Top 10 Reasons To Franchise Your Business
If you are a business owner, looking to expand your business in India, but are unsure which business model is good for you, your search ends here. Though there are several reasons you can choose why franchising in India is a good expansion route for your business, we have simplified your search to the top 10 reasons to franchise your business in India.
Reasons Why Franchising Your Business could benefit Business Owners
- Obtain quicker national expansion – Your network can expand more quickly as a franchise. This is because new locations will be financed by Franchisee funds.
- Bring in ambitious and devoted business owners – By the time you find a franchisee, a thorough selection procedure will have determined that they have the zeal and drive to expand your company in a new area.
- Reduce the skills of your competitors – Customers are frequently drawn to new things, and they can be pulled to your brand at first out of curiosity.
- Keep your client service consistent – The key to franchising is to adhere to a system. Customers across the network will receive the same high-quality service you presently offer, regardless of location.
- Consult franchisees for local knowledge – In general, much study is before expanding your firm. When a territory expands, the Franchisee, who is likely to already have a wealth of invaluable local experience, is given primary responsibility for expanding the new territory.
- Utilize the power of collective purchasing – Through centralised purchasing, your network as a whole can take advantage of volume savings that an isolated dealer would not be able to get. This will enable you and your Franchisees to provide more affordable prices.
- Specific distribution system – If you’re a manufacturer or service provider, structuring your company’s sales department as a franchise operation gives you access to a distribution network. This is only for provision of your goods or service to your clients.
- Share the challenge of resource management – A company-owned network of stores needs substantial management to plan the recruitment, onboarding, development, and retention of qualified workers.
- Boost your advertising influence – All of your outlets can profit from the group’s marketing campaigns as your network grows, both on a national and local basis. Franchisees will aid each other through recommendations as clients grow more familiar with your business.
- Increase your profit – If you decide to grow your company through franchising, you can discover that your investment will yield a higher return.
Every business owner when thinks about the advantages of franchising a business in India. But with every business comes certain risks. So if you are looking at top reasons to franchise your business, you could also consider some reasons which could be a drawback.
Top Reasons Why Not to Franchise Your Business
- Forums that promote intellectual property theft, trademark infringement, and copycat businesses under slightly different names.
- Profits are not reported accurately since many companies still rely on cash.
- Franchises frequently operate in their manner.
- Cartels formed by franchises begin to pose a danger to the franchisor.
- Cultural diversity and State/Region Wise Disconnect, as the majority of franchisors, are unable to appropriately establish a country footprint.
- Taxation Issues Despite the GST’s Implementation, clients are still unwilling to pay taxes because non-franchised rivals can provide that service.
- India does not have a single franchise law that regulates the industry, dishonest businesspeople have been hiring franchisees. Also defrauding investors and business owners are putting in place necessary support structures for the franchise.
How Sparkleminds can help?
Today, every company would want to expand, build a great brand, and become well-known across the nation. The best way to reach a wide audience is to franchise your firm.
There are unquestionable benefits to growing a business through franchising, but there are some requirements to take into account first.
Prospective franchise owners must be willing to put time, money, and effort into developing their franchise system properly. Your chances of success increase with the correct support and direction. Therefore, you should always speak with franchise professionals immediately away.
As you can see, franchising could be a lucrative and effective way to expand your business. As a prospective franchisor, you will need to invest time, effort, and money to effectively develop your franchise business.
Get the right guidance and assistance as soon as possible to increase your chances of success. As a result, you should always get in touch with franchise experts very away.