Franchising

« Back to Glossary Index

The Franchising is a distribution formula set up between two financially and legally independent companies. These two companies are the franchisor and the franchisee.

The franchisor offers the franchisee the right to operate :

  • its expertise,
  • its sign,
  • its brand,
  • its products.

In return, the franchisee commits to scrupulously respect the concept and the quality standards imposed by the franchisor. The franchisor acts as a true companion for the franchisee. He assists him in the following areas:

  • accountants,
  • commercial,
  • techniques.

In exchange for the right to use the brand and the sign, the franchisee must pay a financial compensation to the franchisor. These are the entrance fee and the annual fee.

The franchising is an economic collaboration that benefits both parties involved. It allows the :

  • franchisor to enter the market while protecting itself from the real estate costs due to the establishment,
  • franchisee to operate an innovative business concept, without incurring the associated development costs.