Business models have been
widely used in the era of technological entrepreneurship and venture capital
investment. But the most superior business model that has proven to work over
time is the Franchise business model.
The roots of the word
“franchising” can be traced back to the French word “Franchise” which means to
grant powers to a peasant or serfs. In the middle ages, a franchise was a
privilege or a right. At that time, the King would allow business to be
conducted on his land. In essence, the King was giving someone a right to a
monopoly for a certain type of commercial activity.
Over the centuries the franchising concept continued to evolve
along with the economies of the nations of the world. In 1840 Germany, certain
taverns were granted franchising rights by German ale brewers and this was the
true beginning of franchising concept, as we know it today.
In 1851 the Singer Sewing Machine Company began granting
distribution of franchises for their sewing machines and Singer adopted written
contracts, which served as the forerunner of modern franchise agreements.
In the 1880’s, cities began to grant monopoly franchises to
streetcar companies in the United States. And around the turn of the century,
oil refinery companies and the automobile manufacturers began to grant the
right to sell their products.
modern era of franchising began in the 1950s when Ray Kroc, a milkshake machine
salesman, first discovered a San Bernardino, California drive in restaurant
operated by the McDonald brothers. Impressed with the crowded parking lot and
the tasty French fries, Kroc bought the rights to franchise the business, and
went on to build one of the most successful companies in the history of
American business. And he did it through franchising.
reasons for franchising in those days were no different than what they are today;
Franchising limits the risk factor of growth, allows expansion to occur without
the vast amounts of operating capital and potentially creates an attractive
profit picture for the franchise owner.
Also, Nigeria is considered a potential franchise
market of over one hundred billion dollars in annual revenue across both
products and services and a major growth market for U.S. franchise concepts and
franchise development services.
Nigeria, brands and business enterprise owners that have adopted franchising
have been able to expand their business and increase their profits at a rate
that could have only been achieved through the business-franchising model.
Also, more international franchise brands look at Nigeria as the most preferred
place for franchising in Africa; this in turn has caused the increase in the
demand for franchise professionals.
Franchise Institute (AFI) offers courses primarily targeted at professionals
and individuals who have no prior franchise specific experience, to gain key
skills and exposure that are inextricable to building their franchise business.
teach both professionals, franchisors and franchisees how to operate their
career or franchise businesses as franchise professionals, thereby optimizing
their chances of succeeding in their careers and business venturing, click here
to register for Certified