Getting rid of fear is the premise that Adriana Bozzano, director of 384 Group in Uruguay, repeats to those who approach her interested in the franchise model. The company, born in Argentina but with headquarters in Uruguay, advises investors of all areas and sizes. Among its services, it stands out the support to companies throughout their franchise process.
According to its precise definition, the franchise is a “concession of exploitation rights of a product, activity or commercial name, granted by a company to one or several persons in a certain area”. In the facts, it is a successful business model whose know-how is sold to be reproduced in exchange for a royalty paid to the franchisor. The 384 group has accompanied more than 100 companies on this path.
Some of the most recognized that have come to Uruguay or have internationalized with him are Tostado Café Club, Fabric Sushi, Mooi, Cosquin Rock and Marcel Calzados.
Among the Argentineans that are currently working with the group in Uruguay are Mooi, a restaurant located in Belgrano and soon to land in Punta del Este and Montevideo, and Lo + rico, a bakery brand from CĂłrdoba that hopes to be able to move its plant to produce its products in Uruguay.
The 384 group allows you to find all the franchises with which they work on their website. The interested party can search there which one interests him and from that moment the group acts as a link between franchisor and franchisee.
“When you buy a franchise, you buy a life model”, The executive said in a conversation with Café & Negocios and added that she should weigh what items she likes, if she wants to work on weekends and contemplate the harvests of each business, for example. “The ideal franchise for each person is sought and accompanied throughout the process. We try to buy a safe business and that profitability is recovered in the established time, ”she remarked.
The closed package of the franchise becomes a great option when it comes to newcomers in business, and in these cases advice is also essential. “Many have no idea what a franchise is, why it is a safe business and that is why we do a little coaching”Bozzano said.
“We have even told people not to carry out a certain franchise because the business requires, for example, a certain population to function and there is no such demand in the area,” he recalled, adding that it is about preserving both parties. .
For every taste
You don’t have to be a big investor to run a franchise. According to Bozzano, there are from $5,000 and up. The average franchise, however, costs approximately $35,000 to $50,000. In this case exemplifying with a store on the street, fully equipped and with merchandise in Montevideo. In addition to that, the local company must pay a fee to the franchisor.
Between Uruguayans and Argentines
The executive acknowledged that they work more with Uruguayan investors, but there are more and more Argentine companies interested in coming to Uruguay.
In factbetween 50 and 100 monthly queries from Argentines who are interested in setting up a franchise in Uruguay arrive at your email. Although he acknowledges that many other queries reach his colleagues in Argentina. “They highlight the clear rules to work in Uruguay”, assured the director.
Two years ago the firm began to develop the franchise model in Uruguay. According to Bozzano, from that moment to this part, the Uruguayans have been encouraged to bet on this model.
“Uruguayans continue to be interested in clothing,” highlighted the group’s representative in reference to the preferred item at the local level. However, there is more and more variety in business models. This is evidenced in examples such as Casa Fessta, a company that sells party decoration advice that is characterized by being extremely profitable. It already has two franchises (in San JosĂ© and Lagomar) and will open imminently in Colonia and Fray Bentos. Later, it will add another two locations, totaling six new franchises in 2022.
Although it depends on each business, the average profitability of franchises in Uruguay promises that the initial capital is recovered after 18 months.
Another of the companies with which the group works is Giuliana Pasta, a local firm that built its business model based on the Costa Urbana and Las Piedras Shopping stores. “He has a proposal for those who want a gastronomic franchise and have no experience. Giuliana puts everything together, sells all the products by portions, so she allows herself to learn as she works”, emphasized the representative of 384.
The 384 group does not invoice for advising investors, but rather receives a commission when the business is generated, which it charges in the franchisor’s fee. “We do not charge the franchisees anything,” concluded Bozzano.
Uruguayan franchises want to go out into the world
Both Casa Fessta and Giuliana are Uruguayan franchises that are betting on going abroad. “Almost all of them want to internationalize and take the local level as gymnastics while looking abroad”Bozzano pointed out. Along the same lines, he argued that today it is very possible for a franchise to replicate its business in another country starting from Uruguay.
