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We have been reporting for several weeks now on small businesses in America. Today, we explore a business system where entrepreneurs and corporations come together: franchising. Franchising is a bit like marriage. It takes a good long-term relationship to succeed.

It makes sense to begin a story about franchising and the hairstyling business by looking to Martha Matilda Harper, a servant living in Rochester, N.Y., in the late 19th century. In her spare time, she developed a special hair tonic. The tonic sold well. So she quit and opened a hair salon.

"The women just adored it," says Jane Plitt, a researcher and author of Martha Matilda Harper and the American Dream: How One Woman Changed the Face of Modern Business. "This was a time in 1888 when, usually, wealthy women had their hair dressed in the privacy of their home. But Martha was now doing it boldly in public, and there was a lot of buzz. It was the showcase."

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