Franchises, the (re)new business

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[Mis à jour le 30 octobre 2020] Franchises are present all over the world. This is a simple way to develop in a territory, via a commercial agreement between the franchisor and one or more franchisees. This allows the opening of new brands run by franchisees, which still depend on the “mother” company. According to the Observatory de la Franchise, in 2019 France had more than 78,200 outlets in all sectors. This phenomenon is proving to be particularly prolific and still seems inclined to develop in certain sectors of activity.

A powerful network for large-scale notoriety

Many brands are present in Bordeaux, and in the rest of the territory. Restaurants, clothing brands, electronics stores, retail brands… This network has integrated perfectly into the landscape, and allows these companies to have a weight in their market. Opening franchises allows a company to have a presence on a larger scale, entrusting management to a third party. The latter runs his business, while following the processes and the Business Model of the head office.

Franchises allow you to meet new objectives, medium-to-long-term challenges to grow its turnover. It is also a matter of being present in many geographical areas, to follow a broad strategy. Especially with the development of a digital strategy, allowing to develop even more its clientele. Between 2018 and 2019, the number of franchises on national territory jumped by 4% (1).

Another sector particularly concerned is real estate. Les Villas is headquartered in Pessac. It has always advocated its difference, exploiting markets that its competitors are abandoning. It has indeed positioned itself on high-end family residential real estate. A positioning that has proven its worth, and developed new ambitions, such as opening up in a wider territory. To do this, implementing a digital strategy has become an obligatory step. But what makes it possible to attract a new clientele is above all the proximity, especially for this sector. So the agency decided to launch itself too, to develop its physical presence and promote its unique concept. Professional conversion, willingness to run his own agency… There are many reasons to get started, and have a significant financial advantage.

Bordeaux and New Aquitaine, fertile ground for the birth of a network of franchises

Many companies that have developed their franchise network are located in New Aquitaine and the Bordeaux region. This is the case, for example, of the P’tite Bakery,which quickly saw the potential of this mode of development. Today, this brand has about fifteen branches in France. La Toque Cuivrée and Baillardran are also two companies based in Bordeaux on this model. Flutes and macaroons are part of Bordeaux’s gastronomic culture par excellence, and are very popular in the country. It is for this reason that these two brands have embarked on a controlled national deployment, in order to be able to develop their reputation and their customers beyond their original sector. The Neo-Aquitaine clothing sector is also well represented, with the Tati brand, headquartered in Villeneuve sur Lot, with 140 stores in France and others abroad.

Luxury is no exception either, as evidenced by the Brand of Silk Squares Petrusse, which has four boutiques, located in Bordeaux and Paris. The automotive sector is also one of the sectors concerned, with the various concessions of brands of all ranges in Bordeaux and throughout France. Franchise is therefore an integral part of the economy, with financial benefits, unlike stores in their own name. Indeed, the company’s brand is already well in place. In addition, the franchisee is trained by the company in the different processes, methods of management and organization of the teams.

These are therefore significant advantages for an entrepreneur who wants to get started, limiting the risks associated with the uncertainty of a launch, the brand already having a reputation in place.

Promoting franchises to change markets

The benefits of this model are numerous. First, risk-taking is relatively low, with less investment than an opening of its own. It is a way to sell stocks more easily, distributed among all the antennas of the network. Thus, this allows on the one hand to increase the turnover of the brand, having a better territorial mesh. In addition, some brands are expanding their network internationally. This is an important strategy to put in place, which must be well prepared before embarking. In Bordeaux, trade shows allow you to exchange and strengthen its network. The opportunity to exchange with companies already developed that can give valuable advice.

In short, franchises have many advantages that can truly stimulate and revive the Bordeaux market. With the discontinuation of COVID-19-related activity, some companies with a wide network have been put at risk. However, despite this unprecedented period that has affected all sectors of activity, joining a strong network seems to be a path to explore.

Sources:

(1) Key franchise figures in 2020 – Franchise Observatory (2019)

(2) La Toque Copper our shops – Delivery

(3) Petrusse Shops

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