You have finally chosen the network in which you wish to engage? Once this decisive step has been taken, the time has come for concrete steps. The most important, before the signing of the contract, concerns the delivery by the franchisor of the “DIP”, the essential Pre-contractual Information Document. A key tool, the delivery of which is mandatory within a period of at least twenty days before the final commitment. Far from being just an imposed administrative procedure, this document allows future franchisees to form a precise idea of the brand they are about to join. Presentation of the network, general state of the market, development prospects, annual accounts of the company over the last two years, content of the contract signed by the future partners… The DIP, the content of which is governed by the Doubin law of December 31, 1989 and a decree of April 4, 1991, contains a wealth of information. “In the appendix is also the draft franchise agreement which it may be interesting to have a specialist read over in order to make a commitment in full knowledge of the facts”, indicates Christophe Grison, lawyer in the Distribution and Competition Department at Fidal.
Some data should be carefully considered. “The number of contracts canceled, not renewed or terminated in the last twelve months can be an indicator of the good health of the network and the satisfaction of franchisees”, notes this expert. Beyond that, he recommends carrying out his own survey of members because it is up to future partners to find out about how it works. “The latter must have a proactive approach before committing themselves. The DIP lists the contact details of all the franchisees, which makes it possible to contact people already in business to find out more about the relationship with the network, the services deployed by the sign and its support, in particular the frequency of visits by the facilitators or even the way in which they are associated with the reflections on the development or, more generally, the commercial and financial success of the points of sale”, further recommends the lawyer . It is also an opportunity to find out more about the investments necessary for the development of your future premises in order to comply with the requirements of the brand or the regulations related to the activity. Because these can be significant. Nothing prevents either from asking to meet the developer in order to ensure the quality of the support provided or, quite simply, to check that the current is going well.
Carry out your own market research
Some brands offer their future members the opportunity to sign a zone reservation contract. The interest? Allow the candidate to reserve a geographical area until the finalization of his project. In return, the franchisor will accompany the latter in his search for a store and undertake not to seek new players for the territory concerned. A commitment valid for a period ranging from two to six months, which is accompanied by the payment of an area reservation allowance. It will serve as a deposit on the amount of the entry fee when the franchise contract is signed. But be careful, you should be sure of your choice: unless otherwise stated in the legal text, the amount paid can be lost. The other imperative, once the location has been chosen, is to carry out a market study. “The head of the network certainly provides basic information concerning the local and general state of the competitive environment and its development prospects. But it is important to go beyond this by carrying out an in-depth investigation and establishing a forecast with an accountant”, emphasizes Christophe Grison.
Addressing the legal, administrative and financial aspects of franchising is highly essential. But we must not neglect the more personal dimension of this new adventure that is beginning. “Most candidates were first employees. Becoming a business leader is not just a professional project, it’s also a life project”, warns Franck Berthouloux, consultant and coach within the TGS France group. . Be careful not to underestimate the extent of the consequences induced by this change of course. “You have to take the time to analyze your strengths and weaknesses to avoid entering a zone of turbulence”, he recommends. Because, despite the training provided by the franchisee and the support offered in the first months, getting your bearings, finding new bearings and acquiring the right reflexes can take time. Becoming a company manager means being the sole master on board. You have to decide, decide. It’s exciting but, for some profiles, it’s a potential source of stress”, notes Franck Berthouloux.
Do not neglect the personal dimension
To the financial pressure, due to the investments made, can be added the fear of disappointing those around you by not showing yourself up to it. “Especially in affective personalities,” notes the coach. Hence the importance of being clear with those close to you. Spouses and children must be convinced of the interest of this new professional adventure and ready to provide their support, especially in the first months.
Also beware of the “tunnel effect”, this space which separates the signing of the contract from the long-awaited day of the opening of the point of sale. “You must not impose too intense a rhythm on yourself, impossible to hold over time”, warns Franck Berthouloux. The approach appears a priori simpler for those whose activity requires a team, as long as they manage to delegate. Which is not always easy, especially at the beginning, when controlling everything can seem reassuring…
However, it is essential to maintain a balance between professional life and personal life. Spending time with the family, playing sports, reading, going to the cinema… It is up to everyone to find the activities that will allow them to recharge their batteries. “To be good at work and develop the activity of your company, you have to feel good about your life”, assures Franck Berthouloux. Advice not to be taken lightly.
An article from the “Franchise” Special Edition of the Express. To be published on March 16, 2023