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The undeniable worldwide success of franchises, is due to the enormous advantages it offers, consisting of a very stable model to expand a business and penetrate markets.

It is also the safest and least risky way for an entrepreneur to own a business, making him the beneficiary of the synergies that franchising offers, that is, to be part of a regional, national or worldwide network.

What is a Franchise?

It is a strategy that allows for the penetration and domination of markets, that permits the owner of a trademark to reproduce the elaboration of goods and / or services that he has developed successfully, through the implementation of administrative and operative procedures, so that a third party that invests work and capital, can reproduce them in other markets with the same quality.
The main consideration so that a Franchisor requires the transfer of his know-how, is that he doesn't have enough capital to expand his business/trademark to other markets, and therefore requires of a third party (Franchisee) in order to achieve this.

What is a Franchisor?

It is an individual or company that possesses a certain trademark and marketing technology (know-how) of a product or service, who contractually cedes the rights and transfers the use of these, as well as committing himself to provide support and assistance in the organizational, managerial, administrative and marketing areas to the business of the franchisees.

What is a Franchisee?

It is an individual or company that contractually acquires the right to market a product or service within an exclusive market, utilizing the benefits that he gets by using a certain trademark, and the support he receives in the training and management of the business.

Advantages for the Franchisor
  • Strengthening and preservation of his trademark.
  • Low investment in the expansion of his business.
  • Better operative efficiency in the new units directly operated and supervised by the Franchisees.
  • Increase in the coverage and development of markets.
  • Charge of an initial fee for the rights to use a trademark (which allows him to recuperate in the medium term the investment made in the development of the franchise system).
  • Charge of monthly royalties based on the gross sales of the products and services marketed through the awarded franchises.

Advantages for the Franchisee

  • Reduction in the risk and uncertainty factors by investing in a proven business format.
  • Permanent innovation in the methodological and technological aspects of the business.
  • Continuous support on the part of the Franchisor.
  • Documented training based on the Operative Manuals.
  • Access to administrative control systems and evaluation of the performance of his point of sale.
  • Training in the productive processes of products and services.
  • Sense of belonging to a consolidated network of franchises.
  • Access to promotion and advertising programs.
  • Increase in his personal prestige by getting involved in a successful business concept.
If you require a professional with ample experience in the subject of franchises,
contact us today!

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