Other companies attempted franchising in one form or another after the Singer experience. For example, several decades later, General Motors established a somewhat successful franchising operation in order to raise capital. Perhaps the father of modern franchising, though, is Louis K. Liggett. In 1902, Liggett invited a group of druggists to join a "drug cooperative". As he explained to them, they could increase profits by paying less for their purchases, especially if they set up their own manufacturing company. His idea was to market private label products. About 40 druggists pooled $4,000 of their own money and adopted the name Rexall. Sales soared, and Rexall became a franchisor. The chain's success set a pattern for other franchisors to follow.
Other companies attempted franchising in one form or another after the Singer experience. For example, several decades later, General Motors established a somewhat successful franchising operation in order to raise capital. Perhaps the father of modern fr,anchising, though, is Louis K. Liggett. In 1902, Liggett invited a group of druggists to join a "drug cooperative". As he explai.ned to them, they could increase p:rofits by paying less for their purchases, especially if they set up their own man,ufacturing company. His idea was to market private label products. About 40 druggists pooled $4,000 of their own money and adopted the name Rexall. Sales soared, and Rexall became a franchisor. The: chain's success set a pattern for other franchisors to follow.