Franchise one of the most popular business models

Franchise is currently one of the most popular business models. Operating on a franchise basis is one of the surest solutions and one of the best ways to earn a very satisfactory earnings. Find out more about one of the most popular business models.

Portal franchising.pl in its report on the franchise market states that at the moment there are as many as 1,310 franchise networks in Poland. This is much more than just a few years ago. Moreover, the number of franchisees increased to 83 thousand, of which 8/10 of the types of franchise models popular in Poland are domestic brands. Polish franchisors are developing their businesses more and more confidently in markets outside Poland, which translates into even greater brand recognition and profits.

There are currently approximately one hundred and fifty Polish brands choosing the franchise model. Of these, at least one operates outside Poland. The franchisees also strengthened their position. At the moment, eighty-three thousand. licensing facilities, the vast majority of which are family and local businesses. The most popular franchise sectors in Poland include:

  • Trade,
  • Services,
  • Groceries,
  • Clothing, footwear and accessories,
  • Children’s articles,
  • Beauty and fitness,
  • Home and “garden” products.

What exactly is a franchise model?

Franchise is a thoroughly proven business management model with specific rules and regulations by a selected company or brand. Franchising is a win-win. The overall rules and operations depend on the selected model and type of franchise, as well as on the arrangements in the contract concluded between the partners. The franchisor has a recognizable brand that undoubtedly inspires trust and brings specific income, and the franchisee undertakes to follow specific rules established and specified in the contract, thanks to which he receives a brand on which he can generate profits. This characteristic way of running your own business has been mastered by almost most sectors of the Polish market. The most popular types of franchise are:

  1. Commercial franchise also known as distribution franchise:

The franchisee has to sell specific items – and the product provided by the franchisor must be sold. The assortment belongs to the franchisor until another customer buys it. Examples – pharmacies, drugstores, clothing stores, grocery stores, shoe stores, industrial products, cosmetics. A commercial franchise can also include a deposit franchise. It is a special model that is distinguished by the fact that the franchisee does not buy the assortment from the franchisor, but receives it in escrow. It can be said that the franchisee is a kind of only an intermediary, and his earnings depend on the quantity and value of the product sold.

2. Service franchise:

This is another form of franchise. It consists in the fact that the franchisee offers specific specific services – by purchasing direct access to it and the right to recipes, technical aids, software, as well as guidelines for the performance of a specific service, as well as support in various aspects of running a business and training staff. Examples – eateries, financial and banking establishments and educational establishments.

How to choose the right form of franchise for yourself?

 It is an individual matter, determined by what you know, what you like to do, what are your interests. Some franchises do not require education in a given field, but only appropriate training, but still education and minimal experience are very useful. Success depends on your approach and commitment and real profit. Franchising is a model that gives many opportunities and benefits, it combines 3 main pillars: strategy, education, technology. These 3 areas are interdependent, if they are consistent then both the franchisor and the franchisee scales their business and makes money.

Source: franczyza.org.pl; franchising.pl

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