• Franchising : the winning distribution system in commercial globalization
• What is franchising
• Roles and commitments
• Powerful points of franchising
• To become a franchisee: conditions

Franchising : the winning distribution system in commercial globalization

Competitiveness is measured on ability to acquire and keep a privileged position compared to competitors.

Traditional products distribution systems turn out to be inadequate because they create distance between producer and consumer. Supplier firms are not able to check directly their referring market.

Companies choose Casaitalia to distribute their products because franchising represents a strategic alliance, critical factor for success on global market competition.
It allows to acquire all elements needed to identify and satisfy consumer’s requirements, and then organize a marketing structure to conquer the market.

What is franchising

It is a peculiar system of joint-venture for the distribution of goods and services between a company (franchisor) and one or more distribution agencies (franchisees), legally and financially independent one from another.
According to the contract, the franchisor gives to the franchisees the possibility to use its commercial system, including:

• Know how and its own distinguishing marks
• Services and assistance to allow the franchisees to manage its own activity with the same image of the franchisor

Roles and commitments

The franchisees make its own the commercial policy and the ideology of the franchisor, in the mutual interest of the parts and of the final consumer.

With franchising it is created a joint-venture alliance based on the concept of organized and integrated cooperation; in detail, on distribution level we try to realize very quickly a shop chain, and, even if they are independent, they have an identical look: signs and politic-commercial line.
The franchisor is usually a distribution company that supplies self-produced articles or products selected from other companies. Selection of suppliers follows a strategic planning; it must be in constant evolution to meet requirements of actual and future demand.

Powerful points of franchising

For the Franchisees			For the franchisor and for the group
Image and business returns using a well-known brand that is appreciated by the market;aA definite and recognizable style that allows to spare costs and time in the beginning period Immediate economies of scale buying commercial, entrepreneurial, managerial, marketing and promotional know-how, already tested by franchisor first in pilot project and then through sales network Care of showrooms The furnishing, the settings and the window dressing of Casaitalia showrooms are planned and realized following a tested and winning image. Our experience is a guarantee to have an elegant, functional and innovating sales point with furnishing that can exploit to the maximum all rooms Innovating technology and economics The franchisees make use of property of information & communication technology of the franchisor avoiding investment costs and obtaining advantages of information systems already tested Guarantee of a big group The franchisees, even if he is keeping his juridical and economic independence, becomes a member of a big international organization, with the guarantee of constant assistance oriented to mutual growth and success Advantages with suppliers relationship Thanks to commercial power accrued the franchisor makes agreements with the biggest national suppliers with absolutely competitive purchase conditions that brings positive economics returns. Suppliers are constantly selected, according with market researches methodically carried out, with attention on actual and future consumer requirements Sales success guarantee Purchase office is centralized and allows the supply of furniture with deferred payments against guarantee. The franchisees have the guarantee to obtain products that are already positively evaluated from the market and with some exclusive lines with competitive prices A competent management Accounting, financial, and warehouse managements are optimized with quick turnover and stock sale off Constant training The franchisees can count on training programs and initial training to start being sure of real warranty of success even without experience in the field. Recurring are organized meetings with all franchisees to introduce new products, to update marketing, window dressing, and to analyze the commercial politic of the group Advertising and promotion The franchisees have on disposal franchisor’s advisors to organize opening and to project local promotion campaigns. All Casaitalia merchandising and advertising material are supplied, included catalogue, at price cost			To make concrete a strategy of growth in foreign markets going over the barrier of penetration phase. To reach quickly a big distributive dimension. To organize a selling system with the maximum independence of each shop. To agree with the shops a shared market strategy and common promotion plans.

To become a franchisee: conditions

• Medium shop surface: minimum 150 mq
• Optimum location: commercial streets with parking possibility
• Staff: 3 persons including the principal
• Consumers: minimum 150.000 inhabitants
• Initial investment: € 50.000,00
• Medium potential annual turnover: € 500.000,00/600.000,00
• Contract period: 6 years with automatic renewal
• Entrance charges: none
• Periodical fees: none
• Advertising contribution: only for national promotion, free Casaitalia sign, sharing of the cost for the opening campaign.
• Former experience in the field: preferable
• Initial training programs: yes
• Furnishing and staging: € 150/200 for mq, building work, transport and electrical equipment excluded
• Initial furnishing: chosen by the franchisor on the ground of measurements and local market requirements
• Exclusive area: determinate in the contract
• Continuous assistance: yes