Everyone can dream of changing their lives. But starting your own business is easier. A proven business model can make franchising an excellent way to start your own business. What are the basics of setting up a franchise?
Since the crisis linked to covid, more and more workers are asking themselves the question "How can I give meaning to my work?". You could become a baker, run your own store, or open your own restaurant. Why not open a franchise? Franchising is a great way to start your entrepreneurial journey. It can be safer and increase your chances of success. But it's not without risks. There are a number of criteria you need to take into account when thinking about and choosing the brand you're going to associate with.
What is a franchise?
It's essential to know the definition of a franchise before setting up your own business. Franchises can be used to create a new business or to transform an existing one. There are certain rights and obligations for franchisors and franchisees.
Legally, franchising is based on the collaboration of two independent legal entities. The franchisor authorizes franchisees to use its brand and know-how in exchange for a fee. The franchisor also requires franchisees to adhere to the concept defined by the network head.
It's a win-win situation
The franchisor and the franchisee share the same objective: to develop the brand in order to attract more customers and win their loyalty. The franchisor is concerned with the success of his franchisees, in order to develop his network and build brand loyalty.
For a win-win system
The franchisor must pass on his proven, reproducible performance to franchisees, and promise to adapt to changing market needs.
Franchisees are required to adhere to the brand standards and all elements of the franchise concept, as set out in the know-how guide.
Franchisees have many advantages
There are many advantages and disadvantages to opening a franchise. There are many advantages to opening a franchise. You get support at every stage of the project, from finding the right location, financing and training, to helping you launch your business. Then, throughout your life as a franchisee, you'll have a network coordinator at your side, support from the legal, sales and communications departments, ongoing training, the opportunity to share your experience with other network members, and so on.
There are more advantages than disadvantages. All network members are co-owners of the brand, and therefore linked to each other. Bad experiences by network customers can affect your brand and have an indirect impact on your business. Social networks can act as a sounding board, which makes things even easier.
You need to be prepared for risk
To assess the support provided by the franchisor before you commit to anything, there are a few key points you need to consider.
How long does initial training take? Is it a combination of theory and practice?
What is the internal organizational structure? How often is the coordinator present? What is the launch schedule? Are there any tools to monitor progress?
What processes are in place to ensure brand uniqueness across the network? Are there regular training programs?
What tools and procedures can be used to track requests received by internal communications? How is feedback on best practices organized? Is inter-franchise trade encouraged?
Franchising is an excellent business model with many advantages and special features. Before launching your own business, it's important to understand these details. Don't hesitate to take the time to choose the right brand.
