About Franchise
We usually say that franchising combines the best of both worlds!
We usually say that franchising combines the best of both worlds! A successful business concept and the advantages of a large chain with the dedication, perseverance and drive of independent people.
Franchise
Franchising is a method of expanding businesses and distributing products and services. It is based on a relationship between the brand owner (the franchisee) and the local operator (the franchisee).
Franchising
A franchise is an agreement or license between two legally independent parties that gives a person (franchisor) the right to trade in a specific area under the franchisor’s brand. The franchisor has the right to market a product or service with the franchisor’s operation.
The franchisor
The franchisor is the company that franchises its business. There are many advantages to using franchising, both for the franchisor and the franchisee.
Capital
The franchisor’s capital requirements will be lower because the franchisee provides capital to open each franchised store.
Motivated and effective management
The local management of each franchised unit will be highly motivated and very effective. They treat the franchise units as their own and that will usually lead to higher sales and profit levels.
Fewer employees are needed
Local management of each franchised unit will be highly motivated and highly efficient. They treat the franchised units as their own and this will usually lead to higher sales and profit levels.
Growth rate
The franchise network can grow as fast as the franchisee can develop its infrastructure to recruit, train and support its franchisees.
Reduced participation in daily operations
The franchisor will not be involved in the day-to-day operations of each franchised store.
Limited risks and liability
The franchisor will not risk his capital and does not need to sign leases, employment contracts, etc.
Increase brand value
By leveraging franchisees’ assets, franchisors help franchisors efficiently and quickly increase their market share and brand equity.
Advertising and marketing
The franchisor will reach the target customer more effectively through collaborative advertising and marketing initiatives.
Customer loyalty
Franchisors use the power of franchising as a system to build customer loyalty, to attract and retain customers.
International expansion
International expansion is easier and faster because the franchisee has local market knowledge. Franchising is a successful form of cooperation that is constantly growing. The number of franchise chains in Sweden could not be fully determined in the survey. A qualified estimate that is made, however, is that there are about 640 franchise chains in Sweden. The investigator has estimated the number of franchise units at about 24,500. Both of these estimates are based partly on the statistical data available.