| The three largest franchise companies in the world | | | | Deering Johnson and Reginald Sprague would team up |
| Yum! Brands, McDonald's, and Subway between them | | | | to form the first modern restaurant franchise. An early |
| operate nearly 100,000 locations. Franchising is big | | | | example is A&W Root Beer which used quick service |
| business and there are many companies that have | | | | as its theme. This was of course before the modern |
| gotten in on the act. So how did the modern franchise | | | | drive thru. They thought that by charging a fee they |
| company first get started? Well it all seems to have | | | | could let other people operate using the same name, |
| started with Isaac Singer the man better known for his | | | | supplies, food, logo, and even the building design to |
| Singer Sewing Machines. He had just finished improving | | | | operate their businesses. |
| on an existing sewing machine of the time and was | | | | Soon Howard Johnson's would turn to franchising for |
| trying to work out a way that he could distribute them. | | | | their motels. This would be a fortuitous move as the |
| Although his efforts at the time would ultimately prove | | | | U.S. Interstate Highway System was just starting to be |
| to be unsuccessful other people would step in to | | | | constructed. That would lead to fast food restaurants |
| continue his efforts for their own businesses. | | | | and roadside motels being built wherever a highway |
| Other famous examples of early franchises include | | | | was. And each of them would be eager to serve tired |
| Coca Cola which has obviously worked out very well. | | | | and hungry motorists. |
| They would sell the distributorship rights to others that | | | | Today the franchising model is used in over 70 |
| wanted to sell the Coca Cola product. Also the | | | | different industries across the globe. In just the United |
| telegraph system actually used a franchise model. | | | | States franchise businesses are responsible for doing |
| Most of the telegraph stations at the time were | | | | over 1 trillion dollars in sales annually. They are used in |
| owned and operated by the railroad companies but | | | | the creation of a huge number of new jobseach year |
| the telegraph was controlled instead by Western | | | | as franchised stores are opened up in different cities |
| Union. Early automobile manufacturers also used a | | | | all across America and elsewhere. With ever |
| franchise model by entering into deals with automobile | | | | increasing influence and economic power in the |
| dealerships that would carry their cars on the | | | | business world today the idea of franchising for |
| dealership lots. | | | | business has come a long way since Isaac Singer first |
| The real turning point for franchising came during the | | | | tried it to help himself and sell a better sewing machine. |
| 1930's. It was during this period that two men Howard | | | | |