The Real Origin of the Franchise - Sir Harold Evans

Summary

The video script tells the story of Martha Matilda Harper, who pioneered the franchising model over a century ago with her hairdressing salons. Starting with a secret shampoo formula and a vision for a female-led business, Harper expanded her enterprise by empowering working-class women to own and operate salons under her philosophy. Her innovative approach laid the groundwork for modern franchises, from fast food to hotels, impacting half of retail sales in America today.

Takeaways

• 🍔 Ray Kroc is known for creating the world's biggest fast food chain, McDonald's, through a franchise model.
• 🏢 The franchise model allows small entrepreneurs to operate under a well-known brand with support, but without full ownership.
• 📚 The concept of franchising is often attributed to Ray Kroc and Isaac Singer, but its true origins lie in the beauty industry with Martha Matilda Harper.
• 🧼 Martha Harper, a Canadian-born maid, developed a scientifically based shampoo formula and a holistic approach to beauty and health.
• 💆‍♀️ Harper opened the first public hairdressing salon for women, overcoming societal norms and legal challenges of the time.
• 🛋️ She designed the first reclining shampoo chair, contributing to the practical innovations in her industry.
• 🌟 Celebrities and influential figures, including suffragettes and presidents, were clients of Harper's salon, highlighting its success.
• 🌐 Martha expanded her business by enabling working-class women to own and operate salons under her philosophy and brand, pioneering the franchise model.
• 💼 The Harper Method salons became a network of over 500 locations across America and later expanded to Europe, Central America, and Asia.
• 🏆 Martha Harper's franchising model has had a lasting impact, with half of retail sales in America now being through franchises.
• 📍 Today, the legacy of Martha Harper's innovative business model continues, even though only the original Harper Method Founder's Shop remains in Rochester, New York.

Q & A

Who is credited with creating the world's biggest fast food chain?

Ray Kroc is credited with creating what became the world's biggest fast food chain, McDonald's, by making a deal with the McDonald brothers.

What was the business model introduced by Ray Kroc when he expanded McDonald's?

Ray Kroc introduced a franchise operation model where small entrepreneurs could open McDonald's and run them as operators with an ownership state, different from the full ownership model of traditional Mom and Pop stores.

Who is sometimes credited with inventing franchising along with Ray Kroc?

Isaac Singer, the sewing machine magnate, is sometimes credited with inventing franchising.

What was the real genesis of franchising according to the script?

The real genesis of franchising was in the beauty industry, not in the sewing machine or fast food industries.

Who was Martha Matilda Harper and what was her contribution to the franchising model?

Martha Matilda Harper was a Canadian-born maid who created a successful hairdressing salon and developed the franchising model by installing working-class women in salons dedicated to her philosophy and products, which they owned.

What was the secret formula Martha Matilda Harper acquired while working for a doctor's family?

Martha Matilda Harper acquired a secret formula for a scientifically based shampoo while working for a doctor's family in Ontario.

How much money did Martha Matilda Harper save to open her first public hairdressing salon?

Martha Matilda Harper saved 360 dollars to open her first public hairdressing salon in Rochester, New York.

What was Martha's response to the challenges she faced in opening her first salon?

Martha hired a lawyer and won her case to rent the place for her salon, and her experience with illness propelled her ambition with Christian Science values.

What was unique about the business model Martha Harper implemented for her salons?

Martha Harper's unique business model involved working-class women owning the salons that were part of her network, dedicated to her philosophy and products, rather than being salaried employees.

How many salons were part of Martha Harper's network at its peak?

At its peak, Martha Harper's network included 500 salons in America, and later expanded to Europe, Central America, and Asia.

What is the current state of Martha Harper's business and its influence today?

Today, only the Harper Method Founder's Shop remains in Rochester, New York, but her health and beauty treatments have been copied, and her business model of franchising is dominant in retail sales in America.