Network management

Franchising means distribution choice. Create a franchise network means, for the company, creating a strong impact on their brand, on their visibility in the area. At stake is how to achieve and dialogue with the final customer. The franchisees are presentation showcases in how the company stands and how it wants to be perceived by customers. Create a brand perception is a delicate, long and deep process. The results are not achieved in a short time but, by contrast, superficiality and improvisation leave a mark.

Information to Know

Needs of internal and external financial resources. Having a franchise project requires significant investment by the company. Once you start the franchise network outsource investments by charging them to the franchisees. But for the design and launch is the franchisor who shall bear the most significant cost items. Studying and designing a network may require investment by the franchisor over 50/100 thousand euros. In the next phase, the advertising brand support can be much more important: the minimum investment to overcome the threshold of a new brand reputation varies from sector to sector, but often cannot be less than 1-2 million euros. Although network management has a cost: the structure, the staff dedicated makes the company design franchise networks in a medium-long term to allow amortization of these costs. A similar argument is developed by franchisees: investment in the store are made in terms of ROI to enable a pay-back sustainable and generally not more than 3 / 5 years.

The management of a franchise network requires a collaboration culture between the franchisor and franchisee. To create a culture there should be a methodology, computer systems, human resources and high-level personnel, better if with past experience in creating franchise network.