Franchisors, franchisees and end customers benefit from technological advances. On 22 May 2007, hearings were held in the British Parliament on petitions launched by citizens concerning the special franchise regime by the British government, due to losses suffered by citizens who had invested in franchises. Industry Minister Margaret Hodge held hearings but did not consider it necessary to regulate the state`s franchising with the Council that state franchising regulations could plunge the public into a false sense of security. Mr. Mark Prisk MP suggested that the cost of such a scheme could be prohibitive for the franchisee and franchisor and that it would in any event provide a system commensurring the work already completed by the BFA. The Minister of Industry pointed out that the existing legislation on commercial contracts in the United Kingdom, when banks and banks carried out due diligence, offered sufficient protection to the public and banks. During the debate, there was also reference to the BFA`s self-regulatory function, which acknowledged that the association had „scored points beyond its weight“. [50] – Non-interested franchisors: Some franchisors may have little interest in the success of their franchisee and may be more interested in collecting only franchise fees. As a result, support and marketing cannot be adequately delivered. Despite the benefits of self-management opportunities, a new entrepreneur should not take responsibilities and decisions lightly. You may have almost all the elements of the business and marketing of your franchise – but that doesn`t mean you can just sit back and let the system do all the work for you. Franchising a successful home business doesn`t necessarily promise that you will always be profitable. In fact, even experienced businessmen can fail with a successful franchise if they don`t choose the right home option.

An important factor that has led to the record number of franchises in recent years is the spread of franchise opportunities in private companies. This has made franchising accessible to a wider group of people. In the past, franchising a business meant that a franchisee had to have a huge investment. It was mainly for the payment of the franchise and the creation of a real business or business office, as stipulated in the trade agreement. In some cases, this deductible fee is effectively overshadowed by the cost of the volume required for the activity. One of the first successful U.S. franchising operations was initiated by an enterprising drug dealer named John S. Pemberton.

In 1886, he invented a drink made from sugar, molasses, spices and cocaine. Pemberton authorized people selected to fill and sell the beverage, which was an early version of what is now known as Coca-Cola. It was one of the earliest – and most successful – franchising operations in the United States. Several states have also passed franchise laws, and definitions may contain certain relationships that do not comply with the FTC franchise rule. The word „franchise“ is derived anglo-French – from the franc, which means free – and is used as both a word and a verb (transitif). [1] For the franchisor, the use of a franchise system is another strategy for the company`s growth in relation to the expansion by the company`s outlets or „chain stores“. The adoption of a business growth strategy for the franchise system for the sale and distribution of goods and services minimizes the risk of investment and liability of the franchisor.