Franchising is a popular business model that enables entrepreneurs to launch their own business while benefiting from the support and reputation of an established brand.
But what exactly is a franchise, and how does it work?
Let’s explore this concept in detail.
Franchise definition
A franchise is a commercial and legal agreement between two parties: the franchisor and the franchisee.
The franchisor is a company that owns a brand, know-how and a proven business model.
The franchisee, on the other hand, is an independent entrepreneur who wishes to exploit this brand and business model in exchange for fees and royalties.
The components of a franchise
For an agreement to be considered a franchise, it must include three essential elements:
- The brand: The franchisor grants the franchisee the right to use its trademark, sign and visual identity.
This enables the franchisee to benefit from the brand’s reputation. - Know-how: The franchisor passes on to the franchisee a body of practical, proven knowledge, often documented in an operating manual.
This know-how is essential to reproducing the franchisor’s success. - Assistance: The franchisor provides ongoing support to the franchisee, including initial training, technical and sales assistance, and management advice.
The advantages of franchising
Opting for a franchise offers several advantages for entrepreneurs:
- Reduced risk: By joining a franchise network, entrepreneurs benefit from a proven business model, which reduces the risks associated with setting up a new business.
- Ongoing support: Franchisees receive ongoing support from the franchisor, including training, marketing and technical assistance, which makes running the business easier.
- Brand awareness: Using a recognized brand makes it easier to attract customers and stand out from the competition.
Franchisee obligations
In return for the advantages offered by the franchise, the franchisee must respect certain obligations:
- Initial fees and royalties: The franchisee must pay initial fees to join the franchise network, as well as periodic royalties based on sales.
- Compliance with standards: The franchisee must follow the guidelines and standards set by the franchisor to ensure the consistency and quality of the products or services offered.
- Contractual commitment: The franchisee signs a franchise agreement that defines the rights and obligations of both parties for a fixed term.
Franchise example: Surfaces PolyPlay
Take Surfaces PolyPlay, a company specializing in modern coatings and concrete resurfacing. Surfaces PolyPlay offers a wide range of solutions for various applications, such as pool surrounds, balcony coatings, terrace coatings, basement floor coatings, garage floor coatings and surface waterproofing.
As a Surfaces PolyPlay franchisee, you benefit from exclusive rights to Quartz Carpet.
What’s more, SOPREMA’s acrylic, epoxy and liquid membranes enable you to meet all your customers’ requirements.
Surfaces PolyPlay provides ongoing support, including initial training and technical assistance, to help you succeed in your business.
Conclusion
Franchising is an attractive option for entrepreneurs wishing to launch their own business while benefiting from the support of an established brand.
By understanding the constituent elements of a franchise, the benefits and obligations, entrepreneurs can make an informed decision and maximize their chances of success.
If you’re considering becoming a franchisee, take the time to fully understand how franchising works and choose a franchisor that matches your values and business goals. Surfaces PolyPlay could be the ideal partner to accompany you on this entrepreneurial adventure.
