History of Franchising and its costs.
The concept of franchising can be traced back to the thirteenth century. A government or sovereign power would grant people the right to hold markets and fairs to sell their wares, or hunt on land owed by a lord. Franchising was very simple during this time because there were no written contracts used to regulate the sale of goods. However, some people were required to pay for the rights to sell their product(s); the term used for that was “royalties- which is still used in business today. During the 1840’s in Germany, major ale brewers granted taverns the right to sell their beer. This was the beginning of the modern day concept we know as franchising. In the United States, franchising, as it is now known, began in 1851 with the Singer Sewing Machine Company following the Civil War. They showed signs of great success as far back as the 1850’s. The industrial revolution in the United Stares saw huge growth in our transportation and communication systems at the urn of the 19th century. These improvements gave manufacturers and producers a quick way to distribute their goods into the marketplace. This practice became an important element to the overall success of manufacturing and production companies. Following World War II, with the return of so many service men and women, society became very dependent on a variety of fast, cost efficient cervices. Franchising was now being realized as a savvy way to do business in America.
There is a big line of costs and fees the person has to pay to start and keep the franchise business. The fees quoted by the franchise company are only the beginning of costs involved in buying and opening your own franchise business. You must expect to pay large sums of cash before profits begin to come in. This must be researched and added in to the cost of buying your franchise. Underestimation this additional cost could prove detrimental to the success of your business.