How to open a franchise business: pros and cons, step by step instructions. Starting a franchise business: new instructions, tips, reviews Investments are our everything

Many people want to start their own business, but can not decide on this important step. The reason for such indecision is the lack of an idea or the fear of failure. Therefore, as a result, newcomers stop at the option of building a franchise business.

This article provides information on how to open a franchise, what are the advantages, disadvantages and other nuances in this business.

Franchise Features

When concluding a franchise agreement, the terms of cooperation between the two parties are prescribed. The agreement guarantees the franchisee (owner) the right to carry out commercial activities on behalf of the franchisor, using ready-made schemes for the provision of services or the sale of goods under the name of a well-known brand.

The franchisor is usually famous company or a corporation that has managed to establish itself in the market on the positive side. In addition, it must have a positive image and a good reputation among consumers. Successful European, American and Chinese organizations are actively promoting the franchise, thereby expanding the geographical boundaries and opening new offices to sell their own goods and services. How to open a franchise?

The franchise buyer is granted exclusive rights to carry out business activities under the brand name of the trademark. The franchisor, for its part, undertakes to ensure the following:

1. A working and efficient business project.
2. The possibility of using the results of intellectual property.
3. Corporate identity and maintenance plan.
4. Training of employees and improvement of their qualification.
5. Constant interaction, support and advice.
6. Marketing promotion.

All of these tools allow you to guarantee a stable profit with a total payback period of a year and a half.

material side

For example, a person decided to open a franchise travel agency. To do this, he signed an agreement and received a ready-made business, it remains only to take it and start using it. But the owner of the company shares the trademark not just like that, but on certain conditions. Each franchisor is different, the most commonly used schemes are:

1. Payment of a lump sum. This is the initial payment that must be paid in order to enter into an agreement. This is a kind of membership fee or rent for the brand. The amounts of such contributions are so large that a novice businessman simply cannot afford them.
2. Royalty. Paid monthly to the owner. The amount depends on the percentage of the franchisee's income specified in the contract. In other words, the entrepreneur must pay a kind of profit tax to the trademark owner on a monthly basis.

But not everyone includes these concepts. Conditions are case specific. Some organizations take only a lump-sum fee, while others, on the contrary, do not have it, but the franchisee is required to pay a monthly royalty. There are cases when the owner of the brand requires payment of the first installment and commissions for each month. Therefore, before deciding to purchase a franchise, you should realistically assess your own capabilities.

Is it possible to open a franchise store without investments? Yes, there is such a way. Its principle is that the entrepreneur who claims this right must convince the brand owner of his ability to take the business to the next level. This is very difficult task. In rare situations, the franchisor is willing to become an entrepreneur's investor.

Franchise Benefits

A franchise, like any other commercial direction, has its pros and cons, which an entrepreneur should be aware of in advance. Starting a franchise from scratch is a daunting task, which involves managing the relationship between the brand owner and the businessman.

The benefits of starting your own franchise business include:

1. An entrepreneur buys a ready-made business that has managed to establish itself in the market. It includes assistance in organizing, consulting, supply of raw materials and other components. The acquired trademark is already popular in the market, so the businessman does not have to spend money on its promotion.
2. For this line of business, it is considered the norm to consult with the franchise owner, support in establishing relationships with suppliers, service companies, advertisers and so on. The franchisee does not need to reinvent the wheel, it has already been done for him.
3. A loan to open a travel agency franchise, for example, is much easier to obtain. When applying for a loan, the owner of the brand can act as a guarantor of the security of the transaction - this is a big plus. Ordinary entrepreneurs do not have such a privilege.
4. Low requirements. Franchise business does not require specific knowledge. It is enough for the buyer of a trademark to have some knowledge in the chosen area and elementary management. But you won’t be able to do without spending at all, funds will be required to improve your own business.
5. The ability to predict the financial situation. When starting your own business, it is very difficult to accurately calculate the profit. But in the event that you decide to open a coffee shop franchise, for example, everything will be much easier. The entrepreneur is provided with a large amount of data, the use of which will certainly lead him to an accurate forecast of the situation of prospects.
6. No need for market research. All necessary information is collected and provided by the trademark owner. This is a huge time saver and a guarantee of getting results in the first month of work.

Franchise Disadvantages

In addition to the obvious advantages, this form of business has significant disadvantages:

1. Starting a franchise store requires a lot of investment. Buying a ready-made business and launching it requires significant cash outlays. As a rule, novice businessmen do not have a large amount of money or they are afraid to spend it, respectively, few people consider this option.
2. Almost complete dependence on the franchisor. This is especially true if the brand owner incurs losses. This will inevitably affect the entrepreneur as well.
3. Obligations to the franchisor. Personal earnings will have to be shared with the owner of the brand. But the percentage of his share is very small, so the entrepreneur will remain in the black.
4. Foggy prospects. The liquidation of the franchise network leads to the mandatory closure of the business. The franchisee has the right to operate only as long as the agreement is in effect.

How to open a franchise, where to start?

First of all, it is necessary to determine the direction of activity. Experts advise choosing what is of interest and what a person understands. Especially if it's the first time. If, for example, a future businessman knows nothing about computer technology, then you should not open an office equipment store. If you are interested in fashion, you can safely open an online store of stylish clothes and accessories as a franchise. If you want to use the knowledge gained over the years of study at an economic university, study the offers of credit institutions.

In addition to personal hobbies, you need to remember about the financial side. Buying a franchise business is not difficult, but they all differ in initial cost and subsequent investments. The most expensive are the offers of restaurants, hotels, fitness centers and hypermarkets. Retail stores are much cheaper.

Purchase method

There are several ways to buy a franchise:

1. Investment of own funds.
2. Bank loan.
3. Investment by the brand owner.

The most obvious option is to buy the case with your own funds. But not everyone has this opportunity. Therefore, most entrepreneurs start building their own business with money borrowed from the bank.

There is a third option that allows you to open a franchise store without investment. It involves funding from the company selling the franchise. This can only be done if the franchisee is already working in the right organization, and she practices a similar form of relationship with employees. An enterprising employee can be appointed to the position of branch manager, and after a while become its owner.

If this option is unacceptable, then you can look for an investor on the side. The mere fact of acquiring a franchise significantly increases the chances of success - businessmen are more willing to invest in established brands than in start-ups. This is explained by the fact that no one can guarantee the success of the latter.

Choosing a profitable business

There are special organizations that provide a list open franchises in Russia, but you can contact the owner of the selected trademark yourself. The choice of such companies is great, but are they all profitable? Here are the main signs that the chosen brand will be profitable:

1. Wide network of operating points. When a company has many open points and all of them are successful, it can be concluded that the brand has a future.
2. Lifespan. It is better to choose an organization that has been operating in the market for some time and managed to recoup the investment. Otherwise, there is a great risk of running into those who are not doing well, and they sell franchises to cover their own expenses.
3. Entrepreneur support. It is necessary to find out in detail what kind of assistance the brand owner is ready to provide to the buyer. All support measures should be recorded on paper, do not take a word.
4. Business plan. Serious institutions provide a ready-made business plan and materials for evaluating the effectiveness of the selected project. One-day companies only assure that it is profitable to open this franchise, without indicating any specific figures and without giving guarantees.

It should be understood that even the most successful franchise cannot guarantee one hundred percent success and high income - a businessman must put in a lot of effort and effort himself. It is necessary to carefully study the market with which it is supposed to work - is there an interest in the audience for the selected services or goods, are there analogues, what are the prices and what do competitors offer.

Next steps

Don't know how to open a franchise? After all the benefits and risks have been calculated, and the choice of a franchise has been made, several more important steps will need to be overcome:

1. Commercial project update. As noted above, brand owners, focused on long-term cooperation and results, provide a ready-made business plan. It includes financial planning and an estimate of the necessary investments. This is a standard project that requires some modifications as conditions vary depending on the city and point location. The requirements for opening in Samara will certainly be different.
2. Rental and renovation of premises. Before choosing and renovating a space, as well as hiring employees, it is worth learning about the requirements from the brand owner. Many companies set strict limits on this - the area and location of the premises, design, team composition, and so on. Some franchisors help resolve all related issues and provide a ready-made design project. The most thorough organizations independently train employees, send merchandisers and organize the grand opening of the office.
3. Planned interaction with the seller. After the purchase and opening of the store, the parties are not limited to regular payments, the brand owner takes an active part in the activities of the new outlet. The franchisor provides marketing support, conducts training and retraining of personnel, develops promotions to stimulate sales ( Special offers and sales). Retail stores receive recommendations from buyers for the purchase of specific products. The parties regularly interact on the issue of procurement and delivery of goods.

The payback of a franchise depends on many things, but on average, these terms are much less than when starting your own business, built from scratch. And the benefit is more stable, since the entrepreneur is insured against many difficulties that will arise when doing business on his own.

Franchise cost

The cost of the selected project directly depends on the field of activity and the popularity of the selected brand. Of the huge list of options available, the most popular and cost-effective are fast food outlets and clothing stores, and you can also open a pharmacy franchise.

The amount of a lump-sum payment for a medium-sized business starts from 150 thousand rubles. A popular brand like Adidas will cost $20,000, while a StarBucks outlet will cost $150,000. Each trademark owner independently determines the final cost of the franchise, taking into account the expected profit of the franchisee and an assessment of the economic efficiency for their own business.

Should you start a franchise business?

Is it profitable to open a franchise? Yes, if you do it right. Before making a decision, it is necessary to analyze the socio-demographic characteristics of the area and the level of competition. An objective assessment and detailed consideration of the market situation will prompt a novice businessman which direction to choose.

Franchising, as a form of entrepreneurial activity, is the most promising and effective way running a small business. Both parties involved in the transaction receive profitable terms for your own development. The seller, who is the owner of the brand, gets the opportunity to expand the boundaries of sales and attract new consumers of his product. The franchise buyer receives a proven and working business scheme, as well as the active support of the franchisor and assistance in resolving important issues.

Even a 15-year-old schoolboy knows that business is a thing that requires money. It does not matter what it is about - a chain of restaurant complexes or a stationary car wash. If in the first case we need a lot of money to buy / build a room, equip it, hire staff, purchase goods, then in the second, at least we need a brush, washcloth, water and detergents. Agree, in both cases, the so-called start-up capital will be required.

Forget about the word "free" if you decide to dive head first into the franchise business. This does not happen from the word "generally". Even if you are already slipped a contract and sweetly promised that you can buy a franchise without investment - the first thing to do in such a situation is to dive headlong. No, not in business, but in a commercial concession agreement. Yes, yes, in the very piece of paper that the manager girl so persistently offers you.

Let's take a look at what the "no-investment franchise" beast is, and under what conditions you can be offered a free business. Go.

"Free franchise": for free and sweet vinegar?

Let's imagine some abstract Nicholas. For example, a guy spent his entire adult life scrolling in the garage near his beloved car mechanic relative, raving about engines and memorizing the internal structure of any car. And so, Nikolai grew up, but the desire to deal with machines did not disappear, but on the contrary, it grew.

Seeing that the most famous auto repair brand (SRT) sells franchises in the regions, Nikolai decided not to spend the next 20 years collecting the necessary amount to open a car repair shop, but simply turned on his head. He collected various data for a month, studied the market, and finally compiled good business plan to open his workshop. Since Nikolai was also smart, he did not beat investors with his plan, but turned directly to the franchisor. Nikolai understood that a service station operating under a well-known brand practically guaranteed him profit and a flow of customers.

If you need help in selecting a profitable franchise or auditing the chosen one, please contact me, I have extensive experience in franchising, I will be happy to help!

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Having considered the proposal, the franchisor, who was interested in developing his brand, decided to meet Nikolai halfway. Thus, the guy became the owner of a branded service station, practically without investing a penny in his business. BUT! In the next 2 years, Nikolay will work off the funds invested by the franchisor.

This is the most the best option"free cheese". It is important to understand that it will not work without investments at all. In any case, someone will invest the funds - and if it is not you, then your franchisor or a third party, to whom you will then remain indebted.

The above story has a fabulous/mythological character. AT real life such events are extremely rare. Franchisors usually prefer the "money in the morning, chairs in the evening" model. Few people want to take the risk by investing in a "dark horse". But still, such a development of events is possible.

Common options for "free" franchises

Typically, brand owners who are interested in developing their business offer the following franchise options without investment (you can find a lot of such offers on the Internet):

1. 0 lump sum and a certain percentage of royalties;
2. the presence of royalties and a lump-sum contribution, which is provided by installments;
3. the lump-sum contribution is symbolic or absent, and royalties are not paid in the first 2-4 months. Thus, the franchisor gives the franchisee time to get the business back on its feet.

Why is the franchise never going to be 100% free?

You can right now cross out all of the above with the franchises found on the Internet “without lump sums and royalties”. Yes, there are those too! For example, the Button Blue franchise (sale of children's clothing) or Dobrota.ru (sale of medical and cosmetic products). Franchisors, surprisingly, do not require any fees at all.

BUT! They openly report that the franchisee will have to carry out a series of activities to prepare the business:

• search for premises;
• conclusion of a lease agreement;
• repair and finishing works in the premises;
• equipment;
• purchase of goods;
• registration of necessary licenses;
• preparation of documents.

What do you think, is it possible to do all this without investments? That is why such franchisors, when selling their business models, set the amounts that will be required as start-up capital. Providing funds for all this is 100% the task of the franchisee.

5 types of franchise work without investment

If you don’t have money from the word “at all”, but you even see yourself as an entrepreneur in your dreams, this section will be for you. In fact, there are 5 options to open a franchise business without investment.

Investment is everything.

Have you suddenly realized that selling ice cream according to old French recipes is your childhood dream and life's work? Fine! In this case, look for an investor.

What will be required? Just a smart business plan. Your task is to convince a potential investor that, having invested in your franchise business, he will soon buy a private jet for himself.

Earn trust.

If you have a desire to work on a particular franchise, convince the franchisor to trust you. Get to know his business model more closely, delve into all the internal processes, show your sincere interest in his business. Experienced franchisors, as a rule, understand that for a poor entrepreneur who is ready to plow for business development 24 hours a day, the business will quickly begin to flourish and make a profit, while even a super profitable startup will wither away for an indifferent millionaire.

Become an implementer.

We are talking about franchises for sale. In fact, the franchisor gives you a product for a certain amount, and your task is to sell it. This is especially true in sales and services. That is, you get a ready-made store or other outlet filled with goods.

What do you need to know? Typically, goods in such business models are issued on an installment plan. For example, for six months. If you managed to implement everything in 6 months, the flag is in your hands. If not to the end - please, pay the franchisor for the remaining products you have. List of franchises without investments for implementation:

• TOM FARR;
• medicine;
• Fabretti.

By entering the names in search engines, you can easily find out what and under what conditions the above franchisors offer. This option is perfect for entrepreneurs who really know how to sell.

Dive into online business.

Despite public censure and discussion, the network business is really capable of generating a good income. Again, this option is only suitable for those who know how or are eager to sell. Contact any brand network company and submit your nomination. Rest assured, network businessmen will be happy to provide you with the necessary goods. Further, everything depends on you. This type can be attributed to reverse franchising, where the franchisor provides a full service business.

No lump-sum contributions.

Many franchise companies do not require lump-sum fees, in addition, they give deferrals for paying royalties. This option is ideal if the franchisor also gives the goods in installments. In this case, investments will be either minimal or not required at all.

Ready-made franchise business without investments: what does the Internet offer?

The main idea of ​​franchising is that the business processes of doing business with a specific product or service are transferred to the franchisee, as well as training, the ability to use the company's brand, etc. Many franchises only hide behind the phrase "no investment", but in fact, unforeseen expenses will fall on your shoulders that will slow down your income. Business options without initial investment:

1. eCosway. An international company from Malaysia that provides you with an online store. An offline point is provided to you for a fairly large turnover in the business - the company pays for the rental of premises, design, utilities, and purchases goods and equipment. Your task is to develop the business. And forget about investments.
2. NLinternational. An international company from Russia that provides an online store, product, marketing materials, training, business processes, delivery and service is also on the shoulders of the parent company. When the turnover in the business reaches a certain level, you can open your offline store, but before that you need to register as an individual entrepreneur.

What is most interesting is that finding such franchising offers now is not a problem. The 21st century opens up really good business opportunities even for those who have no money, but have a great desire to develop their business.

Take a franchise without investments: pitfalls

Unfortunately, every barrel of honey has its own fly in the ointment. The most common "nuances" of franchises without investments:

legal dead loop. Franchisors are often very clever when it comes to offering someone a franchise for free. Often, the contract contains too stringent conditions that are almost impossible to implement.

For example, you may be offered to sell children's clothing, while the franchisor provides the goods in installments. Under the terms of the contract, the goods are provided in the amount of 1,000,000 rubles, and you must sell in the first month for 500,000 rubles. Those who understand trading know that this is unrealistic.

Tip: before contacting "free cheese", contact the experts, talk to the owners of similar stores. It is possible that the franchisor puts unrealistic conditions in front of you, thereby dooming you to bankruptcy and endless fines.

self-confidence. Nothing destroys entrepreneurs like excessive pride and self-confidence. Even if you are 200% sure that your entire city has been dreaming of tasting oriental-inspired sweets all their lives, don’t agree to sign such a franchise until you get a full-fledged study of your market from an expert point of view.

Tip: contact marketers, statistical centers. Now, when you have statistical studies, analyzes, results of opinion polls in your hands, then make a decision. At the very least, you will be able to soberly assess the situation and understand your chances of success.

Current niches of profitable franchises

On the Internet, you can easily find all kinds of directories that can be sorted into lists of profitable, unprofitable franchises, without investments, with millions of investments, and so on. I would just like to describe here which directions are currently in use:

1. All for children. As you know, they don’t save on the “flowers of life”. Even in times of crisis, this remains one of the most profitable areas. This should include the sale of clothes, toys, the installation of playrooms in large shopping centers, children's cafes and much more.
2. Repair services. This is one of the most profitable niches. You can do the installation of underfloor heating, interior decoration, redecoration for offices, installation of stretch ceilings and so on. In any case, if you are well versed in this, you will not lose.
3. Online store franchise (both without attachments and with attachments). The advantage of such a business model is that it covers almost all Russian cities, not limited to your city or region. You can sell almost anything. But! Experts still recommend focusing on youth needs - vapes, branded clothing, hookahs, gadget products, and so on.
4. IT technologies. Development of websites, applications, software is a very interesting and promising area. If you are good at programming codes - congratulations, you have a great opportunity to get rich in the very near future!

Franchising is considered one of the most successful forms of entrepreneurship, in which commercial activity is based on the acquisition of rights to use a trademark and a ready-made business plan.

What does it take to open a franchise?

Opening a franchise requires some funding. To start your own business, you will need to have start-up capital that covers the current costs of concluding a contract and making priority contributions. You can use your own funds, government subsidies or bank loans.

Interesting fact: many banks are willing to help entrepreneurs open a franchise business and allocate the necessary cash. Lending to franchise systems has the lowest degree of risk and is more secure than other loans to small businesses.

To open a franchise business, first of all, you will need to choose the legal form of the enterprise and register with the Federal Tax Service.

The next step is to make a one-time lump-sum payment. This amount covers the cost of using the trademark or brand for a predetermined period.

The lump-sum fee consists of the current costs that the franchisor's side will incur when granting and registering a franchise for the second side.

The cost of the lump sum payment will depend on:

• the degree of support and the concept of the franchise system;
• fame and popularity of the brand;
• conducting marketing research and developing an existing business strategy;
• lease and arrangement of premises.

Additionally, the signed agreement will specify the amount and terms of regular periodic payment for the use of intellectual property. These payments have the designation "royalty" and can be paid according to two conceptual schemes:

• as a percentage of gross profit;
• as a fixed amount.

How much does it cost to open a franchise

The cost of acquiring such a project will directly depend on the popularity of the brand and its position in the market. Of the entire list of what can be opened under a franchise, the most popular and profitable are fast food establishments and chains of fashion stores.

The amount of the lump-sum fee for medium-sized franchises starts from 150,000 rubles. For comparison, Adidas franchise costs $20,000, while the popular coffee chain StarBucks costs $150,000. Each franchisor sets its own financial target, based on the franchisee's possible profit and the economic effect for the brand owner.

Is it worth opening a franchise?

Franchising, as a form of commercial activity, is the most cost-effective and efficient way to run a small business. Both parties to the contract receive favorable conditions for their development. The franchisor, as the owner of his own brand, acquires the opportunity to open new sales markets and attract new customers to his products.

The franchisee, meanwhile, receives at its disposal a ready-made operating scheme for starting a business, as well as active support from the franchisor and assistance in resolving strategically important issues.

To avoid mistakes when opening a franchise, we recommend watching the following video:

How to open a franchise: advantages and disadvantages + choice of registration form + 8 steps to opening a company in this way.

Franchising is one of the most profitable and promising ways to make money, because it allows you to use a ready-made brand.

Why is this considered an advantage?

The brand, which has existed for more than a year, has passed the test of time, is in demand among buyers, and all organizational issues and advertising moves that promote the product have already been adjusted.

It is thanks to this that aspiring entrepreneurs often wonder how to open a franchise store.


This article will help you find the answer to the question how to start a franchise business and what should be paid particular attention to.

But first, let's find out the weak and strengths such entrepreneurial activity.

How to open a franchise: the pros and cons of this type of activity

Benefits of a Franchise

This type of earnings has huge advantages that attract beginner businessmen:

Opening a franchise store receiving guaranteed assistance and support from the franchisor.

His advice is based not only on his own knowledge and skills, but also on the experience of other people who have already experienced the franchise business.

For start-up entrepreneurs, such assistance at the development stage is simply necessary.

To start a franchise business no need to come up with a new direction or create a strategy from scratch to bring the idea to life.

It is enough to have initial capital and some knowledge in this area of ​​business.

Another plus is that a businessman, before opening a franchise store, aware in advance of the fame and popularity of a particular brand On the market.

An entrepreneur has the opportunity to evaluate and analyze the popularity of a product, a niche in the market, without losing their own resources.

Thanks to this, you can significantly reduce the cost of your marketing strategy.

An important fact is getting a large loan.

In this case, the franchise owner acts as a guarantor of the person who takes the loan.

AT usual case it is almost impossible to receive a large amount from a bank without a guarantor or collateral.

Before starting a business, all entrepreneurs calculate business plan, in which often only approximately calculated:

• the amount of investment to open a business;
• approximate profit;
• business profitability;
• payback periods.

But thanks to the franchisor, a novice entrepreneur receives reliable and proven information on .

This minimizes the risk that the business will develop in the wrong direction or there will be unforeseen expenses.

Disadvantages of the idea of ​​\u200b\u200bhow to open a franchise business

Having considered the advantages, we turn to the disadvantages that can lead to the destruction of the case even at the start, if you do not know about their existence:

• growing vegetables and fruits;
• cultivation and subsequent sale of flowers for specialized stores;
• a bakery where products are not only manufactured, but also sold on the territory of the enterprise with the help of an additionally installed store or cafe.

A good example of the latter can serve as a trading network "Pokrovsky bakeries".

Why is this particular franchise business option successful? Few people do not know that bread is an essential commodity that is bought almost every day.

If there is a demand for production, then, accordingly, there will be a profit. So, the direction is chosen correctly!

d) Children's products.

Mixes, toys, pacifiers, and clothes, baby hygiene products - all this will be sure to be purchased by mothers for their crumbs.

But before you open a franchise in this direction, evaluate the popularity of this niche in your own city, so as not to start an initially unprofitable business.

e) Clothes, shoes.

These products, manufactured under the wing of recognizable brands, can also become a franchise business.

However, before the start, it is also necessary to assess the financial capabilities of the city's population. No one will buy VIP shoes or clothes if the total monthly income of the family is 60,000 rubles.

You can open a franchise store and sell accessories, jewelry, auto parts.

The prospects for each of the directions are easily determined in your own city by analysis.

Step 2. We prepare documents

To start your business, you need to register a business.

The state provides for two forms of registration - these are IP and LLC. Let's look at the advantages and disadvantages of these types before opening a franchise:

Now consider the advantages and disadvantages, before opening a franchise store:

Advantages of LLC	Disadvantages of LLC
In court, unlike an individual entrepreneur, it will be necessary to bear responsibility only for the finances and property of the enterprise.	Requires the presence of a certain capital (at least 10,000 rubles for the authorized capital).
If the company did not work, then pay in Pension Fund do not need anything.	Strict accounting system - you will have to hire an employee or outsource the case.
The company can be called almost anything (except as prescribed by law).	Reporting is several times more than that of IP
Sold or divided at the request of the founder.	The system of penalties from the tax office and other government agencies is much stricter than for individual entrepreneurs.

The founder should take into account that some stores cannot be franchised as sole proprietorships. This list includes the sale of alcoholic beverages, the military industry, and security agencies.

Step 3. Decide on the room

The franchisor pays special attention to the choice of premises.

To open a franchise store, you must meet a number of established requirements:

• advantageous location, which contributes to the successful conduct of business;
• a large area of ​​\u200b\u200bthe store in which trade will be conducted;
• compliance of the interior decoration of the premises with the “spirit” of the business;
• availability of space to be used as a warehouse.

Of course, finding an area that meets all the requirements of the franchisor is not easy. But if you all coped with this, then you can apply to the franchisor and hope that he will allow you to open a store under your brand.

Step 4. How to open a franchise store: conditions

If a positive response was received, the entrepreneur is informed of a number of requirements that he must fulfill.

Often, well-known brands put forward two requirements for a new business under their patronage:

• payment of a monthly percentage of sales;
• down payment from the entrepreneur to the brand.

This method enables the franchise founder to weed out insolvent entrepreneurs. Also, by doing so, it can prevent unjustified costs that are associated with connecting a person to a business network.

Step 5. Preparing the store for opening

After obtaining a franchise, it is necessary to make repairs in the premises under the indicated requirements and purchase the necessary equipment.

The franchisor can help with these processes by finding contractors who will carry out repairs and pointing out where equipment can be purchased at a reduced price.

Step 6. Recruitment for the store

Basically, the copyright holder himself recruits staff and trains employees according to his own developed program, while all the costs of this process are covered.

Most a prime example This is the McDonald's chain. All its employees must act according to a single brand code. And franchisors are watching this very carefully.

Step 7. Delivery of goods

An additional advantage of opening a franchise store is that all delivery issues are assigned to the franchisor.

A novice entrepreneur will only need to pay for the delivered products according to set price companies.

We bring to your attention a video on how to choose the right franchise:

Step 8 Launching the Store

The franchisor is fully interested in the fact that his business develops and generates income. Therefore, he assumes the costs of marketing and advertising, and also contributes in every possible way to the development and further promotion of the business.

In the article you received a detailed answer to the question, how to open a franchise.

It should be noted that franchising requires more capital investment than starting your own business from scratch.

But also do not forget that the franchise minimizes the risks of financial failure and provides significant support, which is especially important for newcomers to the business world.

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