How to open a franchise: The bureaucratic requirements
Starting this type of business requires the fulfillment of specific legal requirements, in addition to those imposed by the franchisor. First, you must understand and comply with national and local legislation governing the business, which may include specific franchise agreement requirements. Examples include the registration of the contract, the inclusion of the overall amount of expenses and investments that the franchisee must bear, the methods of payment of royalties, the know-how provided by the franchisor and compliance with certain commercial and competition standards.
In the international context, reference is made to the principles contained in the UNIDROIT model law (Model Franchise Disclosure Law) which regulates the obligations of both parties and the content of this type of commercial agreement. These legal aspects form the basis for a transparent collaboration that complies with the regulations in force in the country in which you intend to start the new business.
So let us find out together how to open a franchise and what the legal and bureaucratic requirements are that future entrepreneurs must satisfy.
Initial capital and financial capacity
A solid financial base is one of the main requirements for opening a franchise store: it includes both the availability of initial capital and access to long-term financial resources. The initial capital is essential to face the first expenses, such as: the entry fee, the costs of setting up the point of sale, the initial purchase of products and equipment and the management of logistics. These expenses represent the first step in embarking on a franchising career path and require careful planning and adequate resources. At the same time, long-term financial capacity guarantees the resilience of the business, allowing the affiliate to support the business during periods of growth or any economic difficulties.
Sector experience and training
Having prior knowledge of the sector or demonstrating solid management and entrepreneurial skills can make the difference. They facilitate a faster understanding of business processes and better management of daily challenges. In parallel, training and education programs provided by the franchisor are essential to ensure that all operations, from customer service to product management, are aligned with brand standards. These programs represent a unique opportunity for learning and updating, which considerably reduce the risks associated with a newly launched business. The most valid commercial affiliate programs generally provide the necessary technical assistance and a specific training plan to support new entrepreneurs.
Location, licenses and permits
Selecting a suitable location and obtaining all the necessary licenses and permits required by local legislation are crucial aspects for those who want to start this type of business. The choice of location must be guided not only by personal preferences, but also by the criteria established by the franchisor, ensuring that the chosen location can attract a constant flow of customers. This aspect requires a careful evaluation of the market and an in-depth analysis of local geo-marketing elements: from the analysis of the competition to the evaluation of the demographic specifications of the area in which the store is opened. Furthermore, you must be in possession of any licenses and permits required by law for your market niche. Every business must comply with local and state regulations, which can vary significantly depending on the location and type of service offered. Meeting these legal requirements avoids business disruption and creates the foundation of solid business management, strengthening the credibility and integrity of the business.
Align with the franchisor's brand identity
This does not just mean adhering to your partner's aesthetic and operational standards, but deeply sharing their values, vision and work ethic. A franchisee who demonstrates a true commitment to excellence and customer service not only strengthens their own business, but also helps improve the reputation of the brand they have affiliated with. Being in tune with the brand means operating as an extension of the franchisor, living the company values on a daily basis and thus ensuring a cohesive and positive experience for customers in each of the stores. The brand, for its part, will support affiliates through centralized marketing campaigns, large-scale advertising and branded materials, ensuring consistent and professional communication. This joint effort in terms of marketing and advertising not only increases the visibility and customers of the individual point of sale, but also strengthens the presence of the brand on the market.
The MBE affiliation process helps entrepreneurs meet the requirements necessary to open a franchise, providing all the professional solutions intended to support the growth of the company. From e-Commerce to logistics and shipping management, from marketing to support and training programs that allow affiliates to become competent and expert entrepreneurs. Furthermore, opening an MBE franchise allows access to a network of agreements with banks and bodies that support companies in finding the financial resources necessary to start a new business.
