There are a number of prerequisites for opening and managing one or more franchises. First, depending on the sector...
Tired of office life? Would you like to make a career change and open your own store or agency? It couldn't be easier! In fact, it's possible to retrain as an entrepreneur.
This is the desire of almost 28% of French people who, according to the 17th Annual Franchise Survey carried out by Banque Populaire in partnership with the French Franchise Federation and Kantar, would like to set up their own business. This desire has been particularly strong in the wake of the health crisis, with many people in France questioning themselves and deciding to change their professional lifestyle. Business start-ups in 2020 are up 4% on 2019.
Once you've taken this first step, you need to define your legal status (EURL, SARL, SA...) and the type of business you want to run. There are a number of models available to you, each with its own advantages and disadvantages. In France, the one that attracts the most people is the franchise.
There are a number of prerequisites for opening one or more franchises and becoming their manager. First of all, depending on the sector in which you wish to operate (auto, real estate, catering, food with a superstore, etc.), not all companies necessarily recruit. So it's a good idea to find out beforehand, and to consult one of the many websites that list retail networks looking to expand in your area.
Secondly, to be eligible to join a network, you must provide a personal contribution corresponding to the minimum amount that can be paid into the project without recourse to a loan. This personal contribution provides an immediate guarantee that the candidate has the necessary means to open a sales outlet, and thus ensures greater commitment on his or her part.
Once all these steps have been completed, it is time for the candidate to sign a contract with the franchisor. franchisorthat is, the brand owning the network of sales outlets. When the contract is signed, in exchange for an entry fee, the former candidate becomes a franchisee and is granted the right to use the brand, its commercial processes, its know-how, its development support and the brands belonging to it.
In return for all these services and the opportunity to join the group of networks, franchisors are paid royalties, or remuneration. This commission is generally based on a percentage of sales generated by the franchisee.
In France in 2020, there were no fewer than 78,032 franchisees, an increase of 33% over the last ten years. As we can see, this business model and concept is attracting more and more people as the years go by, and is proving its worth, with almost 80% of franchisees wishing to renew their contract at the end of it.
As mentioned above, the franchise concept is a business model that appeals to many entrepreneurs. It offers a number of significant advantages.
Initially, although the franchisee belongs to a group of franchise networks, he or she remains the owner of his or her business, legally independent.
Secondly, the reason most often put forward for this choice is the reassuring nature of franchising. Joining a group means benefiting from the support of the franchisor. The experienced franchisor will provide training to help you become more professional, as well as the means to develop your outlet. The franchisor will also provide advice and all the documentation you need to run your business smoothly on a day-to-day basis, as well as the opportunity to call on the assistance of experts. This is a real time-saver for the franchise manager.
In addition, this model enables managers to benefit from the brand's reputation among consumers. As a result, they will enjoy greater credibility with customers and prospects, benefiting from the brand's image and reputation. This reduces financial risk.
Franchises also contribute to economic development and local dynamism. Indeed, three out of four franchise managers choose to set up in their home region, thus creating new jobs locally and, in some cases, avoiding relocation. This trend was more pronounced among franchises operating in the service sector than in the retail sector.
What's more, they enjoy the support of the general public, as nearly 74% of consumers in France shop in local stores, and 66% prefer to visit chains that support local production.
Once your franchise is established in a major city such as Paris, or in a smaller town with fewer inhabitants, you'll need to increase its visibility in order to generate more in-store traffic. To do this, it's important to be well-referenced locally, and to use digital marketing solutions such as local SEO, Google My Business, social networking, Google or Facebook advertising, Display... in addition to traditional media.
To give you a tip and an example of how important it is to be correctly referenced, 76% of people who make local requests go straight to the shop, and that's within the same day.
So it's vital to create a business listing on Google My Business to make yourself visible locally. This listing makes it easier for new customers to find your business and learn about the services and/or products you offer. Easy to use, you just need to add essential information such as your opening hours, your address and the telephone number where you can be reached.... It's also easy to manage. In fact, you can share numerous photos to optimize your listing, as well as interact with your customers via Google reviews.
For further information on this subject, please consult our webinar entitled "All the keys to boosting your visibility with Google Business Profile". Amin Ochi from Localyse.fr shares more than one tip on this subject.
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