Seven tips to remember before getting started in franchising

1. Find out more about this business formula. It is very important that, before making the investment, you have in depth knowledge of the characteristics of this business model, and the obligations of both parties (franchisor and franchisee).
2. Make sure that the company you want to start your project with also has solid experience. Ask for comprehensive information about the brand you want to start your business with and its previous track record.
3. Analyse all the data offered by the franchise. Analyse whether the services they offer are similar to those of their competitors
4. Seek professional help to sign the contracts. It is highly unlikely that you will get the head office to change anything in the contract. In fact, the franchise concept is based on providing very homogeneous services to all its franchisees, so it is only logical that this should be the case. 
5. You can request the contact details of other franchisees of the brand. They should be able to provide them to you without any problems, so that you can talk to them and learn about their experiences before signing the contract.
6. Value positively the fact that the increase in openings is accompanied by a growth of its central services: “If a franchise is growing significantly, the structure that provides service to its franchisees must also grow significantly.
7. Basic checks you should carry out. Go to the Commercial Register to find out who is behind the trademark and that everything is in order. Also check that the company is the beneficial owner of the brand they are marketing

The importance of working with a specialised financial institution

As well as these tips, it is also of utmost importance to have the support and advice of a financial institution specialised in this economic sector. Like Banco Sabadell, a leader in this market. Of the 1,375 commercial brands, more than 1,100 work with us. For more than 26 years now, we have had #SabadellFranchises a department specialising in providing services to this type of company, which currently employs more than 303,000 people in Spain.

Through this business model, brands can expand more easily and entrepreneurs can start a business project with the peace of mind of knowing that they have a business model that works, and with advice. It is a business model between independent companies but linked by a contract whereby one of them (the franchisor) grants the other (franchisees), in exchange for financial compensation, the right to exploit a brand or commercial formula, while at the same time ensuring the necessary support and services to facilitate this exploitation.

For the franchisee, the main advantages are as follows:

• Lower risk, as it goes hand in hand with a well-known and established company
• It benefits from the economies of scale of the franchisor company
• You benefit from the publicity and experience of the franchisor company

The widest range of products and services for franchisors and franchisees

Thanks to our more than 26 years’ experience working with both franchisors and franchisees and the fact that we belong to one of the main banking groups in the country, we can offer the widest range of highly specialised products and services. We also have partnership agreements with a total of 630 companies that allow us to extend this offer even further. We also have Franchise Managers who are specialists in business sectors with the capacity to meet the needs of each brand, providing information on the situation of the sector and the competition. Similarly, our structure of risk analysts – with professionals specialised in franchises – places us at the forefront of this line of business, as it allows us to resolve operations much more quickly than other entities.

If you are interested in the world of franchises, come and see us on 20 April at the Hotel Fira Congress in Barcelona (here you have all the information) and we will explain how we can help you with your project.