How does a franchise work? What are the advantages and disadvantages of getting one?

If you are considering acquiring a franchise, but you don’t know how this type of business operates and what the advantages and disadvantages of acquiring it are, we at Q’PASA share a quick guide so you know what your future ‘franchising’ has in store.

First of all, do you know what a franchise is? According to the dictionary of the Royal Spanish Academy, a franchise is “a privilege of the rights to exploit a product, activity or trade name, granted by a company to one or more persons in a specific region.”

An example is McDonald’s, which is an American fast food restaurant based in Chicago, Illinois, United States. Currently, there are a total of 31,230 franchises of this company.

How does a franchise work?

Franchising allows the investor to run a business, thanks to the payment of a franchise fee, whereby the interested party is provided with a system already developed by the primary company, also known as a ‘franchisor’.

According to the Federal Trade Commission for Consumer Protection in America, the franchisor assists the franchisor by providing advice, through which he can provide information about: strategic positioning of new buildings, marketing, management advice and seminars on the normal operation of the brand.

Among the investor’s obligations are the continuous payments of advertising fees and royalties, where the remuneration must be paid for: the right to use the name, the percentage of the gross income and the duration of the contract.

What are the advantages and disadvantages of franchising?


  • Usually the company or “parent” of the franchise will generate training and support to “ensure” the success of this new point of sale.
  • If you acquire a franchise from a well-respected, reputable and reputable brand, people may easily recognize this new point of sale, which will make customers who live near this segment want to buy there.
  • Franchising can be more “economical” than starting a business from scratch.
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  • Franchisees want to ensure standardization at their point of sale, which is why they usually control the aspects that are developed and implemented in each of their “business”. Controls can restrict your ability as an investor to make decisions about your acquisition business.
  • You will not be able to change the logo design or the products distributed by the company and franchisees.
  • Buying a franchise goes beyond getting the amount needed to do so, because on some occasions franchisees also require technical expertise or title to be able to invest.
  • Even if your franchise is from a premium and recognized brand, this will not guarantee that it will do well for your investment.

If you want to start your own franchising then what better than doing it through digital services. If you have an idea for a product, but don’t know how to implement it, this is a Canadian company Tacticox, It can help you.

Tacticux will take your idea of ​​”written on a cocktail napkin” into a user interface design, which will be tested by the same target audience, in order to ensure a high-quality and efficient development of the good and / or service you want to develop.

The Canadian company team will investigate; Prototype based on UX and UI design; Development of the most appropriate web and mobile applications for the target audience; He will analyze the competition. what are you waiting for?Be a franchisee!

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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