Business models have been widely used in the era of technological entrepreneurship and venture capital investment. But the most superior business model that has proven to work over time is the Franchise business model.
The roots of the word “franchising” can be traced back to the French word “Franchise” which means to grant power to a peasant or serf. In the middle ages, a franchise was a privilege or a right. At that time, the King would allow business to be conducted on his land. In essence, the King was giving someone a right to a monopoly for a certain type of commercial activity.
Over the centuries the franchising concept continued to evolve along with the economies of the nations of the world. In 1840 Germany, certain taverns were granted franchising rights by German ale brewers and this was the true beginning of franchising concept, as we know it today.
In 1851 the Singer Sewing Machine Company began granting distribution of franchises for their sewing machines and Singer adopted written contracts, which served as the forerunner of modern franchise agreements.
In the 1880s, cities began to grant monopoly franchises to streetcar companies in the United States. And around the turn of the century, oil refinery companies and the automobile manufacturers began to grant the right to sell their products.
The modern era of franchising began in the 1950s when Ray Kroc, a milkshake machine salesman, first discovered a San Bernardino, California drive in restaurant operated by the McDonald brothers. Impressed with the crowded parking lot and the tasty French fries, Kroc bought the rights to franchise the business, and went on to build one of the most successful companies in the history of American business. And he did it through franchising.
The reasons for franchising in those days were no different than what they are today; Franchising limits the risk factor of growth, allows expansion to occur without the vast amounts of operating capital and potentially creates an attractive profit picture for the franchise owner.
Franchising has become a common concept adopted globally by successful business enterprises in the world and with the evolution of technology, franchising has seen its popularity, its adoption and even the dependence of economies on the presence of the business model in their distinct business ecosystems.
Also, Nigeria is considered a potential franchise market of over one hundred billion dollars in annual revenue across both products and services and a major growth market for U.S. franchise concepts and franchise development services.
In Nigeria, brands and business enterprise owners that have adopted franchising have been able to expand their business and increase their profits at a rate that could have only been achieved through the business-franchising model. Also, more international franchise brands look at Nigeria as the most preferred place for franchising in Africa; this in turn has caused the increase in the demand for franchise professionals.
The Franchise Development & Certification Centre (FDCC) offers courses primarily targeted at professionals and individuals who have no prior franchise specific experience, to gain key skills and exposure that are inextricable to building their franchise business.
The courses teach both professionals, franchisors and franchisees how to operate their career or franchise businesses as franchise professionals, thereby optimizing their chances of succeeding in their carrers and business venturing.
The Franchise Development & Certification Centre (FDCC) tailors its courses to every category of people with the full understanding that not all prospective franchisees are natural business people.
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