How to open a franchise business in 2022
Anyone who has their own business or wishes to open their own will certainly have heard of franchising. In our country, Franchising has experienced a strong increase in recent years which have led it to a turnover that reaches almost 25 billion euros , therefore an important slice of the Italian economy.
But what is franchising really? The legislation establishes that franchising or, as defined in our country, commercial affiliation is nothing more than " the contract, however called, between two legal entities, economically and legally independent, on the basis of which one party grants availability to the other , for consideration, of a set of industrial or intellectual property rights relating to trademarks, commercial names, signs, utility models, designs, copyrights, know-how, patents, technical and commercial assistance or consultancy, by entering the affiliate in a system consisting of a plurality of affiliates distributed throughout the territory, in order to market certain goods or services ".
As regards further regulatory references regarding franchising, it is necessary to refer to Law 129/2004 which regulated this type of commercial contract in a more specific manner.
From a quick glance at the legislation it is understood that therefore the franchising sees two subjects as protagonists, the first is defined as franchisor, that is the grantor, who places his industrial and intellectual properties etc. in the availability of the counterparty, on the other side there is instead the franchisee, i.e. the beneficiary of all these concessions.
When we talk about commercial affiliation we generally refer to a more or less broad system since usually the beneficiaries of franchising activities can also be many and located in a very vast territory. But let's find out what are the characteristics of the franchise to better understand how to open one of your own.
Essential elements of the franchise agreement
Let's see together what are the fundamental elements that characterize the franchise agreement. First of all it must be emphasized that the contract can only be entered into by two entrepreneurs , secondly it is necessary that the contract is of duration, that is, that it lasts for a certain period of time.
Another characteristic of commercial affiliation is the onerousness of the relationship since the franchisee must pay a predetermined sum of money, first of all a sum due for entry into the franchisor's network and secondly a percentage due on the profits of the business.
From these characteristics different types of franchising derive which vary according to their object: franchising aimed at the distribution of products, service franchising and industrial franchising. Let's analyze them individually in a more specific way.
Franchising aimed at the distribution of products
With reference to this type of franchising it can be said that it is characterized by the marketing of the goods produced by the franchisor in the shops managed by the franchisees.
In practice, the franchisor will take care of the production of the goods, while the franchisee will be responsible for the sale phase. The same sale must obviously follow the methods and prices displayed by the franchisor, as happens for example for clothing franchises, where it is the franchisor who produces the clothes according to quality standards and the franchisor only sells the clothes. clothing without taking any other action.
The service franchise
This type of franchising requires the franchisor to make the management of standardized services available to the franchisee, as occurs for example in the case of real estate brokerage services.
Industrial or production franchising
Industrial franchising, also known as production franchising, requires the franchisor to transfer to the franchisee a whole series of technical skills and patents for the production of goods that have certain technical characteristics and quality standards . Very often it can happen that the production franchise is at the same time also a distribution franchise, since the marketing phase takes place immediately after the production phase of the goods.
An example is the franchising in the catering sector, where the franchisor establishes the standards and methods of food preparation and the franchisee takes care of the production and subsequent sale.
What to do before opening a franchise shop
Opening your own franchise store can be a very valid and advantageous business choice, obviously if it is carried out in a conscious way and with the right conditions.
First of all, it is essential to choose the brand to which you want to be linked, also on the basis of your previous experiences and which is the place and the room you have available. Very often, in fact, franchising brands impose obligations regarding the size and characteristics of the premises, while others provide that there cannot be more than a certain number of shops nearby.
Another fundamental question for the choice of the company is that of economic solidity and the possibility of future earnings , in the sense that it is essential to link up with companies that have their accounts in place and that allow for good future growth.
In any case, there are really many possibilities regarding franchising, nowadays in all sectors there are a very large number of companies that are part of franchising networks, for example in the gaming, catering, clothing, cars, etc. If you decide to open your own shop, the choice is really wide, you just have to understand which one is right for you.
Requirements for opening a franchise
To open a franchise it is necessary to comply with various standards that are specifically requested by the franchisor company, but, in addition to these, there are a whole series of bureaucratic acts that the law requires for the opening of a new business.
First of all you have to open your own VAT number at the Revenue Agency, then you have to register in the register of companies of the place where the company is based, you have to present to the SCIA to the municipality and request permission for the affixing of the sign in front of the locals.
Depending on the type of activity carried out, further obligations may be required, for example if the venue is scheduled to play music in pipeline it is necessary to pay the rights to SIAE, or it is an activity where food is produced it is necessary to have all the necessary health authorizations.
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The article How to open a franchise business in 2022 comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/come-aprire-unattivita-in-franchising-nel-2022/ on Wed, 15 Dec 2021 22:00:49 +0000.