Control of financial levers

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The franchise is a powerful leverage for the franchisor that develops a network of franchise raises capital and benefits from the investment. "It is a call to private savings", rather like the public savings, which is under the control of the AMF (Autorité des marchés financiers), and is also subject to rules of disclosure and transparency. But still, Doubin with the law, the franchise is also subject to a statutory pre-contractual information.
If it takes 10 years to open 10 franchises, the fundamentals of the franchise are inconceivable.

The franchise is based on the exponential growth. These are the levers financial, marketing and human resources that give it its specificity. While creating a franchise network, we must define these parameters to the financial assistance of several simulations, which specify gradually specific charges listed franchisor and which will be borne by the franchisee.

The calculation of fees, royalties, margins, can not function smoothly (like a Swiss watch) franchisor side, with regard to this exponential growth. We understand that the calculation of these levers is much more sophisticated than build a conventional operating a store or a business. (The rules of network development has nothing to do with the rules of entrepreneurship)

Cf Franchise budget section where the method is detailed.

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