Whilst the word Franchise comes from old French meaning a privilege or freedom, the exact origin of the concept seems less clear. Research does however trace the franchising concept back to Europe and the Middle-Ages (A.D 476 to 1453 A.D), where the king could effectively grant a monopoly for certain types of commercial activity including the building of roads and the brewing of ale. As Europe was far from unified it may also have been the case that franchising had started through the collection of taxes by ‘collectors’ who kept a proportion of the money for their own pocket and gave the rest to the Pope. These early practices did however continue through the period and became part of European Common Law.

Modern day franchising became apparent in Germany as early as the 1840’s with major ale brewers granting exclusive rights to certain taverns to sell their ale. Across the globe, the American company Singer, famed for their sewing machines had begun granting distribution franchise contracts as early as 1851 having found a way to grow its retail operation without spending capital. Singer sold 'franchises' to local operators who then built and maintained their own stores while selling Singer products. Certainly in terms of US franchises some of the original Singer contractual terms are still used today.

So the concept grew with cities in the US and Europe granting monopoly franchises to utility, automobile and oil refinery companies by the beginning of the 19^th century, enabling the company the right to distribute and sell the manufacturers service or product.

By 1945, and the end of World War II, the demands of a large returning workforce saw franchising evolve into the standard of business format franchising we see today. The rights were extended under the original style contract to include the use of the company name, operating and management techniques. McDonalds, for example has used this format to worldwide success.

Certainly, as economic growth was on the increase in the 1960’s and 70’s so too was the popularity and success of the franchise concept for a vast range of business concepts. In the US, at least one third of all retail sales were carried out via the franchising method with nearly 2,000 companies offering franchise opportunities during this period.

Not without the appearance of fraudulent franchisees and contracts the International Franchise Association (IFA) – www.franchise.org was established in the US in 1960 to safeguard and uphold the professionalism of the industry. Part of its role is to provide training and consultation in all aspects of the business and members are expected to adhere to the Code of Ethics. As the industry maintains its growth, so have the number of organisations across the world that work to ensure the success and integrity of the franchise sector.