In the food distribution it is found in all the signs

Monceau Fleurs, Buffalo Grill, El Rancho, Carrefour, Casino, Wall Street Institute These signs have a common point: they practice the participatory franchise. This formula is to enter into the capital of franchisees has many advantages for franchisors. "It is a way to retain the good candidates who do not have enough financial contributions at the start." "We prefer to assist them rather than see them go to the competition," explains Alain Nicolas, Director of the development of El Rancho. The sign (26 restaurants) practice however the participatory franchise sparingly and only used it twice. "We are not this formula as a strategy but as one-time boost."

Sustainability network

If the case remains outstanding at El Rancho, some networks are the participatory franchise in a systematic way. "In the food distribution, it is found in all the signs." "It is a way for the head to keep control over the franchise," said Monique Ben Soussen, lawyer. In being associated, franchisors have a right of scrutiny concerning the life of society: they participate in the broad guidelines and can in some cases to oppose certain decisions, such as the resale of a point of sale, because they have a blocking minority.

02/12 - 12/11 Find NCAA Bowl Games Tickets playing in Machine Shop, Mackey Arena. NCAA Bowl Games is playing in Flint, West Lafayette and Boulder. ncaa bowl games tickets 2012

06/12 - 08/12 Reach Neil Diamond Tickets performing in TD Garden, United Center. Neil Diamond is performing in Boston, Chicago and Phoenix. neil diamond tickets 2012

12/11 Attain The Nutcracker Tickets playing in Brooklyn Academy of Music, Capitol Theatre. The Nutcracker is playing in Brooklyn, Salt Lake City and Fort Pierce. the nutcracker tickets 2012

Number of franchisors also see participatory franchise a way to maintain the network in reserving the best locations. The Monceau flowers Group (Happy, Rapid' flora, Monceau flowers) decided to enter the capital of some particularly well placed stores. "We have 20 franchisees in this case." The operation is not systematic but reserved for strategic locations. "Our goal is to perpetuate them by ensuring that they stay in our fold, even after the end of the contract," says Dominique Munier, Executive Director of the Monceau flowers group. Among Wall Street Institute, the approach is almost similar. The Group has embarked on a development strategy and plans to open 100 smaller schools in the cities of 100 000 to 200 000 inhabitants. "The activity in terms of turnover will be less prosperous than our current centers." To reassure and convince franchisees, we decided to invest systematically in their sides by entering up to 20 in the capital of their society. The purpose is clearly to mean franchisees that we believe in their project and that we are ready to share the risk. At the end of the contract, we guarantee them redeem the point of sale. "We are so confident of keeping locations", explains Natanaël Wright, President of Wall Street Institute France.

Calculated risk taking

If the participatory franchise has many advantages for franchisors, it remains no less risky. Even if the formula is not illegal, too much control on the part of the franchisor may distort the relationship with the franchise and to question their contract. To avoid litigation, it is therefore necessary to well border contracts and establish a shareholders Pact which sets out the conditions of redemption of shares by franchisees, the obligations and rights of each. Everything must be clear from the outset so franchisees know what to keep. In Monceau, the contract, unequivocally, provides that the group will be priority to buy the shares of the franchisee when the wish to resell. At El Rancho, a promise of sale is adjacent to the contract with the desire to buy back the shares to the franchisee as soon as possible. According to the strategies put in place by the networks, the choices are very different but it is imperative that all be notified black and white. Finally, taking a financial interest in the capital of their franchisees, franchisors also take financial risks. Nothing, after all, not guarantees that their partner will be solvent and that they had to lose. It is therefore advisable to limit catches of participation and not exceed 40.