The concept of franchising started in the United States at the beginning of the 1900's, when General Motors franchised dealerships. It spread through the automobile, soft drink bottling, and gasoline industries by the 1930's.

Modern franchising evolved during the 1950's both in terms of the types of business that can be franchised and geographically with the expanding post-World War II economy, growing interstate highway system, developing suburbs, and increasing automobile ownership. A mobile American public traveled farther from home and sought familiar names with standardized service. By 1950, 100 companies were franchising in the United States.
 

During the 1980's, franchising began a period of exponential growth. In 1980, approximately 1600 businesses franchised; by 2000, the number had more than tripled in the United States. Factors such as, the movement from a manufacturing to a service economy, technological advances, and women entering the work force, provided expanding opportunities for people to own their own businesses in the US and this lead to the success of franchising.

In the 1990’s, franchising spread rapidly outside the US with franchises in countries such as England, Australia, and Canada spreading their business concepts around the world.   Brands from France, Spain, and Germany have likewise entered into international franchising and experiencing success.

Over the last decade, franchising has surged exponentially in the Middle East with franchises from around the globe entering the fast growing market.  In addition, home grown brands have entered the world of franchising exporting products and services globally.

Franchising is expected to continue to expand to include an ever-widening variety of businesses, products, and industries. Its application to new concepts and emerging industries will only increase in the future.