A franchisor’s duty to a franchisee is nothing new in the world of franchising.
Legally, according to French and Europeans norms, a franchisor owes his franchisee support throughout the duration of their contract. He must, in essence, “provide his franchisees with preliminary training and continued commercial and/or technical support for the duration of the contract”.
Consequent to the obligation to transfer know-how to the franchisee, this support is necessary not only for stimulating activity in the new franchise but for the whole network.
This obligation is maintained throughout the franchisor/franchisee relationship, from the initial training, right up until the end of the contract.
Does this then mean that this support is also applied to one of the fundamental elements of franchising: the decision of where to place the business?
“It is true [that the franchiser] has an obligation to provide the franchisee with support regarding the establishment and maintenance of a franchise. This support can, to a certain extent, include the decision of location, but ultimately this does not require approval from the franchisor”, Ms Asna Lasri explains.
But what form should this support take?
“The franchisor knows the market perfectly and it is strongly in his interest that the locations chosen by his franchisees are as logical as possible.”
It all begins with the Pre-contractual Information Document (PID) in which the franchisor communicates information about the franchise to the franchisee before the contract is signed. The aim of this document is to convey a faithful image of the state of the business.
With the PID, the franchisee is then able to develop their own idea about the economic interest of the venture.
“Although the franchisee candidate must, above all, act as an independent trader in evaluating the state of the market, it is clear that the franchisor can offer a particular kind of assistance when it comes to the research and decision of a location”, Ms Lasri explains.
The reason for this is simple. The franchisor knows the market perfectly and it is strongly in his interest that the locations chosen by his franchisees are as logical as possible.
With this in mind, for several years now Symaps.io has been accompanying franchisors and franchisees in their selection of the best locations for new openings.
the “duplication” of successful existing locations through the analysis of a catchment area’s DNA
Thanks to a proprietary algorithm, our solution allows franchisor/franchisees duos to find a location that meets all of their business criteria.
A dual technology service for franchisor/franchisee duos
Our technology allows, for example, the identification of the best location for a premise that fulfils a variety of objective criteria (pedestrian flow, vehicle flow, amenities etc).
It also allows the “duplication” of successful existing locations through the analysis of a catchment area’s DNA and the identification of equivalent catchment areas elsewhere.
These “twin” locations are identified through the detailed analysis of the catchment area.
This process involves leveraging billions of data points anonymised in line with GDPR regulations.
If you’re developing a franchise network or looking to open one, don’t hesitate to contact us so that we can help you to find the best locations for your future openings!
Symaps is an AI-powered location intelligence platform that helps you find the best locations for your business. Our platform is built for emerging and established brands & retailers looking to scale their business or optimize their existing locations. With a strong focus on retail, FMCG, and real estate, Symaps combines the power of machine learning & AI and acts as the backbone for companies for whom location matters when it comes to making key strategic decisions.
Our team of experienced data scientists gathers, processes, and models large volumes of raw multidimensional data (public and private) to distill it into actionable, easy to use, and visually appealing map based insights.
Our proprietary machine-learning algorithm actively learns what drives your business successes and offers advanced data capabilities and predictive technology to empower a company of any size to perform in-depth market research and gain strategic insights in a matter of minutes.
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