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
Franchise is a highly advantageous system for expanding businesses whose success has already been proven. It results in rapid expansion and a lower level of investment for the franchisor, without this leading to loss of control of operations and the evolution of the franchise network.
One of the most important advantages this model brings to the business person is the utilisation of economies of scale. The centralisation of the demand for products enables the franchisor to negotiate in more favourable conditions.
Furthermore, in comparison with expansion through one’s own resources, a franchise requires a lower level of structure and investment. The franchisee, as the owner of his or her own business, provides the necessary initial capital, takes care of looking for the premises and the management after the launch of the business. This also simplifies the growth process and favours the pace of inaugurations.
Finally, we should point out that the franchisees are not employees of the network, but business people in their own right, and so generally speaking, a higher level of quality and productivity is required of them.
Safer entrepreneurship through franchise
Of the many advantages franchises offer for an entrepreneur or investor, the most outstanding is the decrease in risk of failure. There is no decrease in work on the part of the franchisee, in fact it may even increase as a consequence of the detailed activity reports some franchise head offices demand of their franchisees. However, the risk of failure decreases notably.
Like the franchisor, the franchisee will also benefit from economies of scale, resulting in a substantial improvement in the price of supplies and, in general, in the cost of any action performed as part of the franchising network, for example by accessing large communication and marketing campaigns.
Furthermore, when the franchise holder belongs to a prestigious brand with a long history on the market, the goodwill generated by the franchise will have direct, positive repercussions on the franchisee’s business.
Finally, franchisees – who are at all times the entrepreneurs and the managers of their businesses – will be able to focus on generating business for their own sales outlets, as it is the franchisor who takes care of all of the other aspects: management of supplies and dealing with suppliers, management computing system, etc.
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