The History of Franchises and their Role in Sustainable Business

The History of Franchises and their Role in Sustainable Business

There are many different business models out there. One of the easiest to operate is franchises. Franchises are great for businesses that don’t want to spend the time building their own brand image. But what role are they playing in sustainable business?

The History of Franchises

Franchises are one of the greatest business models ever invented. Not only do they help in reducing unemployment, but they are great for boosting business for people that wouldn’t otherwise be able to be entrepreneurs.

Where did the model originate?

In the 1840s, there was a beer brewer who gave the right to locals to sell their beers in Germany. The interesting thing about this was that they had to use the beer brewer’s name as a trade name. That Germany beer brewer was franchised and locals even had to pay for the right to use their trade name. If you’re interested in investing into a franchise, Franchise Info has a range of wonderful franchises for you to choose from.

In the 1800s, Isaac Singer owned IM singer and Company, which was the first one to sell and distribute sewing machines. Singer machines were advanced for that time and could do stitches 900 per minute. At the time, that was a lot more efficient, but it was very expensive. Until the middle of the 1800s, every stitch was done by hand. A faster machine was more very helpful. Women usually work in homes and factories was not a right place to work for women at that time, which meant sewing took a lot of hours.

Sewing machines cost $120 each, which was very expensive at that time. This meant only the rich could afford them. Then one singer partner come up with the idea of using an instalment plan, which was so good that machine started to sell out after this singer come up with the idea of license and they were offering to teach them how to use machine which they were purchasing. From there, licensees came into existence. In the 1960s, Raymond Albert made franchising what it is today. He was owner of McDonald and he starting franchising McDonalds. Ray Kroc was another person with milkshake business.

He was one of the best sales people and he came up with a machine that could make five milk shakes at a time. He went to McDonalds to observe them and see how they work and he was impressed and Kroc knew at that time these restaurants will be normal in few years lucky for him McDonald brothers were looking for franchising agent and Kroc who had 30 years of experience was the right man for the job.

Do franchises play a role in sustainable business?

One of the downsides of franchises is that the owners have very little input in the daily business operations. They must conform to the business model established by the corporate leadership. This has been a problem with brands that wanted to take initiative to fight climate change.

The good news is that corporate leadership is recognizing the benefits of fighting climate change. They have started developing greener business models, which include using renewable materials for their cups and utensils and trying to find distributors that use more energy efficient supply chain solutions. This can help make a dent in the problems caused by climate change.

Will Franchises be the Answer to Climate Change?

More franchises are helping address the problems of climate change. This is a good thing, because we need to start taking more efforts to fix this growing problem. The fate of the country depends on it.

Amazing facts on franchise

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