Opening in franchising. Open a sandwich shop, a restaurant, a fast food restaurant, a pizzeria or a bar. How to tackle this step with great serenity and become a successful entrepreneur and what is franchising?
What is a franchise?
A collaboration formula between entrepreneurs for the distribution of services and / or goods. It is recommended for those who want to start a new business by taking advantage of formats already tried and tested on the market.
The parent company grants the franchisee the right to market its products and / or services. Use the sign of the franchisor, technical assistance and advice on working methods. In exchange, the affiliate undertakes to comply with established management and production standards and models. Generally, all this is offered through the payment of a percentage of turnover (royalty) and compliance with the contractual rules.
Franchising can be described as an operation where each location operates under strict guidelines set out in printed documents to ensure consistency across locations; this makes the provision of quality services consistent that helps to satisfy customers all year round!
Which means they have to follow certain standards to maintain quality service for customers.
A franchise operation requires more compliance than other types of operations, because it involves so many individual locations over great distances – essentially it serves as an umbrella term that covers everyone who owns or manages multiple stores rather than a single person who handles things from home as some might think!
In the Italian economic market, franchising is regulated by the Law of 6 May 2004, n. 129.
Not surprisingly, in recent years the variety of franchising opportunities available on the market have attracted the interest of many.
This allows the parent company to have exponentially faster growth than a traditional spread. In fact, franchising allows decentralizing and distributing the financial and organizational burdens on its affiliates. These will have to invest their budget, choose the location, manage the staff and take on part of the business risk.
The selection of the brand that best suits your expectations starts with the contact. Once the data have been obtained from the various operators, it is important that the selected brands are compared in an objective manner in order to skim the less convenient ones.
The system allows the parent company to derogate from the antitrust regulations. These in fact set market limits that can be held by a single economic entity. The chain is all headed by the same franchising company. Each individual franchise is owned by a subject other than the brand’s distributor. This system allows the network to obtain an extremely widespread presence and at the same time guarantees considerable savings. The structure costs of the branch are then borne by the franchisee, with its saving advantage for the franchisor.
It is good to remember that a brand with a winning commercial formula is not afraid of having to provide all the necessary data for every aspect of its network and not even the comparison with others.
Here are some essential evaluation points:
- the franchisor has experimented its own formats on the market (pilot point);
- how many operating franchisees are involved, taking into account the year of the start of the company;
- the no longer active and / or management changes;
- the duration (and possibly quality) of the training, a real franchisor takes enormously in the preparation of its affiliates;
- Assistance in choosing the location;
- Ask the already active franchisees for opinions on the work of their franchisor;
- Profit margins, bearing in mind all the management costs as well as the estimated time for the return of the investment.
- Open in franchising? Let’s see together the possibilities last
This allows the parent company to grow exponentially faster than a traditional spread. In fact, franchising makes it possible to decentralise and share the financial and organisational costs on its members. They will have to invest their budget, choose the location, manage the staff and bear part of the business risk.
The selection of the brand that best suits your expectations starts with contact. Once the data is obtained from the various operators it is important that the brands chosen are objectively compared in order to skim the less convenient ones.
The system allows the parent company to derogate from antitrust regulations. They set market limits that can be held by a single economic entity. The chain belongs entirely to the same franchisor. Each individual franchise is the property of a person other than the brand distributor.
This system allows the network to obtain an extremely widespread presence and at the same time guarantees considerable savings. The subsidiary’s structural costs are then borne by the franchisee, with a relative saving advantage for the franchisor.