History of franchising

The history of the franchise

The concept of franchising emerged in the 1930s and really took off at the end of the 20th century. Today, it is a growth strategy that is becoming increasingly popular in France and throughout Europe. Would you like to learn a little more about franchising and why you should choose this path for your business growth? In this article, discover the history of franchising and its benefits. What is franchising? Franchising, as we know it today, is a type of partnership between two legally independent entities that are nevertheless bound by a contract governing the relationship between the franchisee and the franchisor. This allows an entrepreneur to start a business as an independent operator while limiting risks. For the franchisor, this approach enables them to build their business expansion on a network of business owners actively engaged in their local markets. There are three fundamental principles unique to franchising that are essential to understand: brand identity, know-how, and technical and commercial support. The franchisor is obligated to: 1 – Share the brand’s identifying elements The franchisor guarantees the franchisee access to key elements of the network, such as the brand, the trade name, the overall business concept, and the visual identity system. The franchisor is responsible for maintaining and developing the brand image. The franchisor must ensure that the franchisee complies with the various guidelines for using the brand and other brand identity elements made available to the franchisee under the contract. When the contract ends, the franchisor must ensure that the former franchisee does not use the brand’s customer-recognizable symbols. 2 – Transferring the Franchise Network’s Know-How Know-how is a set of technical, logistical, commercial, IT, and management methods exclusive to the brand. The Doubin Law regulates it in the context of franchising and stipulates that it must be secret, substantial, and identifiable. The know-how is documented in writing in an operations manual known as “the Bible” and is conveyed to the franchisee during initial training as well as on a day-to-day basis through dedicated materials. Since it is confidential, the franchisee agrees not to disclose the know-how (particularly to competing networks) at the risk of harming the franchise network. 3 – Provide commercial and technical support to franchisees Commercial and technical support is mandatory in franchising. It begins at the project’s inception, continues through the store’s opening, and lasts for the entire duration of the contract. This support is the franchise system’s key advantage over independent entrepreneurship. Each location in the network is regularly visited by a field manager who shares their experience and verifies that the concept is being implemented in accordance with established rules. Who invented franchising? The history of franchising and its evolution! The franchise system truly emerged in the 1930s, although it would not formally develop until several years later. In the United States, the first company to use the franchise system to expand was General Motors. In the wake of the 1929 economic crisis, General Motors sought to dethrone its longtime rival: Ford. The company then granted licenses to independent entrepreneurs so they could open retail locations almost everywhere in the United States. In France, the Prouvost Group was the first to adopt the franchise concept. This company, which specialized in wool manufacturing, primarily owned spinning mills, and at that time, its wool was distributed to stores in large bags. Through one of its brands, Pingouin, the group decided to market the wool in balls to facilitate transportation and retail sales. This required creating new store formats, training retailers on the new products, and supporting them throughout this new venture. That was when franchising was born in France in the 1930s. It wasn’t until the 1970s that franchising truly became widespread. In the United States, the number of franchises increased significantly right after World War II, as was the case with McDonald’s. It was during this same period that the franchise system expanded significantly in France. Franchising thus gained popularity thanks to Charles Géraud Seroude, who brought the concept back from the United States. He had been trained in the concept and methods of franchising at the Alfred P. Sloan School of Management. Charles Géraud Seroude then convinced major industry players such as La Redoute, Yoplait, and DMC (Dollfus-Mieg et Compagnie) to adopt this model for their growth. Since then, the largest corporate groups have chosen franchising as a means of expansion. In a few figures, franchising in France in 2020 represented: 2,049 franchise networks, 78,218 retail locations, 757,852 direct and indirect jobs, and 67.8 billion euros in revenue. Check out our study on the franchise sector! Why are more and more companies choosing the franchise model? Franchising offers numerous advantages when expanding a business. Here are the main reasons: 1 – Franchising enables rapid network expansion. In a franchise, the creation of each new retail location is financed by the franchisee, so the cost of expanding the network is limited. It’s possible to open multiple retail locations without waiting to secure the necessary financing. Since costs are reduced, the brand can grow more quickly. 2 – It facilitates expansion across a wide geographic area. The denser a brand’s network, the closer it is to customers, and the more its revenue will grow. Franchising thus allows for greater proximity and visibility through more retail locations. 3 – Start a business, yes, but never alone! Each retail location is run by an entrepreneur[…]

communication

How can you facilitate day-to-day communication with your franchisees?

Communicating with franchisees is key to a brand’s success. Communication within a network occurs on two levels: the franchisor, who seeks to promote its brand nationally, and the franchisee, who does so locally. To ensure the franchise operates smoothly overall, certain communication practices should be followed. Why is communication within a franchise network important? Communication within a franchise network is crucial. Without effective communication, the franchise network cannot grow. Internal communication within a franchise network demonstrates the importance of transparency and smooth interaction among the various stakeholders. Performance and work organization depend entirely on effective communication between franchisees and franchisors and have a direct impact on the brand’s image. In short, communication within a franchise network involves several operations and actions: Sharing know-how and the business concept; Providing support to franchisees and coordinating the network; Implementing sales and promotional campaigns; Sharing operating reports and performance data; and Sharing news, as well as ideas and experiences; and Optimizing communication through the implementation of a centralized system. What are the best practices to implement? 1. Do not skimp on communication with franchisees. News shared with franchisees must be clear and organized by topic. You should adjust the frequency of these messages based on what’s happening in your network. Ideally, send your franchisees at least two articles per month. To keep them informed of these updates, feel free to notify them via email or any other messaging platform you use. 2. Promote best practices within the network For communication among franchisees, forums are an excellent solution, as is the intranet. It’s important to closely monitor discussions and moderate them to prevent a poor user experience for your franchisees and the various stakeholders in your network. Also, be sure to properly categorize the moderation actions you take—and, above all, don’t overlook any of them. 3. Get to know all the stakeholders in the network To easily locate all the stakeholders in your franchise, set up a directory. This tool ensures cohesion among everyone and allows you to communicate quickly with all stakeholders. Your team members will also have a clearer understanding of who to contact based on their needs or questions. Combined with an interactive chat (or any other instant messaging tool), you can foster a positive dynamic among franchisees, as well as a level of immediacy that forums cannot provide. 4. Gather a Large Number of Responses Through surveys, you can easily gauge what’s happening on the ground. By using open-ended survey formats, franchisees can anonymously submit requests to you—such as changes to be implemented in certain processes. What tools and practices can you implement to effectively communicate with and engage your franchise network? Engaging your franchise network will help foster greater cohesion within it and ensure everyone stays up to date on the latest news. To help you, certain communication tools will be very useful. 1. Organizing Events Bringing your franchisees together regularly for quarterly or annual meetings is a good way to engage your franchise network. During these meetings, your franchisees can get to know one another, exchange ideas, and discuss topics already established by the network. For convenience, you can schedule these meetings virtually. 2. Creating informational materials and training resources Documentation is the first resource a franchisee receives upon joining the network. You should therefore take special care in drafting it so that it serves as a valuable resource for your franchisees. Through these materials, you can, for example, provide information to your franchisees to help them improve in various areas such as communication, marketing, and team management. 3. Producing a regular newsletter To keep your network up to date on all the latest news, be sure to create a newsletter. Quick to produce thanks to the various tools available online, the newsletter will provide an excellent means of communication with each of your franchisees. A quick tip: To highlight each member of the network, feel free to interview them in turn. 4. Building a website for internal use only Although it’s more difficult to set up, an internal website—or “intranet”—is a very useful tool for communication within your network. With this tool, your franchisees will stay informed about the latest news and will be able to access all the documents your brand makes available to them: contracts, legal terms, and training materials. The internal website will also allow you to track the performance of each franchise through a customized dashboard. What are the benefits of effective communication between franchisors and franchisees? By establishing effective communication between franchisors and franchisees, you’ll reap several major benefits. Above all, by clearly communicating your expectations to your franchisees, you’ll ensure the success of your franchise. Avoid problems and misunderstandings by making sure to maintain good communication on a daily basis.  As with any business, clear and respectful communication among all stakeholders will lead to your franchise operating more smoothly overall. By staying informed about each other’s expectations and requests, both franchisees and franchisors will feel much more at ease (and therefore more productive!) in their work. To learn more about communication between franchisors and franchisees, request a demo or try Cerca for free: Get a 30-day free trial. You might also be interested in these articles:

franchise management software

The 5 key features of franchise management software

Franchisors, are you tired of losing candidates due to oversights, wasting time on time-consuming yet essential daily tasks, and looking to optimize your internal operations to grow your network faster and stronger? What are you waiting for to start using franchise management software? Traditional management software allows you to automate various tasks related to your quotes (creating, editing, filing, etc.). It also lets you keep a history of all your prospects. But specialized franchise management software like Cerca raises the bar even higher! Manage everything on a single platform—from candidate recruitment (from lead generation to signing the franchise agreement), manage your network, oversee the openings of your new locations, streamline and centralize order management for your franchisees, and access a whole host of other tools that will quickly become indispensable to your daily operations! In this article, discover the 5 key features of franchise management software. Recruiting Your Future Franchisees A franchisor shouldn’t just aim to attract candidates—they must actively seek them out through various channels: social media, trade shows, advertising campaigns, prospecting, and more. But above all, they must stay on top of it! Managing a wide range of candidates, tracking their progress through the process, and gauging their level of interest can quickly become time-consuming and inefficient if not optimized. Fortunately for you, there are features available to help you recruit and manage your franchisees with ease! This way, you’ll never forget to follow up with a candidate again—and you won’t risk losing a potential future franchisee!  Save valuable time when following up with your candidates thanks to features such as: automatic lead capture, setting up a personalized candidate portal, a franchisor dashboard so you can focus on your follow-up calls and candidate tracking, electronic signatures for your DIPs, and more.  Network Engagement To encourage your franchisees to stay within your network, they need to feel fulfilled so they’ll renew their contracts—which means you need to take good care of them. And for that, nothing beats effective network engagement! Network coordinators are there to serve as a link between franchisees and the franchisor to ensure that everything is running smoothly. This responsibility doesn’t rest entirely on their shoulders but rather on the franchisor’s—that is, yours!  To help you manage your network, you can rely on a franchise management tool. It will give you access to several features to streamline and centralize network operations on a single platform. In particular, you’ll be able to provide a knowledge base containing the operations manual and various documents essential to a franchisee’s day-to-day operations, in all formats (text, interactive catalog, video, etc.). You’ll be able to bring your network together by sharing news and information about upcoming events, organizing sales challenges among different locations, or conducting surveys to improve certain areas or find out what franchisees think of your brand.  Don’t forget what’s essential for the long-term success of your network: communicate not only with your franchisees but also with your network coordinators! Communication is simplified with the features offered by Cerca, including the ability to manage private or public workgroups with discussion threads, or to easily share visit reports via the platform to maintain a connection with the corporate office.  Finally, don’t lose sight of one of your key responsibilities as a franchisor: you have a duty to provide training to your franchisees. With franchise management software, creating training programs has never been easier! Create interactive e-learning courses (text, images, video) with quizzes, tests, and online results, and receive detailed reports once your franchisees have completed the training! Discover Cerca’s management software for managing store openings. Opening multiple locations with the same number of employees, reducing opening timelines, and accelerating the launch of operations, managing the progress of construction work or coordinating all internal and external stakeholders—these are challenges faced by all franchisors. Franchise management software with a module for managing openings and construction projects will truly transform your daily life as a franchisor and help you achieve your goals by opening more locations in less time—and, most importantly, in a more efficient way!  With Cerca’s module, you can centralize all tasks to manage all your store openings with confidence. With a single click, you’ll have an overview of all ongoing projects, followed by details for each new location, with the ability to assign tasks and set up automatic reminders and alerts if deadlines are missed. Task assignments can involve not only internal staff but also external partners (tradespeople, lawyers, architects). You can also create project management templates to plan and guide your teams’ daily work, making it easier to organize store openings on a day-to-day basis and ensuring nothing gets overlooked in the heat of the moment! Numerous customization options are available to help you achieve the most efficient workflow possible.  Online Management of Internal Orders for Your Retail Locations How about centralizing all supplier orders in a single e-commerce interface? This is another feature available with franchise management software. With this tool, your retail locations can order various marketing products (promotional items, apparel, promotional materials) or other items (food, office supplies) from different suppliers 24 hours a day on your own e-commerce site. This saves you time and allows you to offer franchisees a high-value-added service, giving them the convenience of using a single platform. For your development team, it’s a real[…]

franchisor

10 steps to becoming a franchisor

When you have a good business concept and your business is doing fairly well, you may quickly start considering expanding it through franchising: franchising is a relevant means of business expansion, provided you follow key steps that are essential to bringing the project to fruition under the best possible conditions. Asking yourself whether a franchise is feasible is already a step in the development of your business, but not all concepts are viable as franchises, and not all entrepreneurs are cut out to be franchisors. But if that is your primary ambition, you may be wondering how to become a franchisor. First and foremost, it’s important to understand that the franchisor’s lifecycle is similar to the industrial lifecycle, which consists of three stages: prototyping, pre-production, and industrialization. Applied to franchising, this translates to: design, pilot testing, and network development. In this article, discover the 10 steps to becoming a franchisor. Get started with Cerca 1. Understand the franchise market First and foremost, you need to fully understand what you’re getting into, because not everyone can become a franchisor! It’s a major career change, and it’s not for everyone. The first step, therefore, is to ask yourself the right questions by studying the franchise market as a whole and how it works, the pros and cons involved, the new role you’re about to take on, and so on.  2. Formalizing Your Concept: Modeling and Testing Are you well-informed about the franchise market and confident that you have a viable concept? Then it’s time to start formalizing your business model! But be careful: your concept must be new and clearly distinguish itself from what’s already on the market. It must be tested—preferably at multiple locations—to improve and refine it before rolling it out.  You’ll then need to define the franchise unit model (size, location type, etc.) and potentially make adjustments based on the pilot units. In fact, if your concept isn’t sufficiently developed, you’ll need to rework it to improve its financial performance across all locations! This may involve marketing elements, redesigning the original logo and tagline, or restructuring the product and service offerings. This could even extend to redesigning the architecture or developing a “Version 2” of the concept. It’s advisable to wait until the next season before drawing conclusions about the various changes made.  But for the network to function effectively, it’s equally important to consider your strategic organization as a franchisor: development, logistics, central purchasing, etc. And to define your own rules of the game, such as the criteria for assigning territories to franchisees, for example. 3. Ensure the Strength of Your Concept Indeed, experience will demonstrate the strength of your concept. Your business must be profitable, and you must have at least two consecutive positive financial statements for your location to become a pilot unit. This experience—lasting at least two years—allows you to test the concept, but also to understand the key ingredients of your success formula—and the areas for improvement! A simple concept that “works” isn’t always viable as a franchise. You must gain hands-on experience yourself to identify the challenges and understand why your idea works, so you can replicate its success elsewhere. 4. Drafting the Pre-Contractual Information Document (DIP) and the Franchise Agreement Next comes the legal structuring phase. As the franchisor, you’ll need to draft the Pre-Contractual Information Document (more commonly known as the DIP) and the franchise agreement. The DIP contains information about the company and its executives, contact details for current franchisees and those who have left the network within the past 12 months, the term of the contract, financial terms, and so on. It must be provided to the franchisee no later than 20 days before the contract is signed. The franchise agreement lists the general and financial terms of the partnership, the obligations of the franchisor and the franchisee, as well as the terms governing the transfer of know-how and the termination of the agreement. 5. Transferring Know-How Through the Operations Manual The transfer of know-how from the franchisor to the franchisee and the sharing of data related to the know-how used by the franchisor to ensure the long-term success of its network are facilitated through the operations manual. Indeed, to ensure your concept performs consistently across all locations and that your brand’s image isn’t compromised in certain regions, you must ensure that all your future franchisees have access to the same quality of tools and know-how available at the pilot location. After all, it is all these elements that will make up THE recipe for your success. The information gathered from the operational staff at the pilot location will be incorporated into operating manuals, so that the franchisee can operate the concept at the point of sale with confidence and under the same conditions as if they were working at a company-owned location.  Franchisees must understand the methods, criteria, and principles that have driven the commercial success of your concept. They will have access to all this information through the operations manual (or “manop”), which summarizes it in a commercial contract and serves as a legally binding document. 6. Launching Your Franchise Expansion Once you have refined your concept and quantified your investments and objectives, you can begin presenting them to your prospective franchisees. This recruitment phase is a delicate one in the life of a franchise network and crucial to its success.  First, you’ll need to define a recruitment policy aligned with your brand’s objectives and unique characteristics, but above all, you must make the right choices when recruiting your network’s first franchisees, who will serve as your “ambassadors.” They won’t be mere executors but true[…]

DIP

The DIP in franchising: build a relationship of trust!

You should know that, as a franchisor, you are required to have your prospective franchisee sign a DIP—a pre-contractual information document. What are your obligations, and how can you make the most of this document to start your relationship with your franchisee on the right foot? Check out the explanations from the experts at Cerca! What is the DIP? The DIP, or pre-contractual information document, is based on the Doubin Act, which regulates organized business models. Enacted on December 31, 1989, this law allows the franchisor to ensure complete transparency with the franchisee candidate regarding details about the network, and enables the franchisee to make an informed decision and sign the contract with all relevant information in hand. “Any person who makes a trade name, trademark, or brand name available to another person, while requiring that person to commit to exclusivity or quasi--exclusivity in the conduct of their business, is required, prior to the signing of any contract entered into in the mutual interest of both parties, to provide the other party with a document containing truthful information, enabling them to enter into the agreement with full knowledge of the facts.” The law was subsequently codified in 2000 by ordinances under Article L 330-3 of the Commercial Code. What is the purpose of the Pre-Contractual Information Document (DIP) for you and your future franchisee? The Pre-Contractual Information Document allows you to present the franchise network from administrative, financial, legal, and contextual perspectives. It brings transparency to the relationship with your franchisee and provides them with the necessary information to sign the agreement with confidence. It describes the market in which the franchise location will operate. Reviewing and signing the pre-contractual document does not bind either party. Only the franchise agreement formalizes the franchisor-franchisee relationship and its terms.  Give your future franchisee time to review the document and consider their commitment. Even the slightest pressure could come across as misleading and would not work in your favor. Don’t wait until the last minute to provide it, and make sure you’re available to answer any questions they may have.  The franchise candidate should take this time to read the document thoroughly and fully understand everything it entails. Answer their questions clearly; this will only strengthen their trust. To reassure the candidate, don’t limit yourself to providing only the information required by law. Provide the future franchisee with everything that can help them make an informed decision. Supplement the document with details of the project as it stands at this stage. You can entrust the drafting of your DIP to the attorney who advises your network. This will ensure your document complies with legal requirements. Franchise experts can also assist you with this process. All the documents you provide to your prospective franchisee will also demonstrate your brand’s professionalism. Take care to prepare them properly! Your Obligations Regarding the DIP as a Franchisor The Doubin Law is clear: the DIP must contain all the information the franchisee needs to make a decision and sign the franchise agreement. It must therefore be provided to the franchisee at least 20 days before the contract is signed, as required by law. To be compliant, the pre-contractual document must include certain information, as specified in Article 1 of the Doubin Decree of April 1, 1991. The DIP must contain: information about the franchisor (headquarters address, nature of business, legal form, identity of the director(s), share capital); the franchisor’s registration number in the Trade and Companies Register (RCS) or the Trade Register; if applicable, the date and registration number of the trademark in the National Trademark Register; the network parent company’s bank accounts, limited to the five main accounts; the date the company was founded; an overview of its development and evidence of the director’s experience; a list of the companies that are part of the network, particularly those bound by the same type of contract as the one to be offered, along with their addresses; the date these contracts were entered into or renewed; if the network works with more than 50 companies, a list of those that left the network in the year prior to signing and the reason for termination of the contract, as well as all locations where the products or services covered by the contract are offered; the terms of the proposed contract: its term, its conditions for renewal, termination, or assignment, and the scope of exclusivity provisions. The DIP must also include appendices presenting: the annual financial statements for the last two fiscal years or the reports prepared for the last two fiscal years. If you fail to comply with the terms of the law, you face two main penalties: a fine for a 5th-class violation, the cancellation of the contract entered into with the candidate, and the restoration of the situation to its state prior to the contract’s signing. How can Cerca help you implement the DIP? Cerca is a web platform that will help streamline your candidate recruitment process. As soon as candidates show interest, a dedicated candidate portal is created where they can view all the steps and attached documents. To streamline the process, documents—including the DIP—can be signed directly online. The candidate accesses their portal, where you’ve uploaded the relevant documents. This way, the candidate feels guided through each step and can access the various documents at any time, from any device. The interface is customized to match your brand’s visual identity. This immerses the prospective franchisee in your brand’s world from the very start of the recruitment process. Drafting a document[…]

animate a network

Our experts' 5 tips for running a franchise network

Starting a business and growing it as a franchise is a decision that requires careful consideration of several factors. Managing your network is, of course, one of them. It’s not enough to simply recruit new franchisees and then be there when needed. Managing a network is a genuine skill that you can highlight when searching for candidates. How can you optimize your network management and showcase it during the recruitment process? Our Cerca experts will guide you through this challenging yet rewarding mission. Why is managing your network essential? Your network is the strength of your business. You don’t have to look far back to see its value: the retail locations that weathered the COVID crisis most easily were the franchisees. However, the conditions for success must be in place. A network that works is an active network! Effective network management empowers retail locations to achieve their goals, both in terms of revenue and local market presence. To ensure optimal network management, it’s important for the network headquarters to implement a strategy. Define the goals you’re aiming for—both for yourself and for your franchisees’ retail locations. Within a clear framework, you’ll inspire and motivate franchisees and their teams on the ground. Effective network coordination starts with effective coordinators To energize the network and ensure the essential alignment between the network headquarters and the retail locations, you cannot do without a network coordinator. Their number and organization will depend on the size of your network and its geographic coverage. In any case, the mission remains broadly the same: managing the onboarding of new franchisees, ensuring compliance with the processes outlined in the contract, supporting franchisees in their operations, and overseeing the proper implementation of various strategies and the brand image. Your network coordinators represent your brand to the various franchisees and serve as the primary point of contact. They must therefore be thoroughly immersed in the brand’s world, its values, and its history so they can convey these on the ground through their recommendations. Find the right balance between autonomy and hands-on support. Managing a network is a real balancing act! Your franchisees operate within local dynamics, in different markets with their own specific characteristics, constraints, and opportunities. You won’t be able to apply a one-size-fits-all strategy to every aspect of every location. Give your franchisees a measured degree of autonomy to allow them to operate in a context they likely know better than you do. Clearly define the non-negotiable elements and the framework within which they can exercise this autonomy.  Similarly, a network coordinator won’t support a new franchisee in the same way as one who has been in the network for several years. Adapt to your franchisees’ local needs and be present where their expectations lie. Build a true community around your brand. Use local success stories to inspire the entire network. Effective communication and tailored tools will allow you to collect all performance data from your locations. Thus, within the framework you’ve established with your franchisees, some may develop strategies that will benefit the entire network. Collect this data and draw inspiration from these successes: create templates for documents and communication plans based on local initiatives, which you can then share with all your franchisees. Share best practices! One of the coordinator’s key responsibilities is monitoring the retail locations. During visits—and throughout the year—collect data and measure the performance of the various retail locations. Conduct comparative analyses and share them with the entire network. Beyond providing a benchmark for your franchisees, these figures also help boost their motivation. Foster a sense of belonging among your franchisees When a franchisee joins a network, they embrace its values, history, and strengths. To foster this sense of belonging and turn your franchisees into true ambassadors for your brand, create a family-like atmosphere around it.  In practice, it is the interactions—and their quality—that amplify this spirit. Schedule get-togethers once or several times a year. These seminars allow network members to meet, stay connected, and come together to discuss new issues or challenges.  You can also create an internal online space for the network and send out a newsletter to your franchisees. This will keep them informed about all the latest news regarding the brand and upcoming developments. In this way, you’ll build a community of franchisees who are proud to be part of your brand.  Implement an effective tool for managing and facilitating your network As the network expands, it becomes difficult to collect data and communicate using standard tools. A centralized system is essential at this point. It is precisely to create a better experience for your network members that we developed the Cerca tool. Designed as a true internal social network, the platform allows you to share information with all members of your network or with a selected group. Document management, online signatures, news—everything is designed for smooth and effective communication. Similarly, Cerca centralizes all information regarding retail locations and their performance. You can easily share your expertise through documents that are shared and always available to your franchisees. Provide them with a knowledge base as well as training resources. An essential tool for managing your network! Conclusion: Lead, manage, and excel! A significant part of your network’s success lies in how well it is managed. To[…]

Franchisees

Franchisors, find your future franchisees!

Choosing a network-based business model means recruiting new franchisees. There can be no growth without serious candidates. Finding prospective franchisees is therefore a fundamental challenge that every franchise faces. How do you find candidates? Where should you look for them, and how can you attract them? Follow our guide to recruiting franchise candidates! Your franchise concept must be attractive This is, of course, the first prerequisite for effective franchisee recruitment. Be the one being courted, not the one doing the courting! For candidates to flock to your network, your concept must be appealing. To achieve this, it must align with market demands by achieving a perfect product-market fit. A serious candidate will shortlist a few brands, including yours. To ensure their final choice is your concept, you’ll need to highlight as many key aspects as possible. Transparency is a good indicator of future success for a prospective franchisee. Make customer testimonials, your franchisee selection process, what you expect from your future partners, your network’s performance metrics, and more readily visible. Marketing to Recruit Your New Franchisees Your concept exists in the market and meets the needs of a certain segment of entrepreneurs through its unique features. But these features still need to be known and highlighted! This is where marketing comes into play: it will help connect your concept with the entrepreneurs for whom it is a solution. Don’t try to target every entrepreneur. Here’s a simple rule to remember: if you try to reach everyone, you’ll reach no one… Who is your concept aimed at? What are the profiles of the entrepreneurs for whom it’s particularly relevant? What are the needs of these candidates? Before you start recruiting, ask yourself what entrepreneurs are looking for in a franchise and how your brand can address those needs. Passion, profitability, a life-changing opportunity—there are many reasons to start a franchise. Focus on the reasons that apply to your prospective franchisees. Don’t be afraid to be selective or to narrow your focus too much. The more you define your scope, the more qualified and serious your candidates will be. Traditional channels still work for recruiting franchisees. Be present and visible at franchise trade shows. Every year in France, several trade shows dedicated exclusively to franchising take place throughout the year. Prospective franchisees come to these events to meet with network leaders, discover new concepts, or find financial or legal partners. By having a visible presence at these trade shows, you create a prime opportunity to connect with your target audience. Pay special attention to your booth. Beyond customizing it with your brand’s colors, offer visitors a unique and memorable experience. You’ll impress them with your expertise and demonstrate your brand’s dynamism and constant innovation. Platforms for connecting franchisors and franchisees These websites function like directories: they provide a space for you to present your network and highlight the factors that set you apart from the competition. Prospective franchisees can then contact you directly through the platform.  These platforms (Toute la Franchise, L’Observatoire de la Franchise, etc.) help attract a large number of candidates. Because it’s so easy to submit an application, candidates aren’t always highly qualified. Some prospective franchisees contact multiple brands with a single click. Set aside time to select the best candidates. Take the web by storm with social media! LinkedIn and Facebook lead the way. A candidate’s very first research takes place online. Franchise or not? Which brands? Which industries? A prospective franchisee will turn to the web to find initial answers to these questions. Don’t let others provide them! Be the authority in your market by positioning yourself along the candidates’ path.  Just like Tom Thumb, place pebbles along the candidates’ path to lead them to your brand. Social media is a primary point of contact. Many entrepreneurs use it to search for opportunities. LinkedIn remains, of course, the leading B2B social network. Facebook also contains interesting profiles depending on the sector you’re in. Be active to make your brand visible: Create a business page, share news about your network, your performance metrics, new locations, and everything that sets you apart in the market. Also be active in engaging with posts from other players in the franchise industry. Social media is based on the principle of sharing: the more you give, the more visible you are, and the more engagement you’ll get on your posts. Comment and like! LinkedIn particularly values personal accounts. Prioritize them for your communication.  Your posts should answer your target audience’s questions. That’s the whole point of having researched the needs of the candidates you’re looking for. Now is the time to put that knowledge to use and show that you’re the brand that will meet those needs through regular posts. Social Media Advertising to Recruit Franchisees Candidates are looking for the ideal franchise. By running a sponsored post, you can position yourself as a viable option in the eyes of your target audience. By pinpointing the needs they face, you become the solution. Opening a franchise should be seen as a career milestone for your candidates. Social media advertising has another advantage: it allows you to precisely target the profiles to whom you’ll show the sponsored post—by geographic area, industry, interests, and more. This increases your chances of attracting candidates who are a good fit for your brand—and therefore more qualified. A franchise-specific recruitment website to attract candidates Combined with social media, a brand website dedicated specifically to recruitment can literally boost your candidate outreach. Provide all the information a future franchisee[…]

franchise mobile application

A new mobile application for exchanges with your network.

The new version of our mobile app is now available. It includes the key everyday features for interacting within your network (News with comments and likes, Interactive Directory, Messaging, Work Groups, and Notifications), while all other features remain available in a responsive design. What’s coming next to the mobile app? Audits and visit reports before summer break for program leaders! The super-handy “exchange memo” feature before the end of May! The essential features of the “Candidate Recruitment” module before fall! This mobile app uses your brand’s colors to personalize the user experience (Apple does not yet allow a brand-specific icon for two completely identical apps…). Here’s a reminder of the steps to easily download and set up your personal account on the mobile app. __________ To download the Franchise On Cloud mobile app on Android or iPhone, please follow the steps below: 1. On your smartphone’s home screen, locate the Play Store icon. If you’re using an iPhone, find the “App Store” app and tap it to open it. 2. You’ll be taken to the App Store’s home screen. In the search bar, type “franchise on cloud.” In the list of apps, you’ll find the Franchise On Cloud icon. Tap it. 3. Next, to install the app, tap “Install.” 4. Once the app has finished downloading, tap “Open.” 5. You’ll then be taken to the mobile app’s login page: 6. You now have two options for logging into your account: The first is to enter your email, password, and platform URL. Then click “Log In.” The second, simpler option is to log in using a QR code. To log in with a QR code, click “Log In via QR Code.” The Camera app will then launch. Log in to your platform using your laptop or desktop computer. In the top bar, click the smartphone icon. 7. Point your smartphone’s camera at the QR code displayed on your computer. 8. You’ll then be taken to the home page. Would you also like to manage your network and recruit candidates using a single tool? To contact us or follow Cerca news ➜ ☎️ LinkedIn You might also be interested in these articles:

CRM software

Why use a CRM for franchise development?

Tracking franchise applications doesn’t always go smoothly: for example, you might follow up with a lead a little too soon or lose them due to a lack of support. However, there’s a simple solution for tracking franchise applicants: CRM. We’ll explain how optimized management of your applications can be the cornerstone of successful growth and effective outreach. What is a CRM for franchising? Customer Relationship Management (CRM) is a software or online solution that allows you to track interactions between your network and franchise candidates or your franchisees. Collecting and organizing this data—regardless of its nature—allows you to track the progress of your candidates and make the most informed decisions for the growth of your network. This sharing of information ensures that your teams are fully aligned.  Centralize Your Franchise’s Candidate Data with a CRM Using a CRM centralizes all your lead data: contact information, interaction history, documents, and more. Quickly find all the information you need about a potential candidate in one place. With a CRM, your development teams have easy access to all data, anywhere, anytime. With the collaboration of everyone involved in your network’s development, the information collected is constantly updated—manually or automatically in most cases. The time savings are considerable! No matter where your leads come from, they’re all gathered in your CRM database. Take control of candidate tracking by streamlining the recruitment process in your CRM. Integrating a CRM into your recruitment process requires you to re-examine each phase and evaluate it. What steps does a candidate go through today, from the initial contact to the opening of their retail location? Why is each stage necessary, and what is its purpose? Isn’t there another way of operating that would streamline the candidate’s progression to franchisee status? Rethink and standardize your candidates’ progression to make it seamless. Then integrate the revised steps into your CRM tool. The actions to be taken at each stage are now clear, explicit, and embedded in your management system. Your development team knows exactly what action is expected, when, and for which candidate. Automate certain processes with your franchise-specific CRM. Without a CRM, there’s a risk that certain steps will be overlooked. Imagine a candidate waiting for a document to sign. Two days, three, a week… The recruitment process stalls here due to a lack of follow-up. With a CRM solution, sending documents, opening accounts, or organizing an immersion day are all automated! Once a candidate completes an action that closes out a step, they automatically move on to the next one—without any manual intervention on your part. You save precious time.  Keep people focused on what matters most with a CRM The main concern often raised when automation is discussed is that it removes people from a process where they should be at the center. On the contrary, automation allows you to focus on the elements that require the most human intervention: relationships and communication. Introducing a CRM tool into the recruitment process allows teams to spend more time where it’s needed. Communication usually begins at the first sign of interest from a franchise candidate. Did they fill out a form on the recruitment website? A contact is automatically created in your database, an initial message can be sent, and an appointment is automatically scheduled for a time slot when you’re available. All you have to do is engage with the candidate. Recruiting franchise candidates is one thing, but what comes next? The value of a CRM doesn’t end right after a new location opens. On the contrary, that’s just the beginning of the features available. A franchise-specific CRM will also allow you to manage and coordinate the network. Once again, the advantage of implementing a CRM in your business lies in centralization. As we know, this is particularly important for franchises. The idea of being able to send the same message at the same time to all your franchisees in the field is appealing. Orders, communications, reports… Send what you need to whom you need.  Similarly, news about your franchise network can be delivered in the form of a feed, similar to how social media works.  Easier Statistics and Metrics Tracking with CRM for Franchises Tracking your performance metrics is essential for effective network management. It’s by identifying gaps between actual results and set goals that a franchise can identify the most relevant avenues for improvement. A CRM allows you to maximize your potential by providing on-demand statistics. Conversion rates, contract signing costs, data for each stage of the franchisee recruitment process, and more—your metrics are accessible at any time. You now have reliable benchmarks for optimizing your network year over year, for example. What are the results for franchise networks that use a CRM? A CRM, first and foremost, saves time. With Cerca, a franchise network saves an average of 17 % in time when signing a contract, while the cost of signing that contract drops by 19 %. The conversion rate, meanwhile, increases by 26 %. In short, everything is under control and optimized in real time. Franchise candidates are at the very heart of your network’s development. To give your franchise the best possible chance of success, candidates must feel confident, supported, and guided. That’s exactly where[…]

mobilosoft

Cerca X Mobilosoft Partnership

Discover our new partner, Mobilosoft, a specialist in local digital marketing for franchise networks. Through this partnership, Mobilosoft complements our comprehensive franchise management software, with the goal of driving more customers to physical stores. Mobilosoft at a Glance Mobilosoft is the most comprehensive local digital marketing solution for driving web-to-store traffic on the French market. Mobilosoft offers a collaborative digital marketing platform for franchise networks and their franchisees. Through this SaaS platform, franchisors and franchisees can manage their online visibility, oversee their online reputation, and run organic and paid campaigns on the platforms that matter most: Google, Facebook, Instagram, Store Locator, Waze, Apple Maps, and many others.This offering is complemented by high-quality customer service as well as training for franchisees on the platform and the challenges of local marketing. For the past 11 years, Mobilosoft has operated on three continents, serving more than 150 clients with a total of over 25,000 points of sale. How Mobilosoft Complements the Cerca Offering The integration of our two platforms now enables franchisors to complete the digital transformation of their network through our Franchise on Cloud platform by managing their point-of-sale digital marketing via the my.mobilosoft platform. In practice, they can now manage the online visibility of their Google Business Profile, Facebook, and Store Locator pages, run organic and paid campaigns, and manage their local online reputations. And all this in just two clicks! The Mobilosoft x Cerca Partnership: What’s Next? Through this collaboration, we aim to offer the most comprehensive digital solution for franchise networks on the French market. Given that nearly 80% of consumers who conducted a local search visited a store within an 8-km radius (HubSpot Marketing Statistics 2021), digital is a cornerstone of franchise management and development—whether for recruitment, order management, or communication. To support franchises in managing their local digital marketing, Mobilosoft and Franchise on Cloud are offering a series of resources (webinars, articles, videos, tutorials, etc.) to explain the basics of digital marketing and answer franchisees’ most frequently asked questions. You may find these articles interesting: