In the relatively short time since its post-World War II emergence, franchising has become a significant factor in the global economy, representing one of the fastest growing methods of both expanding a business (as a franchiser) and starting a business (as a franchisee). U.S. franchise revenues account for more than 40% of all retail sales and total more than a trillion dollars in revenues annually (International Franchise Association, 2004a). Within the franchise industry, the fast food segment contributes a significant portion of revenues, over $120 billion, with the trend expected to increase due to global expansion (Nation’s Restaurant News, 2006). Despite the relatively new approach to business that franchising offers, a number of the concepts upon which franchising are built can be found in a historical review of management principles. From Fayol to Taylor and Follet, the applicability of their theories continues to stand the test of time, including the franchise industry. The purpose of this paper is thus to address some of the historical management principles that are found in and applied to the area of fast food franchising.
"Franchising: A New Twist With Old Roots,"
Journal of the North American Management Society: Vol. 3:
1, Article 6.
Available at: https://thekeep.eiu.edu/jnams/vol3/iss1/6