Reasons why a franchise works
Investing through the franchise model has become a very common practice in recent years. Entrepreneurs consider it a safe self-employment formula that allows reduce risks and gain vast knowledge, among other advantages.
In fact, when an entrepreneur takes on the challenge of starting his new company, he is aware of all the difficulties that this entails. Therefore, it is vital to analyze which model is best suited to each person's needs. Next, we explain all the advantages of betting on the franchisor model and the reasons that have made it an unmistakable synonym for success.
1. It is a model of success proven throughout history
Who has never seen Colonel Sanders' face printed on battered chicken cubes? And who has never eaten in the restaurant chain that once Ray Kroc bought from the McDonald brothers? Well, these huge brands of 'fast food' have their origin in the first half of the XNUMXth century. From then on, they began to open stores in different locations in the United States, providing the same service in all of them under the same brand.
Its longevity is a clear example of the success of the franchise model over the course of contemporary history. Today, we can recognize these locations anywhere in the world and they have become giant companies.
Generational change, key to success
One of the reasons for understanding the regularity of this model has been the efficient transmission between generations. These are profitable franchises that, in many cases, have the participation and commitment of the owner families. For this reason, not only are they able to maintain, but they are able to expand.
2. It is backed by the data
Placing the focus in the Spanish sphere, the report “The Franchise in figures 2017", made by world franchises, is already resounding in its first lines: "the franchise experienced absolute increases in all its variables" In addition, it is a clearly booming model in our country: while in 2016 growth was 1,28%, in 2017 it was 5,02%. A fact that, in addition, leaves franchises in Spain in a very good place, since 86% of the 996 consolidated companies are national.
3. It has the backing of millions of entrepreneurs
Obviously, if it is a model that has been repeated and consolidated throughout history, it means that millions of entrepreneurs have confirmed its success. In this way, you can choose to start an economic franchise from scratch or, instead, invest in companies already consolidated and with a structure already defined. A basic element to distinguish one franchise from the others is a recognizable corporate image. Surely before, with the examples of KFC and McDonald's, your respective logos have come to mind, right?
4. It is a highly regulated sector
The franchise sector is highly regulated in Spain to ensure optimal operation. Following the model of Anglo-Saxon law, the legislation for Spanish franchises gives much importance al transfer of 'know-how', as well as the constant participation of the franchisor in the company's promotional activities.
5. Allows to become part of a consolidated structure
Invest in one profitable franchise allows integration into a solid structure. Instead of starting a project from scratch, you can choose to enter a company with a already built image, established operational mechanisms, an effective provider network... In addition, it involves an expense similar to starting a company from scratch, or even less if it is a cheap franchise. Of course, it has a great incentive: once the entrance fee is paid, you receive a great marketing support.
Insisting on the economic sphere, the use of the economy of scale, as well as the bank facilities when betting on consolidated franchises.
6. It does not matter what type of entrepreneur you are: the franchise adapts to you
And is that one of the great points in favor of franchises is the versatility of its entrepreneurs. The experience, the age, whether it is an individual or collective investment, is indifferent ... The franchisor model is very elastic and adaptable to the person who decides to invest in it. The important thing is to feel truly at ease with the project being undertaken.
We know that undertaking is quite an adventure and involves doubts, uncertainties and insecurities. But what we also know is that Every effort has its rewards, so you follow the investment model you follow, nothing can go wrong if you contribute your work and knowledge.