What is a franchise?
Legally, a franchise is a commercial agreement that is based on a franchise agreement between two legally independent entities.
The object of this act is the assignment of image rights related to the trademark and the exploitation rights related to the concept. It therefore gives rise to rights and obligations on the part of both the franchisee and the franchisor.
A franchise is a collaboration between an independent company: the franchisor, and other independent companies: franchisees!
What are the benefits to be gained through franchising?
Three major advantages are to be put forward for the franchisee. First, the franchise allows the franchisee to exploit the signs of rallying the franchisor’s clientele (sign, logo etc.). When it is undertaken, it is often difficult to make itself known and to develop its clientele.
As part of this contract, the franchisor’s brand already has its clientele, its reputation and its marketing strategy. Customers come because they recognize the appellation, the sign.
In return, the franchisee is responsible for respecting the franchisor’s brand image.
The other advantage is that the franchisor guarantees the franchisee the enjoyment of a know-how that he maintains and develops. The franchisee is trained in the franchisor’s organization and marketing methods. It has the information necessary for the implementation of these methods, which will be monitored and enforced.
Finally, the franchisee has a series of products, services and / or technologies developed by the franchisor. The franchise allows a pooling of resources and an innovation boosted by “collective intelligence”.
The entrepreneur by becoming a franchisee does not create his activity ex nihilo. Thanks to the franchise, it benefits from the tools and the accompaniment so useful to prosper.
Are you convinced? To create your business, do not forget to go through Le Légaliste.fr for the publication of your legal ad!