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Interesting—that concept sounds very similar to a common and important part of what’s often included in franchising today… a protected territory .

Go ahead—grab your favorite beverage before you continue reading this post. And if your favorite beverage happens to be beer, the 1840’s should be of particular interest to you.

During the 1840’s, there was a beer brewer in Germany who granted certain rights to several local taverns to sell their beer. What’s interesting about this is the fact that the tavern owners had to use the beer brewer’s trade name. That name: SPATEN. The tavern owners were franchisees of sorts, because they had to pay for the right to use the trade name (a.k.a., the brand name). And, isn’t a brand name one of the more popular reasons that people buy franchises today?

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trade name still exists today.

The modernfranchise business model can be traced back to Mr. Isaac Merrit Singer, an entrepreneur of the highest order.

Isaac Singer was the founder of I.M. Singer Company. He was the first person to patent a practical, widely-used sewing machine. Sewing machines started to appear on the scene in the mid 1800’s—but not like the one Singer manufactured. Singer’s sewing machines could sew 900 stitches per minute, a lot more than any other sewing machines in existence at the time.

Because everything was stitched together by hand in the mid-1880’s, a faster sewing machine was really big deal. The women who did the sewing worked incredibly long hours, in clothing factories that weren’t very nice places to work. Housewives had to do a good amount of sewing too, if their families could even afford a sewing machine.

At $120 each, Singer sewing machines were out of reach for most Americans. But one of Singer’s partners fixed that. He came up with what would turn out to be the first-ever installment plan. That’s right—everyday people could purchase Singer’s sewing machines and pay for it in installments. With this plan in place, Singer was able to sell a lot more machines. He just needed a better distribution method. And being the entrepreneur that he was, he figured out just how to do it.

Licensing Arrangements

Here’s how Singer’s licensing arrangement worked:

Singer and his partners would find businesspeople who were interested in owning the rights to sell Singer’s sewing machines in specific geographical areas. Once they found parties that wanted to become licensees, they would charge them an up-front fee—a licensing fee, for the right to sell the machines. In addition, Singer required licensees to teach consumers how to use the machines that they had just purchased. This arrangement was a win-win. The partners now had money coming in from the licensing fees which enabled them to fund more manufacturing. The licensees had businesses of their own, and were selling a product that most households wanted.

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Image via Bucher Aerospace Corporation

Bucher Group has incorporated a non-metallic structural design alongside insulation technology used in pharmaceutical and human organ transportation into its new ARCTICart product, which is ready to be deployed by carriers following certification by the FAA.

The galley cart is able to keep contents below a temperature of four degrees Celsius for up to 20 hours without using chillers or other active cooling devices such as dry ice, power supplies or operating fluids, meaning there’s no reduction in the usable internal space of an ATLAS-sized cart.

Bucher Aerospace’s CEO Francisco Aguilera explained, “The ARCTICart program was launched with the ambitious and clear objective to present aircraft operators a solution to significantly reduce weight and power consumption of airplanes by allowing the removal of chillers from commercial aircraft.”

“The ARCTICart program was launched […] to significantly reduce weight and power consumption of airplanes by allowing the removal of chillers from commercial aircraft.” – Francisco Aguilera, Bucher Aerospace

The company says that, unlike with active refrigeration methods, temperature differences within the ARCTICart are minimal regardless of whether meals are stored in the top front drawer or bottom back tray. Other benefits include the eradication of the high maintenance costs and extra cabin noise associated with chillers.

Gustavo Romero, director of Europe for Bucher Aerospace, explains the ARCTICart has been in development since 2015 at the company’s facility in Everett, Washington. “That is also where the carts are going to be assembled,” Romero continued. “Production is scheduled to start later this year, and then to ramp up early 2019.” A half-size cart is currently in development.

Romero believes the ARCTICart’s features will significantly decrease the total cost of ownership for the product and convince the airlines it is currently in discussion with to purchase the product.

Moving forward, Bucher says it is committed to incorporating industry feedback into its product family to meet different catering strategy demands.

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