While you have decided to go ahead with franchising your business in India, you may have come across the term – franchise support services. But what is the meaning of this term and why is it crucial when it comes to franchising in India?
Read about the franchise support services, their benefits and what are the type of support services you should be providing as a business owner when you plan to expand your business in India. Remember this step could make it beneficial for you as well as the other entity if done the right way.
Franchise Support Services – Definition, Benefits, and Types Of Services You Can Provide
First, let us understand what we mean by the term franchise support services. When you franchise a business in India or anywhere else, support services are the different kinds of help, advice, and resources that the franchisor (also known as the business owner) gives to the potential investor (the person or organization that buys the franchise rights) to make sure they run their franchised business well.
Moreover, these services are meant to help the other entity follow the franchisor’s business plan, uphold brand standards, and be successful in their operations.
Here are some of the support services you should provide as a business owner. These services encompass a wide variety of areas, so it is important to have a proper understanding before getting started.
- Providing proper training – Business owners usually provide comprehensive training programs to the potential entity as well as the staff. This training covers every aspect of the business, such as product/service knowledge, sales techniques, use of inventory, SOPs, and customer service.
- Location selection – It is important to select the best location to suit your franchise. Moreover, the location should fit with the business’s target audience.
- Marketing & Advertisement Support – Franchisors can create local or national advertising and promotional materials and campaigns. They may also supply local marketing initiatives with guidelines and model materials.
- Ongoing operational support – Ongoing operational support can include helping with day-to-day business tasks, managing supplies, finding tech solutions, and fixing operational problems.
- Legal & Regulation Compliant – A lot of the time, franchise systems have complicated legal and governmental requirements. Business owners may help the other entity understand and follow these rules by giving them advice and support.
- Ensuring Quality Control – When you franchise your business it is important to ensure that the quality standards are met by the units. Therefore, quality control methods, regular inspections, and audits are some ways of supporting services.
- Contractual Support – Most of the time, franchisors give the other entities detailed agreements that spell out the rules and conditions of the franchise relationship. They may need to get legal help to understand and follow these contracts.
- R&D – As a business owner, it is important to keep your business updated with the latest trends. Therefore, money is spent on the research and development of the business. Moreover, business owners can keep the other entities updated with the new technology advances or the best ways to run the business successfully. This is good for everyone involved.
These are just some of the most common support services business owners provide while franchising their business in India. The support services will vary from business to business, depending on the industry type, nature, and the business owner’s franchise business model.
When the franchise agreement is prepared, the cost of these services is also laid out, as to how beneficial it will be for both parties and what they can expect by using these services. In short, the franchise support services are important to keep consistency in the brand and help increase profits.
How Franchise Support Services Can Prove Beneficial For Business Owners When Franchising Their Business in India
Whenever you decide to franchise your business in India, and will be providing support services to the other entity, this will bring along a number of benefits for you as the business owner.
Not only do these services help the other entities but it also has a contribution to the overall growth and profitability of your business.
Here’s why you should offer support services while franchising.
- Helps in faster expansion – This will help you attract more investors who will be confident about your business’s success. Therefore, increasing your brand awareness and expanding into the untapped Indian market becomes much easier and faster.
- Provides increased revenue streams – The more franchise units you open, the more royalties or percentage of the sales you receive. In short, a larger franchise network will lead to substantial revenue growth for you.
- Strengthens your brand image – All of the franchises in India can keep the same high standard of quality thanks to the services provided by the support team. A well-established, consistent brand identity may do wonders for a franchise’s popularity with consumers.
- Minimizes Risks – Business owners can successfully help the other parties navigate through any obstacles, by providing the right training, constant support, and the right operational direction. This will lessen the risk of business failure at the franchisee’s end and keep the brand reputation intact.
- Economies of Scale – It improves your chances as a business owner to navigate through better deals on advertising, supply, or any other costs, once your franchise network grows.
- Improves your quality check – These services include proper quality control and monitoring which helps the franchise meet the business standards. This will lead to more happy customers and also keep your brand image up to the mark.
- Make your business model more scalable – A well-supported franchise plan lets the owner of a business take their idea to more locations without having to spend a lot of money on each one.
- Strong Long-Term Relationships – Establishing trust and rapport with franchisees is key to fostering loyalty and cooperation. Franchisees who experience positive financial and operational results may be more likely to expand their business or promote it to others.
- Potential to take your business internationally – If a franchise model is successful in India, it might be an opportunity for you to take your business globally.
This is a confirmed source where you can have increased revenue streams if you provide the right support. Franchise royalties and fees are a consistent source of revenue for the franchisor, often even more so than profits from the parent company’s retail outlets.
When business owners in India are thinking about franchising, they need to find a way to help the other party while also letting them keep some of their freedom and entrepreneurial spirit. A well-organized franchise system with clear roles and tasks is good for everyone and helps the franchise network do well as a whole.
Strategies To Consider While Providing Franchise Support Services in India
Although you may have decided to provide support services to your potential investor, it is important to follow certain strategies to ensure that both you as well as the franchise are benefiting from these services.
Here are some strategies to keep in mind while doing so.
- Prepare a comprehensive support plan – Make sure your plan outlines all important aspects like training, ongoing operational support, marketing, and any other critical areas.
- Provide comprehensive training – Prepare training programs for the entity as well as their staff. This training should include all aspects regarding how the franchise must operate, product knowledge, sales, and customer support as well as day-to-day operations.
- Market and advertisement assistance – prepare marketing materials and campaigns at the national as well as local levels. Make sure your marketing material is tailored to specific regions of the country.
- Have a supply chain management system in place – Assist franchisees in finding goods, negotiating contracts with suppliers, and keeping track of their stock effectively. Use the relationships you already have in the supply line to help franchisees.
- Make sure of legal compliance – Help people understand and follow India’s laws and rules by giving them advice and assistance. Make sure that partners can get legal help if they need it.
- Establish a good feedback management system – Obtaining feedback is a very important part of any business. Set up ways for franchisees to give comments and talk about their problems, ideas, and concerns. Use what people say to make the franchise scheme better.
- Have a resource portal – You might want to make an online resource portal or intranet so that franchisees can get training materials, operating guides, marketing materials, and other useful information.
In short, in this type of agreement, it’s important to make sure that both parties know what is expected of them and what the rules are. To make a franchise system in India that works well for everyone, there needs to be good communication, a strong support system, and a dedication to the success of owners.
To Conclude,
Get in touch with our experts at Sparkleminds to help you with the perfect franchise business model. We will take you through the entire process and ensure that the journey from a business owner transitioning to a franchisor is smooth and hassle-free. Call us right away!
