The opportunity of franchising ?

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It is a development choice, always based on centres or pilot stores, which works. The development is made in the form of a concession, branch or other particular forms. Franchising is the most efficient development technique nowadays (There are franchising exhibitions in France and worldwide).

For a small and medium business that has a good product or service, a good trade sign, and / or trademark and an advanced concept, franchising is a development technique that allows with limited resources, to conquer a market quickly. On the other hand, the franchisee has the security to become member of an efficient chain: he’s been sold a success. The franchise is a kind of brand image marketing.

The will to develop in franchise generally results from different motivations that are primarily: a financial strategy and a marketing strategy.
Financial Strategy
It is this aspect that immediately appears. By financing the points of sale or services by franchisees, independent traders (and hence very involved in their operation), the franchisor establishes its network by limiting its capital investment. He repeats its formula of success without investing in property.

Moreover, financial flows coming from franchisees (in the form of entrance fees, royalties, contribution to common services, rear margins) allow the franchisor to accelerate its growth and expand its own investments. The financial resources paid by franchisees can also increase the reputation of the trademark, the quality of services rendered. A brand has access to major media and thus obtain an image that each franchisee benefits from (synergy effect of the network, for example “Alain Afflelou”).
Marketing Strategy
Franchising is essentially a marketing strategy. The positive effects that the franchisor can benefit from are numerous:

- The conquest of new retail outlets (regulating its supplies, creating new resources for the advertisement ...) allows the franchisor, through the development of the network to limit its own financial capacity and therefore quickly sweep the board.

- The enhancement of the brand image (by the combination of a rapid market coverage, the occupation of good locations, the advertisement effort) provides then the trade mark / sign an increased fame by speeding up its reputation and strengthening its attractiveness vis-à-vis consumers.

– A better adaptation to the evolution of the local and national market - knowledge of the market, essential to the knowledge of success of the franchisor, ensures the adequacy of the producer (franchisor to production) and / or distributor (franchisor distributor), or service provider with respect to its market. The information gathered (know-how feedback) comes from the franchisees, independent traders, well locally integrated and able to express the trends, with perceptiveness and realism.

- Better control of distribution, more difficult to make, but necessary for medium and long-term durability of the network.

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