The Future of Franchise Business

Jun 6, 2018 · 5 min read

The concept of the franchise dates back to the mid-19th century, the most famous example of which is Isaac Singer. Singer, who invented the sewing machine, created franchises to successfully distribute his trademarked sewing machines to larger areas. In the 1930s, Howard Johnson Restaurants skyrocketed in popularity, paving the way for restaurant chains and the subsequent franchises that would define the unprecedented rise of the American catering industry.

Choosing the franchise business model gives everyone with entrepreneurial spirit an opportunity to become their own boss and by using their own personality, spirit and creativity they can lead that fulfilled life they had always dreamed of.

Franchising traditionally lags behind other types of businesses when it comes to adopting technology, new flavor profiles and hot concepts. But in recent years, new and old players alike seem to have learned the value of getting in front of changing consumer habits and tastes more quickly. The race to lead the pack is poised to intensify as franchising continues to evolve.

The saying “the only constant is change” is gaining more serious meaning. Technology improvements, notably in telecommunications, computers and the Internet, are having a major influence on franchised businesses. Certain franchises are able to operate in ways that would previously have been impossible. Efficiencies have also been gained and means of communication have improved. In addition, new markets have been created and, some new franchise opportunities have even resulted.


The franchise system is a widely known business model in the world.The advantages are numerous and very persuasive for someone looking for a business investment. Nevertheless, most brands suffer problems when managing a large network of establishments, since there is no single tool that allows them to manage and coordinate all the establishments.

For this reason, the idea of building a franchise platform on blockchain came into being .This new creative idea consist in proposing a new method to help companies to manage their franchise business systematically using a single tool, and improving the relationships with their franchisees.

The first company to trust in franchise platform on blockchain will be the Nostrum brand, owned by Home Meal Replacement S.A .. Nostrum is a catering company that has been operating for 20 years and that currently has more than 130 stores spread across Spain, France and Andorra which it developed through means of franchise system.

Nostrum’s ecosystem after the ICO

Nostrum being in franchising business for over 20 years decided to take the franchising business to the next level by introducing cryptofranchise system .

Cryptofranchise is a platform based on blockchain technology that will revolutionize the franchise market. Its main goal is to create a participative system among all the different franchise operators, where any legal, commercial and economical issue can be managed from the franchisor perspective. In addition, all of it will be guaranteed by the technology and the security provided by the blockchain system. Where a franchise is based on a blockchain platform. Since cryptofranchise system is a digital franchise system based on blockchain it therefore has no possible geographical limits, it is directed to any company anywhere in the world.

The progressive digitalization of the cryptofranchsie system on the blockchain requires the issuance of a token via a so-called ICO — which becomes therefore the preferred instrument of Nostrum growth ambitions.The cryptofranchise platform strives to be the standard open source for the franchise sector.

The Cryptofranchise system shows several competitive advantages comparing to the traditional franchise model as outlined below .

Entry fee: The franchise business model usually requires a payment of an entrance fee as compensation for the Know-How, in most cases, it is non-refundable. The franchise platform on blockchain can allow the franchisee to deposit their entry fee in tokens for the entire period of their contract, so they can recover the capital once the franchise agreement ends. This feature will facilitate the terminations of the contract for the franchisees and on the other hand, the price of the token will be stabilized, avoiding the massive sale of cryptocurrency that would fluctuate the price of the same.

Creation of value: One of the biggest issues of managing a franchise is the creation of added value for every franchisees, independent of where the location is. The franchise platform on blockchain allows all members of the network to benefit from the international expansion of the brand as well as the opening of new establishments through the use and circulation of the token.

Organized Network: The franchise business main asset is its brand and its impact among the customers. Cryptofranchise strengthens the brands value while increasing the know-how transfered by the franchisor, enabling the franchisor to capitalize even more on the entry fee or royalties.

Cobranding: The franchise platform on blockchain platform facilitates and allows interaction between companies that share similar values ​​and participate in the platform. This is a powerful weapon for the franchise, to create links and new business opportunities easily.One way to create a stronger brand is through the use of reinforcement. The more often a consumer sees a particular brand the more often he has the opportunity to form particular associations related to it. A brand is meant to communicate meaning and identity; by co-branding multiple products a company can create a deeper impression on the public. A wider range of products can do more to reinforce a particular brand image than just one product.

Cryptofranchise expects to be the standard platform to revolutionize the franchise market . What’s more, this implies the creation of a collaborative system that can be adopted by any service operator using the Cryptofranchise model, anywhere in the world.

With this cryptofranchise system the franchise business has a future where it is promoting a real community between franchisors and franchisees so that all of them have a real share on the growth and expansion of the brand. In the future, this platform will facilitate the interactions between companies which share common interests and values with Nostrum, establishing a co-branding system between different companies and create new business opportunities for the franchisees.


Nostrum will be the first QSR to create its own…

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