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Is a franchise a good idea?

At the start of a business franchise, there is an entrepreneur and a concept. This concept can also be an idea for a restaurant, car wash, renovation of roller shutters, business services or childcare. Whatever the sector of activity, this concept is distinguished by its approach and its visual identity. As well as its products, its services, its production methods and / or its economic model. The entrepreneur then implements their concept at a point of sale (production, distribution or service), called a pilot. They then check the performance of this concept, its adequacy with the market, its profitability and more. Once satisfied with the performance of this pilot, they formalize this concept. Therefore, the commercial franchise, the brand, develops by integrating over the months and years. New franchise entrepreneurs, who then make up the network. And very often, these entrepreneurs will also participate in the evolution of the concept. Also they will look at the organization of the commercial franchise through consultative bodies. You can look at Franchise Direct for more information. 

Photo: Unsplash

Why choose a commercial franchise? 

There are a multitude of good reasons for a project leader to opt for a commercial franchise when setting up a business. To begin with, it is frequent that the idea, the concept which guides the creation project has already been developed by a previous entrepreneur. They then developed this concept in franchises. Therefore, why try to create a competing concept from scratch when it is possible to benefit from the experience of a franchisor? They will have already tested and refined a similar concept at one or more points of sale?

This is also one of the main reasons for opting for a commercial franchise: to create a business with a turnkey, proven, profitable concept. An isolated entrepreneur must test their idea on the market, and adapt it if necessary. They must also develop their notoriety and take charge of all their communication. They must also study the competition and constantly adapt to it, carry out a sectoral and regulatory watch. And finally, constantly finding new products or services. And the franchisee has it all, thanks to their relationship with the franchisor. They franchisor must: 

  • Carry out a study of the national market, which already gives good indications to the franchisee. Even if the local market study remains the responsibility of the franchisee. This being the case, in order to promote the integration of new members, many brands are also taking charge of local implantation studies.
  • Develop the concept and offer of products and services. According to market and regulatory developments of course.
  • Develop the national notoriety of its commercial brand, in particular through communication

The question of profitability is an undeniable asset of commercial franchising. Franchisors have the experience of one or more points of sale and can therefore establish with more or less precision. It can be a really great business to delve into if this suits you. Therefore you should research as much as possible and be sure to learn how it could benefit you and your investments. It is also worth looking at legal advice.

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