Before stating the important reasons that lead some assets to become franchisees , it is essential to re-explain the concept of franchise . The franchise is defined as an agreement between two entities, on the one hand is the parent company (the franchisor ) and on the other hand are one or more other companies ( franchisees ).

This contract allows franchisees to exploit the brand held by the franchisor. The latter undertakes to transmit its brand, its know-how and permanent support in exchange for remuneration.

Become a franchisee: a successful company

The franchise is a commercial network that continues to seduce thanks to the fame of its franchisors. Indeed, becoming a franchisee of a brand or a brand that has already been proven in the field offers a near assured success . The advantages conferred by a franchise include:

  • A group of small businesses more efficient in the face of competition from large groups;
  • A combination of know-how (the franchisor) and an entrepreneurial motivation (the franchisee);
  • A simpler organization thanks to the motivation of the franchisee who is generally larger than a branch manager;
  • Rapid market coverage thanks to the sharing of skills and investments.

But why is becoming a franchisee so important? Being a franchisee is first and foremost an agreement where both sides are winners. Explanations.

By becoming a franchisee, a number of obligations must be respected to preserve the image and the reliability of the company. The major requirements to follow are:

  • Respect for the franchisor’s methods
  • Respect for the concept proposed by the franchisor;
  • The obligation to follow developments in the concept;
  • The supply obligation;
  • The respect of all the terms of the contract;
  • Listening to feedback from the network.

And above all, do not neglect the power of the customer who is king in this environment.

These requirements are necessary to allow the franchisee to master his work and to guarantee its success. He acquires as follows:

  • Autonomy without being isolated;
  • A faster success due to the success already generated by the company;
  • A limitation of the risks thanks to a transfer of a know-how already tested;
  • Learning a new activity.

Roles and contributions of the franchisee

Becoming a franchisee requires some work that needs to be done upstream to ensure proper monitoring and operation of the activity.

Before opening:

  • Search and negotiation of the location: usually strongly helped by the franchisor who sometimes takes full charge of this task;
  • Contribution own funds and guarantees;
  • Bank negotiation;
  • Point-of-sale arrangements;
  • Participation in training;
  • Recruitment and training of staff;
  • Constitution of the company and administrative procedures.

At the opening :

  • Opening of the point of sale;
  • Launch advertising;
  • Implementation of the concept.

After opening:

  • Participation in ongoing training programs;
  • Participation in advertising actions;
  • Participation in meetings, seminars, commissions, …;
  • Management of the company in autonomy;
  • Respect for visiting rights of the franchisor;
  • Send back information;
  • Compliance with financial and contractual commitments;
  • Local defense of the sign.

The franchisor: its roles and contributions to future franchisees

Of course, by franchising his business, the franchisor (brand owner) enjoys many benefits such as:

  • The expansion of its network: purchasing power, advertising, …;
  • The development of limited costs of its network through the distribution of investments between him and his franchisees;
  • The speed of this development;
  • The motivation of its members is more important than branch managers.

Roles and contributions of the franchisor

As the ultimate manager of the parent company, the franchisor must accompany the franchisee throughout the process, even before the opening of the franchise.

Before opening:

  • Lay the foundation for success;
  • Assistance with the search and negotiation of the site;
  • Assistance for the realization of the feasibility study and the bank negotiation;
  • Assistance for the development of the point of sale;
  • Franchisee (and staff) training;
  • Guide for some administrative procedures.

At the opening :

  • Delivery and installation stocks;
  • Delivery and installation of furniture and equipment;
  • Launch advertising;
  • Assistance at the opening.

After opening:

  • Analyze the results, propose actions, advise, accompany;
  • Permanent formation ;
  • Advertising plans and marketing actions;
  • Meetings, seminars, commissions, …;
  • Periodic visits (Control, Animation, Help ..);
  • Helpline ;
  • Organization of the transfer and processing of information in both directions;
  • Compliance with financial and contractual commitments;
  • Defense of the mark.