Business Information

A franchise is a contract whereby a company called the franchisor gives the franchisee to another, in exchange for financial compensation, the right of exploitation to market certain types of products and / services. You must understand the use of logos or labels and meet common standardized patterns.

In the economies of Latin America, Central and Eastern Europe, it will produce economic liberalization, so that there will be a need for an organized trading system. Franchising is a good choice for entrepreneurs.

Every day there are many attractive franchises dedicated to different services: travel, consultants, real estate, financial services, dry cleaners, beauty and aesthetics, recreation ….

Benefits of a Franchise:

• Franchises give us the power to benefit from the established brand image in the market and a “know-how.” It’s a business idea with a proven success.

• The franchise is responsible for carrying advertising.

• Studies show that after 5 years, 85% of franchises still on the market, compared with 10% of the traditional retail trade. The franchisee has the option to marketing activities and advertising that does not have an independent entrepreneur.

• It is supported by training and advice. There is continuous training. Franchising is a formula that facilitates the exercise of an activity and market access.

• If the franchise operates with a given bank, it will be easier to get funding.

• Franchising can put pressure on suppliers when making purchases. The network of franchisees benefit from competitive prices to buy their supplies.

Characteristics of the Franchisee:

• The franchisee must have business skills, work capacity, management skills and financial capacity.

• Must pay a franchise fee or royalties.

• You will have exclusive marketing products and / or services offered by the franchisor.

• You should consider whether the criteria for merchandising franchise are appropriate and consistent to your interests, since they are a key factor in achieving successful business.

• To analyze whether the business idea has chosen originality, innovation, if the mark has sufficient reputation, what type of products customers are targeted, the potential for sales, profitability, investment, operating costs, personnel …

• Study the philosophy of the franchise, reputation, career, organizational structure …

• Network Assessment: number of owned and franchised stores, expansion plans, rhythm of openings, closure of establishments and investigate their causes.