An exchange of good process The right of entry

The entry fee is one of the franchise-specific investments.

An exchange of good process

The right of entry. It funds the development of the network and support for installation by the franchisor. In return, it allows the franchisee to operate a name and a proven concept, and to benefit from certain services to start under the best conditions.

Drain a priori customer

The entry fee includes the right of access to the sign, synonym of notoriety even before the point of sale. "It is the Faculty granted to the franchisee to use the name of the sign on a given territory, for a fixed term," said Jean-Michel Illien, founder of the consulting firm franchisors Franchise Management. Generally, the right of entry is also used to cover the cost of the services provided by the franchisor upstream and the initiation: support for location and funding, assistance in the recruitment of staff, presence of a host the first days of activity...

Some services are recorded outside the right of entry

"Very often, the initial training is charged apart", observes Serge Meresse, lawyer in the law of the franchise (cabinet Threard, Bud, Meresse & Associates). Ensure that the price of the training is not disproportionate, to cross several indices. First, the duration, based on average 34 days (). "It does not learn a trade in two days!", certifies Jean-Michel Illien, aware of the limitations of some particular technical training. Second point to consider: the content. Finally, "the future franchisee must learn about the quality of the speakers and their number." "It is always better if there are several," said Jean-Paul Zeitline, consultant free Cabinet AC Franchise: the creator of an original concept is not necessarily a good teacher.

Go-ahead to monitor

In principle, the amount of the entry fee is correlated with the reputation of the sign. "The network develops, more it gains visibility, more admission fee increases," says Jean-Michel Illien. If admission fee varies on average between 5 000 and 25 000 euros according to the activity, station to abuse. "I remember an Australian chain specializing in the sale of property of opportunity seeking the tidy sum of 800,000 francs (i.e. EUR 122 000) in respect of admission." Not only it was not justified from an economic point of view but in addition, it required the franchisee Ironing Board to the Fund for each renewal of contract. Pure madness! ", says Serge Meresse. Conversely, some networks require no entry fee. To compensate, they sometimes take an exorbitant margin on products they sell to their franchisees.

Chiffres17 292 euros admission fee: this is the average amount of the entry fee required, according to the annual survey conducted by Franchise Magazine in January 2009 to 400 signs. But the claimed range is extremely broad: from 500 to 50 000 euros, or even more. Please note that 50 signs claim no right of entry.

What about renewal

In most networks, the franchisee is not to repay the admission fee when it renewed its franchise agreement. It is different in the case of the multi-franchise. "It generally must give hand pocket when it wants to open a second unit in the same network," says Serge Meresse. However, the operator may ask to be exempted from the payment of the initial training if it is included in the entry fee, since he already control the trade. The franchisee-franchisor relationship remains sound when exchanges are based on sound principles.

() According to the latest annual survey conducted by the French Federation of the Franchise and the Banque Populaire group