- Why Franchise Your Business in India?
- Reasons to franchise your business in India
- Advantages of Franchising your business in India
- Is Franchise Right for your business?
Why franchise your business in India?
Why franchise your business in India, is a question which arises in the mind of many business owners. How will it benefit me as the franchiser? What are the advantages of franchising and why franchise my business?
Too many questions, yet one answer. Yes, Franchising your business in India is a good move. Moreover, the sale of franchises is a possibility for a business owner wishing to expand.
Using a franchise agreement, the business owner sells the right to create a new location to a third party. This franchisee agrees to use the franchisor’s successful business model and give the franchisor a cut of the profits. Franchising offers various advantages for the business owner.
Reasons to franchise your business in India
- Quick Growth – To meet rapid expansion, franchising can be a useful strategy if you’re wanting to expand.
- Flow of Income – Franchises help you generate passive income or money that doesn’t need much work on your side.
- Dedicated Staff – Your franchisee is probably very determined to make his franchise a success since he is taking on the rewards and risks that come with being a business owner. You will receive more royalties as a result, increasing your income.
- Very Few Failures – According to analysis, the three-year failure rate for franchises is between 2 and 4 per cent, which is significantly lower than the 65 per cent average for ordinary new enterprises.
- Very low operating costs – Franchisees are not your employees; they are independent contractors. This indicates that the franchisee is in charge of paying all regular running costs, such as wages, marketing, taxes, and the price of renting or leasing property and equipment.
Advantages of Franchising your business in India
Franchising your business is a fantastic way to grow your business which is already successful. Understanding these pros as well as cons will enable you to decide if you should franchise your business in India or not.
Pros of Franchising
- Business Growth – franchising your business may be a viable expansion strategy. You won’t be responsible for paying the costs of hiring new employees or renting new space. Additional sales generate more profit, and if you keep this going in the company over time, you should have a sellable asset for the future.
- Costs – Each franchisee is responsible for funding their franchise location. You earn franchise fees, royalties, or a markup on the products the franchisee sells while they cover all the expenditures and collect the income.
- Simplified Management – Management needs are lessened because franchisees operate their businesses as well, making it easier for you. The finest franchisees will be extremely driven and knowledgeable about the area, which will make your life a lot simpler.
- Boosts your brand – the more franchisees you have, the more well-known it is. The franchisee’s capital investment promotes your brand.
- Enthusiastic Franchisees – Franchisees who are motivated are more likely to be motivated than managers because they have a personal stake in the success of their company, which in turn affects the success of your brand.
- Purchase power – A larger company can obtain better prices for office supplies, vehicles, and other business purchases since it is more secure and has more revenue and profit.
- New ideas for growth – Franchisees can offer new suggestions for the brand’s future growth, possibly detailing prospects you might not have thought of on your own.
- Others’ support – owning a business can be lonely, therefore having a franchise network can provide support and guidance.
Cons of Franchising
- Not Beneficial for a Failing business – they are not a way to get outside cash into a struggling company. If you already have a profitable firm that is up and running, you should only consider becoming a franchisee.
- Costs – To establish a successful franchise model for the company’s future growth, franchising your firm will require a large initial financial commitment. This expenditure will go toward creating legal paperwork, operations manuals, marketing materials, and hiring materials.
- Time – Setting up a franchise model initially will require a significant time commitment. Additionally, you will need to invest the time necessary to choose the best franchisees and supervise their activities.
- Training and support – For your franchisees to successfully market your brand, you will need to create and deliver a suite of training and support materials. Therefore, to operate a successful business, organisations need to have methods and procedures in place that are easy for most people to copy.
Now that we have seen the advantages and disadvantages of franchising your business in India. Furthermore, as a business owner, a question will come up, is franchise right for your business?
Is Franchise Right For Your Business in India?
Many businesses have used franchising successfully, including well-known names like Mcdonald’s, Domino’s Pizza, Subway, Toni & Guy, Costa coffee and more. However, franchising doesn’t suit every business. Few aspects you need to consider while getting to the final answer to this question.
- Is your business successful?
- Is your business replicable?
- How can you attract franchisees to buy your business?
- Do you have the resources to run your business?
- Do you have the right skills and attitude to make the franchise successful?
The bottom line,
While considering why franchise your business in India, and still are unsure where to go, our experts at Sparkleminds are just a call away. We ensure that you will take the right decision to start a franchise business in India. Furthermore, our portal serves as one of the best marketing tools used to promote your business as a franchise opportunity. Therefore, don’t be late, call us today.
So, is your business ready to franchise?
- Is it workable as a franchise?
- How can I sell my franchise business?
- Will the franchisees received enough ROI on their investment?
- Will it be profitable to me as a franchiser to franchise my business?