[Tribune] When it comes to starting up or taking over a business, franchising has a special status. Any entrepreneur can choose to set up or take over a business alone. Franchising lies somewhere in between, where you can set up your own business based on an existing concept, without necessarily knowing the business, by putting on your 7-league boots to go faster, and taking advantage of the synergies provided by a network.
These are the 3 advantages of franchising that make it such an attractive way to set up a business.
Becoming a franchisee: a gateway to a new profession
Franchising is unique in that it is based on a model that has proven its success. In other words, before becoming a franchisor, an independent entrepreneur has himself created, operated and developed one or more of his own outlets (sometimes even heading a network of his own branches), before modeling the key success factors and launching it as a franchise. As soon as the :
- has a market,
- that it benefits from a clear differentiation,
- it is sufficiently structured, reliable and cost-effective
- and that the franchisor has an organization ready to follow the creation of a network,
So it can be duplicated!
In this way, all the work carried out by the franchisor on his pilot unit will serve as a library of experience and knowledge for the franchisee new to the business. And this is one of the advantages of franchising for many brands. Franchisees don’t need to be professionals.
Particularly in the service sector, brands are above all looking for entrepreneurs with entrepreneurial skills and internal resources on which to base their projects. Of course, your career path will also be taken into account, to assess the “rate of effort” you will have to make to develop the skills required by the model.
This is not a law set in stone, because I’ve seen very young designers make up for their lack of experience with a fierce determination to succeed. And they succeed. Skills are acquired, interpersonal skills are integrated into the individual.
Franchising is also a real opportunity for young entrepreneurs. Unfortunately, they often lack sufficient personal capital, whereas more established generations have had time to build up this capital.
Franchising: a real development gas pedal
This is both an advantage and a stress factor. Let’s take the following example: you’ve come to see a Formula 1 race because you’re passionate about it. One person sees it. She introduces herself to you and offers to put you in the running.
Hesitant at first, you take up this crazy challenge. Before you know it, you’re in the hands of a team who will dress you, put you in the car, brief you on the essentials and off you go! Here we go! You’re launched onto the circuit and, as you drive, you have to learn the right gestures, the right speed, the curves, the bends… In short, exhilaration and stress are the order of the day, I assure you. This metaphor is there to illustrate the advantages of franchising and what it can bring.
You benefit from the network’s experience, support and know-how. Initial training gives you the fundamentals you need to get started, and when you do, you learn as you go (or as you drive, to use the Formula 1 comparison). You’ll have a coach at your side: the franchisor. He’ll get you back on track when you get off track, and save you valuable learning time.
Time is often the creator’s enemy, because those who build alone spend a lot of energy over time before they become successful. He creates his own experience curve with all his trial and error, whereas franchising proposes to stick to the experience curve of know-how already built up.
Being a franchisee means being part of a group
You’re probably familiar with the proverb “alone we go faster, together we go further”. This is exactly what franchising is all about. The strength of a group has an impact on its market, because as it develops, the network will derive benefits from its suppliers, service providers and customers, giving it a competitive edge.
Being part of a group where each member does exactly the same job as you is an incredible asset. It’s an opportunity to meet, exchange ideas, learn, create synergies and multiply best practices.
The strength of a group also lies in the roles that each party must play. The brand has a macro vision of its market, and must focus all its services on the network to ensure rapid coverage of a national territory. The greater the number of points of sale, the greater the brand’s representation and strength. The company manager has a local dimension, and must take market share in the area entrusted to him.
This objective enables the brand to be present in a given sector, and the franchisee to develop a business based on a brand. We could conclude by saying that creating a franchise allows you to go faster, higher and further! The fact remains, however, that franchising is one of the ways of creating or taking over a business, and it’s up to you, the franchisee, to do the job, just like any other entrepreneur!
