A mini-franchise is ideal for an entrepreneur looking to reward or motivate an exceptional team member. However, you might also want to consider this option if you’re looking to spread risks. In essence, the mini-franchise allows your company’s trademark to create a separate warehouse that will be managed by a partner of your choice.
A mini-franchise might come into play when one of your employees has through-the-roof results, but it seems like his/her motivation is starting to wither. To prevent the employee from leaving and becoming your competitor, the best solution might be to conclude a partnership contract with him/her, i.e. create a mini-franchise.
As with a traditional franchise, the mini-franchise will operate as part of the umbrella brand, but the franchisee has more freedom and responsibility compared to a salaried employee.
How Is a Mini-Franchise Different from a Traditional Franchise?
|Larger investment||Smaller (or 0 down payment) investment|
|Sale rights on a larger territory||Limited sale rights|
|Independent use of the brand||Use of the brand in partnership|
|Independent use of the business model||Use of the business model in partnership|
|Separate franchisor and franchisee accounts||The franchisor and franchisee share an account|
|Separate accounting||Shared accounting|
Who Is a Mini-Franchise Suitable For?
The mini-franchise model is definitely not suitable for each and every company, but many might want to consider it. An example might be beauty parlors, where it is important that the beautician feels that her customers are hers, not the parlors. Having a mini-franchise in the service sector allows the franchisee to concentrate on building and maintaining their customer base, while the company can place more emphasis on marketing and training activities.
Mini-Franchise has another important advantage. It alleviates workforce shortages, as people are far less likely to end this kind of a partnership on a whim. The added sense of ownership makes them far more invested in what goes on in the company.
How To Set Up a Mini-Franchise?
As Erply’s customer, setting up a mini-franchise couldn’t be simpler! Merely get in touch with us and we’ll add the required functionality to your account.
Next, you can use your account to set up the new warehouse and fill in all the fields required for printing receipts and invoices (company name, registry code, VAT number, etc.).
This data will also be displayed in the footer of standard printed invoices:
The function can be added for an additional charge; the price depends on the size of the customer’s company. If you value smooth work processes and a team that loves challenges and setting new goals, you should definitely consider setting up a mini-franchise.
Contact our sales team to get started! We can be reached via email at firstname.lastname@example.org or called at 1-855-463-7759.Sign Up