Franchise is one of the best growing sectors of small business. We are more and more willing to open our own businesses under the name of a well-known brand.
The franchise sector is experiencing a real boom. According to Franchising.pl system and portal, last year the number of franchise stores and service outlets increased by 4356 and reached the number of 75 865. In 2016, there were “only” 2943, while in 2015 – 2568.
One of the most known and recognizable franchisors in Poland are the McDonald’s and Żabka chains. However, this sector offers the possibility of acting not only under the name of these two well-known brands. Last year, there were 108 new concepts (68 finished). Ultimately, the market has grown by 40 franchise systems and thus ended the year with a number of 1212 marks.
Usually, licensed companies are small, family-owned enterprises. That is why the franchise sector is considered one of the main paths of small business development.
And although made up of small ones, it is becoming an increasingly large employer. From this report, we learn, among other things, that with an average employment of five or six people per franchise office, the number of employees in such companies exceeded 405 thousand. people. And if you add people employed by the franchisors, it turns out that over half a million people work in the industry.
The impulse to start a business is usually a desire to improve the material status, looking for a way to earn more. A business model based on a franchise offers additional value – a brand that increases the chance of a start-up company right from the start. It makes the unknown, private business become recognizable. The second large group of people deciding on a franchise has completely different previous experiences. They are people who have made a career in corporations or large companies, achieved high material status, were managers, managed, and now decided to run their own business. They want to become owners. They have money (or know how to get it) and want to invest. They perfectly understand that the brand, its recognition and reputation are important. They know that the procedures and solutions developed by the franchiser are of great value.
Both for one and the other the possibility of running a business under a known brand is associated with the use of nationwide advertising of a given network. This means that small entrepreneurs no longer have to invest in promotion. This is provided by the licensor. In addition, the franchise also means significant discounts at the suppliers, which makes it easier and cheaper to start and run the company.