Editor’s note: This article was first published in June 2011. The growth rankings, Auditat’s 15 centres, the minimum investments (18,000 euros for BEEP, 15,000 for Auditat) and the claim that franchises get credit more easily reflect Spain during the 2011 crisis; several of these chains may have changed or closed.
A new look at the franchise business, in which we analyse the low- and mid-investment franchises that have kept growing in Spain and are still expanding.
To survive in times of crisis, you need to gear your business to the new needs of the “new consumer”, who is extremely varied. But if we focus on the core target audience, as a general rule the franchise market is looking for innovation, savings and, above all, a product the consumer needs. In short, something they can’t do without.
That’s why franchises in beauty, photo-epilation (light-based hair removal) and non-surgical fat removal are still at the top of the growth rankings, and franchises such as Lipocero and Bye Bye Pelos are among those that have grown most in recent years, with a considerable number of openings in Spain.
The health and beauty business is still profitable, because people need to feel attractive in times of crisis too.
On the other hand, one type of business that turns its product into a necessity is insurance, where the Telepóliza franchise has grown considerably thanks to its competitiveness and its partnerships with leading insurers such as Allianz, Zurich and Mapfre.
Another type of franchise keeps growing because its product is so much a part of everyday life in the world of new technology. We’re talking about the BEEP franchise, considered the best computer chain in Spain. Thanks to the franchise model and to offering both sales and repairs, this franchise gives the big stores a run for their money. Another advantage BEEP offers franchisees is that the investment is relatively low: you can get in from €18,000.
Data protection is the new corporate need, so a franchise that specialises in data protection and also offers consultancy and auditing services is well placed: the Auditat franchise already has 15 centres on the Spanish mainland and expects to grow. The investment starts at €15,000.
And finally, a type of franchise that helps consumers save money: printer cartridge refills. In this innovative market, one of the franchises that has opened the most new outlets is Refill24.
Franchises, although I’m not a great fan of them myself, have undoubtedly proved to be an excellent business model for weathering the crisis, and the proof is that while hundreds of companies are closing their doors for good, new franchises are opening theirs.
What’s more, because franchising is a business system with proven profitability, it’s true that franchises are finding it easier to obtain credit to open a new business.
Further reading
Featured image: Vasconium, CC BY-SA 4.0, via Wikimedia Commons.
.JPG){kind=link}