Principle of franchising
Franchising is a mode of collaboration or an agreement (commercial and legal) of cooperation between two stakeholders: the franchisor and the franchisee.
The franchisor has a know-how and an original concept that he will make available to the franchisee, independent contractor. The franchisee operates the franchisor’s project, subject to a financial contribution (entrance fee and royalties).
Indeed, the franchisee benefits, from its start, a set of elements that he will not have to create (list of products, advertising, development, suppliers, sales techniques, etc.). The franchisor is committed to providing “secret, substantial and identified” know-how and ongoing assistance to its franchisees.
Why choose the franchise?
This is one of the most used forms for the deployment of point-of-sale networks. In the US, 40 to 50% of retail turnover is represented by the franchise. In France, it accounts for about 12%. For the franchisor: the franchise is a real opportunity for development and presents a path of expansion for companies.
- For the franchisee: he benefits from all the know-how and experience of the franchisor and starts a turnkey business.