Franchise models: when is it worth investing?

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Because it is widely used in Brazil, franchise models are familiar to society. Therefore, even without researching the subject in depth, it is known that it is a business that basically gives the right to market products and use the brand of another company.

For the consumer, this knowledge is sufficient. However, for the entrepreneur who wants to invest in this market, it is necessary to go further!

With that in mind, in this post we will show you what the franchise model is, how it works and when it is worth expanding your business . Are you interested? Then keep reading!

Understand what franchises are and what their models are
This model works as a license that the entrepreneur facebook database to use the brand, model, products and technology of another business.

This transfer of use occurs under certain conditions previously established in a contract. Thus, the person who transfers the rights is called the franchisor and the person who receives the rights is called the franchisee.

Franchises are divided into the following categories:

personal accessories and footwear;
food;
bars and restaurants;
drinks, coffees, sweets and savory snacks;
beauty, health and natural products;
communication and information technology;
construction and real estate;
cosmetics and perfumery;
education and training;
language schools;
photography, graphics and signage;
hotel and tourism;
cleaning and maintenance;
bookstores and stationery stores;
furniture and gifts;
business and services;
clothing.
Understand how franchises work
To make it clear how this model works, we will explain the roles of the franchisor and the franchisee. See below!

Obligations of the franchisor
Pass on your knowledge
The main task of the franchisor is to pass on knowledge and business methods. This occurs in several stages:

franchisee training;
introduction to different production methods;
the presentation of the form of administration and management.
Provide support to the franchisee
The support that the franchisor provides must be continuous and takes two forms: brand promotion and consultancy.

Develop and fulfill the contract
The contract must contain all the rights and duties of the parties. This document can be adapted to the reality of both parties, but it must follow the law.

Monitor the correct performance of franchisees
Every franchisee has legal rights and obligations to comply with. It is up to the franchisor to check whether the franchisee is complying and thus ensure that the business continues to reflect its brand positioning.