Barbadillo y Asociados is the most experienced consultancy in Spain in the development and expansion of franchise projects. The consultancy is a founding member and unique Spanish member of the International Franchise Consultants Network (IFCN), with partners in the major European economies. It also publishes the Franchise Guide Spain, the newspaper En Franquicia and portal www.quefranquicia.com
If we are thinking of becoming part of a franchise, we must first be aware of what this associated business formula is and how it works.
To this end, we must find out what the essential elements are that comprise a franchise relationship, what rights we will have as a franchisee of a brand and what responsibilities the franchisor will have towards us. The former include: ceding the use of the brand, supplying the necessary material for engaging in the activity, controlling the network to attain maximum profitability thereof and introducing any necessary changes to enable the system as a whole to improve and continue being competitive.
Meanwhile the franchisee must put the training received from the franchisor into practice, closely follow the latter’s indications regarding utilisation of the brands and hallmarks of the chain, respect confidentiality as far as running of the business is concerned, not engage in unfair competition and regularly make the payments (of canons and royalties) undertaken in the franchise contract.
Good choice of sector, a fundamental aspect of franchising
We should point out here that not everybody has the appropriate profile to become the franchisee of a brand. Which is why, after finding out how a franchise work, we must carry out a self-analysis of ourselves which will enable us to become aware not only of our ability to become business people, but also of whether we have the right character to become the franchisee of a brand.
We must then analyse the sector we wish to start up in, making sure, for example, that we like the activity, that it is a segment with a growing demand and not a passing fad. Another important factor is to ascertain whether the development of the activity calls for certain technical knowledge, and if so, determine whether we have it.
After choosing the sector, we must contact the franchise we like the best, the one we find the most convincing and with an initial investment we can undertake with a certain solvency. In response, the head office will send us a commercial dossier accompanied by a pre-selection form on which we must specify our personal and professional details and economic capability. The franchise head office will analyse our candidature and if we fulfil the requisites they demand, will summon us to a meeting where we will be given more detailed information and where we will be able to find out more on the verification of the model, economic and legal aspects, running of the business or the structure of the franchisor. We should contrast all of this with the sources of information at our disposal, from franchise magazines to sectoral guides, trade fairs, the Internet and above all, with the people who can best advise and inform us: the franchisees who already belong to the franchise chain.
We use own and third party cookies to enhance the browsing experience and provide content and advertising interest. By continuing navigation we understand that our cookies policy is been accepted.I agreeRead more