History of Franchising
Franchising is not a new phenomenon as many might believe. In fact, the first Australian Franchise is reputed to be the granting of rum licenses to prisoners by General Macquarie in Botany Bay at the beginning of colonisation.
It is believed that the first form of franchise began as early as the 12th century when the clergy issued a franchise to designated people to collect taxes on their behalf and take a percentage of the money collected.
Many roads, bridges, markets, fairs and other major projects would be undertaken by licences granted to individuals or collectives by Kings and Queens throughout Europe for quite a few centuries.
In Germany in the mid 1800’s brewers were using licences to public houses to sell the ales.
The first commercial franchise, as we know it today, was Singer Sewing Machines in the USA at the latter end of the 1800’s. An American hairdresser by the name of Martha Harper, about the same time, grew her hairdressing chain of stores to a remarkable 500 outlets by the end of the 19th century via a Franchise system.
Franchising soon became the preferred method of growing the huge sports industry in the USA in the 1920’s and 30’s with Grid Iron Football Franchises as the main contender.
Today, Australia is the largest Franchising country in the world per population ratio. We have encompassed it with open arms and fashioned it to our own cultural beliefs. We have developed systems based upon mutual success and a symbiotic relationship where both Franchisor and Franchisee benefits equally.
Some statistics on Australian Franchising are quite astounding and it is a great pity that the major opponents and detractors of Franchising don’t bury their prejudices and look with an open mind at the contributions that Franchising brings to the economy.
There are more than 1000 Franchise systems in Australia today.
There are approximately 60,000 Franchisees employed directly and indirectly in Franchising.
Franchising in Australia contributes more than money to the economy.