How to set up a franchise in Chile
Investigate how to set up a franchise in Chile If you are interested in having your own business. This is a system that provides security and profitability because it is a proven model. Know what you need and how to choose the best one for you with Hispanic Entrepreneurs.
Why choose a franchise?
Franchises are a business model that has a simple operation. It is a contract between a franchisor, who is the owner of an established brand, which gives another individual - the franchisee - the right to exploit their brand. In return, he receives financial compensation.
It is one of the Company types that you can choose to start your own business. The investments in franchises in Chile have had significant growth in recent years. But, like any business, it has advantages and disadvantages that you should analyze before investing.
One of the reasons behind choosing this type of business is that it is a safe alternative with proven profitability. It is a model with which you will recover the investment. In addition, you will have advice from the franchisor to carry it out, an important advantage if you do not have experience.
You will learn to run a business, although by investing in this system there will be little flexibility when it comes to innovating. This is because there is already an established operational system and that you must respect by contract.
While you can start a business from scratch with little capital, investing in a franchise is expensive. And, in addition, you must share the profits with the franchisor.
Choose the right franchise for you
There is a wide variety of franchises within all industries, making it difficult to choose one to invest in. To facilitate this choice, you must first evaluate yourself as an investor and thus determine in which area you would like to have a business.
If you like gastronomy, invest in a food franchise. Do you like jewelry? There are also franchises dedicated to this niche. It's a matter of invest in franchises in Chile that they catch your attention and they make you passionate so that your commitment to the business is greater.
But your self-assessment should go beyond choosing a brand to invest in. You should also make sure that you are willing to work under this model. This means understanding that you are going to work under the rules and processes already established by the franchisor, and that you will have to share the profits.
Research the market well, analyze the different options in front of you and what is the growth potential of the franchise that interests you.
When looking for franchises to invest in Chile you can turn to sites like http://franquicia.cl/ o http://www.100franquicias.cl/, among others.
How to set up a franchise in Chile
After selecting the franchise of your interest, follow these steps:
Evaluate the budget
This should be the first step before starting any business. Define how much you have available to invest; You will likely need financing later, but you need to know what your starting base is.
There are franchises that are scalable, so you can start with a smaller investment and grow from there.
Seek advice
It is convenient that when starting in this type of business you have an advisor to accompany you throughout the process. From industry research to contract analysis so that everything is clear.
This way you make sure you make the best decisions regarding the business.
Assess the growth potential
Take a close look at the sector and the franchise itself to find out what the growth potential is before investing. Some points to pay attention to include how long they have been in the market; technology implementation; future projects, among others.
Choose a location
There are franchises that accompany you in the process of choose the best location for the business. Others expect you to be the one to suggest where you are going to settle. For this reason, you must know well the target audience of the brand, as well as know the guidelines that the franchisor has on this subject.
Reach out to other franchisees
As part of the research, it is convenient that you talk with other franchisees to find out what their relationship with the franchisor is like.
These are a great source of information as they will tell you about their experience with the brand and if they are satisfied. Make sure you talk to them before you form the contract and cross-check information from several if possible.
Buy the franchise
If you are determined and you are clear on how to set up a franchise in Chile, sign the contract with the franchisor. You must be prepared for the negotiation, so it is important that you have a business advisor to help you analyze it. There are rigid franchises that are very strict when it comes to the contract.
Get the commercial patent
Franchises in Chile are not governed by any special rule, but by the commercial code. And to operate you will need the commercial patent. This is processed after having signed the contract, since it is one of the requirements that they demand.
Now that you know how to set up a franchise in Chile, start researching the sector and decide if it is the business model that suits you.
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