Area reservation contract
A deed stipulating that the franchisee will have territorial exclusivity and will not be able to compete in the area with another franchisee of the same brand.
In the literal sense, it is a distinctive physical graphic element that allows the customer to recognize a company / store by its graphics. Figuratively speaking, it is a synonym of the word brand.
Brand image manual
These are the elements linked to the marketing and communication of the brand. The franchisee must respect the brand’s graphic charter by using these elements.
Establishment belonging to the parent company, and for the most part managed by employees of the group.
Whether it is during the opening of a point of sale, the implementation of heavy work (extensions, decoration, upgrading…) of a site, it is essential to carry out a business plan to validate the feasibility of the project and prepare a financing file in order to raise bank debt.
Entrepreneur wishing to join a network to become a member.
Characteristics of the brand such as its management, organization, marketing, support…
Gives the company known as the licensor the opportunity to use the dealer’s brand image, but also to have the assurance of territorial exclusivity.
Participative financing allowing a concept or project to be financed by several economic actors.
A merchant can either lease or own the commercial premises. In general the duration of the commercial lease is at least 9 years. But the merchant has the possibility to terminate it every three years, it is then called a “3-6-9” ball. The lease can also be terminated if the merchant retires. And this without the lease having done three years.
A group of member-owned businesses with common economic needs and aspirations. Members are equal and democratic governance is practiced.
Cooperative and Associated Commerce
“Model of organization of networks of points of sale and services (stores, agencies, hotel, etc.) constituted and controlled by independent entrepreneurs. It is the result of the will of independent traders exercising the same trade, to mutualize their ideas, their means, their know-how.” Source: Federation of Cooperative and Associated Commerce (FCA)
This training comes after the initial training, i.e. when the franchisee has already started his activity. It allows to maintain the knowledge acquired beforehand, to train on the new concepts of the brand, to increase skills to optimize the efficiency and the results.
Conditional preventive maintenance
Occurs as a result of a trigger such as an alarm or warning light indicating that the equipment needs an overhaul or in-depth intervention.
Corrective maintenance :
This occurs when there is a fault that prevents the equipment in question from working properly. An intervention by a professional is necessary to restore the situation. Ideally, a comparison should be made with different estimates, the resolution of the incident should be noted and recorded in the reference document seen in systematic maintenance.
The member or franchisee benefits from the overall communication offered by the brand. In return, the member or franchisee pays a fee to cover the costs.
Territory in which the franchisee can carry on business without competition from another franchisee in the network.
It is the entirety of the actions of the animators. It is directly linked to the obligation of assistance that the franchisor has towards the franchisee. Some examples:
Planning and preparing a visit to ensure that each site visited is in compliance with the contract. Structuring of the visit so that all the points are ensured (automated production of the visit report, automatic generation of the action plan and follow-up of the corrective measures, benchmarking of the results)…
An employee of the company who implements the strategy of the network head.
Representative of the brand who acts as a link between the franchisee and the franchisor. Within the framework of his missions, the facilitator can be in charge of the opening of sales outlets, accompany the franchisee in his sales outlet, carry out audits…
ERP (Enterprise Resource Planning)
Also called ERP (Enterprise Resource Planning), it is a software package that allows the company to monitor and control information from operational departments.
A contractual clause in which the brand grants the franchisee exclusivity for a geographic area. No other franchisee will be able to operate within its perimeter.
A business owner who operates a brand through a franchise agreement.
A brand that offers the use of its brand and its knowledge to another company through a franchise agreement.
Franchising allows a brand to take over the brand image and methodology that has made the franchisor successful in return for royalties.
An event that brings together franchisors to recruit franchise candidates. The brands are present in a stand where a member of the management, the franchise development manager and one or several animators are often present. This is when the franchisor usually gets the most candidates. The flagship event is the Franchise Expo in Paris.
Forecasted income statement
The CRP or Profit and Loss Statement is a document that gives a forecast of the annual result for a defined period. The vision is generally made on 3 to 5 years.
Agreement concluded between the franchisor and the franchisee. The franchisor gives the right to exploit its brand and its know-how. This includes the sale of products and/or services intrinsic to the brand.
Flat rate rent
The rent is fixed on an amount without reference to size or other characteristics. According to the Cour de cassation, this method is legal.
A network may need to harmonise and consolidate financial statements in the form of International Financial Reporting Standards (IFRS) accounts. IFRS-16 provides guidance on accounting for leaseholds.
This is a family grouping of investors or shareholders who control a network of sales outlets. These are subsidiaries or branches of the parent company. Most of them are managed by employees of the group.
As the economic world is constantly changing, indexation allows the tariff for a service or provision to be adjusted automatically in line with the economic environment. It is materialised by a contractual measure.
A clause allowing the lessor to increase the tenant’s rent according to legal indices.
This is the amount of money needed to launch the activity. Subsequently, all the financial resources will be mobilised to finance the needs essential to the proper functioning of the site.
The initial training is an essential step in the support process. Its purpose is to train the new member on the rules and essential aspects of the brand. The duration varies according to the complexity of the concept. In the case of sales, it can be short, but for restaurant concepts, it can last 6 months.
An agreement in the form of a contract between the licensor (or trademark owner) and the licensee to use the trademark in exchange for royalties or fees proportionate to the use of the trademark.
An indication of the rental value of the property over a specified period. For example, the notional rent is equal to the monthly rental value multiplied by twelve.
The rent is indexed to the turnover of the outlet. According to the law on commercial leases, the only condition is that the rent is determinable. It can be partly or entirely linked to the trader’s turnover.
Grouping of agencies under a single banner. The branches retain their legal and financial independence, as well as their decision-making autonomy.
A lease which allows the outlet to be rented. This is stipulated in the lease contract between the lessor and the lessee.
Application of a franchise model or concept in a given territory with an allotted period. The two most common cases are the integration of a foreign brand in a country or the export of a French franchisor to a foreign country.
This is a member managing several outlets belonging to the same brand.
A meeting that brings together franchisees once or several times a year. The objective of these gatherings (or conventions) is to reinforce the team spirit and to keep the audience informed about the evolution of the network.
Physical location where services or sales can be carried out
Company that has a legal entity (as opposed to a branch) but is managed by a parent company.
Sign licence fee
A royalty is a payment that must be made on a regular basis in exchange for an operating right. The purpose of periodic royalties is to remunerate the services provided by the network to the member or franchisee after the opening of a sales outlet.
Support for the launch
Assistance set up by the network head to facilitate the launch of the franchisee’s activity. This can be the contribution of elements necessary to the realization of the business plan, the communication of the opening of the new point of sale, the provision of the initial stock…
Systematic preventive maintenance
Document in which the rhythm of use of the equipment is recorded, taking into account both historical and statistical data on the incidents referenced for the equipment in question. A “check-up” may also be envisaged to verify the integrity of the equipment.