literature review of a discussion that critically review the different academic opinions related to the issue of franchising.

covering as follow;

1. history of franchising
2. definition of franchising
3. concept of franchising
4. PEST of franchising
5. advantages and disadvantages of franchising
6. franchising in the hospitality industry

A Very Brief History of Franchising
Most of the historians consider that the concept of franchising started in the middle ages, at the time when the feudal aristocrats have started to sell the rights of collecting taxes and operating markets to others on their behalf. This is however indicating franchising as a political activity instead of the business activity. Moreover, according to some historians the very first example of the franchising indicating a method of conducting business is traced back in the mid nineteenth century in Germany where the contact was made with the tavern/bar owners in order to sell beer entirely in taverns. But, in the United States the earliest use of the franchising was not found in the taverns and breweries rather it started with the product selling the housewives that are located on U.S. prairie. However, in 1851, a singer named Isaac became the first U.S. franchisor of the product name when he started to sell the rights to the independent salesman in order to sell the sewing machine to the end users.

Though, Singer Sewing Machine was the first U.S. product name or identity franchisor in America, but it was outpaced rapidly by another significant franchisor i.e., Coca Cola. Early, in 1890, Coca cola has chosen to franchise rights in order to bottle carbonated beverage to various businessmen that were doing business independently and and received limited territories in order to deliver the product in response of paying for and also assuming the distributional risk of the product.