Where the creation of a Terminal home for taxis

Olivier Mignot, consultant Franchise Management

Succursalistes: why franchise

In the large distribution, the first movement of franchise development is is achieved "sustained". "The markets networks incorporated independent contractors by buyback operations or resumption of points of sale, the constraints of the Royer law existing" The clothing sector has shown the example in penetrating markets identified by a mode of development chosen. The franchise can now allow sector networks large distribution specialized to conquer new territories to small towns and especially new countries. ", explains Olivier Mignot, consultant Franchise Management.

New Territories: Guadeloupe, Corsica, China, Middle-Orient

Some territories where there are yet many applications, little competition and low taxes, are not accessible to development in clean, for several reasons:-the legislation, such as the Morocco or the Middle East for example where the majority of the capital of a company must be owned by a local partner. -high risk, as in Russia or Liban - a territory too reduced to finance an autonomous structure, as in Guadeloupe or Martinique; five stores are generally required to amortize such an investment. "If a succursaliste network wants to settle in Guadeloupe, only a third-party company established locally will be able to estimate its fair value the cost of operating on the ground and put in place logistics and the corresponding central services, amortizing the expenses of this investment option on a portfolio of brands." For example, a large part of the margin is conditioned by the ability to fill a container, this genuine know-how belonging mostly to local operators. ", said Olivier Mignot.

Cultural or geographical predict adaptation

In these territories to conquer some cultural or geographic codes are completely called into question. "In these hot countries, locations number 1 are not on the side of Sun and shade." Parking is underground and therefore invisible, unlike our lands. Culturally, the Middle East, uses very little public transportation but taxis. Where the creation of a Terminal home for taxis. In some countries of the Gulf, men and women do mix not at the point of sale. The non-integration of these parameters may question the viability of the project. ", said Olivier Mignot.

Free upgrades succursaliste network

For a network, to the weight of the stock and the management of the human risks are worn by the franchisee. Beyond this profitability of assets more important, "the franchise offers a network developed own focus on expertise, identifying its Genoa." This practice of sharing the knowledge more easily distinguished essentially superfluous, serves as a filter on the expertise of the network. Thus, the royalties of the points of sale are for example differently calibrated. New knowledge, such as the integration of the cost of transport directly in the price of the product, improve the functioning of the stores. "In the end, the know-how is enriched, and the company succursaliste, recycled, making taxation experts and happy shareholders", says Olivier Mignot.

The franchise: a balance for the network

If any succursaliste network strategically needs to expand his territory, he benefit of a form of balance with the franchise. "In times of crisis, only leaders survive." And to be leader, one must be present at the international and its points of contact with customers. In addition, the crisis strikes never uniformly all continents. On the other hand, the risk climate impact of increasing consumption. Stocks are often purchased one year in advance and -50 or - 60 balances impair the image of a mark. If the summer was poor in Europe, the merchandise can be sent to the Middle East, in the où DOM is the summer when it is winter in Europe. With the phenomenon of reverse season, can test a collection of summer on a continent and make a correction to the ranges for other countries. Franchisee benefits from forward first new and integrated network has 6 months of visibility on sales to adjust its commands: the winner/winner! ", confirms Olivier Mignot.

Land, stock, supply: what cost free

In this the heaviest franchise investment, is land. "In the Dom - Tom, building costs on average 25 more expensive to achieve in France due to seismic and cyclone risks." The stock is more high that the source is removed. Cash requirements, they must able to cover often more than 70 days - 30 days of transport by boat - for the supply, as is the case for the meeting. On average, the investment is more important 20 from a store in metropolis. Attention: these specificities must be integrated into the economic model to ensure a balanced contract. "The franchisor must always ask the question of the reasons that will push the franchisee to renew his contract," said Olivier Mignot.

The lack of autonomy and training errors to pay cash

In addition, all the concepts are not "franchisables" in all countries. "It is imperative not to question the genes or DNA of the concept code in its transposition". It must also anticipate operational issues such as maritime legislation - different land transport - logistics and anticipate the place of arbitration of the conflicts. In the transmission of know-how, which is quickly corrected in France can be very expensive to 10,000 kilometres from its base. The lack of autonomy and the errors in training pay cash. ", said Olivier Mignot.

Recruitment of franchisees

As soon as a national or international sign announces intention to locate in the Dom - Tom, or in the Middle East, it is immediately contacted by a few local operators in the area. "For the sign, it will be then decisive select operator able to meet its know-how to master the corresponding logistics, have adequate commercial sites or good potentials of development.", recommends Olivier Mignot, his experience in decathlon.

Pilot and wave background

Between 2003 and 2008, Olivier Mignot led the development free of this sign. He said: "we created a pilot in the South of the France on a town of 14,000 inhabitants." Which allowed us to accompany the creation of two points of sale in franchise to Réunion, Guadeloupe, Martinique 1 1 and 2 in Dubai. Leroy-Merlin opened duty-free in the Dom - Tom and Corsica. This development in large markets specialized distribution signs franchise is a groundswell, we are only at the beginning. The franchise is a great way to development secure condition on the one hand to have specific tools of the trade of franchisor, on the other hand to use and finally adapted to the local environment: a true trade full so must be acquired before embarking.

1 Franchise Management is an expert consultancy in the creation and optimization of franchise networks. He has more than 38 years of experience and was accompanied by more than 110 signs to date - )