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Promote Financing Franchises

Promote Financing Franchises

Through an agreement signed today with the Asociacion Espanola de Franquiciadores La Comunidad de Madrid is leader in Central franchisers and billing Avalmadrid, society of mutual guarantee attached to the community of Madrid, and the Spanish franchisers Association (AEF) today signed an agreement to promote access to finance franchises and franchisors from Madrid, through the various financial lines of Avalmadrid. In this sense, and through this agreement, Avalmadrid will make available franchises and Madrid franchisors specific products for them, as entrepreneurs line, the plan for the promotion of retail trade and hospitality (FICOH) and the guarantees to ensure payment to the lessee technical and those necessary for the proper development of its activity. Thus, franchises may finance franchise Canyon, the investments needed for its start-up and working capital necessary for the start of the activity not suffocating to the franchise. For its part, franchisors may finance its expansion plans of the franchise are leading. This agreement, concluded at the headquarters of Avalmadrid, has been signed by the President of the madrilenian SGR, Juan Manuel Santos-Suarez and the President of the AEF, Xavier Vallhonrat. The Act has also counted with the presence of the counsel of economy, trade and consumption of the community of Madrid, Eva Piera. The franchise, a safe bet the franchise system offers a number of advantages to those people that are committed to this formula of business marketing.

The most important is to set up a business in duty-free minimizes the risks that have to put up on their own, since the franchisor has tested the concept in the market and found that it is successful, before granting franchises. In addition, this business model offers continuing education, advertising, logistical support for what the franchisee feel alone at any time during the contractual relationship. According to Xavier Vallhonrat, President of the AEF, while certain these benefits, what happens is that many times we do not find financing and that is why this Convention is of fundamental importance for us. In addition, he stressed that you despite the unfavourable economic situation, companies, both Spanish and international, they are betting on growing through franchising formula, which shows that they see the advantages and strengths offered by the system as a model for expansion. The Comunidad de Madrid, leader in the franchise this report system also places emphasis on the location of the Central franchise in the different autonomous communities. In this sense, of 919 chains which make up the franchise, 297 have their headquarters in the community of Madrid (25% of the total); 245 in Catalonia; 99 in the Valencian Community, and 90 in Andalusia. The number of total establishments, the community of Madrid is also in the national lead with a total of 14,200 premises, 22% of Spain. Finally, if we speak of direct employment, the community of Madrid occupies in the system more than 60,000 workers, 22% of the national level.

Moreover, since 2006, in the framework of the programmes of direct aid to small and medium-sized enterprises of the community of Madrid and the Chamber of Commerce and industry of Madrid, it has supported to 344 companies benefiting from the formula of the franchise (9.7% of total SMEs supported in the reference period), with a grant of 4.058.