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  • Writer's pictureJerry

Who was the father of franchise?

Given the momentum with which franchise systems were created in the United States, this country is considered the cradle of modern franchise. The precursor, however, is not McDonald's - the most popular example of license activity. Franchise has two other American fathers: Isaac Singer and John S. Pemberton. The first of them was a producer of sewing machines. In the mid-nineteenth century, he created a network of distributors who, for a fee, could sell his products in a specific area. At the end of the same century, John S. Pemberton, the inventor of the world's most famous drink - Coca-Cola - decided to share his know-how with bottlers, who could therefore produce and sell exactly the same Coke that Pemberton invented.

Then in the 1930s, the development of the automotive industry forced car manufacturers to look for new sales methods. Dealership networks operating on a franchise basis proved to be a good solution. This model of cooperation did not differ from the product distribution franchise used today.

After the Second World War, the franchise institution in the United States underwent a period of real prosperity, achieving numerous successes in many other branches of the economy, in particular in services and gastronomy. These industries required more support from franchisees in the form of know-how necessary to set up a service company by a new person. Franchisees received knowledge related not only to product sales or service performance, but to running the entire enterprise (from guidelines regarding point visualization, uniforms worn by staff through methods of service delivery, customer service, and tips on promotion and marketing). We call this model a business concept franchise.

If you are wondering how to best prepare your company for the sale of the franchises, contact our team - Franquicia de Suenos team is waiting for you!

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