When people think about franchising today, they usually imagine a fully developed business system – brand standards, operating manuals, training programs, and ongoing support. But franchising didn’t begin that way.
Instead, franchising evolved in two major stages:
- Product-based franchising, pioneered by Singer in the 1850s
- Business-format franchising, pioneered by Martha Matilda Harper in 1891
Understanding this distinction is critical to understanding how modern franchising works – and why franchise law exists at all.
The First Product-Based Franchise: Singer Sewing Machines (1851)
The first widely recognized franchise system is credited to the Singer Sewing Company, founded by Isaac Merritt Singer in 1851. Singer did not franchise a complete business operation. Instead, Singer pioneered what is now known as product-distribution franchising.
Singer’s challenge was simple:
- Sewing machines were expensive
- Customers required demonstrations and training
- Singer could not sell or service machines nationwide on its own
Singer’s solution was revolutionary. The company licensed independent local operators to sell Singer sewing machines in defined territories. These operators demonstrated the machines, provided service and repairs, and represented the Singer brand locally. Singer retained control over manufacturing, branding, pricing guidance, and product standards. This structure allowed Singer to scale rapidly without owning every location and is widely recognized as the first true product-based franchise system.
Why Singer Was Revolutionary – But Limited
Singer’s model included:
- Independent ownership
- Brand licensing
- Territory protection
- Training and support
However, Singer franchisees did not operate a standardized retail business model. There were no uniform operating manuals, required layouts, or fully replicated customer experiences. Singer franchised a product – not a business system. That distinction matters because the modern franchise had not yet been born.
The First Business-Format Franchise: Martha Matilda Harper (1891)
In 1891, Martha Matilda Harper created what is now recognized as the first true business-format franchise when she franchised her first Harper Method hair salon in Rochester, New York. Unlike Singer, Harper franchised an entire business system.
Who Was Martha Matilda Harper?
Martha Matilda Harper was a Canadian-born entrepreneur who began her career as a domestic servant. She developed a proprietary hair-care formula and a philosophy centered on health, hygiene, and customer care. Rather than merely selling products, Harper created a standardized salon system that could be replicated by others under her brand. She called it the Harper Method.
Why Harper’s Model Changed Franchising Forever
Harper introduced elements that now define modern franchising:
- Standardized store layout and appearance
- Required services and methods
- Proprietary products
- Mandatory training and ongoing support
- Brand consistency across locations
Harper also franchised primarily to women, many of whom had few economic opportunities at the time, making her model socially groundbreaking as well as commercially innovative.
Singer Vs. Harper: The Two Foundations of Franchising
Singer demonstrated how to scale product distribution through licensing. Harper demonstrated how to scale a complete business system. Nearly all modern franchises – from restaurants and hotels to fitness and professional services – are built on Harper’s business-format model.
Why This History Still Matters Today
This history explains:
- Why franchisees buy systems, not just brand names
- Why franchisors impose operational controls
- Why franchise laws focus on disclosure, control, and consistency
Modern franchise law exists because franchising is powerful when structured properly – and dangerous when it is not.
Final Thought
Franchising has two founders:
- 1851: Singer pioneered product-based franchising
- 1891: Harper pioneered modern business-format franchising
Every franchise agreement signed today still reflects the lessons Singer and Harper introduced more than a century ago. Understanding what you’re signing – and what rights you actually have – starts with knowing how franchising was built. If you’re reviewing a franchise agreement or facing questions about your franchise relationship, we can help you understand what’s in front of you and what your options are.
The choice of a lawyer is an important decision and should not be based solely on advertisements.