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To profit is to earn more than it costs you to offer a good or service
You can make a profit by working to sell something for a higher amount or at lower costs.
Positioning, branding, and marketing are ways of communicating value to increase the price to be charged.
Controls and scale are means of reducing costs.
A franchise can do both things well.
They attract talented professionals who are looking for companies where they can grow and in them they will do their best to receive recognition and opportunities.
The growth prospect is a key factor, so a store alone or a small chain will be less interesting for competent professionals.
In the same way that a small chain will have less scale in its purchases, being forced to negotiate with the end of the chain, where distributor margins come in.
The network of franchisees gives the franchise the necessary size to attract the best talent and to negotiate directly with suppliers without intermediaries.
Network marketing campaigns allow for a greater reach and the sales materials are superior.
Everyone wins and the franchise administrator is compensated for the services provided.
And that's not all! 🔪
In addition to these benefits, each franchise has a way of working that has been improved and will teach you its secrets.
A good franchise will also take care to validate the entrepreneur's profile, ensuring that you are in the type of business where you can contribute the most.
There are people who open butchers because they like to barbecue, when a hamburger or kebab business would be much more aligned.
Something like a vocational test for entrepreneurs.
The franchise also has more resources to validate whether the commercial outlet has the most important characteristics for success.
They will also participate in your daily life, appointing someone as a field consultant, who will visit your store to verify compliance with the standard and indicate growth paths.
The result of this is a 10X lower death rate in businesses that are franchises compared to those that are not.
Too good to be true?
Don't always be careful with the “mermaid song”.
Value the brands endorsed by the seal of Excellence in Franchising of the Brazilian Franchise Association.
This is the gold standard of safety, since to join it is necessary to adhere to a series of good practices, and the seal recognizes those who consistently deliver the most.
In addition to these safeguards, the Brazilian Franchise Association is running a campaign in defense of Integral Franchising.
This is yet another, among so many precautions taken by the association so that the franchise sector is not contaminated by the irresponsible practices of a few operators.
References
Training, technology and the dissemination of quality franchising
Manifesto for a complete franchise
Courses
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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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