Have you ever thought about turning your business into a franchise? Scaling your own enterprise is a common desire of many entrepreneurs, but not everyone knows how to do it. In this article, we invited Igor, a financial management specialist from Gestão 4i, to talk about what his financial area says about being a franchise.
Gestão 4i is a company dedicated to democratizing education in financial management, bringing content and knowledge to the market. According to Igor, education is essential to change the world and transform our companies.
Igor has a degree in administration with a specialization in agribusiness and has over 15 years of experience in the financial market. He also took a course at Insper, a renowned institution in São Paulo.
With all his experience and knowledge, Igor realized that many people have difficulty with finances and do not understand the technical terms used in the market. That's why he decided to create Gestão 4i and help people understand that finances are not as complicated as they seem.
But what exactly is a franchise? According to Igor, a franchise is a business model in which the owner of the brand grants the right to use their brand, know-how, and processes to third parties, the franchisees, in exchange for a franchise fee and royalties.
One of the main advantages of being a franchise is the possibility of scaling the business without having to invest a lot of money in advertising and marketing. This is because the brand is already known in the market and advertising is done by the franchisees themselves.
Another advantage is that the risk of starting a business from scratch is minimized. This is because the franchisor already has a tested and approved business model, which reduces the chance of errors.
However, it is important to be aware of contractual obligations and the fees charged by the franchisor, which can be quite high. In addition, the franchisee needs to strictly follow the processes established by the franchisor, which can limit their creativity and freedom.
In summary, turning your business into a franchise can be a great opportunity to scale your profits and minimize risks, as long as you are willing to follow the rules established by the franchisor and bear the fees and contractual obligations. If you are thinking of becoming a franchisee, do thorough research on the franchisor before making your decision.