Franchise Definition

It is the right to use a trademark. Franchising is a distribution contract and agreement (right of use) between two parties:

=> the franchisor, which has a mark/brand and a real transferable expertise,

=> the franchisee, independent trader who must possess entrepreneurial qualities.

The franchisee, in exchange for direct or indirect compensation, shall have the right to operate a franchise in order to sell certain types of products and/or specific services.

This system of marketing and various products or services is based on the close and continuous collaboration between the franchisor and the franchisee.

Operation of the franchise

The franchise has no special legal status. To function properly, a franchise must consist:

=> a name or a common brand for the purpose of use (brand, trade or service, social reason, logos, acronyms, symbols),

=> a presentation of local and/or means of transport to be covered in the franchise agreement.

The franchisor shall provide the franchisee:

=> experience and expertise,

=> commercial or technical assistance throughout the duration of the agreement.

Service, production or distribution

There are three types of franchise:

=> service franchise contracts: the franchisee offers a service under the brand or the mark of the franchisor in accordance with its guidelines,

=> production franchise contracts: the franchisee manufactures himself, with the franchisor's instructions, the products he sells under the trademark thereof,

=> distribution franchise contracts: the franchisee simply sells the products in a store that carries the brand of the franchisor.

There may be several franchise locations such as:

=> the stores franchise,

=> the franchise at home,

=> or international franchising.

Which industry you choose?

The franchisee can choose his franchise in many sectors of activity:

=> the franchise in catering and fast food,

=> food franchise such as bakeries or organic,

=> commercial franchises: automotive, IT, sport, optical, florist, etc.

2 ways to get a franchise

The franchise is within the legal framework of a law that requires companies that develop a franchise or other forms of partnership to provide a prior information document.

There are two ways to get a franchise:

=> opening a franchise,

=> buying a franchise.

However, it is important:

=> to appeal initially to a franchising advice,

=> to have a good personal contribution to finance the overall investment and entry fees.