Franchising: Perspective of Entrepreneurs

In order to familiarize franchising, its history must be known. (The History of Franchising, 2007) the word franchise came from the old French meaning privilege. In the middle ages, franchise is a privilege wherein the local sovereign words will grant to hold markets to hunt on hid land. It is shown in the phrase that franchise started as early as the middle ages. The king was like the franchisor which allows his business commercial activities to be used by the other businessmen or franchisees. It is also included that franchising changes over time.

To support this statement, here are the other statements from Libaya (2013) that Isaac Singer created a concept of making automated sewing machines. With his colleagues, he thought of selling sewing machines rights to other businessperson wherein they will gain profit through up-front licensee fee. It is known to some that the franchising is started by the owner of Singer sewing machines. The businessmen who were partners of Mr. Singer utilized a plan of finding other businessmen that will be capable to sell their products by giving them the rights of the business through agreement. These businessmen will pay to Mr. Singer for the rights of the franchise and they will be able to sell through using the franchise they have bought, this will provide income for Mr. Singer which is the franchisor but it will also help the other businessmen or the franchisees because they will be able to use a good franchise for the good of their business.

According to an article by Sadi,Syed,&Iftikhar(2011). Franchising is not new in Saudi Arabia. It was noted that customers appreciate the role of franchising in the development of local businesses and they noticed that franchising have a positive effect o...

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...ased on the perceptions of the entrepreneurship students but also by their own sources.

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History Of Franchising. Retrieved from March 1, 2014 from

http://www.atozfranchising.com/Article.aspx?id=3

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http://www.sba.gov/community/blogs/how-franchising-began

Sadi, M. A., Syed, K. J., &Iftikhar, Q. (2011). CUSTOMERS' PERCEPTION OF

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Vozar, R. (2013). Franchising basics. Smart Business Columbus, 22(3), 34