With a turnover of R$127.331 billion in 2014, a vertiginous growth since 2010*, the excellent performance of franchises in Brazil encourages people with an entrepreneurial spirit who want to open their own business without taking huge risks.
Franchising has allowed companies to expand their businesses and brands at a lower cost. In general, this model makes it possible to replicate an established business, in which it is up to the franchisor to have the vision of the business and structure the means to achieve the objective. The franchisee, on the other hand, must implement the steps to achieve their goal, following the franchisor's guidelines.
According to the federal law that regulated franchising in Brazil, business franchising is the system whereby a franchisor grants the franchisee the right to use a trademark or patent, associated with the right to exclusive or semi-exclusive distribution of products or services, for direct or indirect remuneration, without characterizing an employment relationship.
With this model, a relationship of responsibility and commitment is created in which the strategic planning and commercial play a fundamental role in formulating the institutional mission, vision and values. According to Adir Ribeiro, Maurício Galhardo, Leonardo Marchi and Luis Gustavo Imperatore, authors of Gestão Estratégica do Franchising, a Strategy Execution Platform seeks to bridge the gap between strategy and the best possible use of available resources to achieve business objectives.
According to the same authors, planning alone cannot guarantee the future and success of any organization, "as several other elements must be present, such as effective management of results and indicators, a talent retention and continuous training policy, a communication and alignment process between all those involved, commercial policies that are in line with the market, product mix, among many other items." Although planning doesn't entirely avoid risk, it does increase the chances that the venture will be well structured and will succeed.
But how do you strategically manage several franchised units? In the constant search for excellence, the benchmarking technique stands out as a growth tool. The method consists of learning from the best experiences of similar companies. The essence of benchmarking is based on the principle that no company is the best at everything, but it is necessary to recognize that there are other organizations in the market that are better at certain points.
Analyzing in detail the leading franchises in their market niches and trying to identify their successful methodologies is a combination that will make it easier and quicker to build an organized and increasingly promising strategic model. And all of this can be done in an automated way, through 100% web software, where you can obtain various types of comparisons and filters, a perspective on the performance of franchises' products and processes, in order to obtain better results by drawing on the experiences of others.
Always maintaining the impartiality and confidentiality of the data of the parties involved, the software identifies the results of processes through statistical analysis of indicators that are robust to comparison, highlighting the best practices for optimizing results.
In this way, it is possible to establish a network between franchisees, where best practices are shared, providing joint evolution and healthy competition between units.
Find out more about the Benchmarking software or request a presentation.
See also our educational material on Benchmarking and its application.
*Information taken from the report "Evolution of the sector in 2014", published by the Brazilian Franchising Association.
