Entrepreneur Multi-franchise: diversify brands and create synergies

Multi-franchise: diversify brands and create synergies

The franchise is often presented as a marriage between a franchisee and a franchisor. However, households with three or more are also possible, with franchisees who choose to open several points of sale under different brands. This is a “multi-franchise”. This still uncommon model of entrepreneurship, with 10 to 12% of franchisees, is gaining ground.

Multi-franchising allows independent entrepreneurs to diversify their activities and thus limit risks: economic conditions, seasonality, closures of non-essential businesses in times of health crisis, etc. It also creates synergies. In Perpignan, where it opened its two Gautier and SoCoo’c stores in 2016 and then 2018, the multi-franchisee David Vallé ensures that the complementarity between its two activities is beneficial: ” I chose brands that manufacture in France, one being on furniture and the other specialist in cooking. They are therefore complementary and consistent: when a customer comes to one of my stores, he or she may also refer them to the other to complete their needs, and vice versa.

Close points of sale

If the entrepreneur had chosen to open several stores under the same brand, that is to say in a multi-franchise, they would have had to be physically separated, so as not to cannibalize each other. ” This model allows me to develop in the same area: my two stores are 600 meters from each other », Continues David Vallé. An asset that certain large groups are banking on, developing various franchise brands. This is the case, for example, of the AccorHotels group with Novotel, Mercure and Ibis Styles, Groupe FBD with Cuisine Plus, Cuisines References and Ixina, but also Groupe Bertrand with its restaurant brands Au Bureau, Hippopotamus, Léon de Bruxelles and Volfoni. ” These concepts are complementary: they do not target the same clientele at the same time. They allow a multi-franchisee to cover all the offer in the same sector and to perfectly control its geographical area. », Explains Véronique Discours-Buhot, General Delegate of the French Franchise Federation (FFF).

The thorny issue of competition

However, it happens that the multi-franchise concerns different franchisors. Sometimes even competitors. The franchisee must then ensure that he does not violate his franchise contracts, and in particular the non-competition clauses. ” These clauses restrict the franchisee’s ability to carry out an activity similar to that of his network., details the lawyer specialist of the franchise Jean-Baptiste Gouache. They therefore concern only directly competing activities. The non-competition clauses run for the entire duration of the franchise contract, within the limit of 10 years, and post-contractual clauses can extend this restriction up to 1 year after the end of the contract. However, it is possible for a franchisee to open with two competing networks if the franchisors agree. Then just add a amendment to franchise contracts respective.

Developer Profile

Multi-franchising is a typology of entrepreneurship that is still not widely used, because it requires the mobilization of substantial investments and requires particular qualities., Véronique Discours-Buhot analysis. The multi-franchisee must above all be an excellent developer – and not just a good manager – and know surround yourself well to delegate. Multi-franchising requires an extremely fine organization, and therefore does not correspond to all. “To manage his two points of sale, David Vallé relies heavily on his teams:” I spend 95% of my time in the SoCoo’c store, the kitchen requiring more checks and adjustments. And then, the team is larger with 5 employees.

Good to know : The obligations linked to the existence of a group or an Economic and Social Unit (UES) apply to multi-franchising. This means that if the employees are linked to the same employer operating several franchised outlets, the latter can pool them, as long as the contract provides for the corresponding workplaces. If the companies are separate, making employees available from one store to another is only possible on condition that there is no loan of illicit labor.

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