The quest for power and money has been basic ground on which the political strategies and decisions are framed. A thorough study of the history would help us find many stories in this light. One of which was when some European countries, including England struggled to increase their wealth and power by expanding their empires to America. This increase in competition gave rise to the term Colonization.
Colonization, a process in which the Central system of power dominates land surrounding and its components. This process involves the expansion of the parent company from the parent country to other countries and different parts of the world through settling colonies, which involves going to other countries with a business idea in mind and then establish the business over there.
The concept of “Franchise” has gained popularity in past few decades. It is derived from the idea of colonization and works in same line as colonization does.
Franchising is granting of various rights by one party to other one. Franchise model has been declared as the greatest business model ever. European monarch bestowed franchises to local citizen who agreed upon the risk to establish colonies. After the creation of colonies, founder was able to gain the protection of crown in the lieu of royalty or taxes.
Many people believe that the term Franchise, was coined in United States. However, what we miss over here is the roots of the word and concept. Franchise does not lie with the United States but with England. If we turn the pages of history, we would find that it was Britain’s Royal family who initiated the concept of settling of colonies. The concept of Colonies initiated a series of events that led to the new learnings about certain aspects of technology and unleashed a new aspect of the industrial world. People nowadays are more fascinated about making money and expanding their businesses, which involves taking lot of risks. Similarly in those days this process of colonization was a very strong step taken by them which involves huge risks of gaining the same support and maintaining the same persona in different countries other than the home country. It was this move that made a huge success of the process of colonization. In seventeenth century, the British traders began to settle in the region and in 1862 it became a Crown Colony called British Honduras.
In present corporate world, the term Franchise is being widely considered. It is used to define a business opportunity by which the producer or distributor of a trademarked product or service grants rights to an individual for the local distribution or sale of a product or service and in return receives a payment or royalty and to quality standards.
Basically franchising is nothing, but reliving colonization in the present day; channeling the same ideas by dint of advanced technology and with an essence of modernization.
The thing that is different here is the set of rules and regulations, which people nowadays have to follow. There are certain sets of procedures defined which are to be followed strictly, if any person wants to expand his business through Franchise.
With certain amendments in its framework, franchise still stands as one of the most successful models of the business. It would be justified enough to say that the strong and effective strategies of the Britain’s Royal family has been a profound reason behind this business practice. And even today the business management by the Royal family serves as a business guide to many.