Franquicia Nuestra: Luxury goods retailer Cardon began franchising in '97 and today has over 110 stores.

In Argentina, it can be difficult for a small business to get off the ground, given a variety of bureaucratic, financial and legal hurdles. As such, the franchise business model has become an attractive alternative for local entrepreneurs looking to launch their own business with the backing, resources and support of a well-established franchise brand.

Today the Argentina Association of Brands and Franchises estimates there are 400 franchises currently operating in the country, but Emprendedores News Director Marcelo Berenstein says when you take a closer look and weed out the wannabe franchises with only 1 or 2 locations, the number of businesses with a growing franchise network is closer to 200.

“We find ourselves with companies classifying themselves as franchises, and soon thereafter they begin to disappear from the market,” says Berenstein, adding a call for better industry standards, “It’s clear the absence of a law regulating activity (which exists in the E.U., the U.S., Mexico and Brazil) creates that opportunity for anyone who wants to call themselves a franchise.”

So what are the secrets of success of the 200 best franchise networks and individual franchisees? Berenstein says they work hard, they look at the business from all sides, they don’t believe money comes easily and they have a very long-term vision. The other 50%, he says, will fail and, rather than accepting responsibility, typically blame the market or “franchise network complexities” for their demise. (Full article in Spanish)

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