The word ‘Franchise’ has its origins in French meaning ‘Freedom’. Franchising surprisingly was a popular way of business many years ago in several European countries of the world.

In the middle ages, the feudal system was predominant. In those times, the land owner would grant certain rights to peasants to conduct fairs and markets using his domain. These eventually evolved into a set of rules which got incorporated under the European Common Law.

One of the first recognized people to start the modern method of franchising was Mr. Isaac M. Singer way back in the mid 19 th century. Singer had introduced some new features in an existing sewing machine. However, he lacked the money to expand his business or spread the word. Moreover, in those days, no one was ready to buy his machines without training. Therefore, he came up with a plan. He began charging licensing fees from groups of people who got the exclusive rights to sell his machines in selected areas. This money provided him the capital to manufacture more such machines. He began teaching these licensees on how to use the machines. All this eventually resulted in successfully selling the first commercially viable sewing machine.

However, even after Singer’s success, franchising was restricted in its usage. All the finer points such as licensing, trade marking and the entire business concept came into being way after World War II. That’s when there was a sudden surge in the need for goods and due to increased demand, it was easier to sell goods quickly.

Necessity they say is the mother of invention. Due to the increase in the number of franchises, other aspects like consumer protection and legislation followed suit. This is how the International Franchise Association (IFA) was established in 1960. It comprised a body of franchisors, franchisees as well as suppliers.

Franchising has evolved into a lucrative business opportunity today. It is a great opportunity for entrepreneurs who wish to set up their business quickly and establish their brand.