{"id":15450,"date":"2022-10-28T15:16:12","date_gmt":"2022-10-28T13:16:12","guid":{"rendered":"https:\/\/franchiseoncloud.fr\/?p=15450"},"modified":"2025-11-13T11:28:27","modified_gmt":"2025-11-13T10:28:27","slug":"history-of-franchising","status":"publish","type":"post","link":"https:\/\/cerca.io\/en\/histoire-de-la-franchise\/","title":{"rendered":"The history of the franchise"},"content":{"rendered":"
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"History\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The concept of franchising emerged in the 1930s and truly began to grow at the end of the 20th century. Today, it is a development strategy that is increasingly popular in France and across Europe.\nWould you like to learn more about franchising and understand why it could be the right choice for your business growth?\nIn this article, discover the history of franchising and its key advantages.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What is franchising?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Franchising, as we know it today, is a type of collaboration between two legally independent entities, yet connected by a contract that defines the relationship between the franchisee and the <\/span>franchisor<\/span><\/a><\/span>. This model allows an entrepreneur to open their own business as an independent operator while limiting risks. For the franchisor, this approach helps strengthen commercial growth through a network of business owners who are actively involved in their local markets.<\/span><\/p>

There are three fundamental principles that define franchising and are essential to remember: brand identification, know-how, and technical and commercial support.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The franchisor is obliged to :<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1 \u2013 Share the brand\u2019s identifying symbols<\/strong><\/h3>

The franchisor guarantees the franchisee access to key network elements such as the brand, the trade name, the overall concept, and the visual identity system.\nIt is the franchisor\u2019s responsibility to maintain and enhance the brand image.\nThe franchisor must ensure that the franchisee complies with the various guidelines regarding the use of the brand and other identifying signs provided under the contract.\nWhen the agreement ends, the franchisor must also ensure that the former franchisee no longer uses any of the brand\u2019s identifying symbols or customer recognition elements.<\/span><\/p>

2 \u2013 Share the network\u2019s know-how<\/strong><\/h3>

Know-how refers to a set of technical, logistical, commercial, IT, and management methods that are exclusive to the brand. The <\/span>Doubin Law<\/b><\/a><\/span> regulates it within franchising and specifies that it must be secret, substantial, and clearly defined. The know-how is documented in an <\/span>operations manual<\/b>\u2014often called \u201cthe bible\u201d\u2014and is transmitted to the franchisee during initial training as well as on a daily basis through dedicated materials. Since it is confidential, the franchisee agrees not to disclose the know-how (especially to competing networks), as doing so could harm the franchise network.<\/span><\/p>

3 \u2013 Provide commercial and technical support to franchisees<\/strong><\/h3>

Commercial and technical support is mandatory in franchising. It begins at the project\u2019s creation, continues through the opening of the business, and lasts throughout the entire duration of the contract. This support is one of the key strengths of franchising compared to independent entrepreneurship. Each unit in the network is regularly visited by <\/span>a field consultant<\/span><\/a><\/span> who provides guidance, shares expertise, and ensures that the concept is properly applied according to established standards.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Who invented franchising? The history of franchising and its evolution!<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The franchise system truly originated in the 1930s, although it would only develop formally several years later.<\/span><\/p>

In the United States, the first company to use the franchise system for its expansion was General Motors<\/a><\/span>. Following the 1929 economic crisis, General Motors aimed to surpass its long-time competitor, Ford. The company then granted licenses to independent entrepreneurs, allowing them to open retail outlets almost everywhere across the United States.<\/span><\/p>

In France, the first company to adopt the franchise concept was the Prouvost Group.\nThis company, specialized in wool manufacturing, owned several spinning mills, and at that time, its wool was distributed in large bags to shops. Through one of its brands, Pingouin, the group decided to sell wool in the form of balls of yarn, making transport and retail sales easier.\nThis innovation required the creation of new store formats, training merchants on the new products, and supporting them throughout the project.\nIt was at that point, in the 1930s, that franchising was born in France.<\/span><\/p>

It was not until the 1970s that franchising truly became widespread. In the United States, right after World War II, the number of franchises grew significantly \u2014 as was the case with the McDonald\u2019s brand. Around the same time, the system also expanded rapidly in France. Franchising gained popularity thanks to Charles G\u00e9raud Seroude, who brought the concept back from the United States after studying franchising methods at the Alfred P. Sloan School of Management. Charles G\u00e9raud Seroude then convinced major industrial players such as La Redoute, Yoplait, and DMC (Dollfus-Mieg et Compagnie) to adopt this model for their business development.<\/span><\/p>

Since then, major corporations have chosen franchising as their preferred growth strategy.\nIn a few figures, franchising in France in 2020 represented:\u00a0<\/span><\/p>