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SOC
Catalonia Occupation Service

Franchises

Franchises

Franchises are an option to be self-employed. The franchise sector covers 10% of the Catalan retail trade and offers job to 50.000 persons.

In the franchise there is collaboration between companies that distrbute a product, a service and/or technology.

The franchisor is the person who starts the company. The franchisor is independent at a legal and economic level and manages a franchise network.

The franchised persons acquire or buy the idea of a business.

Kind of franchises

  • Production franchise: the franchisor makes the products, distributed in the franchised establishments, and is the owner of the franchise. For example: "Mango" and "Canada House"
  • Service franchise: consists of the exploitation of an specific service. The franchisor has the formula and he/she give it to the franchised. Exemple: advisings, teaching, hotel industry, etc.
  • Commercial franchise: the franchisor gives to his /her franchised establishments the necessary tools for the product sale
  • Industrial franchise: the franchisor gives to the franchiser the manufacture right, the technology, the marketing of the products, the brand, the administrative procedures, the management and the sales.
  • Distribution franchise: the aim to distribute products, both made by the franchisor and taking part as a purchasing centre. For example: "Dia" and "Repsol".
  • Corner franchise: the activity is developed in a differentiated place, in a bigger surface.

Aspects to take into account

  • The franchise that we acquire is profitable (it has been confirmed yet ).
  • The best guarantee of the franchisor is the brand prestige that gives a nationwide/worldwide acceptance
  • The franchisor gives always technical support, advising and continuous training courses.
  • The franchisor covers marketing and advertising actions.
  • High economic cost at first
  • The franchised persons don’t decide the company management. They always depend on franchisor decisions
  • According to the franchise contract, the franchised persons will have regular additional costs regarding to business exploitation.
  • The franchisor has the purchase and cotract cancellation rights.
  • Even if you are part of a franchise, you will never be the owner of the brand.

Steps to follow to acquire a franchise

We must know the available money, the abilities and the aim before investing in a franchise. The steps to follow will be:

  1. Define the aims: investment, use of premises, self-occupation way, etc.
  2. Specify the activity sector
  3. Choose the logo, image
  4. Ask for expert advising (we recommend http://www.portalfranquicias.com/)

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