Experts opine that every company should have a proper business plan in order to be successful in the long run.
Nevertheless, the rudiments of modern franchising date back to the Middle Ages when landowners made franchise-like agreements with tax collectors, who retained a percentage of the money they collected and turned the rest over.
There was little growth in franchising, though, until the midth century, when it appeared in the United States for the first time. One of the first successful American franchising operations was started by an enterprising druggist named John S. Inhe concocted a beverage comprising sugar, molasses, spices, and cocaine.
Pemberton licensed selected people to bottle franchise business plan india sell the drink, which was an early version of what is now known as Coca-Cola. His was one of the earliest—and most successful—franchising operations in the United States. The Singer Company implemented a franchising plan in the s to distribute its sewing machines.
The operation failed, though, because the company did not earn much money even though the machines sold well. The dealers, who had exclusive rights to their territories, absorbed most of the profits because of deep discounts.
Some failed to push Singer products, so competitors were able to outsell the company. Under the existing contract, Singer could neither withdraw rights granted to franchisees nor send in its own salaried representatives.
So, the company started repurchasing the rights it had sold. The experiment proved to be a failure. That may have been one of the first times a franchisor failed, but it was by no means the last.
Still, the Singer venture did not put an end to franchising. Other companies tried franchising in one form or another after the Singer experience. For example, several decades later, General Motors Corporation established a somewhat successful franchising operation in order to raise capital.
Perhaps the father of modern franchising, though, is Louis K. InLiggett invited a group of druggists to join a "drug cooperative. His idea was to market private label products.
Sales soared, and Rexall became a franchisor. The chain's success set a pattern for other franchisors to follow. Although many business owners did affiliate with cooperative ventures of one type or another, there was little growth in franchising until the early 20th century, and what franchising there was did not take the same form as it does today.
As the United States shifted from an agricultural to an industrial economy, manufacturers licensed individuals to sell automobiles, trucks, gasoline, beverages, and a variety of other products. The franchisees did little more than sell the products, though.
The sharing of responsibility associated with contemporary franchising arrangement did not exist to any great extent. Consequently, franchising was not a growth industry in the United States.Advice, insight, profiles and guides for established and aspiring entrepreneurs worldwide.
Home of Entrepreneur magazine. Franchise business plan in India is an essential part of any company that wants to operate successfully here. With the varying economic and social demographics of the country, the franchisees and the franchisees need to be mindful of the challenges awaiting them.5/5(1).
Jan 26, · One of our greatest assets on this site is our free sample business plan library, and it includes several different options for franchise business plans. These are a great way to get your feet wet and check out some examples of what a franchise looks like on paper, from mission statement to the financials/5(9).
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Franchise Sub Shop is a national franchise sub sandwich quick-service restaurant.4/5(13). Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchiser licenses its know-how, procedures, intellectual property, use of its business model, brand; and rights to sell its branded products and services to a ashio-midori.com return the franchisee pays certain fees and agrees to comply with certain.