A franchisor is a person or company that grants a license to a third party to conduct business under the franchisor's brands. The franchisor owns the general rights and trademarks of the company and allows its franchisees to use these rights and trademarks to do business.

How to become a franchisor Franchise success factors


Costs involved
The franchisor usually charges the franchisee a franchise fee for the rights to do business under the franchise name. The franchisor also usually collects a franchise royalty fee from the franchisee.
Franchising is a system for expanding a business and distributing goods and services to meet greater consumer demand. It relies on a relationship between the brand owner and the local operator to skillfully and successfully expand the established business system.

Franchising is a complex process involving planning, research and strategic development. Here are some success factors you should consider before becoming a franchisor:

1. Business concept: It is important to have a solid and well-defined business concept that is replicable and scalable. It must be clear and easy to understand for potential franchisees.

2. Branding: A strong and recognizable brand will help attract franchisees and raise awareness of your company. Also, branding must be coherent and consistent in all aspects of the business.

3. Operating system: You must have an efficient and well-structured operating system that enables franchisees to manage their business efficiently and provide a high level of service to customers.

4. Franchisee Support: Adequate and well-structured franchisee support is critical to franchise success. This may include training, ongoing support and access to necessary resources.

5. Financial planning: It is important to have a solid and realistic financial plan that reflects the franchisor's initial costs as well as expected revenues and profits.

6. Legal documentation: You must have adequate and well-prepared legal documentation to protect your and franchisees' interests.

Îin general, to become a successful franchisor you need to have a strategic approach, be well prepared and pay attention to details. You should consider all these factors and develop a proper plan that will allow your franchise to grow and develop sustainably.

Franchise success factors


In essence, franchising as a business is simply a method of distributing goods and services. It is not, as many people think, a product franchise. Wendy’s does not franchise hamburgers; Midas does not franchise mufflers. What each franchise is the business system that provides the product or service. It is the entire method of doing business, the name, product, decor and delivery methodology that is franchised.

  • The entry fee is the amount that each of the franchisees is obliged to pay to the franchisor who owns the franchise in which the franchisee will be integrated.
  • The advertising fee is the amount that franchisees will invest in promotions and marketing for their own benefit and that of the entire network.
  • The operating fee or royalty is the periodic payment made by the franchisee to the franchisor î in consideration of the franchisor's continuous support to its network and which constitutes its main source of income.

The role of the franchisor
The franchisor has six major responsibilities for the success of the franchise system:
To make every effort to select qualified franchisees who understand the concept of franchising and are committed to operating the system according to established standards.
To do everything possible to protect the franchisor's brand and reputation by enforcing system standards î in all company-owned and franchised locations.
To make changes to the system's product and/or service mix when necessary to meet consumer demand.
To improve the operating system.
Provide training to franchisees to use with their teams to ensure all facility staff understand their role in the operation franchisee and possesses the necessary skills to be effective in fulfilling job responsibilities and duties.
Development and application of advertising, promotion and marketing standards, as appropriate, that strengthen the brand image of the franchise and increase customer traffic.

The franchisee's success factors are:

Integrate with passion and enthusiasm.
Self-analyze yourself before starting.
Îbefore you decide, think and don't get carried away by enthusiasm.
Get all the necessary information about the franchise.
From theory to practice there is a gap that must be taken into account.
Choose the right franchise profile and business sector.
Don't turn into a one-man band.
Don't make mistakes when you choose the headquarters.
Consider the effect of the big city and the small city.
Choose the right staff.
Breathe life into your franchise and convey optimism.
If you can work alone, you have no partners.
Don't let the franchise make you a prisoner and force you to change your lifestyle.
The business must not be too seasonal.
The owner must participate in the franchise in order not to fail.
If it fails, be realistic and close in time.
In order to operate successfully and to be able to create the franchise, a number of conditions must be met, such as conducting market research and planning the opening of pilot centers to give them genuine treatment as franchise points.