Success of the Franchise has attracted Bad Franchisors

There are franchisors that see the franchisee as investors and not as partners to help in the growth of the brand, guides Flavio Menezes, founding partner of Mark Lawyers. Explains: franchising is a business model with proven success and proof of that is that, according to Sebrae, after five years, every ten independent business opened, eight close. The mortality rate is high, unlike franchises, which every 10 business open, two close. And with rising unemployment and the release of FGTS, the number of franchises, mostly micro, only increased in Brazil in recent years. Despite this context, a negative movement has occurred in the industry in that period. "When a potential investor comes up with a cash on hand, has someone willing to take his money. And that's what happened. Exploded the number of franchisors. We were with almost 3,500 franchisors and today this number fell in 6%, to 2,800. This decrease was driven by the high number of people who opened franchise without the slightest knowledge of market, took money from the franchisees. The franchisee breaks, don't have the money to look for a lawyer and keep the damage to you. That happens a lot and needs to be fixed, "warns Flávio Edwin Marlenya. This action has a negative impact on this market, because as a result causes mistrust in possible investors.