What is Franchise?

Franchise is a commercial business system, which is growing so much in Brazil right now and also international. Involving distribution of products or services, throughout condition in a contract between franchisee and Franchisor. The Franchise involves the concession and transferring of:

- Brand
- Technology
- Operational consulting
- Products or Services

Brazil has a specially law to protect those who has a franchise (Law 8.955 of 02/14/1994). Before getting a franchise, is very important for those who is getting a franchise have a general vision of the business, to make the right decision, avoiding futures deceptions.

Franchising is a strategy to distribution and commercializes products and services. It is a save method and very effective system to any company who wants to grow with a small investment, also representing a great opportunity to anyone who wants to get their own business.

Franchisor is the company, who has the brand, makes the ideas, and gives the franchisee the franchise, juristic or natural person. On the franchise system, the franchisee invests resources in to the business, running with the franchisor brand, according with his norms and over watching by the franchisor.

The secret of the franchising is partnership. For that the franchising system has been a success, in so many types of franchise.

Why invest in a franchise?

Nowadays to do any kind of investment is hard, because beside of having tons of money and time, the entrepreneurs have to considered, involving dreams and a constant economic stability. Brazil as we can see is a country less affected with the chaos in the world economy. But this good time in Brazil can bring uncertainty, investment speaking. But the truth is the way of “Franchising” work has been contributed for this strong and solid economy in Brazil.

The numbers shows a great growth of Franchising; in 2010 has increased 20%. In 2011 the sector of Franchising ended with R$ 86 bilious, and 15% more than 2010. (By ABF website). And so much more is to come, hoping in 2012 increased 15% more and going over R$ 100 bilious. So according with this information, check it out and see how this works, and you will see a great opportunity to have a franchising as your own business, a good opportunity to get a solid business.

(Information by ABF, Sebrae : )

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