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Chain operations would ultimately form the foundation for the franchise method of distribution.Not surprisingly, transportation and the growing mobility of Americans were the impetus for the establishment of retail and restaurant chains and franchising in the manufacturing segments of the economy.In The Demolition Man, Sylvester Stallone, just awakened in the 21st century from a 40 year cryogenic sleep, is taken to a "fine restaurant" for dinner.As they pull up in the electric self drive car at Taco Bell, Stallone asks "Taco Bell, is this a mistake? Since the great franchise wars, all restaurants are now Taco Bell." So much for the future.
The company was capitalized by stock valued at 6.5 million guilders.Turning west, the company engaged the services of Captain Henry Hudson in 1609, who was formerly in the employ of the English Muscovy Company, a franchisee of England, to find the Northeast Passage, giving the Dutch claims over the Hudson Valley in upstate New York as far as Albany.In 1799 the Dutch East India company filed for bankruptcy and its possessions and rights were assumed by the Dutch Republic.Following the massacre of 347 settlers by the Powhatan Indian Confederacy on March 22, 1622, the British Crown, charging mismanagement of the area by the London Company, withdrew its charter in 1624 and the Colony of Virginia came under direct British control.Much of the colonization and exploration by the British and European powers was conducted under similar "franchise" relationships.
Franchising was also used in England and Europe, where the Royalty granted land rights to powerful individuals.