What are Franchises
Opting for franchises can mean lower risks, the first attitude is to look for information about how a franchise works, what happens when the entrepreneur wants to give up on the venture, what the franchisee's obligations are and what the franchisor's structure is. It is important to check your profile. It is suitable to act as a franchisee without losing motivation, as freedom is less, as there are procedures to be followed.
If your profile is consistent with the franchising business, you will need to verify your affinity with the segment in which you will operate. select the business in terms of investments, suitability to the region or even the suitability of the product to your way of working.
It is necessary to be skilled when dealing with people and be able to follow rules, the initial investment is one of the determining factors for choosing a type of franchise. The value disclosed by franchisors usually includes what is necessary to implement the business. a reserve to be maintained in the following months, until the business starts to be sustainable. The financial return from third parties requires caution due to the level of indebtedness and the business' ability to return.
Select some franchise brands compatible with your wishes and know the formatting level, also check if the franchise has its own stores, seek information on financial projections, how it trains your franchisee and its employees and what marketing and management strategies are adopted.
Look for other franchisees of the brand, ask questions, check the degree of satisfaction with the business and with the franchisor, the financial situation, the return period, market acceptance and reflect, if relevant, seek professional help from a consultant specialized in area.
IN THE PAST TWO DECADES, THE BRAZILIAN FRANCHISING SEGMENT HAS ADVANCED SIGNIFICANTLY AND THE OPPORTUNITIES IN THE SEGMENT HAVE EXPANDED GEOMETRICICALLY.
1-FRANCHISING: It is a term of English origin, translated as franchising, the act of granting a business franchise, characterized by a legally regulated commercial relationship.
2-FRANCHISOR: is the holder of the right to grant franchises, with assignment of the use of the brand, logo, operating techniques, management and marketing and franchise objects for third-party operation in accordance with the franchising format.
3-FRANCHISEE: is the person or group of natural or legal persons who, upon direct or indirect payments, has the right to explore the sharing of the business.
4-MASTER FRANCHISE: It occurs when the franchisor authorizes the franchisee to transfer the brand or the work method to expand the network, it happens with foreign franchises and in the case of national franchises, the national franchisor adopts regional groupings.
5-FRANCHISE OFFER CIRCLE: It is the document that contains all the information about the franchisor company, its owners, the franchise concept and the franchisee network, it must obey the dictates of the FRANCHISING LAW.
6-ROYALTIES: It is the fee regularly paid by the franchisee to the franchisor, normally based on a percentage of the revenue or embedded in the purchase of products, which the franchisor must do as provided for in the legally established contract.
7-FRANCHISE FEE is the fee paid for the use of the brand.
8-ADVERTISING RATE: É the fee normally divided between franchisees of a given brand and collected by the franchisor