Modern franchising came to prominence with the rise of franchise-based food service establishments. This trend started as early as 1919 with quick service restaurants such as A&W Root Beer. In 1935, Howard Deering Johnson teamed up with Reginald Sprague to establish the first modern restaurant franchise . The idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee.

The growth in franchises picked up steam in the 1930s when such chains as Howard Johnson's started franchising motels. The 1950s saw a boom of franchise chains in conjunction with the development of America's Interstate Highway System . Fast food restaurants, diners and motel chains exploded. In regards to contemporary franchise chains, McDonalds is arguably the most successful worldwide with more restaurant units than any other franchise network.
Westernized countries love franchises. So much so that they generally have more fanchise systems per head of population than anything else in the business sector. According to the FCA, turnover within the franchise sector currently makes up a whopping 12 per cent of GDP.

One reason people buy a franchise is that it reduces the risk of failure. Statiscally, you're less likely to fail with a franchise business than with an independent business. Sounds attractive, doesn't it, but here's the hitch; Most franchises require a significant financial commitment (anywhere from $5,000 to $1.5 million) in exchange for the use of their name and way of working. In other words, you reduce the risk of failure, but if you do fail, you can lose a whole lot more money than you may otherwise have done if you'd invested in you own start up or an existing business.

Franchises are big in my country too. There are hundreds of them from hot dog, car and dog washing franchises to major fast food chains, including KFC, McDonalds and some home grown ones.

There is a lot of information on franchising on the Net. Have you tried Wikipedia for information?

Also, take a look at

Hope this helps you.
The reason franchising is popular is because there is a business model already set up, plans all laid out and everything is more or less ready to go for you. Even if you don't buy a franchise, setting your business up like that to begin with helps it run smoothly and you have more chance for success. One of the best and informative books that I've read was called "E-Myths" and described this in detail.
in frnachinsing ... u use the goodwill of the company which helps you built your business much easier.. thats the advantage i think.
I had a study last year where we learned about franchice. Here where I live franchise is a normal thing, nobody quite thinks about it. But after my studie I think a lot about it, I also learned about service in stores, and every time I visit a clothing store etc I cant help thinking about “this guys dosent help”, “wow, they know what they are talking about” and stuff like that.
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