Why Franchise your Business?
You might be aware of the term “Franchise” or “Franchising”. So ever wondered how to become a franchisor and expand your business across the world? If yes, then you would be glad to know, these days’ business owners tend to adopt a franchise model rather than starting company-owned outlets.
Hence, your business has to set a milestone and understand from where you could start expanding. Because when you decide to expand, this might cost you a lot and if you are start-up it becomes a tough choice. Thus, the franchising model comes into the picture. If you opt for franchising; your major part would be to design a franchising model for the business. Once the model is ready, you are good to start with the expansion of business in the desired demographics.
Sounds easy? But this takes a lot of research about the territory, market demands, cost calculations and more of brainstorming. Furthermore, the biggest task is to find the appropriate business seekers as a franchisee.
Therefore, the team of Sparkleminds comes in picture. We will not only help you in designing the franchise model but we have a huge database of entrepreneurs from which you can choose the most suitable ones.
Should I Franchise my Firm?
Pondering upon should I franchise my business is common among business owners, regardless of the age of the business. The best they can do to upgrade their knowledge on this is, by reading material on such topics or even talking to people who have expanded via the franchise mode will serve the purpose. Experts at Sparkleminds have over 2 decades of experience in the franchise industry, we provide complete support to budding entrepreneurs and established entrepreneurs to understand and explore expansion via the franchise mode and what it takes to successfully establish your franchise business and rules and regulations to follow for the same.
Is it the Right Time to Franchise your Business?
An entrepreneur must understand the right time to franchise one’s business. It is always great to start looking at franchising your business. Start the process only when your products or services have been accepted by the public, the market. Moreover, the target audience is well defined along with generating revenue for at least a few years. There are few services which seem to be hard when one looks at giving franchises of them, but we at Sparkleminds have worked with a variety of brands in the product and service sector and have been able to successfully establish their franchise business with our guidance and support.
One of the biggest dreams of an entrepreneur is to establish his/her business in every city across the world. It takes time and effort to reach that stage, in the industry you serve. There are a few points that need to be kept in mind before you start franchising your business:
- Do you have a Set Business Model?
- Do you have you the investment and Documentation in place
- Is your brand marketable and Ready to be Adopted?
Is Your Business Franchise Ready?
There are 10,000 + companies in India that have used a franchise model for them for expansion. There are also close to 5000+ companies which are going to join the bandwagon in the next 12-24 months with this, the market is at a pedestal to offer a variety of franchise opportunities to the entrepreneurs to start a business.
Franchising is one of the most preferred ways to expand any business in their home country and then to other countries across the globe. Business expansion via the franchise mode has proven to be successful and effective, for large companies as well. With big brands believing in franchising as one of the most successful ways to expand the base, the mid-size and the smaller companies are also leaving no stone unturned to expand their franchises as well.
So, now you know the potential of franchising and what it can do to help you expand your business. Let’s start with the evaluation check of your business. You could also take the franchise quiz at Sparkleminds to get a score of where your business stands currently and whether you are really ready to start franchising.
Requirements to start a franchise
There are a few criteria’s that need to be in place before one looks at franchising their business.
- The first part is to have demonstrable success in place. You will need to have a few outlets, at least a couple, that are already profitable and have been running successfully for at least 12 months. This creates the base for the franchisor to learn and adapt to the customer requirements. In case the franchisor wishes to have the first outlets through franchises, then they may need to invest additionally from their end in the first couple of franchises until they have cracked the success formula and have at least one year of profitability in place for every individual outlet that is operating.
- Legal Identity – It means that if you are selling a product you must have a trademark to protect your originality of the product, and in case it is a service a service mark is needed for identification.
- Business Prospective – The business venture should be set up on long term goals and should be in a position to sustain for the next decade or more. The more unique your business, the better it will be Franchisable.
- Franchisee Guidance – The business model of the venture must be easily explainable or teachable to the franchisee. The franchisor should be well-versed with the intricacies of the business, and should be in a position to give all the required training to all its franchisee and educate them on running the business successfully. The, required skill-sets for the franchise to function effectively should be taught to every franchisee owner and the skills should not be limited to the original franchise owner.
- Resource Provision – The Franchisor should be able to provide brief information about the business along with the costs that could be incurred while setting up the franchisee. The franchisor should abide by the protocols of the franchise business and once the franchise business is set and running, the franchisor can look at collating the operating procedures and generate a manual for further guidance and support to upcoming franchisees.
- Team Managing – The franchisor should be able to hand costs of the new franchisee and also train & educate them on spending the right amount of money to pay salaries or recruitment of employees etc.
How to become a franchisor
The process of expanding business starts when you have successfully established your first outlet and have a huge database of happy and satisfied customers. This is when you should look for other locations, markets and (or) cities for expansion. While making the plan, conduct the research about your requirements and the optimum locations for reaching out to the right customers.
Since the Indian market is well-diversified there are high chances of the products or the service of the franchisor accepted in other cities and expanding the market base. There are a lot of ways to expand your business in India i.e. Joint Venture with existing businesses, setting up your own stores or franchising to those who have a keen interest in opening your outlets in their location.
The most preferred method of expansion is by reaching out to the franchise consultants. As these consultants are well versed with the current market trends, has intense knowledge of the customer requirements in specific locations. So, when you talk to these market experts you get all the information and documentation handled by them and reduces your efforts and resources required for the expansion.
So, if you want to contact one of India’s most experienced consultants then Sparkleminds would be the ideal platform for you. The Franchise Consultants at Sparkleminds can help you understand the potential of your brand, and also provide valuable insights on how to franchise your business and make the franchising process easy for you. We have been in the industry for over 20+ years and have worked with a plethora of brands. Having said we have also helped them by developing franchise and also educated them on how to create a franchise business plan. At Sparkleminds we understand and believe that every brand is unique and hence provide customized franchise strategy, sales, training and support for the same.