Creating a company and developing a business using the notoriety of a brand or trade name is an asset for entrepreneurs. This financial and marketing strategy is sealed by the signing of a franchise contract, the aim of which is to create a new partnership to revitalize your business in a specific sector of activity. Above all, being a franchisee requires a minimum of experience in running a business.
What does it mean to become a franchisee?
To have the right to use the trade name of a recognized brand while benefiting from its know-how, skills and production methods is to become a franchisee.
This gives the entrepreneur the opportunity to revitalize a business by affiliating with an established brand.
This gives them the right to market the franchisor’s products and services.
Being a franchisee also means being able to benefit from the contracts of existing suppliers and service providers.
This ensures competitive rates for commercial operations.
Above all, being a franchisee means having the technical assurance of a franchisor recognized through its trade name. The franchisor, having already proved his worth and made a profit, is in a position to provide assistance to an entrepreneur wishing to become a franchisee and develop the business regionally or internationally. Both benefit from each other’s commercial advantages.
Why franchise?
Entrepreneurs wishing to become franchisees benefit from the franchisor’s trade name, connections and knowledge. Even more than the exploitation of the brand, becoming an official partner and representing the franchisor locally guarantees dynamic commercial and economic activity, since it is possible to make use of the brand’s reputation and notoriety. Being a franchisee attracts a loyal clientele, which brings immediate benefits.
It’s also a way to grow, by setting up a business plan that favors the takeover of the business by an established brand.
In addition to having access to operating methods and expertise, being a franchisee also means being able to benefit from the franchisor’s ongoing commercial assistance.
All the parent company’s implementations will be applied to franchises, from communications and marketing strategies to organizational restructuring or trade name changes.
Being a franchisee also makes it easier to withstand economic crises.
How do I find a franchise?
To become a franchisee and officially join a franchise network, you need to select the right franchise.
A market study can provide guidance.
The research should focus on a number of criteria, including the brand’s reputation, its reliability in the target field, the current state of the competition, prospects for economic development, the nature of the concept, the parent company’s vision and sales.
To choose a brand and become a franchisee, you’ll need to focus on an attractive business sector with strong growth prospects.
To find the right partner, you can call on specialists who put franchisors and future franchisees in touch with each other.
Visiting trade shows, consulting franchise advertisements and making use of your contacts can enable an entrepreneur to join a recognized multinational and become a franchisee.
Some sectors are even more dynamic than others.
What are the criteria for becoming a franchisee?
To become a franchisee, the entrepreneur will need to respect the conditions and align himself with the measures put in place by the trade name holder.
Obligations include compliance with the operating procedures and methods established by the parent company.
It is also a question of following developments and agreeing to the terms of the agreement, ranging from supply to procurement.
No changes can be made to the initial concept.
To become a franchisee, the latter will need to pay an entry fee as well as royalties for the use of the trade name, among other things.
It’s essential to stand out from the competition, because to become a franchisee, you must first submit your application to the company.
The human profile will be analyzed.
This includes motivation, experience in the sector and managerial skills.
Having a financial contribution and funds of one’s own for business management also ensures inclusion on the selection panel in order to aspire to be a franchisee.
Adaptability will also be a key factor, as it is essential to be able to adhere to the franchisor’s standards, requirements, demands and rules.
The different types of franchise contracts
Even if being a franchisee means tailor-made support, it sometimes means less independence.
However, franchisees are protected by the Doubin law, in the form of the DIP (Document d’Informations Précontractuelles).
This provides full details on the use of the trade name and its implications.
Acting as a pre-contract, it contains :
- Market outlook
- History
- Network members
- Financial statements for the last two years
- Non-competition and confidentiality clauses
- The duration of the contract and the conditions for transferring the business or terminating it
The contract also covers various parameters such as production, service or distribution.
Whether you’re looking for expertise in manufacturing products, distributing personal services or setting up a point of sale, becoming a franchisee is the key to a business with real prospects for the future.
