The limit of many people’s entrepreneurship is risk. Even with some command of the business, the ins and outs of management can be intimidating for those with no experience in the field. That’s why many want to know how to start a franchise having the opportunity to run a business with the support of an already consolidated business model.
Trademark License x franchising
Before knowing how to start a franchise, it is important to understand the differences between the two main models. Brand licensing refers to the franchise agreement that includes the transfer of the right to use To mark through a franchise fee and monthly license payments. the kind franchising also includes the technology transfer either expertise the activity to be carried out.
Below we describe how to create a franchise using the most common model, brand licensing. know main stages this process.
How do I create a franchise?
Before deciding on a franchise, gather as much information as possible. Start analyzing the franchise rights and then look at the best branded options and weigh all the pros and cons. A good idea is to talk to Experts | in the area or from franchise managers. If you already have an organization in mind, visit their stores as a customer and observe everything to put yourself in the manager’s shoes.
Contact with the franchise
Each franchise has its own process, but typically the prospect first fills out a registration form on-line. If your form is approved, the next step is usually a meeting. In this case, the potential franchisee receives a draft contract and a Franchise Offer Circular (COF). In this document you can analyze all relevant information.
The existence of the COF assumes that all the necessary details for the application of the franchise are present. to plan create a business model in detail and analyze the feasibility. Also look for potential business locations where the franchise could work.
signing of the contract
Having analyzed the viability of the company and all the points of the draft contract, proceed to the next step. The amount is usually paid by signing this document. royalties and assumes the obligation to pay monthly license fees for use of the mark.
Point of Sale Rental
It’s difficult to build a successful franchise without having a good outlet. Once the contract is signed, it is recommended that you take this into account more than one possible location. Some companies help the franchisee with this issue, while others just approve or disapprove of the choice. In any case, look for a fixed-term contract with a term of less than five years.
Accompanied by your accountant, go to a public registry and run them all tax procedure and labor required. This regularization must of course take place before the opening of the premises.
Surely your employees need special training because the network must have a operations manual that have to be taken over. Before you open your outlet, make sure everyone is properly trained.
Now that you know how to start a franchise, it’s enough to put everything into practice and open the business. Organize a good opening event and look for it advice by the owners of other units and by the parent company, whenever you need it.
The Franchise Market grows annually. In some cases, it outperforms the overall economy. Here’s what’s happening in the United States, for example: According to the International Franchise Association’s (IFA) report The Franchise Business Economic Outlook: 2015, the industry is expected to create more jobs this year than the rest of the American market in its sentence.
Sales accompany this growth. The franchise segment will be worth an estimated $889 billion in the US economy in 2015. When it comes to expanding brands internationally, Australia and Canada also stand out for their global presence.
According to the Brazilian Association of franchise (ABF) based on surveys conducted by the central bank IBGE and the CreditSuissethe number of franchises in Brazil it has increased significantly in the last decade. In 2003, 678 networks were registered. Ten years later, that number rose to 2,703 — an increase of around 300%. The number of jobs created directly by franchisees increased from 509,076 in 2003 to 1,029,681 in 2013 – an increase of just over 100%.
Interest in this type of business is not only concentrated in Brazil, the country with the most franchises in Latin America. Neighboring Peru is a good example. According to PromPerú, an organization that promotes tourism and industry in the country, Peru has joined franchising 20 years ago and currently has 321 brands. Of these, 35% are national and 65% (71 brands) are gastronomically influenced. After ABF’s participation in the 1st Expo & International Franchise Business Roundtable in Lima, Peru, held in November 2014, a Peruvian commission attended ABF for the first time franchise World Expo 2015 in Sao Paulo.