Welcome to Universal Wealth Creation.com

This site have been developed as a resource for people

searching for the best ways to create wealth and increase the

quality of their lives. Inside you will find reviews of the latest

Investment strategies available.

Wealth Creation

Home Page

Financial Wealth

Business & Finance Articles

Buying a Franchise- What Every Entrepreneur Needs to Know.
By: Howard Schwartz

The concept of franchising is a couple of centuries old. The franchising business and world economies have developed simultaneously. The term ‘franchise’ comes from old French where it meant freedom, or privilege. Franchising goes back to the feudal times when the feudal lords granted permission to their slaves and common men to hold fairs, markets, ferries, and even allowed hunting on their lands.

In the middle ages, kings used the concept of franchising when they gave contracts, or franchises for most of the commercial activities like developing roads, wells, and brewing ale.

As the concept of franchising developed further, it was seen as the right to monopoly that a person got to perform any kind of a commercial activity. As time passed, several franchises became a part of the European Common Law.

Singer Sewing Machine Company is considered to be the father figure of franchising as most of the concepts of franchising developed by them, form a part of modern day franchising contracts.

The way in which Singer made its sales and provided services is considered to be modern retailing that is a part of franchising. In the 1850s, Singer brought together teams of salesmen and dealers who were given the rights to distribute sewing machines in different regions. They made written contracts for franchising, which are the basis of modern-day franchise agreements.

At this point in time franchising was seen as the right granted by the manufacturer to sell and distribute products and service to the franchisee. Big oil refineries, automobile manufacturers, and many others also started following the concept of signing written agreements for franchisee distribution.

Proper business format franchising came into being, in the United States and other countries of the world, after World War II. This was the time when soldiers returned from the war to be back with their families and the baby boom took place because of which different and newer products and services became essential.

This was when the concept of franchising developed the most. It made its presence felt in the U.S. economy. This was also the time when most of the hotels and motels developed. With the increase in the number of franchises, the 60s and 70s saw a time when every second person was into the franchising business.

The decades of 60s and 70s also brought about a number of frauds in the franchising business. There were people who duped many others by taking money from them in return for a franchisee that did not exist and escaped with the money. On the other hand there were also many franchise businesses that went bankrupt. This was when the need for strict regulations for franchising business was given a thought.

In the year 1978, the Federal Trade Commission ordered that all the franchisers/manufacturers were supposed to submit the Uniform Offering Circular or UFOC before receiving money from the prospective franchisers. The UFOC provides the details of the franchise company, gives their history, audited financial statements, information of the officers, and the contract, or the franchise agreement.

At present, the franchising is seen as the most lucrative business option for many people who aspire to own a business.

Learn more about owning your own franchise business: http://www.franchise-business.biz

Return to Index
Return To Universal Wealth Creation Home Page

About The Author

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing business plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard’s business plans have secured several million dollars in funding.

For more information visit: http://www.franchise-business.biz

investorplanner@yahoo.com

This article was posted on August 25, 2005

http://www.universalwealthcreation.com Wealth Creation | Financial Wealth

Copying or republishing this article is permitted with this footer included

Collect a Free 260 page ebook here: Universal Wealth Earn up to $1,000 per referral: Wealth Creation Affiliate

These property, finance, stock market & business articles have been supplied in the interest of Universal Wealth Creations visitors who want to expand their knowledge in the wealth creation & investment fields. All the business, finance, stock market & business articles have not been read as they are submitted remotely, so if you find any questionable facts in here or simply do not like it, please email webmaster@universalwealthcreation.com and we will review the material. As we find time to do so, we will go through all articles and remove any that appear not suitable. Other sites we recommend here at Universal Wealth Creation are: 21st Century Academy with Jamie McIntyre, Investor Finance, Universal Trading Solutions which promotes great wealth creators like: Kim Reilly, Simon Martin, Justin Beeton, Louise Bedford, John Kaye, Daniel Kertcher & more. They run great seminars across the country. At times we will publish dates for these seminars as they are made available around the counrty. Meanwhile, there is a great opportunity to learn about the finance, stock market & property investment field through reading these kind of articles. Learn about share trading, options, futures, CFD's, derivatives, warrants, indices & more in the stock market. You will also learn plenty about business, finance & property investing through authors opinions in the marketplace. Enjoy your journey towards financial freedom. We hope you will enjoy your visit.

Regards Sean Rasmussen - Universal Wealth Creation Pty Ltd

Site Map

Financial Wealth Business & Finance Articles

Financial Wealth

Business & Finance Articles