The franchising business model is nowadays an alternative to the traditional company structures; its popularity is growing among the entrepreneurs, for whom this business model has a great potential and a projection for the future.
Franchising involves granting of operating rights for services and/or products under an established trademark and on a determined area. That means that the franchisor provides know-how, production and support to a franchisee, who will make business under the franchisor’s trademark for a specific period of time, in a specific area and always subjected to the rules signed on the franchise agreement.
Business reports of the most prestigious consultancy companies show that the franchising system is in a very good economic situation and that it is prolonged in time: since 2005, number of new franchises have risen, and the forecasts show that increasing figures will last for a long time.
Also, entrepreneurs managing a franchise as a business option have a lowest failure rates on the first five years from the opening, compared to others business models. And it has to be considered, too, that rate of return on investment is about two and a half years and that is a very short period when talking about business.
Franchising system is advantageous for the trademark owner, the franchisor, who can expand trading market in the way that entrepreneurs, the franchises, will do business under the same trademark but in different areas, so its market position will be reinforced: franchisors offer trademarks, products and a economy of scale that benefits the investor and also training, support, production systems, know-how, etc.
Entrepreneurs interested on franchises are dealing with a successful business, renowned and economically profitable, and that is a competitive advantage in comparison to other companies operating in the same market segment.
In this regard, a real estate franchising is an option to be considered so it is based on professionally and commitment beside including a service with a high added value.
MPC Group has signed an alliance with Century21 and has become Regional Master of the trademark on the Costa Blanca area. With the company Century21 Levante, part of the MPC Group, we support the entrepreneurs who want to be a part of the biggest real estate network in the world.