Frequently Asked Questions

General questions about franchising

In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.

When did the first franchise systems come into being?

The first franchise systems began during the first stages of industrialization. The sewing-machine company, Singer, vested travelling salesmen with the right to sell their products on their own account and in their own name. Up to the middle of this century the dominant form of franchising was the "product distribution franchising" or "product and tradename franchising" which developed continuously. The most well-known example for this form is the granting of licences by the American drinks producer, Coca Cola, which includes the bottling and sale of a lemonade containing caffeine under a uniform brand name.

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