Post-World War II Boom.

Franchising initially became popular in the 1920s, especially with automobile manufacturers, oil companies, and restaurants setting up outlets, but the major franchise boom took place after World War II. In the mid to late 1940s thousands of veterans returned home to the United States with the notion of being their own boss. Although big business dominated major sectors of the economy, the tradition of small-business ownership remained very strong. Franchising, in effect, combined the benefits of both large and small business. Under the terms of an agreement the franchisee was a legally independent business (most often a small business) separate from the franchising company. The contract generally specified that the individual acquiring the franchise pay an initial fee, sell only specific products, conduct business in a certain manner, and often cede the franchiser a certain percentage of gross sales. For the...