What is Franchising ?
Franchising has become increasingly popular in recent years. It consists of an agreement between a company called the “franchisor”, which allows another company called the “franchisee” to exploit its brand, products or services in order to market them.
Welcome Franchise explains in detail how to open a franchise.
Requirements for
opening a franchise
To open a franchise, a number of criteria must be met, by both franchisor and franchisee. The following agreements must be scrupulously respected:
- A common sign or brand name must be used
- Premises and means of transport must be uniformly presented.
- The franchisor undertakes to pass on know-how and constant support to the franchisee throughout the duration of the agreement.
- In theory, the franchisor must have been able to test the viability of his business for at least 3 years in 3 pilot outlets before being able to create franchises.
The principle of franchising can be summed up very simply: the entrepreneur chooses a concept via a brand name, and sets about reproducing the success of this brand by opening a new store in the company’s image. The franchisee buys the right to benefit from a brand’s experience and use its reputation to develop his or her own business.
Franchising :
a source of success for both franchisor and franchisee
This technique is beneficial both for the franchisor, who can develop his business in territories further away from his head office at lower cost, and for the franchisee, who can open his own business without starting from scratch.
Franchising is therefore a source of development for the franchisee, who benefits from the experience and reputation of a brand name, and for the franchisor, who makes good use of the franchisee’s knowledge of the region and local clientele.
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