New Publication from the Leather, Vinyl and Plastic Restoration Franchise Shows how Franchising Became a Global Economic Force
Whether you’re a longtime member of the franchising community or starting to consider a franchise opportunity, Fibrenew’s recently published white paper on the evolution of franchising offers valuable insights into the business model’s origins, innovations and future. “The Evolution of the Franchise Model” is the latest in Fibrenew’s efforts to publish in-depth content exploring topics of interest to the greater franchise community. Fibrenew’s earlier publications include “The Complete No-B.S. Guide to Buying a Franchise in 2024” and “The Role of Technology in Franchising Success.”
“Franchising has undergone immense transformation over the years, yet many people don’t fully understand how it has evolved or why it continues to thrive as a business model,” says Jesse Johnstone, president of Fibrenew, a leading leather, vinyl and plastic restoration franchise. “We wanted to create a resource that explores its rich history, highlights key milestones and examines the forces shaping its future.”
The franchise sector has continually expanded, with more than 20,000 new units and 210,000 new jobs to be added in 2025, according to the International Franchise Association’s 2025 Economic Outlook Report. Total franchise output, defined by the value of sales of goods and services, is projected to exceed $936.4 billion in 2025, increasing by 4.4% from 2024, according to the report.
Evolution of Franchising
“Franchising is about more than business ownership. It’s about innovation, resilience and adaptability,” Johnstone says. “This white paper provides a big-picture look at how the model has transformed industries, empowered entrepreneurs and kept pace with changing consumer expectations. For prospective franchisees, the white paper offers valuable insight into why franchising is a proven path to success and how today’s opportunities differ from those of past generations. For current franchise owners, it provides perspective on industry trends, challenges and areas for growth, helping them stay ahead of the curve. For franchisors, it’s a chance to reflect on how the model has evolved and what the future holds, from tech-driven efficiencies to the demand for more sustainable business practices.”
Highlights of “The Evolution of the Franchise Model” include:
- The origins of franchising. Precursors to the franchising model date back to ancient and medieval times when partnerships and licensing agreements were used to facilitate commerce and ensure uniformity across regions.
- Milestones in franchising. From the first true example of franchising, Singer Sewing Machine Company’s system dating back to the 1850s, the white paper details milestones including the franchising boom of the 20th century through the “golden age of franchising” from the 1960s to 1980s. Other milestones include the international expansion of franchising; the rise of multi-unit, corporate and private-equity franchise ownership; and diversification across industries including retail, education, child care, fitness and others. Additional milestones include the rise in franchise support networks such as the International Franchise Association (IFA) and franchise consultants and brokers, such as those with the International Franchise Professionals Group (IFPG).
- The rise of iconic brands. The 1950s saw the rise of fast-food chains including McDonald’s and Kentucky Fried Chicken (KFC), which represented some of the most significant developments in the evolution of franchising, according to Fibrenew’s white paper. McDonald’s, founded by the McDonald brothers in the 1940s, was transformed by milkshake machine salesman Ray Kroc who established a franchise model that allowed local owners to open their own McDonald’s restaurants, while adhering to strict operational guidelines set by the company. “Kroc’s ability to blend local entrepreneurship with strict corporate control demonstrated the power of a well-executed franchise system. By the 1980s, McDonald’s had become one of the largest and most successful franchises globally, setting the stage for others to follow,” according to the white paper.
Also in the 1950s, Colonel Harland Sanders began selling Kentucky Fried Chicken franchising rights with his “finger-lickin’ good” recipe and branding as key components to the franchise agreement, ensuring the same customer experience at every KFC location. - Influences on modern franchising. Technological innovations, starting with the rise in internet and digital technologies through the 1990s and early 2000s, led to advances such as franchise management software, online training and support, and e-commerce. Today, artificial intelligence (AI), automation, blockchain and the internet of things (IoT) are revolutionizing how franchises operate, interact with customers and manage supply chains.
Another important trend is the growing emphasis on sustainability and ethical business practices as consumers, particularly those in the Gen Z demographic, increasingly demand that businesses take responsibility for their environmental impact. Shifting consumer preferences also impact franchising today, resulting in greater emphasis on convenience and speed such as drive-thru and delivery service, as well as personalization and customization such as build-your-own meal options, and subscription-based models. - Franchising challenges. The rapid growth of franchising through the 1960s and 1970s brought challenges including disputes between franchisors and franchisees, which resulted in legal action and regulatory intervention. The resulting Franchise Rule, introduced in 1979 by the Federal Trade Commission, requires franchisors to provide franchise disclosure documents (FDDs) to prospective franchisees. Overall, greater emphasis is being placed on responsible franchising and more transparency during the franchise sales process to ensure stronger franchisor-franchisee relationships.
Future Franchising Trends
The evolution of franchising from simple licensing agreements to dominant global commerce has proven the business model to be resilient and adaptable, and a significant driver of economic growth and innovation.
Fibrenew’s white paper projects the franchise landscape to be shaped by transformative trends including globalization, sustainability and digital integration. “Franchisors must navigate challenges like regulatory pressures, labor concerns and market saturation while fostering stronger, more equitable relationships with franchisees. By embracing emerging technologies, entering new markets, and adopting ethical and sustainable practices, franchises can secure their position as leaders in innovation and consumer trust,” according to the white paper.
“Franchising thrives on innovation and adaptability,” Johnstone says. “Its rapid evolution over time is why it remains one of the most resilient business models today. In developing this white paper, our team has greatly valued the conversations it has sparked about why and how we continue to innovate our services and products to empower our franchisees across the globe.”
Download a free copy of “The Evolution of the Franchise Model” here.
For information about franchising opportunities, visit the Fibrenew website.
