How Does a Franchise Work?
Are you eager to embark on the incredible journey of entrepreneurship? Are you interested in the concept and benefits of franchises? This collaborative model between a franchisor and a franchisee is built on solid foundations that offer both independence and support. Opening a franchise is not just a business partnership, you become part of an established network, benefit from its expertise, and rely on a recognized brand to help secure your project.
In highly competitive sectors such as hairdressing, the franchise model is a real opportunity to maximize your chances of success while minimizing risks.
The DESSANGE Group offers you a comprehensive guide to provide all the keys for a strong start and lasting success.
What is a Franchise?
A franchise is a business model in which a company, known as the franchisor, provides an entrepreneur, the franchisee, with access to a concept, brand, and know-how.
In return, the franchisee pays an entry fee and royalties based on turnover.
In this partnership, the franchisor shares expertise, offers tailored training, and supports the franchisee in developing their business. The franchisee, while owning their business, must follow the brand’s standards, methods, and image guidelines.
Let’s take the example of premium hairdressing: a DESSANGE franchisee benefits from unique expertise, built over years of excellence. With the network’s support, they can offer premium services and meet the expectations of a selective clientele. This model is based on trust and shared goals for success.
Different types of franchises
There are several types of franchises, each suited to specific sectors and activities:
- Product distribution franchise, focused on selling products under a recognized brand, such as haircare products or accessories in a salon.
- Service franchise, centered around delivering services, such as hairdressing, wellness, or beauty.
- Industrial franchise, involving the manufacturing of products under a specific brand, like cosmetics or professional equipment.
At DESSANGE, franchisees not only deliver premium hairdressing services but also promote exclusive ranges of care and beauty products that help strengthen customer loyalty.
How to open a franchise: key steps
Starting a franchise always begins with careful reflection. You must assess your skills, interests, and professional ambitions. This personal work will help you choose a brand aligned with your goals and values.
- Find the right franchise for you: Take the time to explore the available options. Review their reputation, sector, and feedback from current franchisees. Brands typically provide detailed documentation to help you understand their operations and expectations.
- Evaluate your skills and interests: You will represent the brand’s standards and values. Make sure you are committed, skilled, and passionate about the industry.
- Market research: Once you've chosen a franchise, identify the ideal geographic area, evaluate local customer potential, and study the competition.
At DESSANGE, the network assists franchisees with this analysis to maximize their chances of success.
The opening process starts with signing the franchise agreement – a key document that defines the relationship between franchisor and franchisee. It outlines each party’s rights and responsibilities, fees, and brand standards.
Support from the franchisor includes a preparation phase where the brand helps the franchisee find the right location, recruit a qualified team, and design their salon according to brand standards.
Advantages and disadvantages of a franchise
Franchising offers numerous benefits. By joining an established network, you gain a recognized brand, a loyal customer base, and ongoing support. These advantages reduce the risks of entrepreneurship and help ensure ROI (return on investment).
However, there are also challenges to consider. As a franchisee, you must fulfill contractual obligations and uphold the brand’s quality standards. The initial investment can be significant, and royalties are a recurring expense. These factors should be carefully considered before starting.
Franchise and finances: what you need to know
Finances are central to your decision. Before joining a network, you need to understand the required contributions and ongoing costs.
Opening a franchise involves:
- Entry fees, reflecting the high level of support provided by the brand.
- Royalties, usually calculated as a percentage of turnover.
- Additional costs, such as outfitting your space, recruitment, and initial product inventory.
To assess your project’s profitability, prepare a solid business plan. This should include detailed estimates of startup costs, revenue projections, and risk analysis. DESSANGE supports its franchisees in this process to ensure economic viability.
Key questions to ask before becoming a franchisee
Before committing, take time to consider these essential questions to determine your project’s feasibility:
- Does my budget align with the brand’s financial requirements?
- Does the franchise concept align with my professional aspirations?
- Am I ready to follow the brand’s standards and invest fully in my project?
Why choose a hair salon franchise?
The hairdressing market is stable and continuously growing. Local services meet ongoing demand and benefit from a loyal clientele.
This dynamic makes a hair salon franchise an attractive option for entrepreneurs seeking both stability and profitability.
Join the renowned DESSANGE network
The DESSANGE Group stands out with its premium positioning and internationally recognized expertise. By joining the network, franchisees gain access to the unique know-how of an iconic brand.
You’ll become part of a prestigious brand, ideal for those who want to combine a passion for hairdressing with entrepreneurial success, share values of excellence, and help promote a brand that embodies French luxury and beauty.