If you have any specific questions on franchising your business, please ask us here and we would be more than pleased to answer them same. Please note this place is for franchisors only, if you have any queries as an entrepreneur seeking new franchisees or looking at starting a new business visit the Q&A section at franchisebazar.com. Here are few of the Franchise Interview Questions and Answers to help you understand the franchise business better:
Franchise Questions and Answers:
What is Franchising?
Franchising is a way for companies to expand without expending huge amounts of capital. It benefits the Franchisor because the Franchisees use their own money to set up the new outlets. It benefits the Franchisees because they are able to operate under a proven system which is more reliable than starting your own company from scratch. The often-quoted figures say that 80% of new start-ups close down within 5 years, whereas 80% of Franchisees are still trading after 5 years
“Be in business for yourself but not by yourself”
“Learn from the success and failure of others.”
Am I Ready to Start My Own Business?
The first and foremost rule before taking a leap into franchising or any other business is to know you have adequate information and success with your current business. Understanding the market condition and longevity of your business will help you succeed.
Questions to Ask Yourself to See If You’re Ready to Start Your Own Franchise
- What business would you enjoy?
- Is there a market?
- Can you afford it?
- Can you make enough money to make it worthwhile?
If these questions are answered, half the battle is already won.
How can I benefit from franchising?
Entrepreneurs invest heavily in order to set up a profitable business model, a franchisee can step into an already established concept, with much less risk for failure. For example, are you aware that as many as 90% of new business start-ups fail each year!! An already functioning business model will put you heads and shoulders above the novice entrepreneur who not only needs to generate profits, but the trust which will lower the risk. It is the best way to expand and get different market for your company successfully.
What types of companies Franchise?
Virtually every business form you can imagine. Typically, you would think of fast food and restaurants first when thinking of franchising, but franchising covers the spectrum from almost A to Z from advertising/direct mail to construction, to marriage services, to home inspection, to security systems, to video sales and rentals. Printing and copying services, maid services, computer services, cleaners, real estate, hotels and motels, and travel agencies are excellent examples of successfully applying to franchise to established industries.
Have a look at our clients to check different domains of businesses that are using the franchise route to expand their business.
How Much Money Do I Need To Buy A Franchise?
Investment requirements for purchasing a franchise differ based on the industry and the type of business the franchise operates. Total start-up costs can range from Rupees 5 Lakhs to 10 crores and above, depending on the franchise selected.
What is “Business Format” Franchising?
The international franchise community uses the term business format franchising. This type of franchise includes not only a product, service, and trademark, but also the complete method to conduct the business itself, such as the marketing plan and operations manuals.
ABOUT WHAT ARE COMMON FRANCHISING TERMS AND DEFINITIONS
- Business format franchising is the granting of a license by one person (the franchisor) to another (the franchise). Which entitles the franchisee to trade under the trademark/trade name of the franchisor and to make use of an entire package.
- Again, Indian Franchising scenario is similar to all kinds of businesses calling themselves franchises. We ensure, in business format franchising, the franchisor prescribes for the franchisee a complete plan, or format, for managing and operating the establishment. The plan provides step-by-step procedures for major aspects of the business.
How does a Franchised Chain start?
Imagine a store owned by an individual with a particular concept. If the business is successful, the owner may develop a second or third store. Also, hire employees for the day-to-day operations. At that point, if the entrepreneur still wants to expand. Though prefers not to operate additional stores himself or herself. Thus, he or she may decide to “franchise” the store name and business system to an independent business person a franchisee. In return, the entrepreneur may ask for an initial fee and/or a continuing royalty payment. This is based on a percentage of that franchisee’s sales. The business is now franchised.
Do the “Look-Alike” Characteristics of Franchises a Disadvantage?
The increasingly mobile Indian consumer has come to depend on and appreciate the consistent quality of franchised products and services. Today, no matter where they go, people expect and want the same quality. The ability to easily recognize a franchised store, restaurant, or hotel from the outside guarantees there will be no surprises or disappointments on the inside. So, whether it is having its North Indian food at Moti Mahal, its Burgers at Mc Donald’s, Subs at Subway, Groceries at Nilgiris, Watches at Titan, Jewellery at Tanishq, Ice-Cream at Baskin Robbins or their Computer Courses at NIIT, they are all aware of what to expect from franchise brands.
These are few of the common franchise questions and answers we have provided. You can connect with us for detailed Franchise questions and answers by calling us today !