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Franchising has roots in the middle ages and has been a part of the American economy since colonial times. In 2007, Franchising World published an article questioning whether Founding Father Benjamin Franklin was a "Father of Franchising". While there is evidence of franchising before Franklin, he may have been one of the first Americans to conduct a franchising business. Also a discoverer of the powers of electricity and ocean currents, Franklin was truly ahead of his times.
The Great State of Texas is ripe for entrepreneurs. Report after report recognizes the tremendous opportunity of doing business in Texas. 1851, a leading franchise-focused blog, cited back in 2012 that Texas would be amongst the best states for franchising in the years to come stating that "Texas has remained ahead of the curve with increases in population, job expansion and small business growth." The Times Record News reported this week that Texas ranks as the best state for female entrepreneurs to open small businesses. Bill Hethcock of the Dallas Business Journal wrote an article earlier this month stating that ,"small and midsize businesses in Texas are more optimistic about the global and local economy than their national counterparts in 2019".
Joe Matthews, founder of Franchise Performance Group and former Subway developer, has gone on the record many times lamenting the rapidly expanding number of brands entering the franchise industry. In an October 2018 article he stated that hundreds of brands are entering the game every year despite a fairly flat entrance rate of new franchisees. It's getting harder and harder to stand out in the growing crowd. Matthews reflects on several changes that he's seen accompanying this proliferation of brands such as the professionalization of franchises and the influx of Private Equity.
Jeff Bevis, writing for Forbes, published an article yesterday highlighting the positive impact of franchises on local communities across the United States. Bevis points out that franchised small business are true local businesses, even though the brands themselves are regional or national. This is because the franchise owner is usually a local, the employees are local, and they often do business with local vendors and businesses. By bringing in a franchised model to the community, they're bringing in a model that's proven to work accompanied by a training and support system. The hope that working with a franchise will improve an entrepreneurs likelihood to succeed extends to the employees and community. Successful small businesses are a bedrock of communities, bringing stability in employment, services, and taxes. A 2017 article published by David Kirby of the Huffington Post commented that the majority of jobs and nearly half of U.S. private payrolls are produced by small businesses operating in communities across America. Kirby wrote, "Our nation’s stability is in part predicated upon a stable economy and the financial strength derived from these businesses."
Google defines franchising as a verb meaning to "grant a franchise to (an individual or group). The term dates back to the late 18th century, but came in to popular usage from the 1950s forward.
Thanks to the work of the National Association of Women Business Owners, we know that American women now operate 39% of privately business and those businesses provide nearly nine million jobs close to two trillion dollars in sales. It's expected that Women ownership will continue to expand. A June 2018 report by Small Business Trends shows that rates of women and minority franchise business owners have climbed in the past few years. Between 2007 and 2012 minority ownership of franchise businesses went from 20% to 30%, which has grown much faster than non-franchise business. Ownership of franchise business also went from 20% to 30% in that same five year period. A June 2018 article by Forbes corroborated this information and went further, showing that back in 1995, the proportion of women-owned franchise was less than ten percent.