{"id":4903,"date":"2012-01-11T03:25:48","date_gmt":"2012-01-11T03:25:48","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=4903"},"modified":"2013-07-29T08:14:04","modified_gmt":"2013-07-29T08:14:04","slug":"imagine-a-world-with-no-protected-franchise-territories","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/imagine-a-world-with-no-protected-franchise-territories","title":{"rendered":"Imagine a World With No Protected Franchise Territories"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><a title=\"Vancouver Riot by PiscesDreamer, on Flickr\" href=\"https:\/\/www.flickr.com\/photos\/piscesdreamer\/5841830057\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/farm6.staticflickr.com\/5268\/5841830057_d16f97d9e9.jpg\" alt=\"Vancouver Riot\" width=\"500\" height=\"333\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>When <strong>Henry Ford&#8217;s assembly line<\/strong> started cranking out automobiles in 1914, an efficient distribution system had to be put in place to move all of this new metal. Henry Ford, (<em>and to some extent, General Motors<\/em>) introduced <strong>franchises<\/strong>\/<strong>dealerships<\/strong> to\u00a0courageous\u00a0entrepreneurs in cities and towns all over America.<\/p>\n<p>In the early days, there were no up-front <strong><a title=\"franchise fees\" href=\"https:\/\/www.thefranchiseking.com\/the-franchise-fee-fallacy\">franchise fees<\/a><\/strong>; \u00a0the first automobile franchise owners were able to lower their up-front capital costs. It took some of the risk away.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2>Pioneers<\/h2>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><a title=\"Van Ness Avenue Auto Row Car Dealerships, San Francisco by aldenjewell, on Flickr\" href=\"https:\/\/www.flickr.com\/photos\/autohistorian\/2998941212\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/farm4.staticflickr.com\/3050\/2998941212_f37ec559b0_m.jpg\" alt=\"Van Ness Avenue Auto Row Car Dealerships, San Francisco\" width=\"390\" height=\"340\" \/><\/a><\/p>\n<p>Van Ness Auto Row in the 1920&#8217;s<\/p>\n<p>&nbsp;<\/p>\n<p>The excitement created by Henry Ford&#8217;s automobiles, and the mass-production of them must have been incredible. Trips that used to take an entire day, could all of a sudden be done in hours. The Model T changed everything. Soon, other manufactures like General Motors appeared on the scene with their own automobiles.<\/p>\n<p>Our country&#8217;s first automobile dealers&#8230;the franchisees, must have been a fearless bunch. As promising as this new mode of transportation was, there were no guarantees that they would sell. Just like in any business, a buyer had to show up, and a seller had to have the product. A transaction had to take place. Cash had to change hands. Being one of<strong><a title=\"being the first franchisee\" href=\"https:\/\/www.thefranchiseking.com\/being-the-1st-franchisee\"> the first franchisees<\/a><\/strong> must have been scary.<\/p>\n<p>The earliest franchisees had a franchise contract that was only a couple of pages long. It was written in fairly uncomplicated terms. <strong><em>The franchisee had a defined territory in which he could sell automobiles<\/em><\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2>Except For One Little Thing<\/h2>\n<p>&nbsp;<\/p>\n<p>I wrote that the franchisee&#8217;s territory was defined. <strong><em>But, it was not <\/em><a title=\"exclusive franchise territories \" href=\"https:\/\/www.thefranchiseking.com\/how-to-change-the-franchise-world-commit-to-an-exclusive-sales-territory-model\">exclusive<\/a><em>.<\/em><\/strong>\u00a0Riots could have ensued!<\/p>\n<p>Manufacturer could grant other franchises in this, &#8220;<em>defined territory<\/em>.&#8221; Not only could other franchises be granted, the\u00a0manufactures could sell automobiles anywhere they wanted to, because they also had the right to open up sales outlets that were not franchises; they were, &#8220;<em>company stores<\/em>.&#8221;<\/p>\n<p>So, while the earliest franchisees didn&#8217;t have to pay an up-front franchise fee, they had to have a lot of faith. The faith that I&#8217;m talking about isn&#8217;t the\u00a0religious\u00a0type. They had to have enough faith in the product.<\/p>\n<p>&nbsp;<\/p>\n<p><em>A product that absolutely, positively, changed our lives forever<\/em>.<br \/>\n<a href=\"https:\/\/www.anrdoezrs.net\/click-2568962-10825003\" target=\"_blank\"><br \/>\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.ftjcfx.com\/image-2568962-10825003\" alt=\"Paychex Payroll Services: Sign up Today!\" width=\"468\" height=\"60\" border=\"0\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; &nbsp; When Henry Ford&rsquo;s assembly line started cranking out automobiles in 1914, an efficient distribution system had to be put in place to move all of this new metal. Henry Ford, (and to some extent, General Motors) introduced franchises\/dealerships to&nbsp;courageous&nbsp;entrepreneurs in cities and towns all over America. In the early days, there were no [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[426,692],"tags":[694,693,695],"class_list":["post-4903","post","type-post","status-publish","format-standard","hentry","category-retail-franchises","category-the-history-of-franchising","tag-automobile-dealership-history","tag-dealerships","tag-franchise-fees"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Imagine a World With No Protected Franchise Territories &#8212; The Franchise King\u00ae<\/title>\n<meta name=\"description\" content=\"Imagine a World With No Protected Franchise Territories\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thefranchiseking.com\/imagine-a-world-with-no-protected-franchise-territories\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Imagine a World With No Protected Franchise Territories\" \/>\n<meta property=\"og:description\" content=\"Imagine a World With No Protected Franchise Territories\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.thefranchiseking.com\/imagine-a-world-with-no-protected-franchise-territories\" \/>\n<meta property=\"og:site_name\" content=\"The Franchise King\u00ae\" \/>\n<meta property=\"article:published_time\" content=\"2012-01-11T03:25:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-07-29T08:14:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/farm6.staticflickr.com\/5268\/5841830057_d16f97d9e9.jpg\" \/>\n<meta name=\"author\" content=\"Joel Libava\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/imagine-a-world-with-no-protected-franchise-territories#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/imagine-a-world-with-no-protected-franchise-territories\"},\"author\":{\"name\":\"Joel Libava\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#\\\/schema\\\/person\\\/b560fd324f6df9be52ac875e631beb66\"},\"headline\":\"Imagine a World With No Protected Franchise Territories\",\"datePublished\":\"2012-01-11T03:25:48+00:00\",\"dateModified\":\"2013-07-29T08:14:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/imagine-a-world-with-no-protected-franchise-territories\"},\"wordCount\":385,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/imagine-a-world-with-no-protected-franchise-territories#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/farm6.staticflickr.com\\\/5268\\\/5841830057_d16f97d9e9.jpg\",\"keywords\":[\"automobile dealership history\",\"dealerships\",\"franchise fees\"],\"articleSection\":[\"retail franchises\",\"the history of franchising\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2012\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/imagine-a-world-with-no-protected-franchise-territories\",\"url\":\"https:\\\/\\\/www.thefranchiseking.com\\\/imagine-a-world-with-no-protected-franchise-territories\",\"name\":\"Imagine a World With No Protected Franchise Territories &#8212; 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