Franchise news

08.06.2006

What the franchises value more of the mall is its location

Santiago Barbadillo, CEO of Barbadillo Asociados, the leader Franchise Consulting group in the Spanish market, analyzed the contractual relation between malls and franchises last Thursday 25 of May, in the day conference " legal Frame of malls", organized by the Institute International Research.

 

The consultant has made a study with a representative sample of franchises. The conclusions were expounded  by Santiago Barbadillo in the mentioned conference. This study indicates that the key for a franchisor in the selection of a mall is the location. More than the price of the square meter, they value the following aspects: the location of the malls; the brands that are established in it; the competitors brands in the mall forecast; the specify location in relation to its global supply; the possibility  that another similar offers exist in the same area; the renting conditions.

 

On the other hand, there are two subjects that usually are not valued enough in spite of the fact that they perform great importance to work, not only for the franchise project but also for the mall: the correspondence between the implantation area of the shopping center with the target of the franchise; and the managing company of the shopping center, on whom the success depends.

 

In order to the main complaints that the franchises transmit about this shopping areas, first of all they emphasize the complexity of the contracts with the managing company; even more the renovations are very problematic, that sometimes force them to pay re-entry fee though they never obtain an improvement in the conditions; the initial costs are high for them (advanced payments of the renting and endorsement); the collection of a percentage on the sales, as complement to the fixed renting, is considered an interference in the business; and finally, the duration of the contracts is short, even below than the amortization threshold.

 

Barbadillo Asociados is the leader Franchise Consulting group in the Spanish market. Its main activity consists in the development of franchise projects and the support for recruiting franchisees. Since 1994, Barbadillo Asociados has gradually expanded its structure and presence in the world market focusing in the franchise internationalisation. Barbadillo Asociados is a member –as a consulting company- of the Spanish Franchisor Association and publishes the Guía de Franquicias de España (Spanish Franchise Guide), "EN FRANQUICIA" the leader monthly magazine in the Spanish and Portuguese market, and the www.quefranquicia.com y www.franchiseKey.com and www.bya.com portals.

 

International Institute for Research (IIR) is the international modal in the development of formation and information events for the managerial world. In 2005, IIR joined in Informa plc, the world major specialist in the development of professional, scientific and academic contents, joining this way two world leaders and creating a great company with presence in more than 40 countries of five continents. www.iir.es 

 

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