Franchising is a commercial concession – a type of relationship between market subjects where one of them (Franchisor) provides the other (Franchisee) with the right to use a developed and successful business model under certain conditions and in return for a fee. It is a form of licensing, a type of strategic alliance usually utilized by companies with prestigious brands and well-established image.

Master Franchising – the Franchising systems develop faster when there are Master Franchisees for large territories or entire countries. They not only have the right to open their own outlets, but also to relinquish Franchising rights to other Franchisees. It is common practice for the Master Franchisee to also supply the training and other services usually provided by the Franchisor, and to split the proceeds from those fees with him.

Franchising contracts are individually negotiated. The object of the contract and the Franchisee’s main asset is the prestigious brand. The payment usually consists of an initial fixed fee in addition to a percentage of the profit from the Franchisee’s sales. This type of unnamed contracts is most common in the sphere of retail sales and services and all parameters in them are negotiated in advance.

The Franchisor provides the other side with the know-who, technical assistance, spare parts, staff training, advertising strategies, management concepts, and any other tangible or intangible assets, typical for the business in question. On his part, the Franchisee commits to uphold the quality standards set by the Franchisor, as well as to implement his marketing policies.  In other words, the Franchisee agrees to comply with the Franchisor’s instructions by allowing him to conduct quality control checkups.

Franchising – the contracts can also contain an exclusivity clause, obliging the Franchisee to only offer the Franchisor’s products and services.
From a competitive point of view, Franchising is a vertical integration of two enterprises. Apart from the supply of established products, brands and practices in return for licensing and other fees, it also usually involves negotiating prices, territorial scope, method and advertising of sales.

Types of franchising
-    Product Franchising – in which the Franchisee has the right to manufacture the products and services himself, utilizing the production experience, know-how and trade brands provided to him.
-    Distribution Franchising – in which the Franchisee only has the right to distribute the products/services manufactured/provided by the Franchisor.
-    Service Franchising – in which the Franchisee has the right to supply the services provided by the Franchisor.

The benefits from the franchising contracts are two-sided
-    The benefit for the Franchisee lies in taking advantage of the popularity of a given product, without having to invest his own resources in the development of his own product range and trademarks.
-    The benefit for the Franchisor lies in the opportunity to expand his distribution network to new markets at minimum costs.

   Where International Franchising is concerned, it is extremely important to determine the level of standardization of the products/services. The Franchisor’s success on the foreign market depends to a certain extent on his willingness to adjust his products to the demands of the market – probably even altering the very characteristics of his product that helped him establish his brand.  

The reasons for the quick development of the franchising chains are:
-    The providing of a strong and well-known brand.
-    An established business model, providing know-how and good practices
-    Support from the Franchisor, which may include: training, assistance in the selection of location, assistance in the conducting of marketing and advertising campaigns, etc.

According to a research, conducted in Bulgaria between February and March 2012, 55% of the polled Franchisees have bought a Franchising contract for of the strength of its brand; 62% - because of their desire to be a part of a state-wide chain; 75% - because of the already developed know-how for a business start-up. Respondents were allowed to select more than one answer. 
 
Become a part of us:
If you want to buy a B’Space franchising for Bulgaria:
Visit us to discuss the various options. You can contact your preferred personal assistant and ask her to arrange a meeting with the B’Space franchising department, or you can call our direct line +359 887 24 11 06.

If you want to buy a B’Space franchising for a foreign country:
 Visit us to discuss the various options. You can contact your preferred personal assistant and ask her to arrange a meeting with the B’Space franchising department, or you can call our direct line +359 887 24 11 06.

If you have a business that you have learned to perfection, or an idea for the development of a business and the desire to turn it into a franchising chain,  both in Bulgaria and abroad:
Please, request the Franchising consultation service or contact us at +359 887 24 11 06 so we can introduce you to the development stages and prepare a custom development plan for you.


 

If you want to buy a B’Space franchising for Bulgaria:
Visit us to discuss the various options. You can contact your preferred personal assistant and ask her to arrange a meeting with the B’Space franchising department, or you can call our direct line +359 887 24 11 06.

If you want to buy a B’Space franchising for a foreign country:
Visit us to discuss the various options. You can contact your preferred personal assistant and ask her to arrange a meeting with the B’Space franchising department, or you can call our direct line +359 887 24 11 06.

If you have a business that you have learned to perfection, or an idea for the development of a business and the desire to turn it into a franchising chain,  both in Bulgaria and abroad:
Please, request the Franchising consultation service or contact us at +359 887 24 11 06 so we can introduce you to the development stages and prepare a custom development plan for you.