Getting To Know What Is Really Franchising… (Part 3)

Franchise Key:

The franchise world has its particularities and its jargon… If you have discovered the main elements (see the previous articles on this theme), you can go further.

Your franchisor can give you several helps. The “provisional” is not imposed by the law, but some franchisors are used to give to the future franchisees some information that allow them to hold a “provisional” exploitation account. Some franchisors even realize the provisional of their franchisees, but in this case, they have to be cautious not to be judged responsible of the non realization of the previsions by the franchisee.

Sometimes, a franchisor proposes a « franchise corner », it is a franchise that covers only a part of the store and however obeys to the same rules than a total franchise… in principle… because in reality, not owning all the store has consequences and needs flexibility.

The « buying power station » is also a service proposed by some franchisors, it is a structure that buys and resells to the network’s franchisees. It allows the franchisees to benefit from preferential rates but also requires a strong logistic with warehouse platform and transportation means.

We can also talk about « referencing power station », contrary to the buying power station, it only selects the products on which the suppliers engage to give good conditions knowing that the first advantage is often to find products that fit the charges handbook necessary to a good exploitation management and to offer the customer the product or service expected and conform to the brand’s promises.

Also read:
Getting To Know What Is Really Franchising… (Part 1)
Getting To Know What Is Really Franchising… (Part 2)

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