WM Capital | Franchising Networks

FRANCHISING NETWORKS

The Business Format Franchising is an economy-type enterprise that allows the success of a network to be replicable, thanks to the technical skills, strategies, know-how, and training, provided by the franchisor to the franchisee. The franchisor ensures adequate assistance and support to the franchisee.

 

Beyond the success of the first sale point, the entrepreneur must be able to synthesize and systematize the successful elements of the business model to make it replicable.

 

The main advantages of the Business Format Franchising are: 

 

  • Brand awareness widespread at a national level and, depending on the business, international level as well; 

  • Limitless replicability of a successful format;

  • Limited financial and operational risks for the Franchisor;

  • Rapid growth of the business with a small investment;

  • Steady revenue streaming, thanks to the franchise business model;

  • Constant updating about the market situation thanks to the franchisee's fieldwork and experience;

  • Wealth and profit multiplier, thanks to the entrepreneurial freedom of the franchisee;

  • The purchasing and bargaining power grow as soon as the network in the area increases too.


 

The key success factors of a franchise network must work with five relevant parameters, also known as Five Levers Method

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