When you have decided to leave the workforce and want to operate without the risk, franchising would be an ideal way for executives to retrain, a secure way to build your future. This view is not entirely accurate, even though franchising clearly reduces the risks because it is based on an already proven model.
Some Reasons That Make It Attractive
All players recognize that this mode of development has a significant accelerating effect, the logic of expansion linked to pooling of resources, and healthy competition within the network, synonymous with an “anti-crisis shield”.
First, you have to consider that franchising allows you to benefit from the knowledge that saves you from starting from scratch. If it succeeds, it is mainly because the economic model has generally been verified and this allows you to ignore any mistakes, whether in terms of the management or run-in of your proposal. Be in
In some cases, the company has a strong reputation and there will be no problems finding customers, as is the case, for example, with McDonald’s franchises. You benefit from the company’s brand image and therefore can be an asset right from the start.
It remains to clearly study the project, to consult on the contractual aspects of the franchise agreement, but as we can see, franchising is an easy way to build a business. And stay safe as long as we feel stronger together.
critical cost
Entry fees, stock, premises… you need money to get started. Cost remains the main barrier to creating a franchise. Surveys on the subject show that installation costs are often less than 100 K€, even though they can sometimes exceed 200 K€ with individual contributions often hovering around 38%, So all are equally important at startup. This level of contribution more or less matches the level seen in business acquisitions. The return on investment is often built over a period of 2 to 4 years, which is a reasonable period overall.
Market study and business plan
If questions always arise in franchise projects, it is because the law specifically indicates this aspect. The law governing franchises, the Dubin Law, lists the franchisor’s information obligations with respect to the franchisee.
In contrast, two areas are disadvantages, market research and business planning. It is not appropriate for the franchisor to interfere with this quantitative information except to support greater liability in the event of failure. So it’s up to the franchisee, naturally, to “stick to it”.
Market research, we can get lost. Experts still recommend keeping it simple: Put yourself in the customers’ place. Revisit the customer journey. Understand expectations and disappointments. Understand the life cycle of the market one resides in. Not a lot of money is needed, but on the other hand, time and a lot of listening.
For a business plan, it is an essential roadmap. We know that would be wrong, but that’s okay. The important thing is to make assumptions and ensure continuity, alignment with human and financial resources.
Again, all efforts should be based on the business model. Every entrepreneur’s recipe for making money. The two subjects are inseparable. The business model is to the business plan what the slice of ham is to the sandwich!
digital transformation
What place does the business model place for technologies and digital? This reflection is required before closing any build files. Technologies, social networks, mobility, data… new business spaces, new revenue streams, innovative positions are created through these new uses. Multichannel has also become a major concern in the selection of franchise network.
Let’s end with Maxime Aiche, founder of Academia and Shiva: “Starting Your Own Business Is Much Safer Than Staying Employed”, In times of crisis, franchising can be an opportunity to study!