Franchising

8 Pages 1962 Words

h degree of success.
Educationally, both systems leave a detailed path of success and failure from inception to the present. Both systems, like every other business venture, have its history, its pitfalls and its opportunity. Also, like other ventures, you would be wise to examine it historically to its future prospects. Next, you want to perform a comparable analysis between systems. Then, you will be able to make an informed decision.
Let’s start with Franchising. Franchising started in the 1850s. The most notable practitioner was Isaac Singer, founder of Singer Sewing Machine. Franchising was a cure to the problem of an affordable distribution channel for his machines and a lack of manufacturing capital. The other minor problem was how to train buyers once the machines were purchased, which would result in more sales. Franchising or charging licensing fees to business people who would sell and train the buyers was the solution. The fees gave him money for manufacturing and the business people acted as a low cost sales force. Using this model, other companies implemented the same system. Today, there are thousands of franchises. The categories range from Advertising, Arts/Creative, Automotive, Business Services, Children Services, Cleaning/Maintenance, Computer/Internet, Food/Restaurant, Health/Beauty, Sports/Recreation, Travel/Lodging and Specialty/Other Retail. Through these many categories, franchisors supply goods and/or services to take home net profit.
Network Marketing’s history was not far behind franchising. It started around the 1940s....