13 July 2026
Opening a franchise is not only a great career opportunity, but also an investment option for entrepreneurs seeking the support of an established brand. This business model allows franchisees to reduce uncertainty and benefit from the experience and reputation of an already established company. But how does opening a franchise actually work?
What is a franchise?
The term "franchise" refers to a commercial collaboration model between two parties: the franchisor (parent company) and the franchisee (entrepreneur). Through a contract, the franchisor grants the franchisee the right to use its brand, products and operating methodology.
This model is particularly attractive because it combines business independence with ongoing support from the franchise network. Its main advantages include the transfer of knowledge (know-how), access to a continuous support network and the opportunity to operate with a proven business model.
How do franchises work?
How a franchise operates depends on the sector and type of business. The main franchise models are:
- Industrial franchises: Common in sectors such as food service. The franchisor transfers the technology and processes required to manufacture and distribute products under its brand.
- Distribution franchises: In this model, the franchisee acquires the right to sell the franchisor's products, paying an initial fee and periodic royalties.
- Service franchises: Focused on providing services, such as travel agencies, logistics centres or parcel delivery services.
Franchises can also operate under two approaches:
- Direct: Suitable for local markets where the franchisor manages expansion.
- Indirect: Involves local partners who assume responsibilities and risks in more distant markets.
How much does it cost to open a franchise?
The cost of opening a franchise varies depending on the model and sector, but it usually includes:
- Initial franchise fee: An upfront payment to access the system and use the brand.
- Royalties: A percentage of turnover paid on a regular basis.
- Advertising: A contribution towards local and national campaigns, as well as maintaining the brand's global image.
- Premises fit-out: Costs related to adapting the space so that it operates in accordance with the franchise's standards.
For example, in the case of Mail Boxes Etc., the initial investment includes training, operational support and a transparent cost structure from the outset.
How the franchise model works
The franchise model works through a collaboration between two parties: the franchisor, which provides the brand, knowledge, processes and support, and the franchisee, who makes the investment and manages the business in their area. This system makes it possible to start a business with an already developed structure, benefit from the experience of an established network and operate according to shared guidelines that help maintain the brand's quality and consistency.
01
02
03
04
- The franchisor provides the brand and business model
- The franchisor allows the franchisee to use its brand, processes, operational knowledge and tools for the period established in the contract.
- The franchisee launches and manages the business
- The franchisee makes the required investment and takes responsibility for day-to-day management, customer service, staff and commercial development in their area.
- Both parties agree on the terms of the collaboration
- The contract defines aspects such as its duration, the territory, use of the brand, training, support and the responsibilities of each party.
- The network provides training and ongoing support
- The franchisee receives initial training, procedures, technological tools and assistance in areas such as marketing, sales, operations and business management.
Advantages and disadvantages of opening a franchise
Opening a franchise allows entrepreneurs to start a business with the support of a brand, established processes and an already developed structure. However, it also involves accepting contractual obligations and operating within conditions defined by the network. Before making a decision, it is important to assess both sides.
Advantages
Disadvantages
Proven business model
Less autonomy
Brand recognition
Dependence on the network's reputation
Training and support
Recurring costs
Access to tools and technology
Contractual obligations
Shared experience
Territorial restrictions
Support during the launch
Business risk
The franchise model works through a collaboration between two parties: the franchisor, which provides the brand, knowledge, processes and support, and the franchisee, who makes the investment and manages the business in their area. This system makes it possible to start a business with an already developed structure, benefit from the experience of an established network and operate according to shared guidelines that help maintain the brand's quality and consistency.
01
02
03
04
- The franchisor provides the brand and business model
- The franchisor allows the franchisee to use its brand, processes, operational knowledge and tools for the period established in the contract.
- The franchisee launches and manages the business
- The franchisee makes the required investment and takes responsibility for day-to-day management, customer service, staff and commercial development in their area.
- Both parties agree on the terms of the collaboration
- The contract defines aspects such as its duration, the territory, use of the brand, training, support and the responsibilities of each party.
- The network provides training and ongoing support
- The franchisee receives initial training, procedures, technological tools and assistance in areas such as marketing, sales, operations and business management.
Advantages and disadvantages of opening a franchise
Opening a franchise allows entrepreneurs to start a business with the support of a brand, established processes and an already developed structure. However, it also involves accepting contractual obligations and operating within conditions defined by the network. Before making a decision, it is important to assess both sides.
| Advantages | Disadvantages |
|---|---|
| Proven business model | Less autonomy |
| Brand recognition | Dependence on the network's reputation |
| Training and support | Recurring costs |
| Access to tools and technology | Contractual obligations |
| Shared experience | Territorial restrictions |
| Support during the launch | Business risk |
Having an established brand and business model does not always guarantee profitability. It is therefore important to understand the franchise you choose to work with in detail and assess how transparent the information provided is.