Doing business is always a challenging endeavor. There are so many things to do and consider to make the venture successful.
Several entrepreneurs opt to create their own business from scratch, while others prefer to just franchise, believing that this can be a more effective way to enter the market and earn.
Well, this is not a bad idea at all. Several businesses started from scratch but managed to build empires in the long run.
Everyone knows that 2020 was a difficult year, especially for businesses. Despite this, some have made the best out of it - turning a hopeless situation into a meaningful venture such as franchising.
In this guide, you will expect to understand the following aside from learning the top 30 franchises in the country.
Table of Contents
- What is a franchise business?
- Four Types of Franchise Businesses in India
- Pros and Cons of Franchising in India
- Franchising in India
- 5 Reasons Why Franchising in India is Relevant
- India as an International Franchise Hub
- Top Three Franchise Sectors in India
- What do you need to know about franchising in India?
- Facts About Franchising in India
- Top 30 Franchises in India
- Post-Covid Best Franchise Business Ideas in India 2021
- 9 Questions to Ask the Franchisor
- How to select a franchise?
- How to select the right location for your franchise?
- Things to Consider Before Buying a Franchise
- Tips for Franchising Success
What is a franchise business?
In the business world, a franchised business means getting the rights to run someone’s business.
This business has an established model that is systematic and proven working and effective. The owner grants you the rights to run the company with proper guidance for a certain amount of time until you can manage the business on your own.
However, granting this right to you does not always happen overnight.
There is a long process that is followed, depending on the laws and regulations of your country.
Four Types of Franchise Businesses in India
In India, there are four known types of franchise businesses, namely:
- Product Franchises
- Manufacturing Franchises
- Business Franchise Ventures
- Business Format Franchise
Product Franchises
With product franchises, the manufacturer uses the franchise contract to decide how the franchisee will be distributing the products. It is more common in retail franchises.
Manufacturing Franchises
In manufacturing franchises, the franchisees are allowed to make the products with a license and then market them using the same name and trademark of the parent company. The same thing applies when using the brand for advertising in the national market.
Business Franchise Ventures
Another type of franchise business is when the franchisee buys and sells the products from the franchisor.
Also known as the business franchise ventures, this kind of franchise has franchisors that normally provide a client base. In return, the franchisees need to maintain this base.
One example of this is a vending machine business.
Business Format Franchise
This is the most preferred form of franchise in India.
In this format, the franchisee gets a successful business model with a popular brand and product.
Proper training and support are given to the new franchisee by the franchisor and also provides the supplies. At the same time, the owner receives a royalty fee from the franchisee.
Major examples of such a franchise type are the fast-food chains.
Pros and Cons of Franchising in India
Just like any other business venture, knowing the advantages and disadvantages of franchising in a specific country is a great thing to do.
So, here are some of the pros and cons you should consider when franchising in India.
Pros
- The business brand is well-known and established in the market.
- There is an existing customer base.
- Newer customers patronize the brand name.
- Investing in a franchise has the biggest advantage for an entrepreneur since it reduces the work to market and introduces the business.
- Most franchisors already have a trusted network of suppliers that ensures the quality of the product of each franchise.
- There are dedicated management and skill upgrade training.
- Most franchisees have access to the trade secret and implement it without worrying about developing a new strategy.
- Franchisees can save on time and money in product development because the franchisors take care of this matter.
- You can be the boss of the business with lesser risks and higher chances of success.
Cons
- Extensive research is required in deciding which business to choose as a franchisee.
- The most known and high-end franchises have high initial costs. This amount only includes the fees, excluding the space rent and royalty fees associated with the franchise.
- The franchise contract is not for a lifetime. You need to renew it after a certain number of years.
- There is a restriction on the creativity of your products.
- You cannot choose your suppliers freely.
- For popular brands, a single mistake of one franchisee can affect the rest of the franchisees.
Franchising in India
India is a dynamic country.
There are plenty of opportunities for entrepreneurs here if they only know how to find the right business to start and grow.
At times, some foreign entrepreneurs are hesitant to invest or open a business here because of the notion of it being a third-world country. But, in reality, India is beyond what people know.
Unknown to many, this country has been considered the next franchising hot spot for both local and international entrepreneurs.
But, how so?
Well, here are a few reasons why it is a feasible business location, especially if you are planning to expand your business internationally.
5 Reasons Why Franchising in India is Relevant
As a franchisor, your first thought when thinking about a possible business expansion is the location. After determining this, the rest of the needed factors to consider will come in handy.
If you still have doubts about choosing India as your next franchise destination, check out these reasons:
Business Everywhere
There are always many businesses in India to see whether you are in the metro or the countryside.
Moreover, these businesses are located in an area of commerce and trading, where most entrepreneurs gather. Even a quick look around your site would give you the bustling markets’ vibe.
This is very true, especially that there are already many brands all around, both local and international.
Home of Big Brand Names
If you think that known household names these days are only manufactured in countries like the USA or Saudi Arabia, well, it is time for you to change that mindset.
For years, India has also been the home of known shopping brands like Levi's or the Gap and popular fast food joints like Domino's Pizza or KFC.
This makes India a promising destination for franchising or business expansion.
High Industry Value
Based on the recent reports of the consultancy firm KPMG and the Franchise Association of India (FAI), the Indian franchise industry is estimated to have a net worth of US$50.4 billion - an amount that is believed to be times four of its recorded growth since 2013.
Hub of Professionals
If you are worried about getting the right professionals to help you in the business venture, ease the thought. India has competent and experienced professionals with vast experience in different business sectors.
Third Largest Consumer Market
India has an estimated population of more than 1.3 billion. This makes it the third-largest consumer market, next to the USA and China.
There is a large potential with this huge population that even the consumer spending in this country is expected to grow from the current US$1.5 trillion to around US$6 trillion by 2030.
This alone makes it a huge potential market for international and local brands.
India as an International Franchise Hub
Nowadays, one thing is definite: India is now an international franchise hotspot.
It is already the second-largest franchise market in the world. This means it comes after the USA and has an estimated 4,600 active franchisors composed of 50 percent regional brands, 34 percent national brands, and 16 percent international brands.
Out of these figures, 200,000 outlets are operated by almost 170,000 franchisees.
That is big!
If that alone is not enough, here are some international brands that operate in India through franchising:
- Anytime Fitness
- Baskin-Robbins
- Burger King
- ChemDry
- Domino's Pizza
- Dunkin' Donuts
- Gold's Gym
- Johnny Rockets
- KFC
- Krispy Kreme
- McDonald's
- Pizza Hut
- RE/MAX
- Subway
- Toni & Guy
There are other brands not mentioned above that are also benefiting from India’s booming franchise industry. Most of these brands are in the food and beverage industry, while others are specializing in services.
The Domino’s Pizza’s Success in India
Check out Domino's Pizza as an example. It has been consistent in franchise growth for years since it first opened its doors in New Delhi in 1996.
The lucky franchisee was Jubilant FoodWorks, which has grown the brand in India, opening more than 1,250 Domino’s stores.
The success of this business venture is attributed to several factors, including the proven and tested business model, ongoing product improvements, and strategic processes.
Indeed, Domino’s Pizza has managed to scale up in India by pure luck and streamlined operations and skilled entrepreneurs.
Now, here is another popular brand that managed to build a name in the country - Subway.
Subway’s Unending Popularity
Subway holds the world's largest fast-food and sandwich chain, with more than 44,700 franchises in the most popular sandwich chain.
In 2001, Subway began its operations in India and currently operates a chain of more than 650 restaurants across more than 70 cities. This number represents its franchises not just in India but also in other countries.
This brand has found success in simplicity, a well-designed business model, strong marketing, supply chain management, a value-driven business operation, and complete back-end support for franchisees.
Top Three Franchise Sectors in India
Health and Wellness
Everyone knows yoga as a popular exercise and form of meditation. It originated in India, and it is expected to see several businesses offering this kind of service.
But, aside from yoga, other businesses in India focus on health and wellness. It is a booming industry than it was before.
Given this, the health and wellness industry is experiencing a "healthy" boom, which is already growing twice as fast as the markets in the USA and Europe. It is a billion-dollar industry that is still in demand these days.
Retail
The Indian retail industry is considered a dynamic and fast-paced industry. It is a modern industry in the country backed by government support and recognition.
The government allows 52 percent foreign direct investment (FDI) in several multinational brands in the retail sector, while a 100% FDI is approved for any single brand.
Aside from this, there is a sharp increase and improvement in the consumption and lifestyle patterns of Indians. This could mean an expected growth in the retail market from a whopping US$672 billion estimate in 2017 to US$1,200 billion in 2021.
Food Service
Whether it is everyday food or something that the palette wants, people always seek food.
Like any other country, India is no exception. It has a great rich food history, making the food industry one of the key franchise sectors in the country.
According to some reports, the booming of this industry is attributed to many millennials who often prefer ready-to-go food with an average frequency of eating-out of up to 6.6 times per month.
If you will just do the math well and ensure you have sufficient research, there is a high chance for any food business in India to grow.
What do you need to know about franchising in India?
Absence of a Universal Franchise Law
Unlike other countries with comprehensive franchising laws, India does not have one universal law to regulate this sector fully.
This makes franchising in India a bit more complicated than you can imagine. You need professional help to enter and penetrate this market; otherwise, you can never have the chance to start a business here smoothly.
While India has several exciting opportunities for brands to expand and prosper, the legalities are already troublesome, and failure to comply with the legal requirements means serious offense.
So, if there is no single law to govern franchising in India, what can you do?
You need to bear in mind that although there is no main law to govern this sector, the Indian franchise venture must still follow several state and central government laws.
Hence, all you need to do is follow these laws and ensure that you will never violate any specified rules.
“Indianization” Matters
The term “Indianization” refers to the ways certain products and services are tailored to the country’s culture.
Although the Indian government recognizes the entry of foreign companies into the country, they are still very particular about their culture. It is a must that these new and foreign companies do not alter anything.
In a nutshell, learning the culture, tastes, and the process of "Indianization" of the products is part of the challenges faced by global brands.
Costly Lease
The cost of renting commercial spaces in India is way too expensive, especially in large cities.
At times, this is one big challenge for international companies that restrict the fast expansion of brands.
Now, the question is, should you still pursue it or not.
As an entrepreneur or franchisor, you need to understand if you are willing to go the extra mile to have a successful expansion in this country. It is best to do thorough research and objective evaluation of the pros and cons before signing that contract.
Facts About Franchising in India
- The number of ultra-high net individuals (HNIs) in India is expected to double to 330,400. This means more than US$300 million worth of assets by 2022.
- Most franchises in India achieve an impeccable 85% success rate than 90% of Indian startup companies that fail within five years.
- The franchising sector is a game player in India’s economy. Currently, it contributes to almost two percent of the country’s GDP and is expected to contribute five percent to India's Gross National Income by 2025.
- India has approximately 200,000 franchise outlets operated by almost 170,000 franchisees.
- Currently, there are 4,600 franchisors in India. Out of this number, 50% are regional brands, 34% national brands, and 16% are known global brands.
- Nearly 60 percent of franchise locations are in a unit franchise format
- Approximately 1.5 million people are employed by franchised businesses in India, while almost 26% of franchise buyers are women.
- 35% of franchisees in India are first-timers in the business.
- Most franchise owners are postgraduates and graduates, making up to 84% of franchise businesses in the country.
Top 30 Franchises in India
Here are some of the most franchised businesses in India based on the current reports in no particular order.
Food Franchises
1. Subway
Founded in 1965, Subway is the largest sandwich chain in the world.
Today, it is one of India’s most popular fast-food chains, featuring healthy food options for people, such as salads and endless sandwich combinations.
Based on existing information, the initial investment for this starts with INR 54-90 lakhs.
2. Stark Bistro
Stark Bristo is a known coffee shop in India.
It provides sumptuous food and beverages to its customers. It is currently focusing on expanding the business in multiple locations, including Delhi, Haryana, UP, Kerala, Karnataka, Tamil Nadu, WB, Sikkim, Odisha, Gujarat, Rajasthan, Maharashtra, etc.
The initial investment is Rs 5 to 10 Lakh.
3. Giani’s
Giani’s is one of the oldest and most known ice cream parlors in India.
It started in 1956 as a simple store offering only rabri faluda and mango shake. These classic flavors have become household favorites easily. Hence, its founder, Giani Gurcharan Singh, looked for ways to expand the business.
Since then, Giani’s has become unstoppable. The initial investment needed is INR 10-20 lakhs.
4. Brewbakes Hospitality & Sons Pvt Ltd
Brewbakes is known for having a solid food business plan that requires low investment with high ROI.
Aside from this, the company provides franchise support and consultation services. The initial investment needed is Rs 10 to 20 Lakh.
5. Dr. Bubbles – Zahra Hospitality
Dr. Bubbles is a Mumbai-based bubble tea bar.
It offers a wide variety of freshly-prepared bubble teas with rich toppings. Aside from this, they offer customized bubble tea by choosing the base tea flavor and your choice of topping.
It is open for franchising in multiple locations, including Delhi, Haryana, UP, UP, MP, Tamil Nadu, Kerala, Karnataka, WB, and many more. The initial capital investment is Rs 10 to 20 Lakh.
6. Frespresso Hospitality Pvt Ltd
In India, Cafe Frespresso is one of the best cafe stores.
It is distinguished by its delicious menu, comprehensive training, and full marketing support. Moreover, Frespresso offers franchise opportunities in Tripura, Sikkim, Odisha, WB, Chhattisgarh, MP, Bihar, Kerala, Karnataka, Gujarat, and Rajasthan so grab the chance to be one of the lucky franchisees of this business.
The estimated initial investment is Rs 10 to 20 Lakh.
7. Coffee Bike
Coffee-Bike is one of the fastest-growing food franchise systems in Europe.
Currently, the brand has a presence in 18 countries worldwide, including Dubai (UAE), Hungary, Kuwait, Netherlands, Qatar, UK, and other countries.
In India, it has five outlets in New Delhi, Bangalore, and Cochin. This proves that Coffee-Bike has successfully entered the Indian market and still offers franchise opportunities for those interested entrepreneurs.
The initial investment needed is Rs 2 to 5 Crore.
8. The Juice Art
The Juice Art is a juice and dessert cafe.
It is operated by Sonaya Foodworks and is very popular in the Delhi NCR region. Today, the company is looking for franchisees in multiple locations, including Delhi, Haryana, Himachal Pradesh, UP, Telangana, Karnataka, Kerala, WB, Odisha Jharkhand, Bihar, and many more.
The initial investment needed is Rs 10 to 20 Lakh.
9. Bubble Rush
Bubble Rush is another bubble tea restaurant in Pune City.
This company offers a wide and delicious menu, including tea and milkshakes, waffles, ice cream, and smoothies. It is now open for franchising in multiple locations, including UP, Kerala, Jharkhand, WB, Bihar, Gujarat, Rajasthan, and Goa. The estimated initial investment is Rs 10 to 20 Lakh.
10. Taco Bell
As mentioned above, India has been the home of other foreign brands, especially the fast-food chains.
So, here is Taco Bell!
Taco Bell is an American fast-food restaurant based in Irvine, California. It is also a subsidiary of Yum! Brands, Inc.
This company generally serves Mexican food, but its menu has been customized to satisfy the Indian palate in India. Among the customers’ favorites are tacos, burritos, nachos, quesadillas, veggie chalupas, potato, and paneer variations.
The estimated initial investment is Rs 3 Crore.
11. Kake di Hatti
Kake di Hatti was founded in 1942.
It is a known restaurant that has been running successfully for more than seven decades already. The business began as a small shop in Old Delhi’s Chandni Chowk and soon became a household name.
Today, the business has a network of loyal customers that patronize its menu. Moreover, Kake di Hatti only grants franchise licenses to franchisees after ensuring that the applicant will maintain the restaurant’s high-quality standards.
You can franchise Kake di Haiti with an initial investment of INR 20-30 lakhs.
12. Pizza Hut
Another foreign brand in India is Pizza Hut, an American-owned company.
It is a popular pizza parlor in the country that offers different types of delicious pizza and other menus such as pasta, wings, sides, desserts, drinks, and calzones.
Today, Pizza Hut has more than 11,000 franchise units operating in different countries. The initial investment for a Pizza Hut franchise in India ranges from Rs 2 to 6 Crore.
13. KFC
Kentucky Fried Chicken or KFC is another popular international franchise in India, with over 335 restaurants in more than 100 cities in India.
If you are interested in franchising one, the initial investment is around Rs 1 Crore.
14. Domino’s Pizza
Domino’s Pizza is another American restaurant chain that is known in India. The brand is popular for offering diverse pizza flavors and toppings. If you are interested in franchising, the initial investment you need is around Rs 4 to 5 Lakh.
15. Tikka Express
Tikka Express offers quick service North Indian food made of quality ingredients.
The company offers three franchise packages, and the initial investment needed is estimated at Rs 15 Lakh. The floor area requirement is 300 sq. ft and is best situated in malls and busy streets.
16. Snackoz
Snackoz is another quick-service food brand in India that serves the best Kathi Roll.
Aside from this, they are also popular for serving the country’s best Paratha’s, Kebabs, and Charcoal Chicken and are considered one of India’s most franchised fast-food businesses.
The initial investment needed to start this business is Rs 5 to 10 Lakh.
17. The Arab Knights
The Arab Knights is a restaurant chain with vans and kiosks. It is popular in the capital city of Rajasthan, Jaipur.
The company specializes in Lebanese and Arabian cuisines, offering healthy and hygienic food at reasonable prices.
The initial investment for this is Rs 10 to 20 Lakh.
18. The Rolling Stove
The Rolling Stove is a popular food truck business in India.
It is based in Jodhpur and offers Italian meals. It is now looking for interested franchisees in multiple states, including Delhi, Haryana, Punjab, UP, Kerala, Andhra Pradesh, MP, Bihar, Gujarat, and Rajasthan with the Union Territories.
If you are interested, the initial investment needed is Rs 10 to 20 Lakh.
19. The Momos Company
If you are looking for a dessert business, The Momos Company can be a great choice.
It offers different momo varieties and Tibetan delicacies to the customers. Today, the brand is looking for interested franchisees in the following locations: Delhi, Punjab, Gujarat, Rajasthan, Jharkhand, along with Union Territories. The initial investment is Rs 5 to 10 Lakh.
20. Cocoberry
Cocoberry is a frozen yogurt brand in India.
This brand is very popular in the country as a healthy alternative to the usual ice cream. Aside from this, they serve gluten-free products and healthy herbal drinks.
The initial investment needed is Rs 10 to 20 Lakh.
21. Chowringhee Food Pvt Ltd
This business is very popular in the Delhi NCR region.
Chowringhee offers authentic and mouthwatering food items such as Kathi Rolls, Tandoori, and Momos. They also have budget-friendly Indian meals and shakes.
The initial investment needed is Rs 5 to 10 Lakh.
22. Chaat Ok Please
Chaat Ok Please is owned by Black Orchids Pvt Ltd. It is also the same company that owns the “Juice Lounge.” The company mostly offers franchises that need little capital investment, such as Rs 5 to 10 Lakh.
23. Sanjha Chulha
Sanjha Chulha offers authentic Indian cuisines and currently operates three outlets under different business formats in Delhi NCR.
They mainly follow age-old recipes for most of their menus and even serve both veg and non-veg rolls and kababs.
The initial investment needed for this business is Rs 10 to 20 Lakh.
Beauty and Wellness Franchises
24. Jawed Habib Hair and Beauty Ltd.
Jawed Habib is a beauty and wellness business founded by Jawed Habib in 2000.
To be more precise, it is a hair grooming business. Habib comes from barbers; thus, haircutting is never a difficult skill for him to learn.
The initial franchise investment needed is INR 20-30 lakhs.
25. Affinity Salon
Another known business offering franchising in India is Affinity Salon.
Founded in 1992 by Vishal Sharma, this beauty and wellness salon has a sophisticated and experienced staff that makes the overall experience worthwhile.
The business is also known for its luxurious interiors and an international range of beauty products. Over the years, the salon has secured a place among the Top 100 Best Salons of the World in the Salon Red Book.
Based on the latest data, the initial investment needed is INR 30-50 lakhs.
Courier Franchises
26. InXpress
InXpress was founded in 2011 and is one of India’s leading courier and delivery companies.
It has partnerships with world-class carriers that handle pick-ups and deliveries. Aside from this, InXpress ensures that the best page is selected for your needs and budget.
This gives entrepreneurs the setup to build a flexible business with the support of a global and tested franchise system.
InXpress’ initial investment is INR 5 lakhs.
27. DTDC Courier And Cargo Ltd.
DTDC is another courier business in India offering franchise opportunities.
Its founder, chairman, and managing director, Subhashish Chakraborty, started the business in 1990 in Bangalore. Today, there are more than 1000 franchise units in India, making DTDC the pioneer franchise-based business model in the express industry.
The estimated initial investment is INR 50,000 – INR 2 lakhs.
Retail Franchises
28. Lenskart
Lenskart is an eyewear company in India.
It is one of the fastest-growing eyewear brands in the country, operating both online and offline stores. The company was founded by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi in 2010 as an online store for contact lenses. A year after, the brand was already offering eyeglasses and sunglasses.
Today, it offers franchise opportunities in most of India’s busy cities with an initial investment of INR 30-35 lakhs.
29. FabIndia
John Bissell founded FabIndia in 1960.
It is the largest retail apparel in India that is still a household name today. It is loved by everyone and always ahead of competitors like Zara and Levi’s India.
It is a classic brand that stays true to its original focus of incorporating Indian culture in its apparel and other products.
It is now open for franchising in various cities across India, and the initial investment needed is INR 40-50 lakhs.
Education Franchise
30. EuroKids
EuroKids was founded in 2001 as a pre-school education center.
Then, it slowly gained recognition, and EuroKids has become one of the prominent preschools in India.
It was founded by Prajodh Rajan and Vikas Phadnis in 2001, believing in the “child first” ideology. Today, it has over 1000 preschool centers in more than 350 cities across India, Nepal, and Bangladesh.
The initial investment needed is around INR 10-20 lakhs.
Post-Covid Best Franchise Business Ideas in India 2021
Cleaning Services
Maintaining the cleanliness of homes and offices remains to be everyone’s priority in this time of pandemic. People are looking for more cleaning professionals who can provide quality cleaning while observing precautionary measures to prevent the spread of the virus.
Delivery Services
Another lucrative business idea this time is delivery services. With people looking for ways to buy things and food without going out, delivery services are the best solution. It gives delivery riders more opportunities to earn and aspiring business owners to run a great business.
E-commerce
Pandemic has affected brick and mortar stores worldwide. People are now shopping more online than going out and buying things at stores. This is why more business people are utilizing the power of the internet to start their online businesses.
Personal Shopping Services
Some people love to commission businesses that offer personal shopping services. It is now another on-demand business that people provide for a minimal fee, and it is thriving, so you may want to start this business.
Digital Marketing and Virtual Assistant Services
If you are knowledgeable about digital marketing and offering remote services to businesses, starting your startup business is the way to go. More companies are looking for services like this, and with the demand of the current situation, it is a great way to start your business at a minimal cost.
9 Questions to Ask the Franchisor
As a franchisee, you all have the right to ask questions to your franchisor. To do so, you can always use the franchise’s Discovery Day to interact with the franchisor and build rapport.
What is a Franchise Discovery Day?
A Discovery Day is a one-on-one talk with the franchisor. It is one important aspect of the franchising process that plays a great role in your decision-making.
It helps you understand the business more and assess if the franchisor is a good fit for knowledge, experience, attitude, and culture.
Here are some questions to ask:
1. Ask about previous litigation experience.
It pays to do research first about the business. If you get information that the company has faced litigations, ask about it. Moreover, if the franchisor has many franchise failures and is involved in a bankruptcy, you must ask about it.
2. What are the local competitors, and how to handle them?
Asking this question will give you an idea about how strong the current market competition is. Franchisors usually have their action plans and marketing strategies to overcome this concern.
3. What kind of changes are expected based on the business concept?
Even if the business is well-established, there are still repercussions that may come in the way. Therefore, it will be helpful to have some background on the possible changes, especially in the marketing and operation side of the business, so that you can adapt easily.
4. How do you handle the competition?
There is always a pose of competitive threat in the market, no matter how strong the business is now.
Hence, the business must always stick to its unique selling point (USP) and avoid impulsive decisions to join the trend without evaluating its impact on the current business model.
5. What’s the biggest competitive threat in the marketplace? What about opportunities?
When it comes to this, we have an important note for you. Remember that you must pay close attention here. If you feel that you don’t get a substantive answer from the franchisor, it is either you’re being sold, or you’re dealing with someone who simply doesn’t know the answer. Well, in either case, always be wary and rational.
Moreover, at this point, any franchisor should have presented their Strengths, Weaknesses, Opportunities, and Threat (SWOT) analysis report to give you a more detailed overview of the threats in the market. At the same time, you get to know the opportunities that can happen once the business thrives in the economy.
6. Who is your customer?
Every business knows its customers. Given this, the franchisor should give you a definite answer to this question. Experienced and dedicated franchisors have details about the customers at the end-user level and the market itself. There is no doubt that they can be a reliable franchisor for the business you want.
7. What are you selling?
Every franchisor must know exactly the product that they are selling. For a service, the franchisor must define the kind of service they are providing.
8. Have new competitors surfaced?
It pays to check for your new competitors and does not just focus on the current ones. You need to ensure you are still ahead of the competition.
9. Who are your major vendors or suppliers?
Ask your franchisor if they have a strong network of vendors or suppliers that can keep the business going. Otherwise, it could be a problem if they do not have one.
How to select a franchise?
Franchising is a great venture. But how will you select the best one? Here are some tips.
Understanding the Franchise
Understanding every aspect of the franchise is always the first step to consider when selecting a franchise. You should always check out the facts related to the franchise and dissect every point - from operations to other aspects of the business.
Finding the Common Trait
Just to set anyone's expectation right, franchising is not always a win-win situation because it is subjective. Franchisors who do not consider their franchisees as partners are not always successful in the field.
Finding the Perfect Investment Opportunity
Franchising is an investment opportunity. But you must always do thorough research first before paying anything. The best franchise will always be a perfect investment if you know what to expect out of it.
How to select the right location for your franchise?
Not all franchisors are proactive in helping you with choosing the right franchise location. In this case, you need to know at least what to do to find the optimal place.
Initial Research and Site Inspection
For sure, franchisors have researched some places before the agreement, but they do not share this unless you also have yours. So, do your assignment too and find a home you think is the best fit for the business.
After that, present it to the franchisor and ask for their approval.
Have a Research Team
If you are a busy person, do not have second thoughts about getting help from people who know how to do proper research.
Find a team that has a strong foundation and background in location research. They can give you great insights about the location, plus the negotiation and finalization of the lease. It usually consists of you, the franchisor, a local commercial real estate broker, and a reasonable lease attorney.
Things to Consider Before Buying a Franchise
So, you are now ready to get a franchise business but have you thought about the things to consider before buying one?
Do not worry! Here are some tips to ponder upon.
Do a self-assessment
Assess yourself as a franchisee. Ask yourself if you can commit 24/7 of your time in the business. Even if you have people working for you, it is not enough. It is still important to
Study the concepts
Ditch the idea of “franchising is an instant success.” It is a fallacy that led some franchisees to fail in the long run. So, equip yourself with the franchising concepts. It will help you succeed in the field.
Research the market
The market is always changing. Studying the current market behavior and the possible shifts save you from any problems concerning who will buy your products. Market research is considered to be an additional cost but could keep you in the end.
Take your time
Franchising is not a race. There is no need to hurry. Do not be tempted with early-bird discounts and other promotions of the franchises. It is always essential to do things at your own pace.
You better stay rational, do the math, research, read the agreement thoroughly (if you want to franchise the business badly), and consult your lawyer if needed. It is best to be cautious while searching for the best franchise.
Tips for Franchising Success
Here are some franchising tips to help you throughout the process.
Choose a brand that you like
In franchising, choose a business concept that you love. Do not be influenced by peer pressure or other factors. It should always be a brand that is close to your interest and heart.
Evaluate your financial capability
Venturing into a franchise business requires you to be financially ready. You need to have enough funds or other resources to get going. Doing business is always easy if you have secured funding to continue your business.
Choose a franchise with a solid business model.
A business model is the franchise’s backbone. You must choose a business concept that is well-established and tested over time. It will help you have an easier franchise journey than doing a business without assurance.
Evaluate the business’ marketing program
Even if the business is known in the field, having a hardcore marketing team is a plus. Boosting your online presence is a must these days, especially if competition is fierce.
Seek the franchisor’s all-out support
The 90% franchising success rate is impossible without the aid of franchisors that they give to their franchisees. Ensure that you evaluate your franchisor’s attitude and check their trustworthiness so you can always be at ease doing the business.
Conclusion
So, what do you think? Don’t you think there are more businesses to start even in the middle of these trying times?
Indeed, statistics show that it is possible but do not be complacent. You always need to do your research first before giving out that capital.
After all, this is not just your dream but also an investment that needs to be handled properly. Check out more useful guides and franchising articles here at franchisemarket.in - your number one franchise information portal in India.
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