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Franchise Guide

Franchise definitions

Some basic notions (inspired by the European code of ethics)...  
    

• Franchising
    
Franchising is a system for commercialising products, services or technologies, based on close, constant collaboration between enterprises legally and financially separate and distinct, namely the Franchisor and the Franchisees.  

              
• The Franchisor

 The Franchisor grants his Franchisees the right to operate a business in accordance with the franchisor’s concept and imposes the obligation to comply with its standards.

The Franchisor possesses tested and proven know-how, which has enabled him to be successful in his market.  His aim is often to develop his network quicker than he could achieve alone.  
    
         
• The Franchisee

The Franchisee may use the name and/or the brand, the know-how, the commercial and technical methods, the procedures, etc. in return for a direct or indirect financial contribution.

The Franchisee is therefore the head of an enterprise, who wishes to surround himself with skills and refuses ill-thought out adventures.

The Franchisor provides constant commercial and/or technical assistance under a written franchise contract.   
        
    
• In other words, franchising is:
    
A business strategy
a) Where the franchisor develops a network
b) Based on his success, his concept and his know-how
c) Increasing the profitability of these assets
d) Through a partnership with independent entities, the franchisees
e) These franchisees can therefore repeat a success
f) And benefit from the franchisor’s assistance in achieving it
     
This business strategy requires
a) Transfer of know-how from the franchisor to the franchisee
b) Distribution of the roles between the franchisees and the franchisor
c) Constantly effective assistance for the franchisee on the part of the franchisor
d) Compliance with the brand’s standards by the franchisee
e) Everyone’s compliance with the promise made to the consumer by the company/brand
f) Balanced distribution of the profits
g) A good balance between the independence of the parties and the network’s homogeneity
 

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