Franchising has come under the spotlight in India recently. Due to its increasing popularity, more business owners are choosing to franchise their businesses as a way to expand.
Franchising is a type of agreement that involves producing a successful business model across multiple locations. As a business owner, you should work on creating a business model and strategy that can sustain your franchise for the long term.
These models and strategies should be specific to your business but also be flexible enough to work for your other franchise locations.
How to Make My Business into a Franchise in India?
If you’re looking for a way to turn your business into a franchise, you’re in the right place. We have a step-by-step guide designed for you
In total, there are 9 steps to franchising a business in India.
- Do Your Research Before Anything Else
An underrated step that isn’t talked about that often. However, this is the most important step you can take if you want your franchise to be successful. Research the industry your business falls under. From there, look into what products and services are currently in demand.
Build your business with an understanding of the customer’s pain points. Try introducing these products and services under your business and have them relate to your business in some way. You can try looking into branching out and including services from other industries for your brands.
These are all potential strategies you should think about when you are in the process of growing and scaling up your business.
- Using Proven Products And Systems
Experimenting with new methods and trends is always a good idea. However, you also need to remember to have a good foundation set up to bounce those ideas off of. Building your business model using proven strategies and systems will help stabilize your business and sales.
The last thing you want is a volatile business model that can fail when faced with any problem.
You can do this by talking to other business owners in your industry and getting their insight, or seek out professional franchise consulting agencies like Sparkle Minds, or doing your own research, etc. Most will do a combination of all of them.
Related: How to make a Successful Business Plan in India?
- Learn to Leverage Your Business’s Success
Operating a successful business is great. Since you’re franchising your business, you should also be able to duplicate that success in your other franchise businesses. To do this, ensure that all of your business strategies and guidelines are detailed in an operations manual. This way your franchisees have access to this information all in one place.
As your franchise business expands you will inevitably experience a loss of control. You can’t be everywhere at once. That’s why providing detailed guidelines for all operations is so important.
- Legalise Your Franchising Process
In India, there is no legal framework for franchises yet. However, The Franchise Act Of 1999, specifies that the franchise agreement allows a franchisee to sell, manufacture, and provide goods and services or pursue business with the franchisor (you).
However, you do need to trademark your brand.
Before you proceed it doesn’t hurt to make sure that your business has all the licenses, registrations, and permits. Having a reputable business is what inspires trust in potential franchise partners to consider your business as a worthwhile investment.
Doing this also provides legal protection to both you and your franchise partner. It’s essential to have a franchise attorney oversee and draft your franchise agreements.
Related: How to draft an Indian Franchise Agreement?, Understanding the legal know-how of Franchise business model
- Figure Out How To Sell Your Franchises To Potential Buyers
Pay attention, this is important – Have your sales pitch perfected and ready to go. Don’t just try to sell to your buyers, educate them as well. This will also help you determine whether the potential buyer is a good fit for your business.
The information you give your potential buyers will also further help them reach their own decision about whether they want to go through with the purchase. As a franchisor, it’s your responsibility to educate your candidates about what they’re getting into.
For starters, provide reasons for your investment levels, your vision for the future, and how much they, as a franchise partner, can potentially make from your business. Doing all this can help potential buyers convince themselves why your franchise brand is a good fit for them.
Also Read: Five Secrets To Selling A Franchise
- Support Your Franchise Partners
Treat your franchisees more like business partners. They are your equals in business. Your franchise partners can only be as successful as they can be based on the support and resources you provide for them.
This can be done through offering comprehensive training, marketing support, assistance with setting up their franchises and having an open line of communications with them. This will help your franchise partners stay abreast of changing procedures and new market developments.
- Have Enough Capital
I’m sure you’ve heard before that franchising is a cheaper alternative when expanding your business. ‘Cheaper’ doesn’t mean free. You still need a good amount of money to set up proper systems in place if you’re going to be franchising your business.
What you’ll need to factor in are: Setting up costs for product development, developing franchise systems, brand development, testing new strategies in your concept stores,& developing franchise training manuals, IT systems, and head office support systems.
All of these need large amounts of cash.
- Using Effective Branding And Marketing Strategies
As a franchisor, you need to develop a comprehensive and detailed marketing plan for your whole brand. At the same time, you also need to draft a marketing plan your franchisees can use for their locations.
Your responsibility as the franchisor lies in driving your main business to market your franchise or product. This will boost your brand and your business’s market awareness.
As the market is continuously evolving, make sure to have a competent marketing team in your head office to stay abreast of current affairs and trends in your industry.
Related: The Future of Franchise Marketing: Emerging Trends and Technologies
- Build A Strong Network
Building strong relationships with your franchise partners can guarantee results and more retention. Every aspect of your franchise chain will be affected by the strength of your relationship with your franchise partners.
Checking in with your franchise partners from time to time, and offering guidance and mentorship can go a long way.
Providing feedback sessions after implementing new processes can be a good way to build that relationship. Good communication and strong business relationships will take your franchise further along in the long term.
Related: 5 ways to keep learning as a Franchisor
To Conclude
Building a successful franchise can be incredibly rewarding. It can turn your business and brand into a household name. Seeking professional help from franchise consultancy agencies in addition to doing your own research will give you a competitive edge in today’s market.
Contact Sparkle Minds to franchise your business today! Sparkleminds has helped more than 500+ businesses in franchising their businesses nationally and internationally, what are you waiting for? Connect with us to get started
