The Four Pillars of a Franchise

Franchising is always an option for expanding a successful business model.

Monday, August 17, 2009

In theory, any business can become a franchise. However, not all activities are ideal to be developed under this model, so a good diagnostic is the first step, to check the viability of the model in each particular business activity.

In his article in Prensalibre.com, José Fernández points out 4 key aspects when analyzing the feasibility of a franchise:

1. Franchising should be good business both for the franchisor as the operator: In few business models "win-win" is as important as in this one.

2. Easily reproducible business: Even though the premise of a franchise is reproduction and standardization, there must be room for adaptating to the circumstances of each market.

3. Business know-how must be systematically transmissible: Methods and procedures must be easily packed, to efficiently train the operator.

4. It must be a competitive investment: A franchise is an additional investment option, which must compete with all other options in the market.



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FRANCHISE AGREEMENTS AND THEIR ASSESSMENT BY LAW No. 7472. RECORD OP-06-12.

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