The Untold History of Franchising: How Benjamin Franklin Launched the Business Model That's Creating Generational Wealth Today
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While most executives exploring business ownership opportunities assume franchising is a modern invention pioneered by fast-food chains, the origins of this wealth-building strategy stretch back nearly a millennium – and its evolution includes some of history's most innovative minds.
Understanding franchising's rich history doesn't just make for fascinating conversation – it reveals why this business model has consistently thrived across centuries and why it represents such a powerful vehicle for creating generational wealth today.
The Medieval Origins of Franchising
Franchising's roots trace back to pre-Medieval England, where the Catholic Church and Crown developed a system remarkably similar to today's franchise model. The monarchy granted rights to church officials and noblemen who took responsibility for territorial defense and established armies in return for land grants.
These nobles then subdivided the land among local farmers, who paid royalties through crops, livestock, or hunted animals. This hierarchical system of governmental control remained the model in England until 1562, when the Council of Trent outlawed it.
Beyond governance, early exploration and trade operated through a similar framework. In 1602, the Dutch Republic sponsored the Dutch East India Company as a franchise to navigate between the Cape of Good Hope and the Straits of Magellan.?
Benjamin Franklin: America's First Franchisor
Many are surprised to learn that franchising in colonial America began with none other than Benjamin Franklin. Seeking to expand his successful Philadelphia printing business, Franklin pioneered what would become the modern franchise system.
On September 13, 1731, Franklin signed the first such agreement with Thomas Whitmarsh to establish a printing house in Charleston, South Carolina. This arrangement included elements still found in franchising today.
After Whitmarsh's death, Franklin appointed Louis Timothé as successor, and later, following Timothé's death, Elizabeth Timothé took over – making her not only North America's first female publisher but also its first female franchisee.
Franklin's network eventually became colonial America's largest and most influential print operation, stretching from New York to the West Indies. This franchise system even provided Franklin the financial freedom to spend two years in France securing crucial support during the American War for Independence.
The Industrial Revolution Transforms Franchising
The dawn of the 20th century saw franchising emerge as a powerful business catalyst. As Americans became more mobile, franchises expanded rapidly across automotive, manufacturing, and hospitality industries.
Mass production enabled companies to manufacture and market goods at reduced costs, driving unprecedented consumer demand. This shift from agrarian to industrial economies required cost-effective distribution systems spanning vast distances – a perfect fit for the franchise model.
The pioneer of modern franchising is widely considered to be Martha Matilda Harper, a Canadian-American visionary. Concerned about the toxicity of hair products, she developed her own hair tonic formula and established a groundbreaking professional hair salon in 1888. The Harper Method Shop used an innovative approach to business that challenged the prevailing model where hairstylists would make private house calls, limiting such services to only the wealthiest clients.
Harper's business model proved so effective that by 1891, she began expanding through franchising, incorporating many practices that remain standard in franchise operations today. Her business eventually expanded to encompass more than 500 salons and training schools at its height.
The 1920s and 1930s also witnessed the birth of iconic franchise brands that are still thriving:
Today's Franchise Landscape: A Wealth-Building Powerhouse
According to the International Franchise Association's 2025 Economic Outlook, total franchise output is projected to exceed $936.4 billion in 2025, increasing by 4.4%, from $896.9 billion in 2024. It also states that franchising will grow faster than the U.S. economy, which is projected to increase by 1.9% in 2025 according to the Congressional Budget Office.
The top 10 fastest-growing states for franchise growth are: Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland. Service-based franchises and quick-service restaurants show particularly strong growth, with the fastest expansion occurring in the Southeast and Southwest regions. The top 10 states for projected franchise growth are Georgia, North Carolina, Virginia, Arizona, South Carolina, Pennsylvania, Tennessee, Florida, Colorado, and Maryland.?
Franchising: Not Just for Kings and Queens
Perhaps the most significant misconception about franchising is that it requires million-dollar investments. While high-investment options with significant real estate components exist, many lower-investment franchises operate well under $250,000.
Home-based franchises, specialty services, and coaching businesses offer entry points accessible to executives seeking business ownership without massive capital requirements. Financing options have also expanded dramatically, making franchise ownership more attainable than ever before.
Your Next Steps
If you're considering franchising as a path to building generational wealth, I invite you to get a free copy of my book, "Your Franchise Fast Pass?: Your Step-By-Step Guide to Finding Your Ideal Business." In it, I provide a comprehensive, step-by-step approach to identifying, vetting, and acquiring the franchise business best suited for your life and desires.
You'll discover:
Visit https://www.franchisefastpassbook.com to claim your copy today and begin your journey toward strategic franchise ownership. Remember, the franchise industry is projected to grow by thousands of establishments this year alone – meaning now is the perfect time to explore these opportunities!
Liz Leonard is an experienced franchisee and entrepreneur. As a franchise advisor, she’s spent the last two decades helping others make their entrepreneurial dreams a reality via franchise ownership. With a passion for educating her clients to make the best and most informed decisions, she has a step-by-step process for finding the right franchise option in 6-8 weeks.
Want to learn more about franchising and whether it is the right path for you? Grab a FREE copy of Liz's book, "Your Franchise Fast Pass?: Your Step-By-Step Guide to Finding Your Ideal Business," at https://www.franchisefastpassbook.com