1. Key aspects of a franchise
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: relinquishing the use of the brand, the supplying of necessary materials/resources for engaging in the endeavor, regulating 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 into practice the training received from the franchisor, making sure to closely follow any and all guidelines regarding the utilization of the brands and hallmarks of the chain. It is also important that they respect confidentiality as far as the operating of the business is concerned, not engage in unfair competition, and regularly make the payments (of canons and royalties) established in the franchise contract.
2. Do we have the right profile to be a franchisee?
Not everyone has the right profile to be a franchisee. That is why, once we know how a franchise works, it would be convenient to carry out a self-analysis, that allows us to know not only our readiness for entrepreneurship, but also whether we have the right character to be a franchisee of a brand.
Next, we should analyse the sector or sectors we are interested in, making sure, for example, that it is an activity that is in good demand and growing and that it is not a passing fad. It will also be important to detect whether the development of the activity requires certain technical skills and, if so, whether we have them.
3. Choice of franchise
After choosing the sector, we must contact the franchise we’ve determined has the most potential. This is 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 commercial information and will ask us for the information it deems necessary to analyse our application.
It will be at the subsequent meeting with the franchise managers that we will be able to really get to know the proposal in depth.
All information received should be contrasted with other sources of information available to us; from franchise magazines, to sector guides, trade fairs, Internet and, above all, with those who can best advise and inform us: the franchisees who already belong to the franchise chain.