Business

What investors look for in a business with partners is to reach the break-even point faster an in a more secure way than in a traditional form of ownership of a business. And once they have achieved the break-even, they aim to get a yield on the investment out of the profits generated.

In order to achieve this, investors are prepared to pay a big amount of money as an introductory cannon in franchises, just to sign the contract and monthly cannons for the use of the brand, knowledge and advise.

In this way, franchises benefit from the franchisees business experience. The franchises consider that it is very common for entrepreneurs that go into the business by themselves to make big costly mistakes. And this mistakes given the thin margins for error in a start-up use to be the end of the business.

Under this circumstances, to set up a franchise is one of the best options to start a business.

Nevertheless, confidence in the business is one of the aspects more valued for the investors when going for a new project. And to get this confidence in the business is difficult, taking into consideration that the franchisee is getting money from the franchiser and doing profit from the very beginning and without risking anything.

In addition to this, the franchisee level of commitment is not certain, and if the franchise gets profits or does not get them, it really will not affect severely to the income of the franchisee, that will continue to get it´s cannons. Instead, frequently it´s a new opportunity for the franchise to implant a new franchise and to take a new introductory cannon.

HelpAccommodation believes

When designing the HelpAccommodation business system, we considered to be in certain way unfair using the traditional model of taking the introductory cannon and not sharing the risk with the franchisee.

We though that your partner (HelpAccommodation) needed to be involved in the success of the franchise and we have the principle of not taking any benefit from the shared business if the later is not still profitable and has not achieved the break-even point.

In addition to this, we don´t want to be out of such interesting business and thus, we want to be involved in the success and profits of the franchisee.

HelpAccommodation model

In helpAccommodation we are mixing the advantages of the franchise system and the advantages of the local partner system.

Advantages of the franchise system 

An Established Business

A franchise offers the advantage of operating under the know-how and experience of an already established business. The procedures, the brand, the processes, deals and more, are already tried and tested and in place ready to be implemented again and again at a new location as each franchisee sets up.

A Known brand

Being part of a larger organization allows a franchisee to take advantage of the big brand and knowledge of the clients. This means there will be far less work and costs involved in trying to establish agreements and build the brand awareness and image. The clients will trust more the franchisor brand than the competitors and therefore help commercialization and brand-loyalty.

Simpler Business Financing

Banks understand quite well the success of transferring the experience from the franchisee to the franchise, and for this reason getting financing is generally easier. Investors as well are far more interested  to invest in a business with an established network, secure brand and effective support structure.

Business Relationships

The franchisee can also take advantage of the business relationships and agreements already established by the franchise. Suppliers internet portals will already be in disposition to give advantages in the negotiation to the franchisee, belonging to a big organization.

Support and Security

Franchisees offer training, ERP systems, tested procedures and operating methods that will accelerate and secure the pay-back of the investment.