Background on Franchise Industry in Puebla
In Puebla, Mexico, franchise owners are investing up to 15% of their annual gains in security measures to combat theft, particularly targeting businesses in the Historic Center and popular food corridors. Roberto Esquivel Ruiseco, Vice President of the Mexican Franchise Network, highlighted that this investment has increased by 5% over the past three years due to rising incidents of crime against food businesses.
Improved Police Response and Private Security Measures
Esquivel Ruiseco noted that the Puebla municipal police force has shown improved response times when incidents occur. However, franchise owners are taking additional precautions by leveraging technology.
- Increased accessibility of security equipment has led to more extensive use of video surveillance systems.
- Private security personnel are being hired to monitor and protect businesses.
- Many franchises, especially food establishments, now have eight or more cameras both inside and outside their premises to monitor suspicious individuals.
These measures have contributed to a decrease in theft incidents within the sector, making it more attractive for new chains to open, particularly in the food industry.
Franchising Success and Concerns
Esquivel Ruiseco defended the franchising model for those interested in starting their own business, provided they ensure the chosen franchise has at least ten branches in the city or region.
He emphasized that success depends on location and the type of franchise, with food and beverage franchises experiencing the highest demand in recent years.
Esquivel Ruiseco also warned against dubious franchising schemes offering unrealistic returns, such as 10% on a $100,000 investment with the company operating under the owner’s name without clarifying how profits are generated.
He stressed that no reputable chain offers such returns, as the buyer assumes full operational risk, and the franchising company primarily provides support and supplies.
Key Questions and Answers
- What is driving the increased investment in security by Puebla franchise owners? The rising incidents of theft, particularly targeting food businesses, have led to a 15% annual investment in security measures.
- How has the Puebla municipal police force responded to these security concerns? Their response times have improved when incidents occur, but franchise owners are taking additional precautions with technology.
- What specific security measures are being implemented by franchise owners? They are investing in video surveillance systems, hiring private security personnel, and installing multiple cameras at their premises.
- Why is the franchising model defended by Esquivel Ruiseco? It can be a viable option for those interested in starting their own business, provided they choose a franchise with sufficient branches and careful consideration of location and industry.
- What warnings does Esquivel Ruiseco give about dubious franchising schemes? He cautions against offers of unrealistic returns, lack of transparency in profit generation, and operating the business under the owner’s name without clear operational details.
