Do you want to franchise your business in India? Where Should We Begin? What kind of preparation is required? How to franchise my business in India?
Common questions we come across, but we have the solutions in this article and we call it – The Complete Guide to franchising your business.
Understanding How to Franchise Your Business in 7 Simple Steps
Franchise development is possible, but preparation is essential. Remember to read carefully and understand what franchising is all about before taking the leap into this new venture.
7-Steps to franchising your business are listed below.
Step-1: Ensure that your company is suitable for a franchise.
There are a few things you should ask yourself before starting the franchising process to make sure your company is prepared.
- Is my company profitable and in good shape?
- Can I afford to grow my business or borrow the money I need?
- Can I successfully clone my business model?
- Have I successfully expanded to a different place before?
- Do I possess the ability to promote and offer my business opportunities for sale?
- Am I confident in my ability to mentor and assist franchisees?
You don’t have to say “yes” to every question, but you should try to be honest in order to draw attention to any flaws that might be hiding in your blind spots.
Step-2: Safeguard the intellectual property of your company
Giving franchisees access to a plethora of intellectual property is a key component of franchising your firm. This promotes the expansion of your company and enables them to brand in accordance with your standards.
But if your intellectual property isn’t appropriately safeguarded, it might put you in danger.
Step-3: Get a financial disclosure statement ready (FDD).
The Franchise Rule states that you can only offer a prospective franchisee an FDD that complies with FTC guidelines before you can sell them a franchise.
An FDD functions similarly to your franchise’s articles of organisation in that it introduces essential participants, clarifies operating terms, provides financial information, and resolves agreement requirements.
In reality, the Franchise Rule requires that it have 23 distinct portions.
Step-4: Create a franchise contract.
A franchise agreement is a contract that outlines the franchise’s operational expectations for both you and your franchisee.
Franchisees are independent contractors, not employees, and must agree to the terms of this agreement in order to work with the franchise. It will remain in the FDD that you put together for each franchisee once it is signed.
Step-5: Create a guide to operations for franchisees.
The day-to-day activities of the franchise are in complete detail in an operations manual. The owner’s manual is –
- Digital in nature
- Easily changeable based on the company updates.
Step-6: Register or file your FDD
Your FDD is safely kept after completion so that you can retrieve it when you make updates. Your FDD is an important document, however depending on the state you reside in, you may not be required to submit your FDD to the government.
Step-7: Plan a strategy to meet your sales objectives.
Offering your company as a franchise is a fantastic way to spread the word about your innovative concept. You should set realistic business goals for your franchise, and you’ll need a realistic plan to achieve them.
Your plan should be specific to your company, your neighbourhood, and your expansion objectives.
FAQs- How To Franchise Your Business
Q.1. What is the cost of franchising your business in India?
Certain costs are station when franchising your business which are: Legal and accounting fees, working capital to stay in business, build-up general costs, inventory costs, franchising costs and other fees.
Q.2. Is it profitable to franchise your business in India?
India’s franchise sector is flourishing, with nearly every domestic and foreign business opting for the huge as well as crowded Indian market. Because it makes money for both the franchisee and the franchisor, the franchise business model is successful.
Q.3. How to franchise your business globally?
Well, the answer is yet. Our sections on franchise agreements in India go into more detail about a number of regulations that govern India. There are more than 13 statutes, ranging from the Indian Contract Act of 1982 to the Copyright Act of 2013. However, it is far simpler to launch a franchise in India than in most other countries, and when done correctly, the markets respond favourably to the most lucrative opportunities.
From assisting with the launch of a new franchise business to working with developing franchise chains, presenting intriguing new international franchise concepts, and also planning and implementing successful exit strategies, Sparkleminds provides a “highly personalised shopping cart” of services (M&As, IPOs, or other liquidity events)
Sparkleminds thinks that creating relationships should come before creating businesses and organisations.
If it connects with you, give us a call, and also we’ll assist you with franchising. Please fill out the, and one of our experts will contact you right away to have a full conversation about your business expansion in India or internationally and expand your brand across multiple locations.
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