Is franchising your business in India a good idea? Well, it sure is. The franchising industry in India has taken rapid upward growth and has become the new normal across the country and globally.
But what is the benefit of franchising business?
In short, for relatively little risk, franchising can produce significant financial benefits. When you franchise, you invest considerably less money in each site than when you establish company-owned locations. You can get substantial royalties from sales at those outlets if your business plan is sound.
No matter if you are a small business owner or a business which has been seeing steady growth over the years, you can choose to franchise your business.
How to franchise your business?
Franchise growth is possible, but preparation is essential. These are the seven actions that businesses must perform before expanding. Though franchising is a way to grow your business operations successfully, yet, you as a franchiser need to be ready to learn about franchising.
- What does franchising my business in India mean?
- How to franchise your business?
- Does franchising your business have any advantages?
- How long will it take for your business to become a franchise?
- How much would it cost to franchise a business?
These are quite common questions that we have heard over our years of expertise as top franchise consultants in India.
Though it sounds quite simple, there is a lot of preparation and thinking involved in getting your business on the road to franchising.
Below are some steps which you could consider once you have decided to franchise your business in India.
- Make your business ready to franchise
- Consider Franchise Intellectual Property clauses
- Draft the FDD
- Prepare a detailed training module
- Register your Brand & FDD
- Decide and finalize your sales goals.
Once you have considered the above steps, it is time to act on it.
Franchising your Business Pros & Cons
The below table will guide you on the advantages and disadvantages of franchising your business in India.How to Start a Franchise with your Existing one?
Do people continually advise you to start franchising your business? If so, considering franchising could be a good growth plan for you!
Let us understand how starting a franchise with your existing business works.
Typically, franchising entails creating more locations by offering franchise rights to private investors. Then, these investors will employ your name and business model.
Thus, in exchange for the right to use the franchise trademark to do business, the franchisee must pay an initial franchise fee to the franchisor.
Additionally, this charge includes extra services like site selection aid as well as instruction on how to run the firm.
For ongoing assistance and instruction in many systems, a franchisee will pay a recurring royalty charge that is:
- Adverts & Marketing activities
- Sales Promotion
- Training Manual Assistance
- Consulting as well as other services
Therefore, from your vantage point as a franchisor, the franchisee provides all of the capital required to start the business. This is among the most significant advantages of franchising. The franchisee also bears full risk, whether it results in success or failure.
How much does it cost to Franchise?
Call us right away, and we’ll be happy to explain the fees associated with franchising your company and how you might engage us to handle it for you. Depending on the type of work that has to be done, the initial cost could range from a few thousand to a few lakh.
Therefore, if you have anywhere between Rs 3 Lakh and Rs 10 Lakh, you can start with a basic programme, a regular programme for Rs 5 Lakh, and the full franchise development programme for Rs 10 Lakh.
These costs include:
- Training Programs
- Marketing the franchise
- Recruitment of Franchise personnel
- An annual franchise marketing fee
Legal Process to Franchising a Business in India
By franchising your business, you demonstrate that you have taken the necessary administrative as well as legal steps to encourage franchise sales, support franchisees, and grow your organisation.
A Franchise Disclosure Document must first be drafted and issued by your franchise attorney in line with all relevant federal and state requirements. To be able to offer franchises in the states that require it, you’ll also have to register with them or submit your FDD to them.
The Franchise Model of Business in India is Trending!
Yes, you heard that right. The franchise business model is the current trend in India. This is because:
- It provides greater capacity for franchisers to grow into untapped markets as well.
- Customers often prefer to go to known brands of their liking, thus giving less risk of failure to franchised units.
- With the help of well-designed training sessions, the franchiser can convey how his brand works to the franchisees.
- If the brand is well-established, it becomes easier for the franchisees to acquire a loan facility from the bank, because of the prior business history of the company.
Ways to Promote your Franchise Business
Some ways you can look to grow your franchise business in India and extensively promote your brand are:
- Influencer Marketing
- Digital Marketing
- Proper utilization of social media platforms
Advantages of Franchising Your Business with Sparkleminds
There will always be benefits and drawbacks to franchising. We do everything we can to minimise the negative aspects of franchising.
Offering a “very customised shopping cart” of services, Sparkleminds can assist with the establishment of a new franchise business, change the course of developing franchise chains, introduce innovative new foreign franchise models, and plan and carry out successful exit strategies (M&As, IPOs, or other liquidity events).
To Sum Up About Franchising Your Business,
Let’s connect whether you are an established Food, Education, Service, Retail, or any other exciting franchise business owner that is thinking about franchising.
We offer the best franchise business advice on all topics related to franchising. At Sparkleminds, we first create relationships, then we create businesses. We are unique, and intimate. We provide excellent service to our customers.
Nonetheless, you can also follow us on our social media platforms – FaceBook, Twitter & Instagram to get more details about our franchise consultancy works and our presence across the country.