Investing in franchises is an excellent alternative for those who want to undertake business safely and obtain consistent returns. By opting for a franchise, the entrepreneur has the support of a brand that is already established in the market. This reduces the risks associated with starting a business from scratch.
In this article, we'll explain the main types of franchises. In addition, we'll show you the advantages of investing in this model and provide essential tips for those thinking of starting out.
What is a franchise?
To put it simply, a franchise is a business model in which the franchisor (brand owner) grants the franchisee the right to use its brand, methods of operation and other resources needed to operate a business.
In return, the franchisee pays an initial franchise fee and ongoing royalties on the revenue generated. This format is ideal for those who want to become entrepreneurs but prefer to rely on the support of a company that is already established in the market.
What are the types of franchises?
There are different types of franchises available on the market. This variety allows entrepreneurs to choose the one that best suits their profile and expectations. Some of the main types include:
- product franchises - The franchisee sells products manufactured or distributed by the franchisor. This model is common in clothing, footwear and furniture franchises;
- service franchises - In this type, the franchisee offers services under the franchisor's brand, such as cleaning, maintenance and consulting;
- distribution franchises - the franchisee buys the products directly from the franchisor and resells them. This model is widely used in sectors such as food and drink;
- conversion franchises - In this case, an existing company converts its operation to follow the model of a franchise, gaining access to a better-known brand and its management methods.
The advantages of investing in franchises
Investing in franchises offers a number of advantages that make this business model especially attractive for those looking for security and structure. Here are some of the main advantages.
Recognized brand
One of the biggest advantages of investing in franchises is that you start with a brand that is already well known and established in the market. This increases the chances of attracting customers more quickly - without the need to build a reputation from scratch.
Ongoing support
Franchisees can count on the franchisor's support, which includes everything from initial training to ongoing assistance in marketing, management and operations. This support reduces management difficulties and increases the chances of success.
Lower risk of bankruptcy
As the franchise model has already been tried and tested, the risk of bankruptcy tends to be lower compared to setting up a new business. This is especially important for those who are investing their savings or limited resources.
Easier financing
Banks and financial institutions tend to look more favorably on franchises. This makes it easier for those who want to invest to access lines of credit and financing.
Why invest in furniture franchises?
The furniture sector is one of the safest and most promising options for those wishing to invest in franchises. As well as being a segment in constant demand, especially with the growth of the real estate and renovation market, furniture has a long life cycle and offers attractive profit margins.
By opting for a Evviva franchiseFor example, the franchisee will be investing in a solid brand with over 25 years on the market. We are a benchmark in the planned furniture sector, offering high quality products and innovative design.
Our brand is recognized for its commitment to sustainability and for customizing environments. These attributes make us an excellent choice for those looking for a reliable business with great growth potential.
In addition, Evviva offers complete support to franchisees, from initial training to franchise consultancy, evaluation of commercial premises and legal advice. The brand has an integrated system that allows franchisees to have total control of operations, making it easier to manage the business.
Learn more about custom furniture franchise
Tips for starting to invest in franchises
If you're thinking of investing in franchises, here are some practical tips to get you off to the best start:
- research the market - before investing, do a thorough analysis of the local market. See which types of franchises are most in demand in the region and study the competition;
- assess your entrepreneurial profile - it's not enough to choose a popular franchise. It's important to assess whether the type of business you've chosen matches your profile and expectations;
- talk to other franchisees - one of the best ways to understand how a franchise works is to talk to those who are already part of the system. Ask about the challenges, the support offered and the profitability;
- plan your budget - be clear about the initial investment required, as well as the operating and marketing costs. In addition, have a financial reserve for the first few months of operation;
- follow the franchisor's model - the success of a franchise lies in following a tried and tested model. Avoid making changes without the franchisor's approval, as this could compromise the result.
In short, if you're thinking of investing, do your research, assess your entrepreneurial profile and consider the options that align with your style and expectations. The most important thing is to take the initiative. The sooner you start, the sooner you can reap the benefits of this business model.
Did you like our article? Are you thinking of investing in franchises? Do you want to get to know a renowned and solid brand in the furniture market? Learn a little about Evviva's history!
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