To become an individual entrepreneur, the first step is often to marketing a reputable brand for starting your own business. Then we will analyze what business model between commercial distribution contracts can be convenient. In addition, we will collect all the relevant documents in order to start our activity.
Commercial distribution contracts: Concession, franchise and estimate contracts
Exclusive concession or distribution
- You are an independent businessman.
- You are not interested in being under the guidance of another company. This contract allows us to assume full responsibility for the operations, including the risks. As well as being able to establish your own way of trading.
- You want to market a certain brand with continuity in time, setting an establishment and clientele.
- You want the exclusivity of the sale of those products in the area.
In the franchise, the production company or manufacturer allows the franchisee to commercialize their products or services in a homogeneous way under their brand and symbols (logo, slogan, image…). Providing also their technical knowledge, in exchange for payment of a fixed entry fee and a periodic “canon” that is normally calculated according to the sales.
- You’re an independent businessman.
- You want to sell certain quality products shown in the area.
- You are nterested in being under the guidelines of the company that owns the brand. Being able to profit from its commercial symbols, its experience in the “know-how”…
- You want to assume less responsibility, since the brand will be responsible for the defective products and the unsold ones.
- You want to market a certain brand with continuity in time. So you can set up an establishment and clientele, and use your image on the premises.
- The investment is much smaller. Initially you don’t buy the products but you pay for sales at a reduced price compared to the market.
- The benefit is received mainly in the commissions for sale.
- The retailer assumes the risk of damages to the goods, and would have to pay them to the wholesaler.