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Franchising is a business agreement between two parties , the franchisor and the franchisee. The franchisor is the company that owns a business that is supposed to be successful, while the franchisee is a natural or legal person who wants to develop a business model and to do so pays to operate this successful business in a geographical area and for a certain period of time. time, managing to receive in exchange a little of the success of that business and avoiding competition from other companies of the same franchise in that area. In Spain there are a large number of franchises from different sectors and a large number of establishments through franchises, more than 30,000, just as this business model is very widespread in other countries. Why pay to enter the franchise business model Why pay for a franchise when I can enter a business from scratch without paying for it? Because the franchise is usually under a well-known brand that attracts customers just by being famous. The franchise also has great technical and organizational capacity that will benefit the company. In addition, the franchise is able to negotiate better prices for its products or services, offering greater competitiveness that could not be achieved in any other way. Added to all this is that there is something new in the company that offers the franchise, that it gives something that others do not and that is why it attracts customers, since the franchise is in charge of advertising the brand that makes people believe. in the reliability of the business and that it is an idea and business model successfully tested.
Whoever pays for a franchise ensures that they have a business model that works and a brand that supports them. When a franchising company comes into contact with a person who wants to enter the business model, they are offered pre-contractual written information in which interesting information appears to help make the decision, information on how the entire business works. If the franchisee accepts and signs the contract, he or she has the right to use the brand, Country Email List receive interesting and necessary information and receive technical assistance from the franchisor, which also transmits its know-how. The rights and obligations of both parties appear in the contract; it is necessary to read it carefully to understand all aspects and accept it before starting to work with the franchise. Franchise paymentThe natural or legal person who enters the new business must pay an entry fee, an initial payment, and also periodically contribute a percentage of the profits as royalties for exploitation rights. Generally these payments are not too high, although they can range from 18,000 euros to 120,000 euros, knowing that the more you risk, the greater the profit opportunities. There are really cheap franchises, from 1000 euros entry fee and a little less in annual payment.
You just have to find out about the franchise you want to enter, taking into account the existing franchises in the sector and the possibilities they offer. Of course, other expenses are also necessary, especially in purchasing or renting and reconditioning the premises to adapt it to the brand image. Some obligations The franchisee must: Respect territorial exclusivity Inform the franchisor about the evolution of the business Comply with the controls and rules of the franchise Attend existing training courses Pay the fee and royalties applied by the franchisor Adapt the company to the corporate image of the franchise The franchisor's obligations are: Inform the franchisee about business aspects Provide technical assistance to the franchisee Advertise the brand Deliver a presentation dossier, the adaptation of the premises, a corporate identity manual, a products and services manual and an operating manual.
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发表于 2023-11-29 17:10:51
