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In recent years, the topic of entrepreneurship has become increasingly common in the lives of Brazilians. The dream of running one's own business, working on a project in which one truly believes, and the delicate economic situation that the country is facing are considered the main reasons that lead people to become entrepreneurs.
According to the Entrepreneurship in Brazil 2016 survey , conducted by the Global Entrepreneurship Monitor (GEM), 48 million citizens, aged between 18 and 64, are involved in creating or maintaining a business. Also according to the study, the total entrepreneurship rate in the country last year was 36%, and of this total, more than half of the ventures (19.6%) are represented by early-stage businesses.
Among the possible ways to become the owner of your own business, it is possible to either create a company from scratch or rely on the experience of someone who already has a business in the market. If the latter option is chosen, the entrepreneur can become a franchisee of a brand or even acquire a licensing agreement. Although both offer the possibility of using an already established brand, the two models have different legislation and significant differences related to the business format and the entrepreneur's autonomy.
But after all, which path should you follow? According to experts in the field, the choice between opening a franchise or licensing usually depends on the type of business the entrepreneur wants to have, their experience in the subject and their boldness regarding the new venture.
To understand a little more about how each model works, learn about the main characteristics of franchises and licensing below.
Content
The main features of the franchise model
The main features of the licensing model
Franchising vs. Licensing: Main Differences Between Models
The main features of the franchise model
The franchise model consists of a type of commercial contract between two independent companies, in which the company that grants the brand is called the franchisor and the entrepreneur who acquires the rights to the new venture becomes known as the franchisee. According to a survey conducted by the Brazilian Franchising Association (ABF) , in 2016 the sector showed a 3.1% growth in the number of franchises in the country, with more than 142 thousand units spread throughout Brazil. Also according to the survey, last year Brazilian franchising earned R$151.2 billion, which represents an increase of 8.3% compared to 2015.
When making the investment, the franchisee receives the entire management system that will need to be followed in the business. This is because the unit must follow all the canadian ceo email list brand's standards, which in turn offers all the support, training, standards and knowledge for the company's development. Thus, the entrepreneur learns all the steps that will be necessary for the success of his/her business, such as the architectural plan and layout of the store, the people management model to be applied to employees and promotional actions.
Therefore, the great advantage for entrepreneurs in choosing the franchise model is that they are acquiring a brand that is already well-established in the market, and can therefore benefit from all the previous experience that the franchisor offers. Furthermore, whenever problems or doubts arise, the franchisee can request support and turn to the franchisor for assistance from field consultants.
According to the Entrepreneurship in Brazil 2016 survey , conducted by the Global Entrepreneurship Monitor (GEM), 48 million citizens, aged between 18 and 64, are involved in creating or maintaining a business. Also according to the study, the total entrepreneurship rate in the country last year was 36%, and of this total, more than half of the ventures (19.6%) are represented by early-stage businesses.
Among the possible ways to become the owner of your own business, it is possible to either create a company from scratch or rely on the experience of someone who already has a business in the market. If the latter option is chosen, the entrepreneur can become a franchisee of a brand or even acquire a licensing agreement. Although both offer the possibility of using an already established brand, the two models have different legislation and significant differences related to the business format and the entrepreneur's autonomy.
But after all, which path should you follow? According to experts in the field, the choice between opening a franchise or licensing usually depends on the type of business the entrepreneur wants to have, their experience in the subject and their boldness regarding the new venture.
To understand a little more about how each model works, learn about the main characteristics of franchises and licensing below.
Content
The main features of the franchise model
The main features of the licensing model
Franchising vs. Licensing: Main Differences Between Models
The main features of the franchise model
The franchise model consists of a type of commercial contract between two independent companies, in which the company that grants the brand is called the franchisor and the entrepreneur who acquires the rights to the new venture becomes known as the franchisee. According to a survey conducted by the Brazilian Franchising Association (ABF) , in 2016 the sector showed a 3.1% growth in the number of franchises in the country, with more than 142 thousand units spread throughout Brazil. Also according to the survey, last year Brazilian franchising earned R$151.2 billion, which represents an increase of 8.3% compared to 2015.
When making the investment, the franchisee receives the entire management system that will need to be followed in the business. This is because the unit must follow all the canadian ceo email list brand's standards, which in turn offers all the support, training, standards and knowledge for the company's development. Thus, the entrepreneur learns all the steps that will be necessary for the success of his/her business, such as the architectural plan and layout of the store, the people management model to be applied to employees and promotional actions.
Therefore, the great advantage for entrepreneurs in choosing the franchise model is that they are acquiring a brand that is already well-established in the market, and can therefore benefit from all the previous experience that the franchisor offers. Furthermore, whenever problems or doubts arise, the franchisee can request support and turn to the franchisor for assistance from field consultants.