The Elements That Constitute A Franchise
The franchise is a contract that links 2 partners, 2 independent companies, the franchisor and the franchisee to copy a proven success, in limiting the risk of the company creation thanks to 4 elements:
1. the customers’ rallying signs : the brand
2. the products and services collection.
3. the transmitted know-how
4. the help1. The customers’ rallying signs are elements that allow the actual and potential customers to know the network, (notoriety) to know the offer and to appreciate it (brand image) and to be willing to go back there (loyalty earning).
The trademark and the brand are the main visible elements, but also are often the affective link’s support between the network and the consumer. (We like a trademark, we like to go in a store, we like the products, sometimes we like other people to see that we buy this product, we can also like the image that we give of ourselves, etc.)
Customers’ rallying signs generally include the type of architecture and decoration, the graphic charter, the advertising…Of course, for some brands like hard discounters, the symbol erases a lot behind the price/quality and the price ratio.2. Naturally, a brand or a trademark that would not be clearly linked to a defined and respected products and/or services range could not have a sufficient attraction power. Indeed, if the content is not consistent enough, the brand image is not clearly perceptible. (Let’s imagine that Mc Donald’s sells french fries and steaks served in a plate and seafood, would it still be Mc Donald’s? Let’s imagine what would be Hilton hotels if customers did not know in advance which type of room, services and price they can expect? Would it still be Hilton?)
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