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The first step in the world of franchises can be taken in the most accessible version, in the so-called microfranchises
Although many of these franchises are kiosks or operations without a physical point (home-based), the term micro refers to the maximum amount of investments in the franchise.
The ABF currently sets this amount at 105 thousand reais, which should be readjusted to 135,000.
Only the renovation of a commercial outlet can exceed this limit.
Therefore, it turns out to be more natural to explore highly efficient formats.
But the differences stop there, a microfranchise must have all the support described in the Franchise Offering Circular.
Start with this format and gain experience in this world in the easiest way.
You can then move on to a standard franchise.
The amounts start at 105,000 reais and can reach millions, but the returns are also more robust.
From microfranchise to franchise, the process changes little, but from this point on you will have some growth options.
Multi-franchised
If you follow the previous steps and first open a microfranchise and then a standard franchise, you will already be a multi-franchisee with two units.
They may be from the same network, group, or completely different from each other.
When managed by the same person, they share administrative resources such as financial departments, human resources, and operations.
If managed by someone with experience in franchising and with access to shared resources, these units will be more efficient.
Over time, other units may be added to the multi-franchised group.
There are larger multi-franchised groups than most franchisors, such as the group Gentil Negócios.
Master franchisee
The link between the franchisee and the franchise.
This profile plays an intermediate role, assuming typical franchise functions in its region of operation, as well as receiving for this.
It is common for master franchisees to expand units and keep a portion of the franchise fee.
This role is used when franchises wish to enter regions far from their operating market, which may require investments and a presence that the franchise does not yet have.
For example, in regional or international expansion.
Franchise Consultant
Someone with a lot of experience with the format.
They can be franchisees, former franchisees, multi-franchisees, former employees of networks or multi-franchised groups, and the like.
Those who have experienced the challenges of being a franchisee and have been able to overcome them have a lot to help those who are starting out.
In franchises, someone is always starting, that's the thing.
Consultants can help manage the units, train the teams, the relationship with the franchise, the opening of new units, and even the formatting of new businesses as franchises.
Franchisor
After a lot of experimenting in the franchise market, you have seen that there are under-explored market opportunities.
To capture this opportunity, you design a new franchise, create a brand, develop products and design service journeys according to your franchise standard.
You will have to invest heavily, in own stores that validate your concept, consultancies that shape this business, lawyers who will structure your Offer Circular, and in expansion teams to attract franchisees.
In the end, you will have the satisfaction of seeing your idea materialized in a franchise network, creating value for other people who trusted you, taking your first steps in entrepreneurship and building a successful brand with you.
If all goes well, your brand will be associated with ABF and will receive the Seal of Excellence.
References
Courses
Strategic Franchise Management
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Other chapters:
- Presentation
- From entrepreneur to entrepreneur
- Reason for being of franchises
- Law and Order
- Where to start and how far you can go
- Territories in franchises
- Benefits of Geomarketing in the design of territories
- Critical Analysis of Expanding a Network
- Each one in its own square
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