Sportsbook Franchises: a Quick and Safe Project Launch With Rosloto
4.4. Scope of Obligations
4.5. Franchise Agreement
4.6. Additional Services
The betting business is a promising and profitable sector of the gambling industry. A modern betting shop has a great resemblance to the financial exchange where people take part in trading. Gamblers are attracted by the fact that the victory depends not on dumb luck but on the ability to analyze situations and predict the outcome of events.
Taking into account the competition and the specifics of the industry, an independent launch of a bookmaker’s office will require extensive knowledge and a lot of time and money. The Rosloto team offers a beneficial alternative: from us, you can buy a betting franchise at an affordable price. We guarantee round-the-clock customer support, a secure transaction, and pleasant discounts.
A franchise agreement is a cross-functional commercial tool, which is widely used in various business sectors.
The betting franchise means a documented transfer from the seller (franchisor) to the buyer (franchisee) of the right to use the logo and other branded elements, the business structure, and software products for a monetary reward.
Major companies with a well-established commercial network and a good reputation have their own interest in cooperation with the beginning entrepreneurs.
The bookmaker’s office franchise is beneficial for the parent company for several reasons:
- building of brand awareness;
- audience accumulation;
- acquisition of additional income (a fee for using the franchise).
The betting business franchise is a ready-made product with a well-functioning infrastructure and a well-promoted brand. The buyer should neither spend money on the creation of his own logo nor purchase the software and resolve organizational issues.
There are not so many items of expenditure associated with the entrance to the market:
- a website (you can use your own adapted resource or order it from the franchisor);
- payment for hosting;
- a lump-sum payment (its amount is specified in the franchise agreement);
- royalties (a commission fee for the use of the software and brand of the parent company).
A bookmaker’s office franchise has the following advantages:
- The speed of launch. It takes literally 2—3 days to launch a project. During this time, an operator will need to confirm the presence of a reserve fund (a notarized bank statement is required) and conclude a franchise agreement.
- Support provided by the parent company. The franchisor resolves all the organizational and legal issues and deals with technical support, updates of the platform, and advertising campaigns.
- Legal work. The betting franchise frees operators from the need to purchase their own betting permits since they will work under the seller's sublicense.
- Financial protection. The franchisor not only undertakes technical and organizational issues but also provides financial backing: jackpots are always paid by the seller.
- Stable traffic. Due to the recognition and popularity of the parent company, operators get a constant increase in customers from the first days of work.
One of the disadvantages of the decision to open a bookmaker's office under a franchise is the lack of opportunities for the individual development since the design, bonus options, and advertising strategies are supervised by the parent company. However, this is not a big problem because, in return, entrepreneurs gain work experience and get a well-functioning technical basis and protection against financial risks.
It is very important to choose the right seller. There are several criteria which show you that a company may turn out to be unfair:
- a legal entity of the franchisor was registered less than one year ago;
- the company does not have pages in social networks;
- the seller does not want to make a face-to-face contact;
- when answering your questions, the company’s representative provide only general information without any specifics;
- the seller offers a contract without a license.
When planning to open a bookmaker's office under a franchise, an entrepreneur must decide what format of the franchise agreement he is going to choose.
The IFA international agency (United States Franchising Association) identifies 3 principal directions:
Options for the betting franchise contract
In their work, operators can only use the brand of the seller. The rest of the business systems (from the creation of a website to the purchase of software and formation of a support service) remain under the jurisdiction of the buyer
Permit for the distribution
Entrepreneurs buy the right to distribute the franchisor's branded services. This is useful for opening network betting shops
“Clear” betting franchise
The seller offers a full-service business:
The Rosloto team offers some useful tips for those who want to know how to choose a betting franchise:
We recommend you to cooperate with companies that have been on the market for more than 5 years, and at least for 2 years, it should be working with franchise agreements.
The history and “path to success” of the firm must be publicly available. The feedback from partners will be really helpful as well.
To make sure that the contract exists not just on paper, we advise you to visit the company as a client before making a purchase. This approach will allow you to form your own opinion about the brand and get a real idea of the quality of business processes.
Before concluding an agreement, it is worth checking the trademark registration certificate. If we are talking about the business on the territory of the Russian Federation, you can request the necessary information from the Federal Service for Intellectual Property.
Remember that the seller must provide a copy of the certificate on your first demand.
A high-quality betting franchise guarantees accompanying support during the registration of legal status, independent monitoring of compliance with the sublicense requirements, and protection against financial risks.
All offers from the seller must be notarized and covenanted. Oral agreements carry no legal weight.
A reliable franchisor with a good reputation is ready to offer not only a basic contract but also the following related services:
- educational content for administrators and staff of a new network unit;
- an independent audit of the system;
- advertising services;
- assistance in developing a business strategy.
Counting on the cooperation with a major international supplier, a beginning investor must confirm that he meets the established requirements.
As a rule, the following clauses can be found in a franchise agreement:
- availability of commercial premises with the established parameters (it is relevant for those operators who are planning to launch a land-based business);
- design of the platform in a corporate style of the parent company;
- availability of an appropriate technical basis (server equipment, cloud storage, hosting, reliable communication channels);
- financial reserves (the amount is set by each specific supplier).
Investors and franchisors have a common goal — profit earning. The seller will not work instead of you but will clearly and easily explain the nuances of the business infrastructure and provide you with the necessary set of tools.
The sportsbook franchise has the following features and benefits:
- Legal status. Entrepreneurs do not need to obtain a license — they will work under the sublicense provided by the franchisor.
- Fast start. The website can be launched literally in 2 days, during which it will be possible to agree on the clauses of the contract and sign it.
- Payback speed. Thanks to the popularity and reputation of the parent company, a new project will start receiving customers since the first days of operation.
- Professional support. There is no need for an investor to develop a logo, purchase software, and resolve other organizational issues. Working under a franchise means to have a project that can be launched immediately and that has technical, organizational and legal support.
The Rosloto team will be glad to help you to choose a bookmaker’s office franchise and enter the market with minimum upfront investment.
We cooperate with the world’s leading suppliers and are ready to offer the betting software that can fit every taste. From us, you can order a betting shop and turnkey casino, products for the business scaling, consulting and marketing services, and the development of exclusive content.
Become the owner of a successful and reliable business right now! Contact us:
- by e-mail: firstname.lastname@example.org
- on Skype: rosloto_connect
- in Telegram: @rosloto
- via the feedback form.