Franchise Industry of India in 2021- Best Time Ever to Franchise Your Business?

Written by Sparkleminds

2020 was year of consternation and confusion as consumers around the world struggled to find what they needed under circumstances that changed weekly. Counterintuitively for many companies, it was the best year in their history as consumers had a range of new needs resulting from working from home and various levels of lockdowns. However, for other conventional businesses, more specifically retailers in malls, urban areas in countries with strict lockdown orders, it was a year of major losses. They surely have been jolted and have created their own pathways to becoming relevant in a post covid world.

We are extremely confident that some very big franchise brands will emanate from this pandemic in India and across the world as we prepare for opportunities that lay ahead. These brands will use all the means and tools available for the next-gen consumer and use interesting modern franchising models and the resources that are now at our disposals, which hitherto, were non-existent.

Franchising is growing at an impressive pace in India. Franchising has witnessed a growth of around 30-35% over the last four-five years and the overall turnover is estimated at around INR 938 billion. Currently, the sector contributes nearly 1.8% to the Indian GDP and is estimated to contribute to around 4% by 2022

India has over 4600 franchisors which comprise of:

• 16% – Global brands
• 34% – National brands
• 50% – Regional brands

This country has nearly 2,00,000 franchise outlets being operated by and under 1,70,000 franchisees and nearly 60% of franchise locations are in a unit franchise format. These are pre-pandemic numbers, while the segment is poised for the explosion, by the beginning of 2022.
The franchise formats for brands have been popular to experiment with because of the brand reputation they’ve earned and who wants to use that reputation to attract and attach many customers to them.

The significant benefits of starting a franchise business in India right now are:
• Lower operating cost
• Local Business Knowledge
• Rapid Expansion
• Branding
• Training and technical know-how
• Less risk for franchisee
• Easy access to capital

Lower rate of failure :

Franchises have a lower rate of failure as compared to start-ups. According to a study by IBM and Oxford in 2016, 90% of the Indian start-ups fail within the first five years, against only 15% of franchises. Since the business concept has already been worked out with the existing loopholes been fixed, the model today is efficient, low risk, and low cost over any start-up. Thus, making it more appealing to the investor.

Increasing income and purchasing power :

Indian disposable income was approximately INR 131 trillion in 2018 and is expected to double by 2025. The rising income levels in rural and urban India have resulted in increased spending on discretionary items as against necessities. This rise in income and spending capacity across India coupled with increased awareness, has created a substantial demand for domestic and international brands. A large number of companies are expanding beyond tier-I cities and increasing their presence by adopting the franchise model. Hence a large number of franchisee seekers have emerged in TIER II and TIER III cities and towns of India seeking to buy popular franchise brands which they see which are popular in bigger cities around them.

Privatization in different sectors :

With the rapid privatization in India across various sectors such as education, healthcare, telecommunication, and others, there is a constant rise in the influx of international brands in the country. With this increase, the scope for franchising has also gone up. Today, companies across sectors such as EuroKids, Ferns and Petals, Vakrangee, Connect India, and DTDC are key examples of successful privatization and franchising in India.

First-time entrepreneurs:

The newfound entrepreneurial spirit of young Indians has led many individuals to enter the franchise business. Presently, around 35% of all franchise owners have been first-timers in business. These entrepreneurs choose franchising due to the range of benefits it offers such as reduced risk, association with an established brand, training, and support, etc.

• Relatively higher unemployment rates, with both lower-cost workers and seasoned career professionals seeking opportunities.
• Favorable market conditions that provide ready access to capital for investing in franchises.
• Available commercial real estate due to business closures in 2020.
• Several existing franchises available for sale due to owners being affected by COVID-19 or not being able to manage the working capital requirements.
• Several franchisors are offering preferential one-time terms while signing their franchise agreements in India. Prospective franchisees can surely negotiate on some terms based on the current scenario for their advantage.

Potential of Franchising in India, Industry-wise in Post Covid Era.

Whether you are buying a franchise in India post covid or franchising your business across India post-2021, here is a snapshot of 6 different segments we have covered for your understanding. You could stay connected with the sparkleminds blog for the latest on the franchising industry of India as we pretty much cover all types of businesses and you can get the information you seek about any specific business, brand, segment or location.

Healthcare:

Driven by better healthcare awareness, rise in incomes increased access to insurance and lifestyle-related diseases, India’s healthcare market is expected to reach USD372 billion by 2022.4 The Indian government aims at increasing the healthcare spending to 2.5 per cent of the GDP (gross domestic product) by 2025. Franchising will be the vehicle to push products and services, many medical store brands will be up, and many are looking to invest in polyclinics, fertility centres, animal clinics and so on so forth.

Mental Health Services, is a new area that will open with many mental health care centres, like Psychiatric, Psychological, and mental wellness service centres that will open with people using many AI tools in helping clients.

The Indian ‘eHealth’ sector is at a tipping point and is projected to grow by ~13x, to become a $16 Bn opportunity by FY 25. The $135 Billion Indian healthcare industry is at an exciting tipping point, with the Indian Government prioritizing healthcare as one of the key focus areas for the next few years. The Government plans to increase its healthcare spending from the current 1.6% to 2.5% of the GDP until FY 25.

There is significant opportunity for improving the healthcare services across the country, especially in Bharat, where penetration of quality and affordable outpatient & inpatient care services is limited.
The eHealth sector will have 3 potential growth scenarios in terms of the number of tapped households over the next 5 years:

  • Base Scenario: eHealth will tap 41 Mn households by FY 25, growing at eHealth’s historic 2 Yr. CAGR of 57%.
  • Moderate Scenario: eHealth will tap 57 Mn households by FY 25, growing at grocery’s historic 2 Yr. CAGR of 68%.
  • Aggressive Scenario: eHealth will tap 68 Mn households by FY 25, growing at Foodtech’s historic 3 Yr. CAGR of 74%.

India is home to around 5,295 health tech startups, out of which 133 are funded eHealth startups. The eHealth market in the country is expected to reach $10.6 Bn by 2025. However, it will only be 1.6% of the total addressable healthcare market, pegged to reach $638 Bn by 2025. This amply indicates the huge headroom for growth and the massive opportunity that can be leveraged by the eHealth sector.

Healthcare companies or brand can make the most of the growth this segment is seeing by franchising and appointing franchises who are scrambling for a piece of the healthcare pie which otherwise is not possible for individual entrepreneurs for the sheer scale of investments that could be required. Hence entrepreneurs could join the segment for as low as Rs2 Lakhs by starting a collection centre or as high as a crore for a diagnostic lab. For the brand, they get entrepreneurs at the last mile, ensuring a asset-light expansion model.

E-Education:
Print in India shrunk to 25-30% of pre-Covid levels. Also, since the lockdown led to the adoption of digital as the mainstream mode of teaching and learning, the demand for educational books dropped by 40-50% due to the closing of schools and colleges.

The COVID-19 has resulted in schools shut all across the world. Globally, over 1.2 billion children are out of the classroom. As a result, education has changed dramatically, with the distinctive rise of e-learning, whereby teaching is undertaken remotely and on digital platforms. Research suggests that online learning has been shown to increase retention of information, and take less time, meaning the changes coronavirus have caused might be here to stay. It is clear that this pandemic has utterly disrupted an education system that many asserts was already losing its relevance.

21 Lessons for the 21st Century, a book published by scholar Yuval Noah Harari outlines how schools continue to focus on traditional academic skills and rote learning, rather than on skills such as critical thinking and adaptability, which will be more important for success in the future. Could the move to online learning be the catalyst to create a new, more effective method of educating students?

While some worry that the hasty nature of the transition online may have hindered this goal, others plan to make e-learning part of their ‘new normal’ after experiencing the benefits first-hand.

The importance of disseminating knowledge is highlighted through COVID-19. Major world events are often an inflexion point for rapid innovation – a clear example is the rise of e-commerce post-SARS. While we have yet to see whether this will apply to e-learning post-COVID-19, it is one of the few sectors where investment has not dried up. What has been made clear through this pandemic is the importance of disseminating knowledge across borders, companies, and all parts of society.

If online learning technology can play a role here, it is incumbent upon all of us to explore its full potential. Edutech platform upGrad reached a million users recently. It grew 100% in 9 months from the start of the financial year and is targeting Rs 2,500 crore in revenue for FY21-22. The platform has forecasted that it will reach the 2 million user mark within the next 18 months.

Between April and December 2020, ‘edtech’ searches gained 60 percent on the Indian internet, according to Google Trends. Searches for individual companies such as BYJU’S, Vedantu, Toppr, and others that cater to India’s 265 million school-going students — the highest in the world — gained even further. A joint report by BARC India and Nielsen revealed that there was a 30 percent increase in the time spent on education apps in the first three months of lockdown.

The Future: Physical vs Online:
Covid-19 has altered the landscape of education. Even large universities are adopting e-learning and thus in turn saving on investment in more physical infrastructure. This is also making education more accessible and affordable. Ever since the pandemic, upGrad enabled over 100 universities and colleges, including MHRD’s NIRF Top 100 universities to replicate their classes online.
We have seen an upsurge of online education brands seeking franchises at FranchiseBazar.com. Almost every segment which had a physical classroom presence is now looking at additional physical classroom franchises who offer virtual classes to students in the catchment area and provide in person attention as well. This is the norm most education franchisors in India are adopting. National Skill Development Corporation or NSDC is pushing hard for private participation in this segment as well, as companies tied up with this government initiative also need last-mile classrooms and are using the franchise model for expansion.

Retail Convenience Stores:
According to a survey about the impact of the coronavirus (COVID-19) on Indians in May 2020, retail stores seemed more reliable in terms of sourcing essential grocery. For those ordering online, only ten percent got everything they needed easily, compared to 40 percent among retail store shoppers.
India implemented a lockdown for 21 days, announced on March 24, 2020. This was after the “Janata Curfew” on March 22, 2020 – a so-called practise lockdown. Panic-buying commenced among consumers days before the lockdown was announced, much like in other countries. This lockdown was the largest in the world, restricting 1.3 billion people, extended until May 3, 2020.
Reliance Retail will exit direct sale of packaged food, grocery and FMCG goods on its e-commerce platform JioMart by roping in Kirana stores as franchise partners that will sell these products to consumers in their respective neighbourhoods. This marks a shift in strategy that differentiates it from other big online grocery platforms such as Big Basket, Amazon and Grofers. This also opens up the gates for millions of shop keepers or Kirana store owners to convert their existing shop into a reliance jiomart franchise and join the organized retail revolution underway in India.

100’s of other supermarket brands or franchisors are also now in expansion mode in India as they have seen unprecedented demand during this phase and need a local convenience store close to the customer to fulfil their immediate requirements. This is the beginning of the consolidation of the kirana industry of India, delivering to the doorsteps of crores of customers now backed by strong online players like Reliance, Walmart, Amazon & Alibaba in India.

E-commerce:

The Indian e-retail market is primed to reach nearly 300 to 350 million shoppers over the next five years—propelling the online Gross Merchandise Value (GMV) to $100 to 120 billion by 2025. As Indian e-retail sees a steep increase in shopper penetration, driven by lower data prices and investments to improve customer experience, online platforms are innovating to onboard the next hundreds of millions of shoppers.

49% of Indian consumers say online sites and apps became the preferred mode of shopping for them in the last 12 months, as per a Local Circles survey. Safety from Covid-19 and convenience were cited as top reasons by consumers for using eCommerce. 69% of those who shop on eCommerce bought groceries/essential supplies online. Consumers used large e-commerce platforms as well as small verticals or local e-commerce sites to purchase groceries and essentials.

This spike in B2C ecommerce in India is of course due to existing online shoppers stocking up on essentials given the coronavirus outbreak and the lockdown imposed by the Government (to check its spread). However, it also consists of perhaps two more segments –apart from the one that buys online, regularly. India’s e-commerce is expected to reach 99 billion dollars by 2024, growing at a 27 per cent CAGR over 2019-24 with grocery and fashion/apparel likely to be the key drivers of incremental growth.

India’s e-commerce market is projected to grow by 84 per cent between now and 2024 to about $111 billion (from about $60 billion in 2020) driven by mobile shopping, which is projected to grow 21 per cent annually over the next four years, the report said.

Brands like Lenskart.com have witnessed great push from their retail presence despite seeming like an online brand, garnering a major share from their offline sales through franchise and own stores. This trend will continue for several ecommerce & retail brands where touch and feel is an important criterion for converting consumers. A Lot of Indian retail and ecommerce brands are deploying this hybrid strategy for growth. All conventional players like Bata, Raymonds, Lakme, Prestige and several others are all in an aggressive franchise and ecommerce expansion mode in India.

Logistics :

The immediate impact of the pandemic on the logistic sector has been a sharp fall in freight availability due to restrictions on the production of non-essential goods, and shortage of fleet for movement of goods owing to the dearth of drivers and a consequent spike in truck rentals and air freight prices. More than 9 percent of the shipments were stuck, 21 percent of the orders were delayed and the delivery percentage has seen a clear decline of 19 percent, forcing the logistics sector to face the brunt of the crisis. More than 9 percent of the shipments were stuck, 21 percent of the orders were delayed and the delivery percentage has seen a clear decline of 19 percent, forcing the logistics sector to face the brunt of the crisis.

According to Economic Survey, the country’s logistics industry is expected to touch $215 billion by the end of 2020, growing at a CAGR of 10.5 percent. It provides employment to more than 22 million people. Rapid and technological advancements in digital technologies, changing consumer preferences due to e-commerce, government reforms, and shift in service sourcing strategies are expected to lead the transformation of the Indian logistics ecosystem. In the new normal, technology has proven its utility and adaptability.

 Strong market trends towards the e-commerce segment continue to transform how brands and consumers interact. The pandemic has brought an increase in the demand for essential items such as groceries, food, and pharmaceuticals. Many logistics companies cater to this demand whilst adhering to safety protocols with OTP-based contactless delivery of items. Leveraging state-of-the-art technology, logistics aggregators should focus on increasing the efficiency of services and optimizing cost.

The Union Budget 2021 promises increased spending on infrastructure, focusing on new and improved economic corridors, and road and railway infrastructure. The Government’s push to port, road and rail infrastructure through various investments, initiatives and projects will further add to the development of the logistics industry in India. With faster construction of the Dedicated Freight Corridors and road highways, not only will the logistics sector benefit, but it will be able to add strong support to our domestic manufacturing programs.

How COVID-19 Shot Franchising into the Future

Weaker Businesses Are Going to Close:
Several businesses are just not strong enough to survive due to weak margins and poor cash flow management.
Businesses will survive the quarantine, but the wheels will have been set in motion to force their closure within a year or so. Businesses that will be so strapped for cash will be unable to market or maintain operations to a decent level, gradually eroding their business. Not only will consumers be more cautious about their expenses, the ones which remain will visit the businesses marketing more aggressively.

The Rise of the Multi-Unit Operator:
Multi-unit operators have been growing for years and now own more than half of all franchise units. Economies of scale help make them sustainable businesses even with lower unit-level margins. Well-capitalized operators will scoop up the units that are having trouble staying afloat but still have the potential to turn a profit. This will accelerate. This is perhaps the most profound trend with regards to the future of franchise coaching.

For the franchising business model, the combination of strong businesses and the multi-unit operator will be a positive as larger systems will be better equipped to assist their operators in surviving than the regular “mom and pop shop” down the street. The overall diversity in the ecosystem will be reduced, but out of all the units that weather the storm, the overall proportion of franchised and corporate chains will be increased.

Changes in the Talent Pool and Discretionary Income:

Overall, with all these units shuttering, franchise businesses should see a return to equilibrium with regards to the current labour shortage. This will help them put better staff in place, should reduce employee turnover and thus improve margins due to less time spent retraining.
However, over the next 12 to 24 months, higher unemployment means that there will be less discretionary income to spend and that may negatively affect certain franchise verticals. This impacts the strategies business owners will need to put in place to attract customers.

Increased Focus on Operational Efficiency:

Businesses will be put under greater pressure to maintain profitability. They will look at ways to run a tighter ship by simplifying their operations, investing in technology and cutting costs where possible. Overall, this is good news for suppliers in the franchise space who focus on operational efficiency. The next few months will be tough for everyone in franchising, but there is light at the end of the tunnel.

Multiple Concept Franchising:

Multiple concept franchises capitalize on an old trick: diversification. Why count on one brand when you can count on many? Franchisees are increasingly trading under several brand umbrellas beneath a single corporate roof. That reduces operational expenses and allows franchisees to work with the same team even when they take on a new brand. In an economic downturn, they can exploit their most profitable markets and hedge against the losses of their unprofitable franchises. There’s something in it for franchisors, too. It helps you to source franchisees with significant skill and experience.

Hence, this could be a great time to franchise your business in India or elsewhere across the globe and set the wheels in motion for your business growth, capitalizing on the real estate, manpower, logistics, technology and other resources which are possibly available at their best costs ever. Franchisors could start the preparation on multiple levels for the expected franchising boom: strategic planning, operations documentation, site selection, marketing and messaging, and franchisee profiling. We could help you create your franchise marketing kits, franchise financials in India specifically building the ROI, franchise fees, royalties from a market reality perspective, franchise manuals, franchise agreements and detailed franchise marketing.
Exclusively Published by Sparkleminds Bureau. All rights reserved.

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Operating Your Business Post COVID-19: Tips and Guidelines

Written by Sparkleminds

Every businessman was planning their new growth goals for the year 2020 and the whole game of business transformed by the impact of a new virus. The blow of Corona virus (COVID-19) is pervasive worldwide and all businesses are affected by it. Leaders are facing a wide range of issues like ensuring the safety of their employees and customers, prop up cash and liquidity, supporting complex government support programs and reorienting operations. As COVID-19 poses further economic threat and uncertainty, managing risk, maximizing profit and ensuring the stability of your business demands a deep analysis of dynamics of changing market conditions and government policy. Timely and deep analysis of economic and political scenario for the pandemic and the potential ways of recovery for individual economies is increasingly crucial to business planning and commercial decisions.

While there was always pressure on the development team to generate new franchisees and unit openings, that pressure could very well increase, now that franchisors have suffered a drop in revenues from loss of royalties to fewer or delayed new openings.

The risk here is that this pressure could lead to exacerbating the same mistakes that have plagued many franchisors for years: choosing the wrong franchisees, sites, and territories to achieve short-term objectives. Don’t let that happen. Take the time to assess your business and build a plan for long-term success.

RISE OF TECHNOLOGY

Talent and technology are blending in innovative ways to enhance customer experience, operational efficiency and competitive advantage. Digitalisation has become a necessity which we have to use to gain positive outcomes. Whether it’s channelling data, streamlining processes or shaping entirely new ways of business, thesis about unifying every part of the enterprise in a common purpose. The use of technology to increase efficiency is used by small and medium-sized companies as well.

AUTOMATION

COVID-19 has already urged companies to accept their future far quicker than they would have naturally – from agile working and digitalization, to automation and investment in renewables. If you know where you are going, actions to respond to the crisis today can set you up for the years ahead.

Understanding ‘what’s next’ for your business means knowing what’s next for the world; what may have been right for your business before-COVID may not be right in the ‘new reality’ that we will soon face. Anticipating a post COVID-19 world requires prediction of two key questions: when will it happen; and what will it look like? 

It seems India is slowly moving towards a gradual removal of the lockdown for some sectors of the economy. The biggest challenge businesses will face will be restarting their operations. Even while a larger part of the empowering system continues to be in lockdown. Parts like public transportation, etc., is likely to continue to be in lockdown and within the constraints of what we are allowed to do, we’re going to have to ensure that we get our businesses back on track.

OPERATION OF OFFICES AND MANUFACTURING UNITS

There are two aspects to the lockdown, one is operations for offices and the other is operations for manufacturing units. The government will have a major part regarding these two issues. They are going to allow the relaxation of the lockdown in a phased manner. We are going to have to really go through a series of steps to ensure that we are complying with those government guidelines, but at the same time, ensuring that our people are safe, and are able to be active as well, because at the end of the day, we have to run a business.

Overcome Uncertainty: What to do now and next

As governments make significant interventions in response to the coronavirus, businesses are rapidly adjusting to the changing needs of their people, their customers and suppliers, while navigating the financial and operational challenges. With every industry, function and geography affected, the amount of potential change to think through can be disheartening. We are here to help.

  • Charting out the list of only the necessary employees

 A detailed planning activity, where we need to identify which employees really need to come to work, even after the lockdown is lifted. Others can continue to work from home. That clarity is important.

  • Regular testing and Transportation of employees

Companies should ensure transportation for their workers. At the offices there should be a series of checkpoints where testing can be done. There should be holding areas for colleagues to ensure that a red flag can be raised if someone’s feeling unwell.

  • NO CROWDING!!

We have to ensure there is no crowding in our office spaces, ensure that only 25 or 50% of the workspace is actually occupied.

  • Sanitization and Doctors

The workplace should be sanitized regularly and should always have a doctor to assist with any medical inconvenience.

These have to be strategized efforts to ensure that while we open up our offices, we take every step conceivable to minimize the impact on employees and ensure their wellbeing and safety.

There will be other elements that are easier for a smaller company, but pose significant challenges for a large company. This can include transportation. larger organization will face a lot more difficulty to take control of the commute or put people in guest houses or other accommodation than smaller companies. This will put significant financial strain on a lot of organizations. So, there will be a drop in the pace of operations. The focus has to be on enabling work from home, wherever possible, so that it’s just a proportion of the employees that are impacted. Even when we open up, not everyone will be allowed into office at the same time. You have to create schedules where teams come in at certain times during the day complete their work, and leave.

We all know that the condition is grave but there is always a silver lining. The fact that more people are working from home is making it easier for some organizations to reach their clients, current and potential. People have learned to engage more effectively over video calls than they did earlier which opens an opportunity to utilize untapped markets – countries that until now have been either too far, too small or difficult to penetrate. We know that we will overcome this grave situation with our smart strategies. Hope you all stay safe and healthy.

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Franchising post Covid-19

Written by Sparkleminds

At present, each country in this world is battling COVID-19 brought about by the fatal coronavirus. The number of cases has been expanding each day around the globe and have seriously influenced India as well which has created a global scenario of panic and furor.

Alongside medical problems, COVID-19 has influenced the economy of the world quite adversely as well.

If we trace closely, monetary downturns and pandemics have historically been responsible for changing the direction of governments, economies and organizations thereby, adjusting the course of economic graphs in history. A recession normally results in a speeding up in plan of action change, driving down expenses to serve and costs. Thus, pandemics have and will in general empower altogether new classes of organizations. It additionally turns out to be very evident that the pandemic and the recession caused due to it, are accelerants to advancement as opposed to being immediate reasons for it.

At a time like this, the smart option to thrive in the market is to invest in franchise businesses. Franchise businesses have more credibility than independent businesses because of their survival rate. For any business to develop as a franchise brand, they must have survived various economic fluctuations in the market. Therefore, post the pandemic, the safest option is to invest in a franchise which has already had an experience and has sustained. What this means for any franchisor or a brand is that there will be some very qualitative franchises out there looking for different types of opportunities and you may want to start putting the building blocks in place to attract them during the recovery sessions. You would want to get the best of these entrepreneurs engaged to your business.

To gain more information regarding how to go about franchising, it is preferable to refer to credible websites and sources like Sparkleminds which provide a range of extensive services as a guide to initiate and expand franchise business opportunities. Sparkleminds offers the following services which can prove helpful to both the entrepreneurs and the business houses,

  1. A tool guide to begin franchising
  2. Franchise Consultancy
  3. Market Development
  4. Business Expansion
  5. Docs, Ops Legal and IP
  6. Global Franchising
  7. Solution for big franchisors
  8. Entrepreneur Services

It can be presumed that in order to secure your investment, it is advisable and secure to put it in the franchising paradigm in order to smoothen out their procedures and set themselves up for following the stage post the pandemic. The best thing is to concentrate on a well-researched and an improved methodology. Certain parameters that definitely need to be worked upon can be broadly categorized as, franchise marketing strategy, lead generation activity and franchise recruitment process.

Here is a framework of 10 ideas that should be kept in mind while developing a plan for the post-pandemic market, which will aid the profit maximization of their businesses.

  1. To start with, organizations can investigate their business income for a couple of months and draw conclusions to comprehend what item and administration will be more sought-after post the lockdown.
  2. A point by point correlation of the product offering and highlights with their rivals can help in better market position.
  3. Alongside that, it is the ideal time to deal with any redevelopment on their products, arrangement and administrations to serve purchasers better.
  4. A digitalized arrangement for their business will assist them with easing their whole business to the executives remotely to defeat any circumstances of manual contact, since the fear will take time to go away from the minds of the consumers.
  5. Retailers from any segment can think of new deals, techniques, and procedures which will without a doubt help them to reach towards the focus of the market again and thus would balance out their income. Thereby, adding to the nation’s economy.
  6. According to the present circumstance, each business needs to comprehend its item stock required to fulfill clients’ necessities, which can be done after studying the need pattern during the time of the pandemic.
  7. Additionally, this circumstance had led to a scenario of segregation and social separation therefore, entrepreneurs can take a shot at remote work processes and activity set up for their representatives, where such conditions would never be an obstacle for your business continuation. This augurs very well for franchises who could work remotely for franchisors. Hence you may start planning a work from home franchise models, or remote sales representative franchises who would market your products or services in your regions.
  8. Appropriately prepare and furnish representatives with accreditations and apparatuses that can assist the business with growing.
  9. A steady correspondence through call, message and email with customers and shoppers on the awareness and vigilance front will assist with reinforcing the business relationship.
  10. Cross working of organizations would be the best methodology to concentrate on since mergers truly work best during any market crisis.
  11. Also, COVID-19 spreads because of human contact and one thing that can be associated with us is manual monetary exchanges. India has around INR 25,000 crore of money dissemination. How sure would we say we are, the cash which you have gotten from somebody has not been tainted? Subsequently now it’s an ideal opportunity to go computerized and begin paying through portable wallets, applications or any bank application to the merchant accomplices. This would give the customers a sense of assurance and security after having faced a pandemic of this level. In contemporary times, digital financing cannot be a secondary choice, it must be our first alternative. This utilization of computerized installment should be rehearsed in all types of cities, tier I, tier II and tier III apart from metropolitan hubs.

Apart from this, it is also imperative to prepare a blueprint and devise a mechanism to not only sustain but also expand the franchises. In order to achieve this, the primary prerogative is to work on the improvement of the franchise as a whole and work on franchise training programs.

Thus, it can be deduced from this historical economic pattern that the onset of a worldwide pandemic like COVID-19 would change the overall course of business structure. And it is therefore the need of the hour to study and analyses the patterns of shifts in consumer behavior and alter the business plans of your company likewise. Most Franchisors and Franchises will have to undergo a complete transformation of how businesses are conducted post this pandemic and hence as a fresh franchisor, you have great advantage in creating the firsts for your industry and taking complete advantage of being the first mover.

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JITO JBN to host Sparkleminds and FranchiseBazar founder and CEO Mr. Amit Nahar at a Mega National Networking Event JBN360

Written by Sparkleminds

JITO JBN to host Sparkleminds and FranchiseBazar.com founder and CEO Mr. Amit Nahar at a Mega National Networking Event JBN 360 on 14th and 15th of December 2019 at Sheraton Grand, Bangalore.

The event aims to provide a common platform to meet and connect every stakeholder enthusiastic about new business opportunities in India.

The session will begin with a Masterclass by Mr. Amit Nahar on how to franchise a business covering everything you need to know about expanding your business via the franchise model including the do’s and don’ts when looking to expand your business followed by a panel discussion which will revolve around how entrepreneurs can make the most from the franchise opportunities in some of the top business segments in India.

The discussion will be attended by the key personnel from various brands making the most out of their franchise expansion strategy who will be pointing out some crucial suggestions that these brands would have for entrepreneurs from their segments.

The Panellists would also be shedding light on their successful franchises and what they look in entrepreneurs giving the audience an insight into what it takes to buy a successful franchise and how they can benefit from it.

The session will be held at Sheraton Grand, Bengaluru on Saturday, 14 Dec 2019 from 12.00 PM to 1:15 PM and would witness the presence of Mr. Amol Arora, VC & MD OF SHEMROCK & SHEMFORD Group of Schools, Mr. George K G, Sr. Vice President – Retail, at TTK – Prestige Limited, and Mr. Parag Dutta, Founder and CEO at Roadster Hospitality Private Limited, Mr Sunil Menon, Vice President, Lenskart along with Mr. Amit Nahar.

Each of these Panelists have appointed over 500+ Franchises and have tremendous experience in the franchising industry of India. They will throw light on the challenges they face and how to build a model that can be successful and scaleable.

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Franchise Manuals – Importance and Types of

Written by Sparkleminds

Franchise manuals is an important document between the franchisor and the newly hired franchisee. Franchise manual refers to all the details of the franchise brand that needs to be followed. The details could range from marketing activities of the franchise to workflow of all the employees, the ground staff. It also gives out the responsibility of very individual in the franchise business.

The franchise manual is further divided into 3 main types of manuals in the franchising world.

I) Franchise Operations Manual

II) Franchise Training Manual

III) Franchise Marketing Manual

Let understand what each one stands for and its importance:

I) Franchise Operations Manual

The franchise operations manuals is the first and the foremost important manual document between both the parties. The manuals will have the complete details on what are the roles and responsibility of the franchisor and the franchisee. The operations manual will contain the duties of the franchisee towards you (franchisor) and the brand.

It will contain the steps or the procedure to be followed to fulfill the defined duties in the operational manual. Which is by the franchisor towards the brand. It is an important document as it plays a part as a local manual. The manual will contain the steps and the procedure to create a uniformity in the business and how to go about achieving it.

The few main aspects of the operation manual are:

  • The aims of the franchise system.
  • Steps and the process of achieving uniformity in the franchise brand, towards the customers and the brand.
  • Details on customer handling and addressing their issues/queries.

It is also important, here, to understand that the operations manual will vary from industry to industry. For e.g. the operations manual will differ for a restaurant business and hotel business, though they fall in close categories.

From the above, it is important for the franchisor to understand the importance of having an operational manual in place. Inducing better working of the franchise and also build a strong relationship between both the parties.

There have been instances where entrepreneurs working in the fast food industry have referred, Mc Donald’s franchise operations manual, subway franchise operations manual pdf and built their own. They have failed to understand that they are international brands and have an altogether different configuration of their own. We as Indian brand cannot adopt those work on the same lines.

Here, there is a need for an expert who can help them with calking out the right operations manual. We Sparkleminds pitch in and help brand with working closely with them and building the best operating manual for them. This manual will be in sync of both the franchisor and the franchisee.

II) Franchise Training Manual

Like the franchise operations manual the franchise training manual too plays a critical role in the franchise business. The franchise training manual also works in building a healthy relationship between the franchisor and the franchisee.

It is very important for the franchisee to work in line with the franchise business. The franchise training manual will consist of rules/regulations, and steps to achieve and work towards a consistence delivery of services which is promised to the customers by the brand.

Any change in the delivery of service by the brand can hamper the image of the original franchise and may bring the downfall of all the other franchisees of the brand, regardless of other franchisees doing great in the given location.

Usually, the franchise training manual will consist of the details of the person who is to be trained, the training duration, training location, contents of the training etc. The training document that is the franchisee receives from the franchisor will have all the details of who is to receive the training, what is the training that will be received, how long will the training go on i.e. one week or 1 month etc. it is very specifically mentioned.

The training is generally provided before 3-4 weeks of the franchisee commencing operations, but in a few cases, it begins immediately after the agreement is signed between both the parties. The franchisee here should also understand that the training imparted is not only for him/her but must also include all the employees and the workforce to be included. The reason they too are included is there are specific modules in the training manual that are a target at the employees who will be in the business fulltime. They may have to manage things during the absence of the franchisee and how to go about running the business successful at the absence of the franchisee.

The training manual not only plays an important part for a brand of Indian origin but is very crucial for international brands too that looking at setting up base in India. Brands of international presence have to really work on their training manuals as per Indian specifications. There is a vast difference in the types of training given for a brand of international presence and a brand of an only national presence.

There are a few successful brands of international presence who have been able to make changes in their training manual as per the country they target. For e.g. Mc Donald’s, Pizza Hut, Dominos, Subway and more. Due to their success entrepreneurs are often searing for Mc Donald’s and Subway franchise manuals and try implementing it in their own business.

With the above, it is understood the importance of having the right training manual in place and how it plays a role between the brand, franchisor and the franchisee. Providing the right type of training imparted to the franchisee can do wonders for the franchise and vice-versa. With the experienced team of experts at Sparkleminds, we have chalked out training manuals for brands of Indian and foreign origin and helped set base in India.

III) Franchise Marketing Manual

The 3rd most important part of the franchise manual is the marketing manual for the brand. The marketing manual is also equally important from the above 2 mentioned manuals in franchising.

The marketing manual consists of all the details of marketing activities that the franchisor will do. This will be on behalf of the franchisee for the brand. It also contains details and plans of all marketing related activities which the franchisee has to do. To create a presence in the local market and start building popularity in the local market.

In today’s competitive market it is really important for the franchisee to look at creating a brand marketing strategy. On both online and offline marketing platforms for better reach.

In the offline technics, the franchisee can use marketing strategies like – Newspaper ad, banners, pamphlets, word-of-mouth marketing, publicity activities etc. They can also look at setting up stalls at shows relating to their industry. Setting up stalls at common shows will also work for the brand.

In the online marketing technique, the best way to create awareness is to have a presence on social media platforms. The franchisee should not only have a presence in all social media platforms but should also timely keep on posting. Doing this keeps the audience engaged with their brand. Some of the best social media platforms to be used are – Facebook, Twitter, YouTube, LinkedIn, Instagram and more.

From the overall blog it is now understood that having the right type franchise manual for the brand is important not only for the franchisor but to the franchisee as well. We have also understood how having different manuals contribute differently in keeping the brand alive in the market. At Sparkleminds we understand the importance of different franchise manuals and how they play different roles to the franchisor and the franchisee. With over 20+ years of experience and having worked with 500+ companies with brands ranging from beverage to clothing to education and more. We have chalked out the best franchise manuals for them to work in sync and have been doing great till date.

Visit us and we will build the perfect franchise manual for your brand too!

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Our Answer for an Effective – Franchise Lead Generation

Written by Sparkleminds

Franchise Lead Creation

A franchisor should understand that it is equally hard to generate a right lead as compared to setting up a franchise. It always calls for expert advice on the same. Therefore, experts in the industry need to understand what is the right kind of lead generation techniques to be used. To hire the best franchisee for your brand.

Sparkleminds, is the right franchise consulting company in India, with our team of experts we will develop an effective strategic marketing plan, which will help you generate the right lead for your business.

 Pondering upon how to get qualified franchise leads?

Sparkleminds has 3 best resources through which a franchisor can get the best leads for their business they are –

  • Over the Phone – What we do here is, once we have understood your market audience. We now give out advertisements of your opportunity at the right targeted audience. Furthermore, the advertisement will also include timely e-mailers, classified advertising. All this is done via an established franchise lead generation
  • Internet Inquiries – The leads that contact us through this form, are those that have directly reached, either through direct search or replied to any of your advertisements. Brands also look at registering themselves at franchise portals and get all the required leads for their business. This can be done by taking up a membership plan and they shall serve you with a suitable franchisee as per your interest.
  • Franchise Consultant Leads – These are those forms of leads which are generated through franchise brokers or portals in the franchise industry. These potential candidates are already screened and the best have been selected for the next round.

Acquire Franchise Leads in India

The leads generation campaigns that Sparkleminds develops and releases are totally tailor-made as per your business. It is important for the franchisor to give out a clear message to all those who come across your advertisement and wish to apply for the same.

The other cost-effective form of hiring the right franchisee is to reach out to the people who know your business. This will, in turn, help you get potential leads as they will talk good about your brand in the market creating a reputation for the business.

Below are a few other ways to generate leads, cost effectively
  • Franchise Lead Generation Portal – Contacting franchise portals is one of the most cost-effective ways to seek potential leads for your franchise. Popular franchise portal like FranchiseBazar has a good amount of database with them. The database contains a list of franchisees who wish to take up a franchise, and they can help you with a list of franchisees that have a similar interest, which matches your business needs. Franchise portals like FranchiseBazar generate leads on a regular basis via social media accounts. i.e. Facebook, Twitter, LinkedIn, YouTube and more. They also have a ground team working regularly to generate leads of good potential.
  • Franchise Lead Broker – They work on success format, they do not charge anything upfront, but take a charge if a franchisor finds the right franchisee for their brands.
  • Franchise Database India – There are a few franchise database companies that keep data of franchisee. Franchisors can buy data from them, segregated on the basis of – interest, investment, location, city and many more.
  • Print Advertisement – A print form of advertising is also a great form of marketing. You can look at ads in, newspapers, magazines and many other print forms.
  • Franchise Exhibition in India – Attending franchise exhibitions is one of the most expensive ways to garner leads for your franchise. It requires a professional approach to visit franchise exhibitions and make a conversion during the time at the expo.

Sparkleminds is the right franchise portal for any brand to visit who seeks a more cost-effective and genuine lead generation method. At Sparkleminds the team of experts chalk a promotion plan for your business. We completely understand the importance of a lead and therefore, work the best ways to generate the best lead for your brand.

Franchise Database India

Sparkleminds comes among the leading franchise consultants in India. Having over 2 decades of experience in the field. We also work with a large number of entrepreneurs who are looking at new opportunities for starting a business. With FranchiseBazar (a franchise portal) is among the largest franchise portal in India. They have a database of entrepreneurs at a pan India level. Ranging from all the big to the smallest cities. Therefore, we are at a stage where franchisor can expect the best lead from our end which would be the perfect fit for their franchise business.

Franchise Advertising

Having the right franchise advertising in place plays a major role in getting the right franchise leads for the business. Over the years Sparkleminds have worked out the best advertising plans that have been proved effective. These plans have helped franchisor recruit the right franchisee. If you have Business Expansion as your priority, then we can help you scale up quickly.

Franchise Advertisement in India

Franchise advertisement in India have over the years, changed drastically. Companies now give a lot of crisper and totally targeted Franchise advertisements. Franchisors have understood that it is important to advertise only for those which could become your potential franchisee in the near future. Doing mass advertising is of no use and a waste of money. The marketing campaign too should be addressed to the right target audience of your business.

Forming a Tailored Franchise Market Strategy

The marketing team at Sparkleminds is structured in such a way that, we build, design and plan the right SEO and SEM for your business. All the advertisements carried out by us is tracked and measured, giving you real-time data. Franchisors can visit FranchiseBazar and list their brand on the portal. You will also have to choose the right advertising plan for your franchise.

A complete end to end solution is provided here. We reach out to all the entrepreneurs seeking a new business annually. We also become a part of franchise shows and build a strong network with the people there. we also explore opportunities in Tier-II and III cities for a better market reach.

Digital Marketing for Franchises

Digital marketing is the future of marketing. Franchisors are making the most out of this. With digital marketing, franchisors can now market to only those which match their requirement. Doing this helps them cut cost and also generate leads, which are authentic and fruitful.

Best Way to Advertise the Franchise of Your Business

Though marketing through the internet can be fruitful, it could also turn the tables wrong. It is important to understand that using which form of digital marketing will help you get the right lead for your business. There are a lot of forms of digital marketing i.e. LinkedIn, Twitter, Facebook, Ads and more. Understanding your target audience and using the right form of advertising is hard.

Here, we at Sparkleminds come for your rescue. With a team of digital marketing experts at our backend. We design and execute the perfect digital marketing strategy for your leads. Sparkleminds has time and again used all the forms of digital marketing to generate leads to different types of industries. Sparkleminds completely understand the advertising mediums to be used to generate a certain type of leads.

Franchise Email Marketing

Do you know email marketing is one of the most cost-effective ways to generate a targeted and authentic leads for your business? This method is used for a decade now.

To have an effective email marketing in place. You will need a database of email ids that have the set targeted audience whom you wish to target. For this you will have to get in touch with franchise portals that could have a list of details of franchisees which match your requirement, making use of the list will give an immense boost to your lead generation list.

FranchiseBazar is your answer to seek details on a franchisee list. They were the leading franchise portal in India. Entrepreneurs are invited to get registered and update their email ids, which we use for our database. Once this is done the backend DM team send regular emails and messages to these fixed set of franchisees to keep them updated about your opportunities. It also includes newsletters and more. By this Sparkleminds aims at connecting tier – I, II and III cities, towns etc.

Effective Franchise Email Template

  • Create a target audience-oriented campaign.
  • Keeping content short and precise.
  • Having a message consistency throughout the mailing.
  • Crisp details of what you seek in a prospective-franchises
  • The message interpretation should be the same for everyone.

The franchise proposal to the entrepreneur should consist of the following.

  • Financial investments and ROI.
  • Infrastructural requirements.
  • Functions of the Franchisee with instructions.
  • Company and industry snapshots.

From the above, we can understand the importance of email marketing. Having done the right email market will reap profits for both the franchisor and the franchisee. A franchisor who is looking at a multi-franchise model for multi-location, state etc. Will need a different pitch for each location. Therefore, we at Sparkleminds have a team of email marketers who can get you best franchise lead generation for your business.

Get in touch with us and with our team of email experts and get the most out of our service.

Online Marketing Franchise Opportunities in India

Online marketing franchise opportunities in India is the future. Companies have moved out of the old and traditional forms of marketing. Traditional forms were a lot expensive and hard to target the right audience.

Online marketing opportunities are huge as people are more inclined to online media. Due to the large presence, brands find it easy to address a larger audience at a pocket-friendly cost.

Marketing campaigns can be a target to a specific audience as per the franchisors demand. You can also look at addressing a micro market through an online marketing platform than the traditional one. At Sparkleminds our digital marketing experts can provide you with the best leads using all the local online marketing tools. Leads are generated as per franchisor’s interests.

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How to Recruit the Right Franchisee

Written by Sparkleminds



In this blog, we will understand the problems of any franchisor when it comes to how to recruit the right franchisee. With also giving you all the required insights to hire the right franchisee for your business.

A few of the steps to hire or select the right franchise recruitment as follows:

I) Strategy Leads – This refers to the franchisor should strategically design a marketing plan. The franchisor can get a large number of applications for the franchise business. Doing this will help them identify and find the most suitable franchisee for their business.

II) Suspect Leads – In this step as the franchisor now has a lot of applications for the franchise. The franchisor has to nows screen them and sort out the most suitable ones and reject the unsuitable.

III) Potential Leads – At this stage, the franchisor has sorted out the applications and chosen the best and suitable franchisee candidate. The franchisor now should have a detailed discussion with the potential franchisees. Therefore, by doing this it will help the franchisor to ascertain if the chosen once are good enough to run the franchise. They should also be in line with the mentioned rules, regulations and more.

Likewise, the franchisor can also understand if he/she has really got the right skills for the franchise business. The franchisees plan for the franchise and how does he see the franchise to be in the future.

IV) Qualified Leads – This is a stage where the franchisor now has selected the best potential ones for the next process. In this stage, the candidates are those who could really be interested in taking up a franchise of the brand. A few criteria on the basis of them been selected are – financial capability, management skills, team working etc. The most important selection qualification is to assess and know if the franchisee is in total sync with the business. Which he/she will be able to run it and provide results as per the desire of the franchisor.

V) Recruited – This is the final stage where; the franchisor has screened all the qualified leads and now has selected the best one. The franchisee selected has undergone a rigorous screening process and the best one has been chosen.

The above mentioned are a few steps which the franchisor can adopt and screen or select the right franchisee after he/she has cleared all the step and have met all the criteria to take up a franchise of your business.

A franchisor must here, understand that it is not an easy task to select the right franchisee. Though the above-mentioned steps are effective. There have been instances where franchisor have selected a wrong franchisee for the business, have had troubles and terminated the franchise agreement.

With the help of an expert, it is necessary to draft a franchise development plan and mention all the requisites to select a franchisee. Doing this will help the franchisor understand who is the target audience for the business and what kind of marketing strategies will attract them to apply for a franchise of the business.

The above-mentioned points have made it clear in terms of how to attain potential franchisee or how to attract a franchisee, but it all sounds easy but then said and done. It is important for a franchisor to visit and seek help from a franchise consultant to understand the term franchise recruitment better.

An expert from the franchise consulting industry will help you with the best franchise development plan which in turn will help you attract a better and a potential franchisee. Sparkleminds is the best in this in this industry. They have been in the franchise industry for over 20+ years and have worked out franchise model for 1000’s of brands. These brands have now been successfully established, doing great in the market.

An early franchise consultation will help your business be ahead in the league of other business who start late. Since competition is cutthroat, expanding via franchise is the best.

Sparkleminds is your one-stop solution for all your franchise development plan, regardless of expansion in the same city, inter-city, state or at a pan India level. With the teams of franchise experts at Sparkleminds. We, also help brands establish franchises internationally and provide all the insights on how to sell your franchise internationally.

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Franchise Agreement – Answer to Legalities of Franchising

Written by Sparkleminds

Franchise agreements play an important part between a franchisor and a franchisee. It is the legal binding of the parties. With the increasing number of franchises, international and national, understanding the franchise agreements is equally important for the same.

It is important for a franchisor and franchisee to understand why does one need franchise agreements in place. Franchise agreement further helps in avoiding franchise disputes. The agreement also contains the day-to-day operations of the franchise with maintaining the standards of the business.

Every franchise business is different vis-à-vis the industry; therefore, it is necessary to understand the suitable franchise agreements for business. There are mainly 4 types of franchise agreements a franchisor and a franchisee need to understand – namely:

I) Single-Unit Franchise:

A single unit franchise is when the franchisor gives the franchisee the right to open a single unit of their franchise. It is to understand the market dynamics and capabilities of the franchisee.

II) Multi-Unit Franchise Agreement:

In this type of franchise agreement, the franchisor gives the franchisee the permission to open and operate more than one unit of a franchise business. The franchisee is told to develop a few pre-determined numbers of units to be set up. In case he/she fails the franchisor can opt for another franchisee.

III) Area Development Franchise Agreement:

This type of franchise is similar to Multi-unit franchise. The only difference is the franchisor grants an exclusive right to develop franchisees in that location. No other franchisee is given permission to set up a franchise there. Therefore, no other franchisee is given permission in setting up a franchise there.

IV) Master Franchise Agreement:

This type of franchise is a lot bigger than the area development franchise. Here, the franchisor gives the sole rights the franchisee not only to open a set number of units, but also the franchisee can give out franchises within their geographical location. It is more or less like a franchisor in one particular area geographically.

From the mentioned types of franchise agreements, we can understand the types of franchise format. Each of them requires a different type of franchise agreement between the franchisor and the franchisee. They also have to take note of different types of franchise laws applicable and how do these laws have a direct or an indirect effect on the franchises. Here it is important for a franchisor to take help from a franchise consultant and understand all the intricacies of the same.

As the functionalities of every franchise are different it is important for a franchisee to seek guidance from a franchise expert. Sparkleminds is your answer here, a franchise expert in India with over 20+ years of experience and has helped 1000’s of brand expand via franchise in various categories of business at a successful rate.

Sparkleminds is a leading franchise development company in India, they have been in the industry for over 20+ years and have helped 1000’s of brands across industries establish in India by guiding them through the franchise route.

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Journey of Business Owner to Franchise – 11 Point Guide

Written by Sparkleminds

The prime criteria to understand a prospective franchisee is to understand if they have the finances required to start franchise. The franchisor will also need to understand if the location of the franchise business is apt for the brand. This will help them understand if they can retrieve the number of profits it has planned for the franchisee.

There has to be a clear discussion on the amount of royalty to be paid and in what time period. There are 10 steps which need to be attended when a brand is expanding through franchise mode, let’s see below:

Steps to Franchise 

1) Vision, Mission and Goals – It is important for the franchisor to understand and also create, a set vision for the brand. Vision of the brand refers to putting down the reason for the brand to exist and final goal for franchise. For example, the vision statement for a Burger and Pizza chain would be – to serve the best burgers and pizzas. At a global level and not only in the home country.

The mission for the brand would be how to take corrective steps to achieve the vision statement of the brand. There are short-term goals for a franchisor. i.e. setting up your own franchises in your locality, city. Regardless, in which the brand originated and later looking at expanding to other states and cities in India. The goals of the franchisor would be to understand the vision and mission of the brand and draft plan in order to work and achieve the mission and vision of the brand by expanding via franchise or setting up their own stores.

2) Business Franchise Registration – Once the brand is able to set the vision, mission and the goals for the brand and also has established a model in order to give franchise and work on the goals of the brand. The brand has to now look at registering the venture at a government body in order to get all the legal formalities done and also legal protection for the business.

Requisites of brand registration in India:

  • Brand name: Refers to having a unique name for the brand, which would be in sync with the products or services they are known for. Doing this will help the brand to be on a top of the mind. Also, this will create an identity in the industry.
  • Trade Mark: This refers to a recognizable sign, design, or expression, which identifies products or service and even the brand name of a particular company. This secures your identity from unethical use. Trademarks used to identify the services referred to as service marks. The trademark owner can be an individual, business organization or any legal entity. The other requisites are brand names, private limited vs proprietorship, domain registration, social media presence. Having a domain of the same name will do good for the brand, as it will be easy for anyone to recall the brand based on having a domain of the same name.
  • Social media presence is a must, according to the current marketing trends it is important to have an online presence. Now your initial steps are complete to register the brand. Next comes…

3) Prototype Development – Before expanding via the franchise mode, this is the most essential step. It is good to have an existing store which has been functioning for over a period of 12 – 24 months. Doing this will help the franchise consultant build a franchise plan as per the functionality, rules and workflow of the further franchises which would be let out. In case you don’t have a running outlet of your brand, then it is always advisable to first establish the outlet and monitor the functioning of it. This will help you in analyzing the performance of the brand and the improvements required.

4) India Franchise Business Plan – While designing the franchise plan, your brand should be franchise ready. The major segments to focus on while planning is – positioning the audience, defining the demographics and more. The business should be in a position to fulfil the demand of the customer as per the demographics of India.

5) Franchise Financial Model – As now you have defined your audiences and demographics, it’s crucial to set a financial plan for your franchising. Outline the financial projection which is beneficial for your business and the franchisees. Sketch the required investment for setting up a new outlet of your brand. Furthermore, calculating the return on investment, revenue generation, profits and other financial requisites.

6)Franchise Model: Basically, there are four different types of franchising models. This includes FOFO (Franchise Owned Franchise Operated), COCO (Company Owned Company Operated), FOCO (Franchise Owned Company Operated), COFO (Company Owned Franchise Operated). You can choose the most ideal model for your brand. The decision should be made while considering the financial plan, audiences and demographics.

7) Franchise Profiling– Franchise profiling refers to defining the roles and responsibilities of each franchisee and also making a mention of their task to be performed on a timely basis be it every day, fortnight etc. The franchisor should understand the skill sets required for the business and is it there in the franchisee too for them to handle the franchise and also run it successfully.

8) Franchise Marketing – It is important for the franchisor to understand which is the best platform to market their brand. Also understand, what marketing activities are to be done, in order to get a prospective lead for their franchise. Franchisors can make use of franchise portals, exhibitions, giving an ad in newspaper and franchise journals. The marketing budget should be predefined in order to understand the best use of marketing platforms to get the desired result in the franchisees.

9) Franchise Agreements – The franchise agreement is the most important document between the franchisor and the franchisee. Therefore, the franchisor should prepare franchise documents in such a way, which mentions an equal authority to both the parties of the franchise to handle the franchise independently.

10) Franchise Manual – The franchise manual refers to a document drafted by the franchisor for the franchisee to understand the functionalities of the franchise. It also should include the details related to the operations of the franchise. The manual will define the type of training provided to the franchisees; and the training details for the employees or staff appointed by the franchisees. This will guide the franchisees and their staff about the company ethics, business type and their roles and responsibilities.

11) Commitment – It refers to the fact that it is the franchisor commitment towards making the franchises function successfully. It is vice-versa as well. A consideration of both the parties is a must for the brand to establish itself successfully as well as sustain in the market, and standing strong against the test of times.

Understanding the intricacies of a franchisor and franchisee relationship is hard. The role of franchisee and franchisor is equally important to establish a brand successfully in the market and also run it with equal importance. With the above points, you can understand the importance of franchisor and franchisee in a franchise business. We at Sparkleminds with over 20+ years of experience and having worked with thousands of brands, we exactly know what would be the best for your brand, be it developing a franchise model, working out a franchise agreement, hiring and training of the workforce. We also provide support in developing a marketing manual, franchising profiling and a lot more.

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Benefits of Franchising Your Business

Written by Sparkleminds

Franchise Consultancy

I am sure you would be familiar with the term “Franchise Consultancy” but do you know what do they do. Well if you don’t know we can help you understand. A franchise consultancy is a platform where you can expand your business from present location to pan India level. This is where we pitch in and help you cater to the demand of your product/service via “Franchise mode”. Therefore, there are a lot of benefits of franchising your business in India.

Confusing? Well in simple words we help you expand your business via the franchise mode, where, we provide our expertise in building a sustainable franchise model, with pre-defined rules & regulations, procedures, business functionalities, and more. The entrepreneur(franchisee) will only have to abide by the mentioned franchise manual.

What does Franchise Consultancy Include?

There are 4 main points of the consultancy namely:

  • Strategy Development: At Sparkleminds, we develop a strategy that will help you boost your business multi-folds and start franchising soon. Our experts study a business already existing which is similar to you or we build a prototype with the help or R&D team and study the same.
  • Franchise your business: Once the study has been conducted, we now plunge into actually developing your franchise model and creating your franchise brand.
  • Merits and Demerits of franchising: When the franchise model is developed, we help you understand the aspect of franchising and how its pros and cons, based on your business.
  • Franchise FAQ’s: Developing an FAQ is important as a franchisor will be able to learn what could be the possible flaws in the business and how the brand can overcome these flaws.

Going Global from Local

There are businesses that have established successfully in the country, created a brand and a local market for their business. But, now what? This is the perfect time for a business to now explore international waters and cater to different but a similar product or service demand at a foreign land. At Sparkleminds we are in constant touch with businesses that are unique and have made a market for themselves, we help them build their brand at foreign markets.

Franchising Your Business

A brand needs to understand if his/her business is really capable to expand by giving out franchisees to interested entrepreneurs. There are a few things that need to be kept in mind while looking at franchising your business. Are expansion strategy, legal docs, marketing materials and more. Sparkleminds have has worked with a large number of brands and set up the best franchise model for their business. We serve to new businesses, as well as to established ventures as well.

Stages to Franchise a Business

A franchise is a lucrative form of expansion, but it is not an easy task to do the same. There are a few steps which needs to be looked at while franchising your business, the steps are as follows:

  • Can your business be replicated?
  • How good is your business concept?
  • Are your financials stable?
  • Is there any other alternative for your business? and more.

Understanding the Legality of Franchising

Franchising a business is not as easy as it looks. There are a lot of legal undertakings to abide by. It is hard to clear local hindrances to a franchise than getting permission from than the national ones.

Once documents submitted, the business is to be presented as a franchise to the authorities. A brand can start franchising when it is completely ready to be franchised. It will take the authorities some time you get back to you with required changes.

Publicize your Franchise

The main reason to franchise business is for the public to know about your distinctive service. It is necessary for the franchisor to make use of advertising platforms and notify the public about your product/services. You can also invite them to take up a franchise of your business in case they wish to start same. There are a lot more benefits of franchising you business.

Time Span required to Franchise your Business

Franchising a business does consume a lot of time. There are a lot of formalities that have to be done before the business can actually start giving out franchises. Franchising has to be done at the right time. Doing this will help you understanf the benefits of franshising your business. This calls for expert advice to understand the best time to franchise your business. Also, understand the procedure and rules to be followed.

It would ideally take you 3-12 months to start franchising after building the perfect franchise development program. At Sparkleminds we can help with cutting down the time to a large extent without compromising with the quality of the service.

Price of Franchising a Venture

“Cost” of starting a franchise is one of the main points, which arises out of any entrepreneur or business owner when thinking of franchising their business. A franchisor should understand that franchising is not as easy as it sounds. There are many intricacies to be followed while building a feasible franchise model to sustain the test of times. The franchise model built should be adaptable as per the changing business dynamics.

Franchising is a good form of expanding any business in the country and overseas. But it is equally tough to build a sustainable, precise franchise model for the same. Brands that are looking at franchising have to do a thorough study on if they can really franchise and do, they have all the required resources to start franchising.

The cost of franchising would ideally cost you in thousands in the initial stage and go up a few lakhs for a full-fledged franchise service. A few of the inclusive of a franchise program include – general manuals, training manuals, marketing services, franchise recruitments etc.

Where and How to Start Franchising?

It is important to know where and how to start franchising. A business owner should once pay a visit to franchise consultants and have detailed discussion. Doing this will help them understand the right way to start franchising and what would be the right location to a franchise. Franchisors should visit Sparkleminds and fill in their franchise expansion form and also take up their franchise quiz, by doing this they will be able to understand better if their brand is ready to franchise or they will have to work towards it for a longer period.

Franchising your Business Concepts

An established entrepreneur often wishes to expand his/her business, either by setting it on their own or by providing franchise. While taking the franchise route the franchisor comes across a lot of doubts. A few of them could be, how good is my idea, what if someone copies it before I start, will franchising my idea work? Etc.

At this juncture, Sparkleminds will be of your help. We previously have had a lot of client meetings where they have discussed potential ideas with us and we have helped them understand if they are franchisable or it needs more work. If your business franchisable.

It is suggested to start franchising if your business sync with the below mentioned points:

  • Unique: Is your business different and unique enough to expand domestically and internationally as well.
  • Profitability: Is it different enough to rake in enough profits to keep the franchise alive and running.
  • Systematized: There has to be a systematic line of a function of the brand, so as to include it in a manual, which could be issued as and when you expand.
  • Training: The training should be easy and perfect enough for the duties they will be undertaking.
  • Excellent Margin: The brand should generate enough margins to keep the brand exciting and remembered.
  • Affordable: The franchise should not be expensive, due to the fact being if it is expensive only a few would be able to afford it. This will reduce your count on a number of franchises owned. India is a price sensitive market and having a franchise of more than 50Lakh may not have many takers. Ideally, a franchise should range from 5 – 50 Lakh ₹. There is a high number of entrepreneurs who can invest in franchises in this limit, which will, in turn, make your brand popular and worth exploring franchises in any location.

Franchise Your Big Business in India

Your brand should start franchising when it has a great market, set business model, customer base and brand popularity. The best way to understand if your business is franchise-able is to visit franchise consultants in India. Having a detailed discussion with them will give you insights into your brand can be franchised.

Alternatively, if you wish to do a self-assessment of your brand with respect to franchising, you can take up a franchise quiz of Sparkleminds. At the end of the quiz, you will receive a score and this will give you insights on if your business is franchise ready. If the score is positive then the team of experts at Sparkleminds will have a workshop done with you to understand your business. The workshop will include developing franchise module, administrative guidelines, marketing strategies and more.

Edifice a Franchise Brand  

Franchising is not as easy as it sounds, it takes a lot of brainstorming and hours of discussion to come to conclusions. There are a lot of things that go into building a franchise. There are a lot of brands that have used the franchise mode of expansion but were not able to stand the test of times. This could be due to not having a good franchise model, marketing was not in place and could be many more.

A few points to note, while looking at expanding via franchise are:

  • Does your venture have a set business model?
  • Is your business generating good profits?
  • Do you have a set/established customer base?
  • Do you have the required financials to expand? And more.

There are a lot more intricacies to make note of while franchising your business. To understand all this, it calls for expert advice. Sparkleminds is the most sort after franchise consultants in the country you will be interested to visit.

With experts at Sparkleminds, we will help your business grow exponentially to greater heights by means of a franchise. We will help you build a feasible franchise model, marketing strategy, financials, legal documentation and more. We will also help you understand how you can build a franchise brand to fund its own franchising growth.

With the help of our experts, we can help you comprehend how much does it cost to franchise your business or what it takes on how to start a franchise business. It is a hard task to answer should I franchise my business? we at Sparkleminds can help with this.

Visit us and we will be delighted to serve you with the best of our services for your growth!

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