The success of an entrepreneurial project depends on the profitability of a concept.\nYet this information is not always the easiest to find, as franchisors are sometimes cautious (and rightly so) when it comes to communicating their financial prospects. <\/p>\n\n\n\n
How can you be sure thata concept will generate profits? Where can I find this valuable information? What clues should I look for when opening a franchise? Which sectors are the most profitable? Here are six steps to take to assess whether a franchise concept is profitable.<\/p>\n\n\n\n
Before embarking on your survey, check with the franchisor. He’ll be able to give you factual information about his own experience with his pilot unit. He’ll also tell you the number of outlets, the number of multi-franchisees, sales figures and the average cost structure. He’ll also tell you the total investment and personal contribution required for the project, as well as the amount of the entry fee.<\/p>\n\n\n\n
Your (future) franchise network may give you a great deal of information even before signing the pre-contractual information document (DIP) and franchise agreement, but will naturally be more inclined to share more data once the DIP has been signed, as it includes a confidentiality undertaking.<\/p>\n\n\n\n
Obtain the Siren numbers of the legal structures of the franchisees in your target network to identify available accounting data.\nIn some cases, it is possible to find balance sheets, shareholder information, capital increases or official procedures (sauvegarde, redressement, etc.) on Societe.com, Infogreffe or Papers.fr. <\/p>\n\n\n\n
Meet our franchisees and take the time to interview them without taboos. How much do you earn? How long did it take you to earn your first salary ?<\/p>\n\n\n\n
Take the opportunity to appreciate the atmosphere between franchisees and the head of the network.\nPlay the role of mystery shopper to get a feel for the company’s service and overall operation.\nIt’s an essential exercise that will help you project your future. <\/p>\n\n\n\n
Set up shop for a day in front of one of our stores to analyze the store’s traffic flow.\nHow many people pass through the door?\nHow long do they stay inside?\nWhat’s the customer mix?\nWhat is the buying behavior of customers? <\/p>\n\n\n\n
After one or more days of observation, you’ll be able to form your own idea of the franchisee’s business.\nDon’t hesitate to repeat the experience at several locations. <\/p>\n\n\n\n
Interviewing franchisees from a competitor brand gives you a better idea of the sector: is it buoyant or not?\nWhat challenges does it face?\nIf all franchisees in the same market suffer from the same financial difficulties, it may not be the franchisor who is to blame, but rather the promises of the business sector.\nFor the same reasons, don’t hesitate to get information from competing franchisors and compare it with that of your favorite brand. <\/p>\n\n\n\n
Get a chartered accountant to help you draw up your business plan.\nRely on your franchisor to guide you and verify your assumptions.\nThink of him or her as a partner with the same interests as you: your success. <\/p>\n\n\n\n
If you need a loan, your future banker will be more reassured if you are accompanied by a chartered accountant.\nThe more your financier senses your degree of preparation, the more he will defend your colors with his risk committee. <\/p>\n","protected":false},"featured_media":68493,"template":"","categorie-fiches-pratiques":[939],"class_list":{"0":"post-156316","1":"fiche-pratique","2":"type-fiche-pratique","3":"status-publish","4":"has-post-thumbnail","6":"categorie-fiches-pratiques-become-a-franchisee"},"acf":[],"_links":{"self":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/fiche-pratique\/156316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/fiche-pratique"}],"about":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/types\/fiche-pratique"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/media\/68493"}],"wp:attachment":[{"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/media?parent=156316"}],"wp:term":[{"taxonomy":"categorie-fiches-pratiques","embeddable":true,"href":"https:\/\/lexpress-franchise.com\/en\/wp-json\/wp\/v2\/categorie-fiches-pratiques?post=156316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}