09/29/2024 – 13:30
Entrepreneurs seek to open a franchise to have more security and ease when starting a new business. According to the Brazilian Franchising Advisory (ABF), the sector recorded nominal growth of 12.8% in the second quarter of 2024 compared to the same period in 2023.
However, care must be taken when choosing a franchise. There are risks such as the franchisor being poorly structured, and even the franchisee being poorly prepared or having unrealistic expectations.
See 9 tips from franchise specialist Fábio Constantino for anyone thinking about opening a franchise.
What to evaluate before opening a franchise
1 – Think about your expectations
Seek to understand what you want to work with and the return you expect. “When an entrepreneur feels engaged and has an affinity with the field in which he operates, the chances of success increase exponentially,” says Constantino.
2 – Study the market you want to enter
Each franchise segment has specificities, which can even make the moment more or less favorable for opening a new business.
3 – Analyze the franchisor brand
“A brand with a good reputation generates trust, making it easier to attract and retain customers,” says Constantino. Therefore, it is essential to analyze the history of the franchise and its financial stability.
4 – Evaluate the franchisor’s support
Check out the means of activating help, details about the training offered and the marketing material available.
5 – Talk to other franchisees
Dialogue with other members of the network will help you really get to know the business. Talk to as many people as you can.
6 – Calculate the costs
Calculate all the necessary investment and expected return. In addition to the initial franchise fee, you may have to pay royalties, advertising and maintenance.
7 – Carefully read the Franchise Offer Circular (COF)
The COF is the contract with all the duties and rights of the franchisee and the franchisor. The law requires a minimum of 10 days between reading and signing.
8 – Follow the model
If you have properly selected the franchisor, follow the rules established by it to have more guarantees of success.
9 – Be persistent
Be aware that success is not immediate and requires patience and resilience.
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