It is considered one of the most promising models for setting up a company of its own and is sometimes also referred to as the royal road of independence: Franchising has taken markets around the world by storm and has also led Engel & Völkers to success as an international real estate agent. The basics are quite simple: a central franchisor shares its successful business model with economically independent partners, for which they contribute to their sales or pay a franchise fee. This way, both sides benefit from the cooperation, often resulting in high profit margins and rapid growth. Franchising looks back on a century-long history, over which it developed into its successful concept today...
The history of franchising begins over 500 years before our real estate franchise system
If we do the research into the beginnings of modern franchising, the path leads to the France of the Middle Ages. Here is where the etymological terminology of franchising can be found: Originally, the French word "franchise" meant the liberation of subjects from duties and taxes from their respective feudal lords. Further down the road the term was also extended to the right to organize markets in the country of the given landowners - a first parallel to modern Franchising is to be recognized here : A feudal lord occurring in the broadest sense as a Franchise permits the trade using an advantage granted by him, namely the privilege of land use, to other economic actors, the "Franchisees".
To describe these or similar privileges, the term franchise was used until the 19th century before the permission for commercial use of third-party rights was associated with it in 1850.