Franchise FAQ

what was the first franchise restaurant

by Dario Jast Published 1 year ago Updated 1 year ago
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These Are 15 of the Oldest Chain Restaurants in the Country

  • A&W (1919)
  • White Castle (1921)
  • Dairy Queen (1940)
  • McDonald’s (1948)
  • Dunkin’ Donuts (1948)
  • In-N-Out (1948)
  • Jack in the Box (1951)
  • KFC (1952)

A&W (1919)
That's right—the root beer kings founded the first-ever chain restaurant in America. By the 1970s, A&W even had more locations open than McDonald's.
Jul 30, 2018

Full Answer

What was the first fast food restaurant in the world?

Since A&W started out as a root beer stand, many people consider White Castle to be the world’s first true fast food restaurant. White Castle was founded in 1921 by Billy Ingram and Walter Anderson in Wichita, Kansas.

Did you know that A&W was the first chain restaurant in America?

That’s right—the root beer kings founded the first-ever chain restaurant in America. By the 1970s, A&W even had more locations open than McDonald’s. Today, it isn’t known for their food as much as for its root beer… but we wouldn’t have it any other way. Pick up some A&W to make our Root Beer Float Cake.

What was the first type of franchise in the US?

Around the turn of the 20th century, the United States entered into its Industrial Revolution and the growing mobility of Americans created opportunities for manufacturers, gasoline retailers, hospitality and restaurant franchises. The early commercial franchises were in the manufacturing, automotive and beverage industries.

What is the history of the restaurant?

The history of the restaurant is entwined with the history of France, its birthplace. The word restaurant as we understand it today was accepted by the Académie Française—the body that governs the official use of the French language—in 1835.

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What restaurant became the first franchise?

The early 1920s brought many different franchises in many industries. The first fast-food restaurant, A&W Root Beer was franchised in 1924. But it wasn't until the 1950s that the food franchise really took root, with chains such as KFC, McDonald's and Burger King the modern Franchise was born.

Who created the first franchise restaurant?

Howard Deering JohnsonIn 1932, Howard Deering Johnson established the first modern restaurant franchise based on his successful Quincy, Massachusetts Howard Johnson's restaurant founded in the late 1920s. The idea was to let independent operators use the same name, food, supplies, logo and even building design in exchange for a fee.

What is the oldest fast-food franchise?

White CastleMost historians agree that the American company White Castle was the first fast-food outlet, starting in Wichita, Kansas in 1916 with food stands and founding in 1921, selling hamburgers for five cents apiece from its inception and spawning numerous competitors and emulators.

What was America's first franchise?

In the United States, many histories about modern franchising have often cited Albert Singer and the Singer Sewing Machine Company as being the first commercial franchisor, dating franchising to 1851.

What was the first business to franchise?

The Singer Sewing Machine Company– The first time a commercial franchise business model was used in America was in 1851. The Singer Sewing Machine Company, founded by Isaac Merritt Singer, offered localized company control to owner/operators in exchange for a share in the profits.

Was Burger King or McDonald's first?

McDonald's and Burger King started in the franchise food business in 1955 and 1954, respectively. 12 McDonald's has always been the larger company, but each firm has unquestionably influenced the other throughout their six-decade-plus rivalry.

What's the oldest pizza chain?

Pizza HutPizza Hut (1958) That's right—Pizza Hut was the first chain pizza joint in America. The original restaurant was less-than-large, with only 25 seats. The owners also only had space on the sign for nine letters, so they decided to call the place “Pizza Hut” due to the building's small size.

What is the oldest still running restaurant?

Peter, Salzburg, Austria (803) The world's oldest restaurant can still be found housed within its original structure in St. Peter's Abbey in Salzburg.

What is the oldest restaurant still alive?

Sobrino de Botín is a Spanish restaurant in Madrid, founded in 1725, that is the oldest restaurant in the world in continuous operation.

What is the oldest food franchise in America?

White Castle opened in Wichita, Kan. in 1921. In addition to being credited with the invention of the hamburger bun, it is also officially recognized as the oldest fast-food chain in America.

What is the oldest restaurant in America?

The White Horse TavernThe White Horse Tavern is a National Historic Landmark being America's oldest restaurant, having served guests since 1673.

Is White Castle older than McDonald's?

The Columbus, Ohio-based chain is famous for its cheap, small burgers. It's also widely regarded as the first fast-food hamburger chain in the United States. White Castle started in 1921 in Wichita, Kansas — decades before competitors McDonald's or Restaurant Brands International's Burger King arrived on the scene.

Who started the restaurant business?

The public dining room that ultimately came to be known as the restaurant originated in France, and the French have continued to make major contributions to the restaurant's development. The first restaurant proprietor is believed to have been one A. Boulanger, a soup vendor, who opened his business in Paris in 1765.

Who is the first franchisor?

Ben Franklin storesPerhaps the earliest retail franchisor is Ben Franklin stores, which started in 1920 and began to franchise around that time. The earliest fast food franchise was A&W® Root Beer, established in 1924, with Howard Johnson® being the first to franchise restaurants in 1935.

When was the 1st restaurant invented?

The first restaurant as we know it today opened in Paris in 1765 on the Rue des Poulies, today the Rue du Louvre. On the front of the shop is engraved the Latin phrase from the Bible: “Venite ad me omnes qui stomacho laboratis, et ego vos restaurabo.”

Who was the first restaurant chain?

The earliest known restaurant chain in the United States was founded in the 1850's by Frederick Henry Harvey, an Englishman who opened his first restaurant in 1852. This initial restaurant failed during the Civil War. In 1876, Frederick Harvey opened the first of the Harvey House restaurants in a terminal of the Atchison, Topeka & Santa Fe Railroad. The railroad wanted to open depot restaurants for its passengers and provided Frederick Henry with locations and free transportation of restaurant supplies. By 1887, there was a Harvey House restaurant every hundred miles along the 12,000-mile-long Atchison, Topeka, & Santa Fe line. Frederick Harvey believed strongly in quality control and established regular field visits to his restaurants similar to those used today by franchisors.

Where did franchising originate?

Franchising, as a business concept, was transplanted into the United States from England and Europe where it was used "commercially" in the tavern and brewery industries. Tavern owners, in exchange for financial assistance from the breweries, agreed to sole purchase agreements with the breweries. The breweries did not exercise any controls over the operation of the local tavern except for the sole purchase arrangement.

What was the impetus for the establishment of retail and restaurant chains and franchising in the manufacturing segments of the?

Not surprisingly, transportation and the growing mobility of Americans were the impetus for the establishment of retail and restaurant chains and franchising in the manufacturing segments of the economy.

Why was soft drink bottling a localized industry?

At the turn of the century, because of the high cost of transporting the finished product and the reusable glass bottles , American soft drink bottling was a localized industry. By shipping syrup concentrate to its franchisees, and requiring the local franchisees to bottle under strict formulas and processes, bottlers were able to control the quality of their product in distant markets, and expand rapidly without the need for the capital which company ownership would have required. Franchisees obtained the rights to exclusive markets and a valuable trade name and the bottlers were able to overcome the transportation issues that had to that time restricted their growth. In 1901 Coca Cola issued its first franchise to the Georgia Coca Cola Bottling Company.

How did hard goods manufacturers benefit from franchisees?

By selecting franchisees, and providing them with exclusive territories, hard goods manufacturers were able to effectively and efficiently bring their products to market.

What are the three constants of franchising?

Throughout its long history, there have been three constants that have fueled the growth of franchising, the desire to expand, the lack of expansion capital and the need to overcome distance.

When was franchising outlawed?

This system of governmental control existed in England until it was outlawed at the Council of Trent in 1562 . With the economic opportunities presented by the discovery of the New World, colonialism of the period, and the emerging international trading opportunities, franchising was again used by government to expand and exercise control.

Who was the first American franchise owner?

While some date the idea of a franchise back as far as the middle ages, they really did not appear until the mid-1800s. In 1851, Isaac Singer became the first American franchise owner, when he enlisted traveling salesmen and gave them the branded selling rights to his sewing machines.

When did the federal government start regulating franchises?

By the middle of the 1970s, federal regulations were established governing franchises. By 1979, the Federal Trade Commission set forth guidelines and established the Uniform Franchise Offering Circulars, the standard for disclosing franchise opportunities. This started the era of regulations of franchise practices in the U.S. They were now understood to be a legally operating business; both federally recognized and protected.

What are the components of a franchise contract?

Typically, franchise contracts have two main components; franchising fees and royalties.

What is a contract in franchise?

Contracts are usually in-depth legal agreements between the owner of the franchise and the parent company. This protects both the new franchise owner and the parent company.

When did Coca Cola give franchise rights?

In the 1890s, Coca-Cola gave franchising rights to businessmen. In 1891, when Martha Matilda Harper licensed her first salon franchise that they took on the model that many franchises follow even today. Harper offered her franchise owners full support from startup to day to day business. She was determined that her franchises duplicate her business model. She franchised to over 500 locations.

What is a successful food truck franchise?

Successful food truck franchises usually start from a long-standing traditional fast casual dining franchise. The hone their recipes and menus to meet the needs of the food truck operator.

How many Starbucks stores are there worldwide?

Starbucks is perhaps the first name in coffee with over 28,000 stores worldwide.

Who was the first to develop a franchise contract?

But slightly before that, Albert Singer, who had had difficulty marketing sewing machines, found success in franchising as a way to sell his machines in the 1860s. He is credited as having been the first to develop a franchise contract.

When did franchising become fashionable?

Fast Forward to Fast Food. Franchising grew more fashionable in the mid-1900s in the US when a new type of franchise popped up in the form of retail and fast food chains.

What was the industry in the 1960s?

By the 1960s, the franchising industry was booming. Everything from auto supplies to hotels, convenience stores, and plumbing, was being franchised. But this explosion also created problems, and franchising gained a bad reputation. Many franchises sprouted up that were less than scrupulous and were under-funded.

Is franchising a new thing?

You might assume that franchising in the United States is a relatively new thing. Actually, it’s pretty mature, though there is some debate about who the first franchisor was.

Is franchise investment speculative?

As a result of these practices, investing in a franchise was considered a speculative investment.

Who was the first woman to open a salon?

Here’s where records get murky: there are at least three possible first franchises in the US. Let’s work backwards. Martha Matilda Harper, an entrepreneur who ran a salon business, franchised her first salon in 1891. She then developed franchise systems that you would recognize today.

Who did Thomas Whitmarsh buy Franklin's books from?

He entered into that arrangement with Thomas Whitmarsh to print many of Franklin’s writings, including the Poor Richard’s Almanac, and Whitmarsh was required to buy his printing materials from Franklin.

Where was the first restaurant in Paris?

The first restaurant as we know it today opened in Paris in 1765 on the Rue des Poulies, today the Rue du Louvre. On the front of the shop is engraved the Latin phrase from the Bible:

Where was the restaurant of the time?

The restaurant of the time was a luxurious place that could be found mainly in the Palais-Royal district of Paris. Here lived an affluent, elite clientele capable of affording meals, which, although no longer reserved for aristocrats, were no less expensive for it.

What are some famous French restaurants?

French gastronomic restaurants emerged, and famous and luxurious brands such as Véry, Les Trois-Frères Provençaux (which imported brandade de morue and bouillabaisse to Paris from the south), or the restaurant Le Grand Véfour, which is still in service, were created.

Who was the first to propose the concept of serving food without a fixed schedule?

Roze de Chantoiseau is said to be the first to propose the innovative concept of serving food without a fixed schedule, at an individual table and offering a choice of dishes, the price of which was indicated in advance, on the outside of the building.

Who was the owner of the Boulanger restaurant?

The owner’s name was Mathurin Roze de Chantoiseau. Other writings mentioned a certain Mr Boulanger. The establishment sold “restauran” dishes such as poultry, eggs, buttered pasta, and semolina cakes, whose light color was said to have health benefits. It first enjoyed culinary success thanks to its signature dish of poultry with chicken sauce, which was renowned throughout Paris.

Who was the first private chef to leave his master?

Antoine Beauvilliers, a former officer of the kitchen of the Count of Provence, brother of the King, was the first private cook to leave his master and set up his own restaurant business in Paris. In 1782, he opened Le Beauvilliers in the Palais-Royal district on Rue de Richelieu.

Who mentioned the restaurant in the letter?

The philosopher Denis Diderot mentions the restaurant as early as 1767 in a letter to his correspondent and lover, Sophie Volland:

What is a first watch?

First Watch was named the 2016 top Family Dining restaurant by Consumer Reports, a 2015 Top Consumer Pick by Nation’s Restaurant News and a 2014 Top Franchise Value by FSR Magazine. First Watch is the largest and fastest-growing daytime-only restaurant concept in the U.S. with more than 295 restaurants in 26 states, including more than 195 First Watch restaurants, 97 The Egg & I restaurants, one The Good Egg restaurant in Phoenix and one Bread & Company restaurant in Nashville.

Can you offer franchises in a state?

A franchise offering can be made by us only in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise disclosure document.

Where was the first fast food restaurant?

Since A&W started out as a root beer stand, many people consider White Castle to be the world’s first true fast food restaurant. White Castle was founded in 1921 by Billy Ingram and Walter Anderson in Wichita, Kansas. From the start White Castle sold burgers, so it is definitely the oldest fast food burger chain in the world.

Where did fast food originate?

While other countries and civilizations have had “fast food” (foods that can be eaten on the go) for centuries, the concept of fast food as we know it today originated in the United States in the early 20th century. These early pioneers of the fast food industry were some of the first to demand consistency across all ...

What was the original name of Sonic's root beer stand?

In 1953, Smith once again shifted gears and took over a walk up root beer stand called the Top Hat , the original name of Sonic.

What is the second largest fast food chain in the world?

The following year, Sanders perfected his famous Original Recipe of 11 herbs and spices. Today, KFC is the second largest fast food chain in the world (by sales) after McDonald’s.

Who owns Burger King?

As the company continued to struggle, Miami-based franchisees David Edgerton and James McLamore purchased the company and renamed it Burger King in 1959. Edgerton and McLamore are responsible for many of Burger King’s signature features.

When did A&W open?

A&W opened its first international location in Canada in Winnipeg, Manitoba in 1956. The restaurant chain now has locations around the world.

Where did A&W root beer originate?

A&W traces its roots to June 20, 1919 Roy W. Allen opened a root beer stand in Lodi, California. Allen had purchased his root beer recipe from a pharmacist and decided to start selling the drink on a hot summer day that happened to coincide with a city-wide party celebrating the homecoming of local World War I heroes.

When was the first Hooters restaurant opened?

The first Hooters Restaurant opened in Clearwater, Florida, in 1983. The company, known for its Hooters Girls waitresses, began franchising in 1986. The beach-theme restaurants feature sports displayed on flat-screen TVs and a menu offering seafood, sandwiches, burgers, salads, chicken wings and alcohol.

When did Sam and Louie's open?

The first Sam & Louie's opened in Omaha, Nebraska, in 1994. The company began franchising in 2000. Each restaurant serves New-York-style pizzas, calzones, pastas, hoagies and salads.

How many locations does Romeo's Pizza have?

Romeo’s Pizza was founded in 2001 and has grown rapidly and now has 34 locations in Cleveland, Akron/Canton, and Columbus markets. Romeo’s Pizza has a diverse menu consisting of award-winning pizzas, pasta, subs, calzones, strombolis, salads, wings and appetizers.

Where was the first Cheeburger?

The first Cheeburger Cheeburger, named for a Saturday Night Live sketch, opened on Sanibel Island in Florida , in 1986. The company began franchising its 50's-style diners five years later. The menu offers customizable hamburgers, french fries, salads and milk shakes.

When did the subway start?

In 1965, 17-year-old Fred DeLuca and family friend Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a loan from Buck for only $1,000, DeLuca hoped the tiny sandwich shop would earn enough to put him through college. After struggling through the first few years, the founders changed the company's name to Subway and began franchising in 1974. Subway has franchises throughout the United States and in 98 countries, with locations in traditional and nontraditional sites alike.

Where is Michael's Pizza located?

Michael's Pizza is a locally owned and operated pizza restaurants proudly serving Clarksville, TN and the surrounding areas since February 1st 1985. Michael's Pizza, with the Hometown Taste specializes in hand-made pizzas, calzones, subs, salads, and wings made with select ingredients, cooked to order for pick-up or delivery or eat-in at some of our locations.

What is a Mongolian barbeque?

BD's Mongolian Barbeque is the world's number one Create Your Own Stir-Fry restaurant concept where the guests choose their own ingredients from a great variety of meats, seafood, vegetables, salads, sauces and spices. The food is then prepared by master grillers on a 600 7-foot grill.

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The 1800s: The First Franchise

The 1900s

  • The early 1920s brought many different franchisesin many industries. The first fast-food restaurant, A&W Root Beer was franchised in 1924. But it wasn’t until the 1950s that the food franchise really took root, with chains such as KFC, McDonald’s and Burger King the modern Franchise was born. By the middle of the 1970s, federal regulations were est...
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Most Common Franchises

  • Some of the most common franchises are in the food and service industries. Estimates in 2005, give franchise operators credit for generating nearly $900 billion dollars and supplying 11 million jobs. So, it is no surprise that many of the largest franchises are names we all know. 1. 7-Eleven has over 56,000 locations still operating throughout the U.S. 7-Eleven is a convenience/fuel sho…
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Modern Franchises

  • Today you nearly any kind of business can become a franchise. With the arrival of the internet and social media, businesses are becoming less and less regional and looking to extend their brand names outside of their immediate market. One interesting example of extending beyond their region is Oklahoma Joe’s Bar-B-Que. The restaurant sold franchising rights in Kansas City, there …
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Franchise Contracts

  • Typically, franchise contracts have two main components; franchising fees and royalties. Franchising fees include any fees charged by the franchisor for the use of their brand, business concept, and marketing materials. This also includes any setup assistance as well as ongoing training and assistance to ensure the success of the business. They want their brand to be a suc…
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Conclusion

  • We’ve taken you on a journey from the humble beginning of franchises and showed you a few of the modern franchise giants. Now that you have learned a little about where franchises started and how far they have come. Have you ever thought about operating your own food franchise? Do you think you have what it takes to be the next big thing in your area? Zac’s Burgers offers franc…
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