It was founded in 1917 as First National Exhibitors' Circuit, Inc., an association of independent theatre owners in the United States, and became the country's largest theater chain.

[1] The First National Exhibitors' Circuit was founded in 1917 by the merger of 26 of the biggest first-run cinema chains in the United States.

It eventually controlled over 600 cinemas, more than 200 of them first-run houses (as opposed to the less lucrative second-run or neighbourhood theatres to which films moved when their initial box office receipts dwindled).

First National was the brainchild of Thomas L. Tally, who was reacting to the overwhelming influence of Paramount Pictures, which dominated the market.

[3] Between 1917 and 1918, the company made contracts with Mary Pickford and Charlie Chaplin, the first million-dollar deals in the history of film.

To address their concerns, Chaplin invited the exhibitors to the studio, and they were so impressed by the project and charmed by the players, especially co-star Jackie Coogan, that they agreed to be patient.

[11] The financial success of The Jazz Singer and The Singing Fool enabled Warner Bros. to purchase a majority interest in First National in September 1928.