Franchising is an accessible business model that allows entrepreneurs to take advantage of the brand, business model and experience of a successful, well-established company.
This alternative can be interesting if you are thinking of opening your own business, since you'll have the backing of an already established brand from the very beginning. This will allow you to start faster, even without previous experience in the sector, by joining a consolidated franchise that has its own know-how.
Even so, franchises have their own particularities and it’s normal that before jumping into the pool you might want to look at what the best option is for you. How much will I invest? Where will I find the financing? What legal aspects and requirements are necessary to open a franchise? Let's look at this together!
Franchise eligibility requirements
Today there are many franchises and each one has its own peculiarities.
From Jeff we recommend that you familiarize yourself with this business model, analyze its characteristics and the type of contract. Even if you have the training, attitude, and desire to open a business, franchise contracts are legal documents that reflect the relationship between the parties and the obligations and rights that everyone has to comply with.
In addition to consulting, it's essential to understand the business model in which you are going to invest in order to open a franchise.
Finally, the economic aspect is also important. Obviously, self-financing is advisable, although not essential, since the range of investment to open a franchise is different depending on the type of activity. In addition, there are several options for public or private financing.
In Jeff's case, we offer our franchisees the possibility of opening their business in with a very competitive initial investment. With this philosophy we fulfill our goal of democratizing entrepreneurship, giving anyone the opportunity to set up their own business.
Are there any legal requirements to become a franchisee?
In principle, there are no specific legal requirements to open a franchise. In fact, it is not necessary to prove previous experience or training, nor to have too much income. It is essential to fit an entrepreneurial profile, show willingness and have the ability to understand teamwork.
Obviously, a business plan is required, although this is usually prepared by the brand as a standard model. This means that it does not refer to a specific situation and will have to be adapted to the franchisee's management, seasonality, competition or the application of the tools and resources recommended by the franchisor brand.
The objective of this business plan is to provide an overview of what we can expect from the business model in general terms.
On the other hand, some people have doubts about the legal conditions for opening a franchise if they already have another franchise.
Unless otherwise specified, this can be done without problem. The problem is time: some franchises need full dedication, especially in the initial phases, so it will depend on your ability to manage resources and maximize results.
Operational requirements for franchising: the franchise agreement as a key document
All matters relating to the operation of franchises are set out in the "Franchise Agreement", a document where the obligations and rights of the franchisor and franchisee are agreed upon.
We don't always mean literally legal requirements, but rather mandatory operational aspects.
The franchise agreement is different depending on the brand. It details basic aspects of standard contracts, such as duration, assignment of rights, localization, renewals and penalties.
It also includes the franchisor's data (name, company name and address), the description of the sector of activity, the requirement of the duty of confidentiality and, above all, the accreditation of the assignment of the title of ownership and use of the brand.
Basically, this means that the franchisor assigns to the franchisee the rights to use a brand, its distinctive signs, its business model, its industrial secrets and the rest of the elements that characterize the business model represented by the franchise.
Likewise, if you become a franchisee, you must receive training from your franchisor in sales techniques, operating and management rules, aspects characteristic of the franchise and substantial know-how (set of knowledge or practical processes resulting from the franchisor's experience).
This type of contract also usually includes commercial assistance and technical support during the term of the contract.
Regarding the franchisee's obligations, they may include:
- Development of the activity in compliance with management methods, techniques, standards and specifications proposed by the franchisor.
- Attention to the economic considerations of the franchise: entrance fee, periodic advertising fee and royalties for the use of the brand, etc.
- Use of the industrial and intellectual property rights assigned according to the franchisor's indications.
- Non-competition obligation, as established in the contract.
Essential requirements for opening a Jeff center
When an entrepreneur decides to open a franchise, he takes advantage of all the strength of a brand, superior business expertise and constantly evolving tools and technology. In return, however, you must respect their rules and processes.
Most of these aspects are detailed in the franchise agreement, as previously explained. But...
How is opening a business different from opening a business with Jeff?
We are looking for entrepreneurs who demonstrate a long-term vision to develop our business models in their neighborhood.
As such, before opening a Jeff franchise, we train our entrepreneurs in all aspects of business management. This involves training through Jeff Academy, a unique proprietary platform: entrepreneurs can access training material wherever and whenever they want. A very useful tool before, during and after the opening of your premises that provides you with all the necessary know-how.
Once they've launched their business, they will have the support of their Partner Success, who will accompany them during their business growth process.
To summarize, the essential requirements to open a Jeff franchise are:
- To demonstrate an entrepreneurial attitude.
- An understanding of the business model.
- Complete the Jeff Academy training.
- Sign and fulfill a franchise agreement.
Want to know more? Contact us.