Franchising is a popular way for project owners to embark on an entrepreneurial adventure, and benefit from support throughout the process. Franchising has enjoyed remarkable growth in France over the last ten years, thanks to its highly profitable and reassuring business model. Toute la Franchise, the leading international conference on franchising, has decided to highlight the 10 reasons why franchising is a good way to do business.
Why franchise?
Many French people dream of owning their own business. However, there are many aspects to consider when setting up a business. On the one hand, you need to be prepared and trained, and on the other, you need to be well-informed about the legal and administrative requirements for success. Franchising is an excellent option for setting up a business. You can benefit from a fully managed business with a proven model, while remaining independent in terms of the management and location of your business. Almost 43% of French people want to set up their own business. Franchising is one of the most popular options. Toute la Franchise, a publication to be held at the Parc des Expositions, Porte de Versailles, France, from March 19 to 22, 2023, highlights 10 reasons why franchising is a good way to do business.
1- A secure and reassuring environment for entrepreneurship.
Franchising offers entrepreneurs the chance to benefit from a tried and tested concept. Entrepreneurs can find it difficult to create and develop a business. Franchising allows them to benefit from a tried and tested concept that has been tried and tested by the franchisor. The franchisor also owns pilot stores, where he constantly updates the model to keep pace with customer needs and trends. The franchise model enables project owners to draw on the brand's reputation and established know-how to help them create a fast, efficient start-up with minimal risk.
2- A business model open and accessible to all
Franchising is one of the most important pillars of the French economy today. It boasts 79,134 outlets, 65 franchise networks and 795,441 direct and indirect jobs. Franchising is an accessible sector, offering opportunities for all ages and levels of education. It's open to anyone interested in the opportunity. The average age of French franchisees is 36, 4 out of 10 are women, and almost half have at least a high school diploma. Franchising is not a stifling model of business creation reserved for the elite.
3- There are many sectors to choose from for entrepreneurs
There are almost 2,000 franchises in France. This gives you the opportunity to be a franchise entrepreneur. Franchise models can adapt to changes in society and offer new concepts to meet evolving consumer needs. Franchising offers many opportunities in emerging fields, such as home entertainment, home delivery or DIY. These brands are all developing rapidly and enjoying great success in line with French consumer trends. Franchising is a popular choice for people looking to change careers or start a new one.
4- Franchising makes it easier to set up a business, with the emphasis on support and training.
This is one of the advantages of franchising: ongoing training, support systems and training throughout the franchisee's life. The franchisor shares his or her knowledge with the franchisee to ensure a good command of the brand. Franchisees can benefit from ongoing and initial training to help them in their professional and career development. 53% of franchisees choose franchising because they appreciate the support it provides.
5- Professional mobility - Doing business all over France and the world
Geographical flexibility is another reason for the appeal of the franchise model. Franchising gives you the freedom to open a business in any region, or to move to another country. Today, 3 out of 4 franchisees set up their business in their own region. 35% of franchise networks have outlets abroad. This can help you broaden your horizons and turn expatriation into a profession.
6- Independence with advice and assistance
Franchising is based on a commercial agreement between two legally and economically independent parties: one company, called the "franchisor", undertakes to provide the second company, called the "franchisee", with know-how, assistance and the right to use its brand, in return for a fee. The franchisor must be available for advice and assistance as soon as the candidate signs a contract. The franchisee must respect the brand's concept, but remains the sole decision-maker on location and management.
7- Confidence in business creation
66% believe that opening a franchise helped them obtain a loan from the bank. This is because the franchise model is considered a safe and successful business model by banks. A franchise project is riskier than a solo project. Banks consider it safer and more stable, and can facilitate access to financing thanks to the franchisor's good reputation.
8- Franchising helps entrepreneurs succeed and grow faster
Franchised outlets are more profitable than sole traders because they have a better volume strategy, standardized operations and regular innovation. Franchising is an incredibly powerful engine for success. Six out of ten franchisees saw their annual sales increase in the last financial year.
9- Benefit from the brand's reputation
A franchise network gives you the opportunity to benefit from a national advertising campaign. Each advertising campaign organized by the company has an immediate impact on the sales of all network members. Advertising is essential to the survival of any business. The cost of communicating your business can be prohibitive. Franchising is a way of creating a business and benefiting from the brand image and reputation of a well-established brand. It also allows you to benefit from all the publicity that the network can provide on a larger scale.
10- Territorial exclusivity
The franchise model offers many advantages, including territorial exclusivity. This allows the project owner to be the sole operator in a given area. The franchisee may be required by the franchisor to close all other outlets in the area (brand exclusivity), or to stop distributing its products in other stores (product exclusivity), or both.
