Mr. Franchise on the History of Franchising

Answer 1

Author Lloyd Tarbutton says the first chain concept began early, around 200 B.C. in China. The franchise concept began even earlier when rickshaw drivers were granted routes, the earliest form of a protected territory.

Credit for the first company to franchise in a more traditional business sense is the Singer Sewing Machine Company. In the 1850's, short of cash, the young company could not afford salaried salesmen. It established a network of franchised dealers instead. The dealers paid an upfront fee for territorial rights and $65 for all sewing machines purchased for resale.

More detailed information about the history of franchising can be found on the Franchise Foundations website.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.