The lawyer specialized in franchising answers questions to those looking for a company
Summary
The franchising specialist clarifies common doubts about the franchise acquisition, highlighting aspects such as contracts, support, rates, territorial exclusivity and risks involved.
Anyone who you think of investing in a franchise has many doubts, after all, becoming a franchisee is the owner of their business, but following standard and rules. Franchising are formatted activities, in which the franchisor gives the franchisee the right to use its brand to the payment of a franchise and royalties fee, always with the transfer of know-how. Commercial partners follow law 13.966/19, which governs the franchise system in Brazil and have no employment relationship.
“But this is only a summary of a very complex report,” says Thais Kurita, a franchising lawyer, who has been working in the sector for over 20 years and is a partner of the Novo Prado Maciel Pinheiro Advogados office (NPMP Advogados).
To better clarify the topic, the Thai have answered the main questions of the candidates for a franchise:
1. Can I participate in more than a selection process in a franchisor?
“Yes. When a franchising candidate looks for a franchisor, it can be interested in more than one brand. Therefore, before paying any commission, he can participate in the selection process of two franchisors, for example, to understand the differences between them. Only after the franchising selection process receives the franchising A (COF) offer, a document that explains the business. (13.96/19). of the franchise contract.
2. If you buy a franchise, will I receive operational support?
“The franchising law does not require the franchisor to offer operational support to the franchisee, but that the franchisor will clarify in the franchise contract, if it will be supported and how it will be done. However, it is strongly recommended that the franchisor has prepared to support the franchise network on operational, commercial and financial problems, since these aspects have a significant impact on the health of the series.
3. When buying a franchise, will I have to follow the standards?
“Yes. It is the responsibility of the franchisee to maintain the rules and standards established by the franchisor in the franchising unit, ensuring the consistency of the brand. The franchisee must accept and implement the guidelines, the guidelines and the best practices provided by the franchisor. This should not be seen only as an obligation, but also as an advantage for those who take advantage of the franchise system.”
4. Will I have more than a franchise of the same brand, becoming multifaceted?
Becoming a multiform will depend widely on its performance, on its performance as an operator of the franchise unit. Most affiliates allow affiliates to acquire more than one franchise unit and even encourage this practice. In the end, there are some who do not give this option. Therefore, it controls how the brand acts contractually before joining.
5. Can I have a franchise from different brands?
“In general, yes – but it is essential to look at the contract before signing it. Some franchisors do not allow the franchisee to have more than one brand and almost everyone does not accept that it acts in the same segment with different brands, with the aim of protecting its company secrets – and this makes much sense.”
6. Can the franchisor implement other franchise units near mine?
The franchising law does not oblige the franchisor to grant territorial exclusivity, but requires that this problem is clear in the franchise contract, or the franchisee must clearly understand where it can act, if there is preference in a territory, if it is exclusive or if there is neither exclusivity nor exclusivity.
7. All affiliates charge the monthly taxes of their franchisee?
It depends on the brand. The monthly commissions charged by franchisees are called Royalties and correspond to the right to use the brand. They are needed so that the franchisor can keep up. Royalties can be charged on gross revenues of franchise unit (which are more common) or incorporated into product purchases. There are other commissions charged by Franchisee, such as the advertising fund, which is not a recipe for the franchisor, but a value that is used for advertising of the franchising network. All commissions charged must be included in the franchise contract.
8. Can I have members in my franchise unit?
“Most of the franchisors allow the franchisee to have partners, always making those who make up the company in the contract. In some business models, it is almost impossible not to have members, due to the high value to invest.”
9. Are there franchise funding?
In the end, some banks launch franchising credit lines, but interest rates practiced usually make businesses. From the market experience, it is advisable that the entrepreneur invests only what he has, without depending on the loans, thinking of a value value below the available capital, as he will need circulating capital to compose the company and will not remove it until the franchise reaches its balance and will begin to make a profit.
10. What happens if the franchising unit is not successful?
“The success of the franchise unit will depend on several factors, such as the chosen commercial point, the profile of the franchisee, the dedication to the business, the structure and the support offered by the franchisor, the products and services marketed, the investments in marketing, the innovation skills, the innovation skills, the portion of the team and the franchisee itself;
“What we recommend is that there is no phase of the selection process, both by the franchisor and the franchisee. From the franchisor, it is necessary to understand exactly what are the expectations of the franchisee and act with transparency, clarify what will be offered due to its account. Specialized in franchise, for detailed analysis.
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Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
