Franchise

What is Franchising?

Franchising means in brief that anyone who owns a successful business concept, rent the right to use the business concept and brand to other entrepreneurs. It is a long-term cooperation which is controlled by the franchise agreement. Franchising is in other words a sales right and it is applied in basically every area of our economy in which the sale of goods and services and/or service.

Franchising is above all a business financial concept. The franchisor has documented its business concept in manuals and share their experiences to strengthen the marketing of their products or services and to grow geographically and size. The franchisee get the right to, for compensation, work under the franchisor ‘ s name and characteristics to sell goods or services and make a viable business.

The franchisee operates its own business and in general the ownership is entirely independent from the franchisor. A franchisee operates its business with the same business risk and opportunity for entrepreneurs who work without the protection of a franchise cooperation. The risk he takes is however lower because he is working in a proven and effective business concept. In addition the franchisee utilize the franchisor’s all experience and receive ongoing advice and support.

When you become a franchisee it is normal to have to pay a lump sum to the franchisor and then on a current basis pay a so-called franchise fee, which is often a percentage of how much one sells in the company. For a costumer who are buying goods or services it is almost impossible to see if the chain store or company they buy from is a franchise business or not.

Franchising is based on distribution of tasks

A franchise contracts is made between two parties with the purpose that everyone, thanks to this cooperation, will obtain the best results.

The various tasks that must be carried out to this objective must be distributed between the two parties. The franchisor undertakes the tasks that can best be carried out on a large scale. The tasks that are best suited to perform in smaller scale on the local market falls on the franchisee.

Why use franchising?

For the company who wants to expand, franchising often offers an unsurpassed alternative to expansion with for example own stores or sales office.


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We are happy to tell you more about how we can help you find the the best business opportunity.
Call us at +46 (0) 40 685 87 87 or use our contact form.

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The Franchisor

The franchisor is a company that created a successful business concept or acquired the rights to such via license or in any other way. The company has the intellectual property rights, primarily the brands that are linked to the business and grants these to an independent entrepreneur for compensation.

  • The Prospective franchisor can be a relatively new start up, that after having driven one or a few successful own operating units (branches) a year or want to expand the business geographically with the help of franchising.
  • It can also be companies who have operated a larger number of branch units for a long time and wish either to convert some of the units to franchising or expand the business in this way.
  • It could be about companies who want to change more or less soluble together hold retail chains to the more powerful cohesive organizational structures.
  • Finally it may be any chain central representing voluntary collaborative operational units (retail cooperatives) who wish to convert the chain to franchising.

Examples of tasks which are the responsibility of the franchisor is:

  • Search for new (and better) suppliers
  • Keep the assortment current
  • Caring for advertising on a national level: newspapers, fairs, etc.
  • Issue and distribute catalogues
  • Have central inventory (for fast deliveries)
  • Inform and train the franchisee and staff
  • Continuous transfer of know-how

Want to know more?

We are happy to tell you more about how we can help you find the the best business opportunity.
Call us at +46 (0) 40 685 87 87 or use our contact form.

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Franchisees

Franchise as business schools

Any better business school or any better way to start your own businesses than with the help of a serious franchise is hardly found. The new entrepreneur gets with the purchase of a franchise a proven and complete business concept where there are functioning marketing practices, tested market conditions, administrative procedures, systems of financial procedures, training and coaching.

Are all of the franchise good?

A prospective franchisee must take a stand on whether the franchise concept that they are interested in is really good. All franchise concepts are not good, as little as that all products, premises and employees are not good. You must evaluate a franchise. The companies that are full members of the swedish franchise association, has committed itself to comply with european ethical rules and are audited by the swedish franchise board.

Would you like to become a franchisee?

Franchising is a business form that continues to grow in Sweden. We believe that this is due to the fact that franchise in a unique way combines the balance between the freedom to be self-employed and the security to work with a proven business concept.
To be a franchisee means that you run your own small business, just like any other entrepreneur, but at the same time gets support in education, marketing and product development and other support from your franchisor. For this you pay a fee, which varies between the different chains. Common is that both you and your franchisor is always interested in your business to be as successful as possible.

Examples of tasks which are the responsibility of the franchisee is:

  • Managing customer contacts and sales
  • Create an atmosphere that is favourable for the sale
  • Select the appropriate employees
  • Dispose of a sufficient and well-stocked inventory
  • Lead the business effectively

Want to know more?

We are happy to tell you more about how we can help you find the the best business opportunity.
Call us at +46 (0) 40 685 87 87 or use our contact form.

To Contact