What criteria can I follow to choose a franchise?
Undoubtedly there are many factors to analyze before deciding on one or another alternative. Level of investment, profitability, amortization, structure of the business, necessary dedication, services and activity of the plant, trajectory and many others, are points that can not be overlooked when deciding on one concept or another. For the majority profile of franchisees, directly linked to the daily activity of the business, we consider it very important that you feel a certain affinity with the concept, that you like it and so that you can enjoy your activity accordingly. Do not forget that presumably will be linked to the banner for several years and must find your work with it.
"How much does it cost" to operate in a franchise regime?
It is common to hear that starting a business under the umbrella of a franchise chain is more expensive than doing it on your own. Although the statement may have some meaning, really and for practical purposes should not be so. The franchise offers a tested, procedural and profitable business model for previously studied operational characteristics. This allows us to reach a level of billing and profit that, without previous experience in the sector in which we will operate, we will hardly reach on our own, regardless of the payments that the franchisee pays to the franchisor in terms of royalties or royalties.
Is the franchisor exchange with the investment for the start-up of the business?
Only on exceptional occasions and almost never with the entire investment. Precisely the objective of the franchise is to achieve a rapid expansion by minimizing the investment with own resources. The franchisee is an independent entrepreneur who exploits his business at his own risk, accepting a consolidated brand and adopting a work methodology already established.
Who is responsible for the adequacy of the premises?
There are several possibilities when dealing with the adequacy of the premises: from the turnkey project, in which the role of the franchisee would be minimal, to the direction and execution of the work in its entirety. Even so, the franchisor will have to provide the adequacy manual and supervise the final result.
Will I receive the necessary training to operate my business correctly?
The franchise center must give the franchisee the necessary training so that the franchisee can operate the business correctly. The duration of the same will be determined by the complexity of the business and / or the prior knowledge of the franchisee. However, it is common that there is no previous experience in the sector to develop the activity, so the training plan is usually the same for all franchisees.
What can I expect from the franchisor exchange once the activity has started?
The services to be provided by the plant once the activity has begun must be specified prior to the agreement. The franchisee must be aware of the needs that may arise in the exercise of the activity and the role played by the franchisor in its solution.
Can I incorporate / delete products or services of the business according to my criteria?
No. The homogeneity in a franchise chain, especially when it reaches a certain impact is an elementary factor of its success. Any action that differs from the parameters set by the plant and that substantially alters the business activity must be previously communicated to the plant.
What happens if the business is not going well?
As we anticipated in previous sections, a franchisee is an independent entrepreneur who manages your establishment at your own risk. Working with a franchise chain minimizes but does not completely eliminate the possibility that the business will not work as planned. However, agreements to the termination of the franchise agreement that "relieve" the franchisee of the burden of closing the premises are possible.
Can the central franchisor expel me from the chain or not renew the contract?
It is a frequent fear when entering into a franchise chain the possibility that, once the activity started, the plant decides to expel or not renew the contract with the franchisee. First, the franchise agreement must provide for the circumstances that entail the termination or non-renewal of the agreement. Secondly, we must bear in mind that the first interest of the franchisor is that each and every one of its premises obtain magnificent results; therefore, the expulsion or non-renewal of a franchisee will respond in the great majority of cases to a negligent or inappropriate attitude of the same.
What happens if I decide to leave the franchise chain and operate with my own brand?
"Learn the business" from a third party and then start your own is a temptation recurrent in some franchisees. Generally, this type of action is foreseen in the franchise agreement, which regulates the restrictions to which the franchisee is subject from the moment in which it begins to operate as such and the sanctions that it would face should it not be respected.
