Franchising: The best solution for starting a business and succeeding

Entrepreneurship is a stimulating but often challenging path. Faced with the challenges of starting a business, many aspiring entrepreneurs seek proven models to minimize risks and maximize their chances of success. Franchising presents a particularly relevant solution, offering a structured framework and solid support. This article, based on a conference held by the French Franchise Federation (FFF), explores the advantages of this model, demystifies preconceived notions , and provides essential advice for any franchise project.

Franchising in figures: A robust economic model in France

The economic importance of franchising in France is undeniable and demonstrates its vitality. According to data compiled by the French Franchise Federation (FFF) for the end of 2024, the sector is posting impressive figures:

Number of brands and networks: 2089 active franchise networks.
Number of franchised points of sale: 9,058 franchised units spread across the territory.
Turnover generated: A total of 88.64 billion euros, highlighting the significant contribution of franchising to the national economy.
Direct and indirect jobs: More than 600,000 direct jobs and a total of 962,000 jobs including indirect jobs.

These statistics reveal a steady growth of the model, with the number of franchise networks in France doubling over the past 20 years. This expansion demonstrates that franchising is popular with both concept creators and independent entrepreneurs looking to develop their business on solid foundations.

Demystifying the franchise: breaking down preconceived ideas

There are many preconceived notions surrounding the world of franchising:

Misconception 1: You have to have the idea of the century.

Reality: Franchising allows you to build on a concept that has already been proven, tested, and established. The entrepreneur benefits from a validated business model, thus reducing the uncertainty associated with launching an innovative business.

Misconception 2: You have to be an expert in your field.

Fact: The main benefit of joining a franchise network is access to comprehensive training provided by the franchisor. On average, franchise training lasts 37 days, but can extend over several months for more complex concepts. This training allows more than 40% of franchisees to completely change industries and succeed in an area where they had no prior experience.

Misconception 3: You need to be loaded with diplomas.

Reality: The survey conducted by the FFF and Banque Populaire/Kantar reveals that only 14% of franchisees have a higher education level than Bac+4. The brands are primarily looking for individuals with a real entrepreneurial spirit, human qualities and managerial skills, with the franchisor's support being there to compensate for any lack of initial training.

Misconception 4: Franchising is reserved for older people.

Fact: The average age of a franchisee when opening their business is 35, demonstrating that franchising also attracts a young and dynamic population, eager to embark on entrepreneurship with structured support.

Understanding Franchising: Definition and Basic Principles

To fully understand franchising, it's essential to understand its definition and fundamental pillars. A franchise is a way to create or take over a business based on a proven concept, developed and maintained by a franchisor to ensure a certain level of performance.

The key distinction to remember is that the franchisee and the franchisor are two legally and financially separate businesses. They are two independent entities that collaborate according to rules defined in a contract.

The franchisor's commitments to the franchisee are based on three essential pillars:

Provision of a brand: The franchisee benefits from the franchisor's reputation and brand image.
Transfer of know-how: The franchisor transmits its expertise, methods and operational tools to the franchisee.
Technical and commercial support: The franchisee receives ongoing support for the development of their business, including start-up assistance, training, marketing and operational assistance.

Without these three ingredients, we cannot speak of franchising, but rather of other forms of contractual trade.

The different models of contractual trade

There are other models of contractual commerce which, although similar, are distinguished from franchising by the absence of one or more of the fundamental pillars:

The Concession: The concessionaire sells products of an exclusive brand. However, the transfer of know-how and support are often less comprehensive than in a franchise.
The Brand License: This model allows the use of a brand, but without transfer of know-how or technical and commercial support.
Affiliate Commission: In this case, the product inventory remains the property of the brand. The affiliate sells the products and is paid a commission on sales made.
Associated Commerce / Independent Groups (Commercial Cooperatives): Here, there is a capital link between the network head and the traders (members). Each member holds shares in the capital of the parent structure, which implies a different operating and decision-making model, often more collective.

Key tips for a successful franchise project

Valuable advice to maximize the chances of success in a franchise project:

Assess the consequences: Franchise entrepreneurship is a life project. It is crucial to assess the personal, financial, and family consequences, as well as the potential geographic mobility that this entails, as well as the personal contribution required.
Meet and compare franchisors: Don't limit yourself to just one brand. It's recommended that you meet with several franchisors, including competitors of the brand that most appeals to you, to compare their models and operations.
Talk to existing franchisees: Franchise testimonials are an invaluable source of information. Vary the profiles (long-established franchisees and new franchisees) to get diverse feedback on initial training, support, and the periods they went through.
Get support: Support is essential, especially for your first entrepreneurial venture. Have a market study conducted by specialized geomarketing firms, rely on an accountant for forecasts, and consult a lawyer to review the franchise agreement before committing.
Don't rush: The decision to launch a franchise must be carefully considered. Take the time you need for each step, from discovering the model to signing the contract.

Franchising represents an exceptional opportunity for entrepreneurship within a secure framework and professional support. By leveraging a proven concept and benefiting from ongoing training and support, franchisees can realize their entrepreneurial project while minimizing risks. For those considering this path, the French Franchise Federation and Franchise Expo Paris are valuable resources for discovering brands and obtaining additional information. Franchise success is within reach for motivated and well-supported entrepreneurs.

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