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About Franchising

We usually say that franchising combines the best of two worlds!

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We usually say that franchising combines the best of two worlds! A successful business concept and the benefits of the large chain with the self-employed's commitment, perseverance and drive.

Franchising

Franchising is a method for expanding businesses and distributing products and services. It is based on a relationship between the brand owner (franchisor) and the local operator (franchisee).

A Franchise

A Franchise is the agreement or licence between two legally independent parties which gives a person (franchisee) the right to trade in a designated area under the trademark of franchisor. The franchisee has the right to market a product or service using the operating methods of the franchisor. The franchisee has an obligation to pay the franchisor fees for those rights. The franchisor has the obligation to provide training and continual support and guidance to the franchisee.

The Franchisor

The Franchisor is the company that is franchising its business. There is a lot of benefits with using Franchies, both for the franchisor and the franchisee.

Capital

The franchisor’s capital requirements will be lower because the franchisees provide the capital to open each franchised outlet.

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

The number of employees which a franchisor needs to operate a franchise network is much smaller than they would need to run a network of company owned units.

Speed of growth

The franchise network can grow as fast as the franchisor can develop its infrastructure to recruit, train and support its franchisees.

Reduced involvement in day-to-day operations

The franchisor will not be involved in the day-to-day operations of each franchised outlet.

Limited risks and liability

The franchisor will not risk its capital and will not have to sign lease agreements, employment agreements, etc.

Increasing brand equity

Leveraging off the assets of franchisees helps franchisors grow their market share and brand equity effectively and fast.

Advertising and promotion

Franchisor will reach the target customer more effectively through co-operative advertising and promotion initiatives.

Customer loyalty

Franchisors use the power of franchising as a system to build customer loyalty, to attract and to keep customers.

International expansion

International expansion is easier and faster, since the franchisee posesses the local market knowledge. Franchising is a successful form of cooperation that continues to grow all the time. The number of franchise chains in Sweden has not been able to be determined in full in the investigation. 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 but also on calculations made on the basis of other relevant facts.

Contact

Your are welcome to contact us.

Address:

Blomstergatan 5, 411 04 Göteborg

Phone:

+46 70 718 86 82

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