Franchising is a way of working together established between a business, called a franchisor, and one or more businesses called franchisees. The number of networks and people who choose to open a franchise to start their own business is increasing every year thanks to factors like brand recognition, knowledge sharing, support…
Success at the centre of every decision
Franchising proves its success by showing positive results even and especially in times of crisis. It allows companies to create commercial and technical collaborations and to build a collective force capable of managing large groups of agencies and conquering market shares. In addition, the combination of the franchisor’s knowledge and the franchisee’s entrepreneurial spirit, coupled with the sharing of investments, ensures rapid development. Not to mention that the franchise structure is simpler and cheaper than branches because good franchisees are motivated and do not have to be “pushed”.
Franchisees: what are the gained advantages?
The decision to join a franchise network instead of going solo should be made after careful consideration and making sure that franchising has definite benefits, the main one being to enjoy a strong brand, buying power, and network communication, to have a real competitive edge and to have a more secure business with faster development. The success rate in the short, medium and long term is also much better. Being a franchisee also allows you to be independent without being alone and to expect a better return on your investment. Franchising is a concept that is constantly evolving to ensure the sustainability of the franchisees’ business.
Being a franchisor
The development of a franchise network requires continuing one’s tasks in his/her main job while having new responsibilities that are linked to the new position of franchisor. Although this second task forces you to respect some obligations, being a franchisor means benefiting from a fantastic leverage effect with an unequalled return on investment, being able to quickly develop the company’s network and its market share at a lower cost and creating an important economic power that will allow gaining in competitiveness. This also allows limiting the constraints that must be managed because the affiliate is responsible for the creation and management of his/her profit centre, increasing his/her purchasing power and advertising impact.