Our work in the area of Franchises and Distribution, leads us to assist and advise, both judicially and extrajudicially, to numerous franchising companies and also franchisees, having been part of the Committee of Legal Experts of the Spanish Association of Franchisors and having carried out the Legal Advice of the Aragonese Association of Franchisors.
Our extensive experience has been rewarded internationally resulting in our office
lawyer chosen by Corporate INTL Magacine LEGAL AWARD 2010 in the category
"Office of the year in Spain in Right of Distribution and Franchising"
Published in Express Franchise , 20 - October , 2024 Franchises of Spain
Have you ever thought about opening a franchise or wondered if this business model is for you? It is a good option for those looking to start a business, but with the backing of an established brand behind it. However, not everyone is qualified to become a franchisee.
Normally, they are businesses that have very well-defined structures and processes, although success lies in the capabilities you have, as the beneficiary of the franchise contract, to manage and lead the business. Therefore, below we analyze some factors that will allow you to understand if you are the ideal candidate to open a franchise.
This is the franchise business model
Before answering your question, you should know that franchises allow entrepreneurs to operate under the name and guidelines of a brand that is already recognized and probably consolidated in the market. It is a fairly solid business model, since the franchise system reached 27,623 million euros in turnover in 2023, according to data from the Spanish Association of Franchisors (AEF). These are very positive figures that also represent an increase of 2.5% compared to the previous year.
The growth prospects for 2024 are also good. According to the Franchise Outlook 2024 report that Tormo Franquicias Consulting published at the beginning of the year, 75% of companies confirm that they will improve their finances this year. In addition, 96% plan to open new units.
However, you must bear in mind that in addition to the benefits, franchises also involve contractual and operational obligations that in many cases limit the autonomy of franchisees. Therefore, it is important to know what the financial, legal and operational implications of the model are to understand if it fits what you are looking for as an entrepreneur.
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