1. DIP analysis and market research

The DIP is an essential document which commits the franchisor to providing transparency on its network, its finances and the conditions of the franchise agreement. Its analysis can be carried out with the help of a chartered accountant, to study the complexities of royalty rates, entry fee amounts, etc.
The DIP also contains a Local Market Report, focusing on the objective and current reality of a geographical area. an in-depth market studywhich is essential for franchisees before making a commitment.

This is where GEO Business comes in. In just a few clicks :

• The franchisor can create the sector he wishes to concede and edit his own unlimited local market reports, to be included in his DIP. Ciril GROUP's experts in geomarketing studies take care of producing the general market report, essential to the DIP. The franchisor can also rely on this expertise to define his territorial network and build his development plan.
• As for future franchisees, they can start thinking about their local location, creating projects, defining potential areas and consulting precise data and analyses on the business environment, the competition and the profile of potential customers for their future outlet.

2. Local choice: a strategic challenge

Choosing a commercial location is more than just finding a vacant space. There are many factors to consider:

• Visibility and accessibility of the premises,
• Competitive and commercial environment,
• Consistency with the brand's concept.

GEO Business is an indispensable tool for franchisees, enabling them to carry out their initial analyses before completing their research with a field study. A good estimate of projected sales is essential to convince investors and guarantee the viability of the project.

3. Writing a convincing business plan

A solid business plan is essential for obtaining financing. It is based on several key points:

• A detailed market study to demonstrate the project's profitability.
• A realistic estimate of financing requirements and available resources. 
• A clear and convincing presentation to reassure investors.

A personal contribution of between 25% and 30% of financing is often required, but certain grants can be considered as financial leverage. As a proven business model, franchising is an asset that reassures banks, provided you present a convincing business case.

How far does the franchisor go?

During these various stages, the franchisor plays a supportive role, without imposing his choices on the franchisee. The franchisor can provide guidance on location and invaluable knowledge of the network's development strategy. However, the project owner must retain his or her autonomy, define his or her own strategy, ensure that the location is solid and set aside a cash reserve to anticipate any unforeseen events. A relationship of trust with the company is a decisive factor in the success of the project. 

Relive the round table on video!

To find out more and learn more from our experts, we invite you to watch the video of the round table: