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, 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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Franchises and Anti-Competitive Practices

July 2012

Competition authorities tend to allow franchises to engage in certain behaviors that would usually be prohibited.

From Issue No. 151 of the Bulletin of Competition from the Commission to Promote Competition (COPROCOM) in Costa Rica:


Costa Rica: Franchising, a Booming Business

May 2011

The growth and positioning of franchises in Costa Rica is encouraging more entrepreneurs to opt for this alternative.

The franchise model under which a company sells another company the use of its trademark and business concept, and which must be operated according to certain characteristics identified by the trademark owner, has gained strength in the country in recent years.

Secrets of a Franchise Model

September 2010

Creating a successful franchise is the dream of many businesses but it is not an easy process.

Essential parts to the conceptualization and implementation of a franchise development plan:

Clearly defined business concept
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A strong and attractive image

Business Expansion: Franchises vs. Branches

June 2009

When viewing an opportunity to expand a business, it is necessary to analyze which of these options is best to get it accomplished.

One of the key aspects is financial. Franchises usually require a higher investment in the beginning, but once they are granted, they will have marginal costs that are lower each time.

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