Become a franchisor in 2023 – Definitions, advantages & disadvantages – A complete guide

Written by Sparkleminds

Want to become a franchisor?  Heard this term many times but wondering, how you can become one.  Here’s a complete guide that will give you a clear definition of a Franchisor, the pros and cons of becoming a franchisor, how to franchise your business in India today, and more about franchising in India.

Who is a Franchisor?

Franchises are agreements whereby one business grants another the right to use its trademark, business model, and other proprietary assets in order to offer its goods and services.

The original company or one that already exists will be the one selling the trademark. The local entrepreneur who invests in these rights is known as a “franchisee,” and the new enterprise is known as a “franchise.”

Understanding What it Means to Become a Franchisor in India

Typically, three payments are made to the franchisor: the initial franchise fee, an annual fee, and a cut of the branch’s revenues. In addition, it can include additional service fees.

There are benefits and drawbacks to being a franchisor, but overall, it is a viable business option, especially for large, established businesses. A franchisor-franchisee relationship is fundamentally that of an advisor and advisee.

Here’s the role of you as a franchisor:

  • The franchisor offers ongoing advice and assistance with basic business decisions including hiring and training employees, opening a storefront, promoting its wares, securing supplies, and so on.
  • The franchisor’s role as a guide does not end once the partnership has been established and mutual success has been achieved.
  • Some franchisors are more vigilant than others in monitoring their franchisees to ensure that they are upholding the standards, quality, and values of the parent company.

Benefits of Franchisor

Now let us understand what are the benefits of a Franchisor in India are.

1. Opportunities for Growth

Franchising is frequently used by multinational corporations to increase their presence in new markets throughout the world by tapping into the expertise of franchisees in those regions.

The franchisor company entrusts the franchisee with the obligation of regional or international expansion and the right to award additional franchises to other businesses.

In exchange for using the franchisor’s tried-and-true business strategy, market dominance, and brand name, the franchisee bears the cost of opening a location and pays royalties to the franchisor.

2. Increased Market Share

Franchising is a great strategy for a business to expand its presence into new markets while also gaining market share with little to no additional investment. Because franchisees are also business owners, they have a vested interest in the success of their locations and must bear the costs associated with running a business, including payroll.

Even if individual franchise locations generate less revenue than they would if they were part of a larger chain, lower operating costs can nevertheless make franchisees more profitable overall.

3. Scalability

Franchise agreements can be tailored for high-volume national expansion or low-volume regional expansion, depending on the company’s needs, resources, and production goals.

4. Additional Revenue Sources

Ongoing royalties paid by franchisees are an extra source of revenue for a franchisor. Depending on the franchise agreement, royalties might comprise a variety of payments beyond the initial starting fee and monthly charge based on a percentage of the franchisee’s gross sales.

Disadvantages of a Franchisor

Every business comes with its own benefits and risks.  Now that we have seen the benefits of becoming a franchisor in India, now it is time to understand the disadvantages.

1. Capital Investment

It takes a substantial time commitment and financial resources to launch a franchise. Developing the business, opening a flagship location, creating legal documents, developing marketing and packaging strategies, and finding and training franchisees are all essential expenses for every franchisor.

2. Risk of Failure

A franchisee may prove to be a bad fit for a number of reasons, such as being irresponsible, difficult to work with, or unable to successfully operate a firm, even if the franchisor has done its due diligence. There are additional possible scenarios in which the franchise loses money. There is still risk involved in investing in a franchise, even if the business model is tried and true.

3. Loss of control

At the outset, franchisees sign contracts promising to adhere to their franchisors’ guidelines regarding training, behavior, and other matters. However, this may not be the case once the novelty has worn off.

Disagreements are inevitable given that franchisees are people with their own views and temperaments; a franchisee could become stubborn or difficult, or they might not be able to implement changes as easily as the franchisor had intended.

4. Legal and Regulatory Costs Can Be Expensive

Legal action may be required if a franchisee refuses to cooperate or otherwise shows to be a bad option; this can be costly and detrimental to a franchisor’s reputation among other franchisees.

In addition, the Franchise Disclosure Document (FDD) and other regulatory documents necessitate the services of an attorney because of state and federal rules regulating franchisees.

Steps to franchise your business in India – Become a Franchisor in 6 easy steps

The best approach to expand your business across all of India is to franchise it. It’s also a fantastic opportunity to supplement your income. Offering a franchise involves entrusting a portion of your business to an unknown individual. That’s why it’s crucial to research the franchisee’s history.

Here are six easy steps to franchise your business in India.

1. Standardization – The term “standardization” refers to the practice of producing identical results consistently. This will ensure that customers at all of the franchise’s locations have the same consistent product flavor.

2. Ensuring a proper distribution network – Since the franchisor needs to ensure consistency across all outlets, it is important to have a proper distribution network, to ensure the same product/services across all outlets.

3. Have a proper support team – The prospective franchisee has to be assisted by a competent team. They will advise the prospective franchisee on the franchise’s history, past achievements, investment requirements, and potential returns.

4. Marketing Strategy – The franchisor should be actively engaged in online activities and have a strong social media presence. The franchisor must set up some funds for marketing the franchise system.

Key Takeaways – Role of a Franchisor in Franchising Business in India,

  • Franchises are agreements whereby one business grants another the right to use its trademark, business model, and other proprietary assets in order to offer its goods and services.
  • Because franchising allows corporations to leverage franchisees’ in-depth familiarity with local markets, it is frequently used by multinationals to increase their presence around the world.
  • A franchisor must allocate funds for research and development, a flagship location, legal document creation, marketing and packaging strategies, franchisee recruitment and training, and operational costs.
  • Franchises are subject to state and federal rules, which necessitate the use of an attorney to create the Franchise Disclosure Document (FDD) and other regulatory documents.
  • Franchisees are typically not protected against their franchisor’s bankruptcy by the terms of the franchise agreement.

Franchise Your Business FAQs

Q.1. How can I become a franchisor of my own business in India?

Once you have analyzed that your business is successful and are looking to expand it across the country, you can become a franchisor of your business with proper planning and strategy in place.

Q.2. Why would a business choose to franchise in India?

Most business owners choose to franchise because it provides rapid growth with less exposure to debt or the need to use equity financing. Since the franchisee is responsible for raising all startup funds for a location, franchising provides a means for businesses to expand without having to put up their own money.

Q.3. When should a business consider the franchising model in India?

Franchises typically only accept businesses that have been established for at least a year and a half. However, that figure may be higher or lower than stated, depending on the sector. In the first two years of operation, franchising can be helpful for some businesses.

Q.4. Is franchising good for small businesses in India?

Franchises have a higher success rate than other company models, but this does not necessarily translate to better profits. Of course, the higher success rate will cost you more in franchise fees. If you don’t have a lot of expertise in the business world, a franchise may be the best option for you.

To Conclude,

Your level of dedication to the franchising process should be the deciding factor in whether or not you take the plunge.

It would be irresponsible for privately held companies to consider not investigating franchising as a growth and expansion option. However, not every company can benefit from franchising as a means of growth. If you’re an entrepreneur thinking of testing out the franchise market, there are a few things you need to know first.

Get in touch with us at Sparkleminds to know how to franchise your business in India.  Our expertise in franchising has helped various businesses to grow domestically and globally.

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Benefits of Multi-Unit Franchising Your Business in India

Written by Sparkleminds

Multi-unit franchising is a good way to ensure long-term growth for your business. Read this article to know more about the Multi-unit franchise business model for your business, its long-term benefits, and how to prepare yourself for multi-unit franchising in India.

Entrepreneurs are now looking at multi-unit franchise models as a surefire way to grow their businesses and take advantage of the growing number of investment possibilities. Eventually, these groups become independent business models and stand on their own.

Multi-Unit Franchising in India – A Complete Guide

The franchise business is always growing, and franchisees are always choosing to own more than one company. Multi-unit leasing is a great way for a business to grow quickly and increase its holdings.

Multi-unit franchises are like single-unit franchises in many ways, except that they have more than one store in the same area. Investors who want to operate a multi-unit franchise must invest more money upfront and over time than those who want to operate a single-unit franchise, but they also stand to gain more from having a larger profit margin.

Since it can be hard for a single business owner to be hands-on at each of their different sites, many choose to hire unit managers to oversee the daily operations at each franchise location. The owner will oversee their network of businesses and report back to the franchisor.

Key Takeaways,

  • One franchisee manages many businesses, typically in the same location, which distinguishes multi-unit franchising from the traditional franchise model. In the past few years, the multi-unit model has become more and more common.
  • When growing their holdings, franchise partners must think about several things, such as infrastructure, resources, franchise systems, the desire for growth, and the bond between the franchisee and the franchisor.
  • Traditionally, multi-unit owners run multiple units in the same area. But there have been cases of franchise partnerships that went beyond countries and boundaries.
  • There are many good things about the multi-unit franchise model for both the franchisor and the entity in charge. This makes it more appealing, which is why the multi-unit trend is growing.

Benefits of Multi-unit Franchising in India

1. Stability

You can choose this type if you want a steady sense of growth. Here, you also have a better chance of being successful because you can make money from more than one place and won’t be dependent on the success of just one place.

2. Building Strong Ties

One thing a franchisor wants to do is build trusting relationships with his or her partners. Those who want to stick with a certain brand or service under a franchise will only be able to do so if they have built good relationships with the owner over time.

3. Risk Taking

Because the plan has already been tried and tested at your first franchise, it makes sense to copy it, and isn’t very risky so, the best thing about you is that you don’t have to start from scratch. Also, you already have a standard operating procedure, making it easier to copy the model quickly in a new place in the same area, unless you have the skills and knowledge to go multi-regional.

4. Easy Returns on Investment

If you want to go the multi-unit franchise route, you can finance yourself with little risk. This is because if you have a set franchise model, you have already built up your reputation and are a safe bet to get money from a public or private bank. When someone has run a business before, banks are more likely to give them money because they know they won’t lose it.

5. Growth Overall

This is a kind of model that makes it possible for the company, the franchisor, and the franchisee to all grow at the same time.  For a multi-unit franchise model, a franchisor will always look for someone who can inspire a large group of people, has a track record of being a manager, can work and come up with new ideas under pressure, has a history of success, and knows the market in their area very well.

Here are some factors Franchisors need to consider before expanding their business into multi-level franchises in India.

5 Factors to consider before expanding your portfolio in India

1. Finance

While considering expansion across the country, it is necessary for franchisors to ask themselves:

  • Do I have sufficient cash flow to keep my current business running while growing into multi-units?
  • How can I find the right investors who will finance my growth?  Will banks be ready to fund my growth?

These are basic questions that need to be addressed before considering expanding into multi-units.

2. Resource

When moving to a multi-unit plan, the franchised units that are already open need to keep running at the same level. Franchisors need to make sure they have the right team in place to run the current unit well while they work on growing the business. Getting a business to grow means letting go of control and giving your team the power to run things on their own.

3. Losses

It is common knowledge that franchisors can expect their first unit’s business to go down as they open more units. What needs to be thought about is the size of that dip. A big drop can hurt both businesses and change how entities work with their franchisors.

4. Growth Capacity

Getting bigger just for the sake of getting bigger is not enough. Franchisors must determine how much the market wants the brand, look at the competition, and check how much people want the brand’s products. Multi-unit leasing is not about being vain, and the goal is not to have a lot of units.

5. Infrastructure

It is important to build a strong front of the house at the place, but it is also important to build a strong back of the house. To stay ahead of the curve, franchisees need to make sure they have the right people in the right places. This includes administrative and human resources workers as well as loss prevention teams. In the same way, it’s important to have enough resources. A common mistake is to have too many resources, which can cause the business to lose money.

Single-Unit Franchising Vs Multi-Unit Franchising in India

Most people know most about franchising through single-unit businesses. Under this plan, an investor in a single-unit franchise pays a set fee to get training and business help from the franchise parent company.

In exchange, the entity signs a contract saying that it will follow the company’s brand guidelines and business growth requirements.

Most business owners who choose to franchise do so because it gives them the chance to build brand recognition, use tried-and-true methods, and work with customers who already trust them.

The franchise plan is liked by both experienced business owners and people who have never run a business before because it gives more help than an independent business would.

There are many similarities between single-unit and multi-unit franchise models, but investors will pay less upfront for a single-unit franchise than a multi-unit business.

Multi-unit franchising is based on the idea that the more businesses you own, the more likely you are to get more people, make more sales, save money on operations, and make more money.

Is Multi-Unit Franchising Right for your business in India?

Multi-unit franchising can be a good choice for business owners with a lot of experience, but it has more problems than a single-unit franchise. Keeping this in mind, it’s important to be careful in your quest and make sure you have the skills, money, and time to make the jump.

Still, if everything is in place, running a multi-unit franchise is a great way to grow your business, make more money, and leave a lasting memory.

FAQs

Q.1. Are there any disadvantages of multi-unit franchising in India?

Every business has certain risks, so the more units you have, the more the risk.  Unless you have experience in leadership it could be more difficult to manage things effectively.  Keeping in mind that you have more than one unit, you need to ensure having sufficient investment as well.

Q.2. What is the advantage of multi-unit franchising for the franchisor?

Multi-unit franchising gives you the chance to build a bigger management team and use them in more than one business. You can also save money on advertising and marketing for all of your sites and make more money by selling more.

In conclusion,

Multi-unit franchising could be a good choice for you if you have the knowledge, experience, and drive to take on challenges. You can build a large business with the help of people, partners, outsourcing, and hard work.

Contact us at Sparkleminds to know how to franchise your business in India right away.

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Fitness Industry in India – Market Size, Latest Trends & Opportunities – Plan to grow your fitness business in India – Now’s the right moment!

Written by Sparkleminds

You are a business owner running a successful Fitness business in India, and now wondering if it is the right time to consider franchising it.  Yes, this is the perfect time to adopt the franchise business model to expand your fitness business in India. 

Read the article to know more about the fitness industry performance in India, what makes the Fitness Business a profitable opportunity to grow and trend drivers that are setting the market high for business expansion in India.

How Covid Changed the Fitness Business in India?

According to studies, there has been a shift in the way the Indian populace thinks, acts, and lives. There was an almost 60% rise across the board from the 2019 study to the 2020 survey, with 26% of Indians engaging in yoga, 11% in cardiovascular exercise, and 10% in body-weight exercises.

In addition to people’s rising interest in health improvement, the recent epidemic has spurred a rise in accessible, on-demand virtual services. Trained experts are needed to teach, instruct, coach, and consult regardless of how people are enjoying fitness.

Obesity, hypertension, diabetes, cardiovascular disease, and high cholesterol have all seen dramatic increases in recent decades, and this has prompted Indian citizens to pay more attention to their health.

Due to this rising demand, there are now more health clubs, gyms, and fitness centres than ever before, driving up the demand for fitness professionals and the sales of fitness equipment.

Demand for Gyms & Fitness Business in India 2023

Statista reports that only 33 per cent of urban Indians have easy access to a gym. Twenty-five per cent of persons who stated they had never joined a gym or taken a lesson from a fitness teacher began going to the gym for the first time in the first half of 2022.

Nevertheless, all of these numbers point to a growing trend towards health and fitness in India. This information suggests demand for both personal trainers and fitness centres.

These are some factors which will encourage all those fitness business owners out there to grow their fitness business in India right away.

Factors driving the rapid growth of the Fitness Business in India

Several factors point to double-digit growth for India’s wellness or fitness market in the coming years. Let’s see some of these factors.

  1. Use of Technology & other apps – The availability of a wide variety of ways to work out and prioritise health is one of these aspects. Given the industry’s high potential and fragmented market, several investors are stepping forward to make substantial investments. Young people have begun to take health and fitness seriously because of the percolation of information made possible by the proliferation of technology and the meteoric rise in internet usage.
  2. Growing demand for Gym and Fitness Accessories – Because of the worldwide epidemic, more people are inquiring about fitness-related services and goods than ever before. Naturally, in a developing market like India, where new products and services are constantly appearing, shoppers have a greater propensity to buy what they want.
  3. Rise in Disposable Income – Younger generations’ preference for gym memberships as a result of increased disposable income is another developing aspect that can be termed a dominant trend. Young professionals have plenty of discretionary resources to spend on frivolous activities like going to the gym.
  4. Government Push “Make in India Campaign” – The “Make in India” initiative has had a significant impact on the industry because of the Indian government’s emphasis on health and fitness. While Ayurveda, meditation, and yoga have all been part of Indian culture for thousands of years, the demands of a more active and mobile younger generation have led to the development of innovative fitness technologies.

Trends that have shaped the bright future of the Fitness Industry in India

Allied Market Research predicts that by 2027, the global online fitness market will be worth $59.231 million, having grown at a compound annual growth rate (CAGR) of 33.1% between 2017 and 2027. According to the study’s findings, the proliferation of augmented and virtual reality training is another major factor fueling the market’s growth.

As a result, the fitness industry in India is being revolutionized by cutting-edge technology like artificial intelligence (AI), machine learning (ML), and intelligent wearables.

Leading Fitness Industry Trends for 2022

1. The Rise of Digital Technology in the Fitness Sector

Lifestyle changes have ensued after the outbreak. The Indian people have accepted the barricades as the “new normal.” The wellness and fitness business is not immune to the global trend of rapid technological advancements changing industries.

Amazing ideas, insights, and opportunities are springing up in the industry to help it overcome the challenges that have been brought to light. Demand for both online fitness programmes and home gym equipment was driven by COVID-19.

This has led to the emergence of a new demographic of people who value health and wellness.

2. The industry is changing due to technological developments.

With the present level of digitalization, each device provides useful information about progress and helps users keep tabs on their fitness goals in its own unique way. Let’s look at the future of the fitness business and how it will be affected by the technological changes that are already here.

  • Machine Learning – Smart people today are making strides towards a healthier lifestyle by using fitness centres equipped with treadmills, bikes, and other technologically advanced equipment. People recognized a sizable need in the market and set out on a technical journey to enhance health in a way that matched their experiences of inelegance.
  • Wearable Gadgets – Now more than ever, wearable devices are a crucial commodity. People today, however, are keenly aware of their bodies and constantly striving to improve their fitness by monitoring their pulse, heart rate, and number of steps taken.  Wearable exercise gear helps automate chores like rep counting, progress monitoring, macro tracking, heart rate, blood pressure, and other variables affecting active energy, all while increasing user motivation and creating a more disciplined lifestyle.
  • Workouts using AI – Our current period is one of extraordinary innovation. Marketers can provide cutting-edge health and fitness products thanks to AI-powered deployable data. Several systems currently available provide real-time monitoring of exercise progress in conjunction with live trainer instructions and AI-enabled tracking.

Top Trends in India’s Fitness Industry to look out for in 2023.

  1. Biohacking’s Impact on the Health and Performance Industry
  2. Online Exercise Programmes and Hybrid Memberships
  3. Fitness Related Gadgets
  4. Workout with low impact
  5. Outdoor Exercise workouts
  6. Small workout sessions
  7. Mindfulness Training
  8. Group Personalized Training
  9. Hygiene Awareness
  10. Home-based gyms

Fitness Industry in India – FAQs

Q.1. What is the future of the fitness industry in India?

Between 2021 and 2026, IMARC Group predicts the market will expand at a CAGR of 8.6%. There are a lot of variables, such as advancements in technology and the availability of various workout and health-focused options, that point to double-digit growth for the health and fitness market in India soon.

Q.2. What is the scope of the fitness industry in India?

In recent years, India’s fitness business has expanded at an astounding rate. Twenty million people searched for “fitness near me” on Google each month in 2019. In 2020, the Fitness market is expected to generate $2,190 million in revenue from 167 million active consumers.

Q.3. Why is the fitness business growing in India?

While ancient Indian traditions like Ayurveda, meditation, and yoga have contributed to a modern emphasis on health and wellness, the demands of a more mobile and urbanised youth population have prompted the development of novel technological approaches to exercise and wellness.

To Conclude,

People are getting fit in a variety of ways, including working out at home and going to gyms. As customers become more health conscious, demand for fitness centres and related products has risen. There seems to be a fitness studio popping up every day.

The fitness industry is being consolidated by several large multinational corporations, established players, and innovative newcomers from all over the world. It has also spawned novel ways of doing business and generating income.

Indian consumers may now take advantage of a wide range of services and goods that are primarily technology-based thanks to the novel intersection of fitness and digitization.

In addition, individuals are starting to take exercise more seriously as they learn more about its benefits.

All the foregoing suggests that the fitness business in India has a promising future and that its clients will be able to improve their health.  For more details on how to franchise your fitness business in India, you can get in touch with us at Sparkleminds.  Our years of expertise have helped many businesses grow domestically and globally also.

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How do I protect my Brand’s quality in Franchise?

Written by Sparkleminds

Protecting the real essence of a brand is the key responsibility of a franchise and this can only be done once he designs the right business model as well as standardizes the franchise agreement.  Don’t worry we can tell you more about this.

how to protect brand quality in franchise model
how to protect brand quality in franchise model

Brand, a constructive structure of any business thought, is made up of various elements like logo, graphics, tagline, shapes, colors, etc.  Furthermore, this becomes a defined symbol that differentiates a company providing products and services from others.  Nevertheless, this plays a vital role in creating a quick and emotional impact on customers’ minds, attracting them to the brand.  In short, a franchisor puts in many years of hard work and efforts to make and successfully establish the brand, which can be easily acceptable by a wider consumer base. 

Selecting a franchise model for expanding the business, comes with an expectation to grow and strengthen the brand across new and untapped markets. Though local partnerships bring along with them immense benefits to a company’s growth, it also has a risk of brand dilution. Thus, it is the responsibility of every franchisor to guard his brand against the risk of dilution though he wants to leverage it to sell as much as possible.  But remember, the strategies used to pursue this end often bring the danger of tampering with the quality of the brand.

What is Brand Dilution?

No business model is perfect.  Though this is also known as the weakening of a brand, this can also happen by overuse or because of ill-judged brand expansion, resulting in undue competition or price cutting, in turn, hampering the brand image.  Thus, companies need to maintain uniformity throughout all their stores or network, be they company owned or franchised, to maintain the quality of the brand.   This can be done, by SOPs (standardizing operating processes), uniformly keeping the store interiors, uniformity in HR or other company policies or not to forget even the accounting and reporting systems.  This will thus protect the originality of the brand, which is the primary task of the franchisor.

How does a Franchisor protect his brand’s quality in Franchising?

Difficult to accept, but brand tarnishing is an unfortunate reality of franchised operations.  Franchising means where a company expands its network and grows.  This growth may sound good for the franchisor, but it also weakens its control over the systems which are in place.  There may be instances when you must compromise on the quality of the product or service.  This results in a loss of customers and gradual market share.  A franchisee owner usually thinks about what he is going to do best to grow his business and, in such times, he may fail to adhere to the systems set in by the franchisor, which will eventually lead to damaging the brand image locally.  To put a stop to this tarnishing, it is only the franchisor who can do as much as possible to save the reputation of his brand.  And the best solution against brand dilution is the franchise agreement.

A franchise agreement can help franchisors to get over the risk of brand tarnishing.  Before recruiting a franchisee, the franchisor must prepare a good quality legal agreement using the guidance of a knowledgeable person who knows both legal as well as commercial aspects of franchising.  Using this tool makes it mandatory for the franchisee to operate the franchise strictly under the adherence and system laid out by the franchisor.  However, as instructed by the franchisor, the franchisee should advertise and promote the brand.  Emphasis on the use of a common brand name, logo, identity, and quality with a regular inspection plan of tours to the franchisee can also be laid out in this agreement.

Uniformity across the Franchise System

By uniformity, we mean using a common name, logo, identity, and color theme.  But that’s not all that requires uniformity.  The franchisor needs to ensure that the pricing of the products should also remain the same as discussed by the franchisor which would be standard across all the franchisees.  When a customer comes to a particular brand franchisee, he expects to obtain the same look n feel, and comfort that he would have experienced at the original outlets.  Keeping these aspects in place, would make the customer experience far better and keep them coming back to give you more business. 

Key Takeaways

Protecting the brand quality is a step taken usually when you first develop your business.  But in the case of a franchise model, it is harder because it is in the hands of the franchisee to keep the integrity of the national brand image at the local level.  Thus, right from the time you have finalized your franchisee, it is imperative to reinforce the brand image continually before it becomes too difficult later.  Continuous efforts from the franchisor’s end are thus an important point to protect brand dilution.  Still confused?  Don’t worry, sparkle★minds will help you gain clarity!  Connect with us today.

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4 reasons to hire a franchise consultancy for your Business

Written by Sparkleminds

Franchising can be an excellent way to expand an already successful business. When done correctly, your company may soon follow in the footsteps of leading global brands such as McDonald’s and Domino’s Pizza. When it isn’t done correctly, franchising can be an entrepreneur’s worst nightmare.

This is why having professional support and guidance is beneficial when you enter the world of franchising. A franchise consultant is one of the people you need on your team to ensure the success of your new venture.

4 reasons to hire a franchise consultancy
4 reasons to hire a franchise consultancy

To fully understand why you should not take matters into your own hands when franchising, consider the following reasons for hiring an expert franchise consultant:

  • They have specialized knowledge

One of the mistakes entrepreneurs make when entering the world of franchising is believing that because they have developed a profitable business concept, success in franchising will follow. However, franchising is a completely new and distinct business. Several legal, operational, and strategic processes are involved, and if you’re not careful, you could easily get lost in a sea of competitors and jargon. Hiring franchising experts will be advantageous because they understand the intricacies of the industry. They have the knowledge and experience to provide you with practical franchise advice that will allow you to make sound and informed decisions, saving you time, money, and additional headaches.

  • They can objectively assess the potential of your business

Franchise consultants understand which concepts or models have the potential for growth and profitability because they have assisted numerous entrepreneurs in taking their businesses to the next level. A good consultant will not advise you to rush into the franchising process without first conducting a thorough review of your company’s viability as a franchise, as well as your goals and resources. They will evaluate your business concept based on several criteria, including its replication ability, long-term market potential, track record, and value to potential franchisees.

  • They can assist prospective franchisors in developing a solid infrastructure

A consultant’s most important role is to assist prospective franchisors in developing a comprehensive programme that details the specific policies, standards, and procedures required for a successful franchise business operation. The programme should not only look good in theory, but it should also function properly in practice. Working with franchise specialists will ensure that you can develop a strategic plan and receive the guidance and support you require when you reach the launching or implementation stage.

Your franchise success is determined not by the number of franchisees, but by their quality. A good consultant can advise you on the best ways to package your business as a fantastic franchise opportunity that appeals to the right

type of franchisees. They can assist you in recruiting, screening, and selecting highly qualified individuals who share common long-term goals. This ensures not only the success of the franchise unit but also the overall reputation of your brand.

At first glance, franchising may appear complicated and expensive, but you don’t have to go through it alone—consultants from Sparkleminds can assist. Our team of experts is knowledgeable in all aspects of franchising, from franchise law and operations to marketing and retailing. You will be able to gain a solid understanding of the steps to franchising a business with our assistance, and we will assist you in overcoming any challenges that may arise.

Why should you contact sparkle★minds  for franchising your business?

sparkle★minds  has been in the franchising industry for more than 20 years and has helped over 500+ clients in franchising their businesses. Many prosperous franchise businesses that have used sparkle★mind’s  services have not only received more value than they paid for but have also made sure that they have saved a significant amount of money and time when franchising their enterprise.

sparkle★minds  are a specialized franchise consultancy and do nothing other than franchising. Their success comes from the success of their clients’ franchising and that’s how we are very uniquely positioned.

sparkle★minds  looks forward to helping you with the most authentic franchise development services in India. One session with sparkle★minds  will help you realize why they are considered the top franchise consultants in India and how they could be the perfect match for the franchising consultancy that you seek.

 Connect with us at +91 9844441300 to confirm your time slot, dial us now!

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Requirements for franchising your business in India?

Written by Sparkleminds

Are you interested in starting a franchise business in India? Before you make an effort to begin the process, we’d like to share some useful information. The section below in this write-up will familiarize you with the necessary requirements and aspects for establishing a growth-oriented franchise business in India. 

Requirements for franchising your business in India?
Requirements for franchising your business in India?

There are a few important requirements for establishing a Franchise Business in India for your company’s growth and prosperity, which are detailed below: 

Essential Requirements for Setting up Franchise Business

Niche Identification

One of the most important tasks for any aspiring entrepreneur looking to enter the business world is to identify a niche. When you finally decide to start a franchise business, make sure to choose a business domain that will serve you well in terms of both sustainability and revenue generation. 

To make an informed decision, it is recommended that you conduct an in-depth market and city-specific research. Remember that trending niches are more susceptible to fierce competition.

Addressing the Formalities

Once you’ve decided on a niche, make sure you obtain legal permission from the Ministry of Corporate Affairs (aka MCA) as soon as you sign the franchise agreement with the relevant company. If the franchise is located outside of Indian Territory, make sure to hire a professional firm to help you overcome the difficulties in the early stages.

Ownership

Take legal ownership of the property once you have met the above requirements. It is recommended that the legitimate witness be arranged during the legal process to avoid any future legal conflict with the franchisee.

Licensing

This is the most important aspect of establishing a franchise business in India. To operate smoothly within the legal framework, you would require a different type of licencing and registration. For example, if you are running a food chain business, you must obtain the FSSAI licence without exception.

Human Resource Requirements

Human resources are also important in the franchise’s business operations in India. As a result, you must understand the number of workers required to support the operation. As an owner, you must also become acquainted with the roles and responsibilities of your employees in order for the hiring process to run smoothly.

Addressing Tax liabilities

Any business owner must be aware of the tax implications. As a result, we would like you to emphasise the importance of understanding the various types of taxes that apply to your business. 

From customs duty to GST, the range of taxation in India is quite broad, so it is critical to understand the layers and be prepared accordingly. During this stage, you can also determine the best way to avoid heavy taxation.

Overseeing Currency Risks

This is essential for entrepreneurs who do business on a global scale. Their initial investment is usually in foreign currency, while their first earnings are in Indian currency. 

As a result, before beginning a business operation, it is critical to gain a better understanding of currency value differences. It will provide accurate profit and loss information.

General Documents required for Franchise Business

The Franchise Agreement and the Franchise Disclosure Document (FDD) are the two main documents that must be drafted in order to establish a franchise business in India.

Franchise Agreement

The franchise agreement serves as a legally binding contract between the franchisor and franchisee. It includes an important clause outlining the duties and rights of the parties involved. The agreement aims to protect the franchise system’s integrity. A good franchise agreement is transparent and concise. This agreement generally addresses the following issues:

  • Initial & ongoing franchise fees
  • Timelines for commencing the franchise for business
  • Franchise territory protections (if applicable)
  • Specifications related to the equipment, supplies, & inventory
  • The term of the agreement for the renewal
  • Rules regarding the transferability of the franchise to a third party.
  • Conditions regarding the termination of the agreement
  • Post-termination obligations
  • Non-compete agreements
  • Min. sales requirements
  • Arbitration for Disputes settlement

Franchise Disclosure Document

A Franchise Disclosure Document (FDD) should be written in accordance with the law. According to the law, the franchisor is not obligated to sell the franchise until the prospective franchisee has received an FDD. 

In India, there is currently no separate law that governs franchised businesses. As a result, franchise agreements are largely contractual in nature, making franchise agreements is extremely important in the business world. 

Furthermore, depending on the nature of the franchise arrangement and the industry in which the franchise operates, several other laws may have an impact on franchise business in India. Essentially, every franchising relationship is a contractual relationship, and thus such business activities fall under the purview of the Indian Contract Act, 1872.

Relevancy of Indian Contract Act for Drafting a Franchise Agreement

According to the Contract Act, a contract is a legally binding agreement. To be legally enforceable, every franchising agreement must ensure compliance with the following criteria. The following are the elements that formed the basis of the contract:-

  • An agreement, i.e., an offer & an acceptance of the offer;
  • Lawful consideration relating to the agreement;
  • Lawful object & purpose of the agreement;
  • Free Consent of the parties to the agreement;
  • Monetary Consideration of the parties to enter into a contract

Conclusion

In a nutshell, a franchise is a strong business model that reduces the franchisee’s liability to face all of the losses that are more common in other business forms. Franchise in India is emerging as a growth-oriented business form for entrepreneurs and startups who do not want to take significant risks up front. 

In India, the franchise is a successful business model. Drafting a franchise agreement is a professional’s job, and it should never be attempted without the supervision of a franchise consultant. As a result, it is critical to remain within the purview of a professional in order to complete the legalities associated with the Franchise business. If you want to proceed with expert intervention for setting up a Franchise business in India, please feel free to consult our sparkle★minds experts.

Over 500 + clients have franchised their businesses and have achieved great business results with sparkle★minds , so why are you waiting? Get in touch with us!

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Growth of Interior Design Franchise Business in India

Written by Sparkleminds
Interior Design Franchise

India interior design market was valued at USD 23.2 Billion in 2020. The projection for the year 2027 is to reach USD 38.2 Billion, i.e., at a CAGR of 7.4% during 2021-2027. There is no doubt that the interior design business is developing rapidly in the Indian market. The Indian interior design franchise market is being driven by the booming market. Moreover, the developing populace, rising pay levels, and urbanization contribute to the development of India’s interior design market. Other contributing factors include the expanding demand for interior design corporates, home tech mania and media influence and varieties in ways of life and living benchmarks.

Theme-based designs for commercial and residential spaces are in high demand. The style ranges from Indian, American, Mediterranean, European Style, are gaining traction currently. With the visible transition in the Indian work culture, office furniture and interiors have seen a major evolution. Office commercial spaces are expected to opt-out for various interior design services in the market. Old and established offices will also consider refurbishing their office spaces along with start-ups and new offices. Hotels are also coming up with design guidelines and pose as trendsetters combining creativity and sustainability. A few of the best interior design franchises in India are:

  • Aamir & Hameeda
  • Livspace Lipika Sud Interior Pvt. Ltd.
  • HomeLane
  • Designcafe
  • Chaukor Studio etc.

Let us have a look at the grounds on why the industry is booming and sees no signs of stopping in the future.

A growing number of designers

Financial backers are steadily expanding their interests in India’s housing market. A large portion of the ventures is moved in business properties and cooperating spaces. Along these lines, the rising housing business sector will likewise support interest in interior design in India within a reasonable time frame. An increase in interest in Tier I and Tier II urban communities of the country is also adding to the rising number of interior designers in India. Numerous engineering companies are moving into India’s interior design market which is adding more strength to the sector.

Increase in need for customized Interior Design

With the flood of societies and worldwide patterns, Indians are accepting new plans and designs for their homes. With regards to working on their home, they will spend more on such services to get styles suited to their needs. Office spaces are likewise expected to increase. The significance of an excellent workplace for further work performance and motivation.

End-user of Interior Design market in India

In view of end-use, the Indian market is divided into business and home. The business fragment as of now rules the market and is probably going to keep up with its matchless quality in any event, during the estimated time frame. Interior designing is encountering an ever-evolving development in the market due to the expanded interest from business land. Due to the interest in business space, this area is relied upon to fill considerably in the long run. In India, the work culture is going through an incredible change, which has prompted an advancement in the place of work, which in turn is driving the business segment of India’s market.

The hype of modern interior market scenario

In light of the sort of beautification, the India interior design franchise business is assembled into a recently improved, and revamped section. The new portion created the most noteworthy income in 2020 and is probably going to keep up with its predominance over the time frame. Indian housing markets have encountered uncommon development in the course of recent years, essentially because of the workplace and private space interest. The change in India’s work culture and the developing interest in lavish ways of life are key variables driving development in this class. With an expansion in all around planned and rich business spaces and recently enhanced homes, the industry keeps on developing.

Provincial Insights

In light of geography, the market is divided into North, South, East, and West India. The Indian market is overwhelmed by North India and is relied upon to remain so in any event, during the time frame. The development of housing projects by both public and private organizations contributes enormously to the development of this district. The developing number of corporate workplaces in the district is likewise driving the development of the India inside plan market.

The Indian interior design franchise market is divided and is cutthroat in nature. A great deal of footing on the lookout for the services, there is swarming of originators and studios which is driving benefit low. However, the market is relied upon to show development in the future. Small and medium-sized planning organizations have a huge share in the market. This only leads to several other factors which will boom the interior design and home décor industry.

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A brief perspicacity on Real-estate and Construction Industry

Written by Sparkleminds

The Indian infrastructure (construction) and real estate industry is playing key role in the nation’s progress towards achieving the status of ‘developed nation’ from a ‘developing nation’. However, there is a consensus that infrastructure inadequacies would constitute a significant constraint in realizing our growth potential.

An ambitious program of infrastructure investment has therefore been evolved for strengthening and consolidating recent infrastructure and real estate related initiatives. To supplement the estimates of Gross Capital Formation in infrastructure, the Planning Commission has made projections of public-private investments in each sector, basing these on a detailed review of sectoral trends and projected expenditures.

The Indian real estate sector plays a significant role in the country’s economy, which is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). About five per cent of the country’s GDP is contributed to by the housing sector.

Almost 80 per cent of real estate developed in India is residential space, the rest comprising offices, shopping malls, hotels, and hospitals. According to the Tenth Five-Year-Plan, there was a shortage of 22.4 million dwelling units. Thus, over the next 10 to 15 years, 80 to 90 million housing dwelling units will have to be constructed, with a majority of them catering to middle- and lower-income groups.

Easing the entire cumbersome process of buying or renting a property nowadays, the concept of the development of various online portals for the same has been in recent fashion.

Earlier it was strenuous to search for brokers and agents to rent or buy a home, visit the properties physically, clinching on to the owners for cheaper rents and prices, but now all of these problems have a single solution.

The real estate websites have been an advantage as they provide easy online revival of properties; have unique filters that help the customers to select their preferences and view properties that please them. Accurate pricing, location, amenities, land area, etc provided by these best property sites have made them a recent hit amongst the public.

Apart from all this, these portals have reduced the laborious process of finding and communicating to the owners and agents, a task worth a few clicks

  • 99 Acres

99 acres is an online portal which has been a premier choice of the real estate agents, brokers as well as the homeseekers.

A business venture of the Infoedge group, the purpose of the website is to act as a link between the home buyers and tenants to agents and help them score relevant information about the properties available for rent or for buying around them.

The portal has been expanding rapidly and has already marked its presence in 25+ cities in India. It has earned itself a valid reputation, becoming the 2nd largest property portal in India. The Alexa ranking of the website is 140.

The website was discovered and run since 2005 and recently, they enabled mobile-friendly interface of the portal which allowed their customers as well the brokers to view, exchange information online through the use of cell phones on both android and IOs platforms.

  • MagicBricks

The game changer in the field of real estate, MagicBricks in number 1 ranked home hunt portal in India. The Alexa ranking of the website is 154. The website is an online business venture of the Times Internet Limited, which is a sub arterial branch of Bennett, Coleman & Co. Ltd.

It works as a two-way portal as it allows both the owners and property agents to list their properties for exposure to the home buyers. The portal has its presence all over India and thus, caters a vast audience.

Apart from providing the mainstream services, the portal also deals with providing relevant information regarding the property related problems generally faced by the people.

The portal also extends its services to the latest property related updates, home loans and taxation information, and also expert advice to its buyers regarding their property related issues. The biggest benefit that they provided to their users is that the users are free to choose properties that are listed by owners to skip the brokerage fee.

The website was earlier computer supported but enabled mobile-friendly interface since the year 2011.

  • Commonfloor

Having a vast presence in almost 200 cities of India, Commonfloor is an online portal catering to the property buyers and sellers.

The website was discovered first in the year 2007, and now it has more than 5 lakh properties as well as 1000+ upcoming projects registered on the platform. The website has been ranked 210 by Alexa.

The website initially provided real estate management services to its clients, and now they also deal with articles and blogs related to property related topics and issues.

Impact of COVID-19 and lockdown

The business ran as usual for the first two months of the year 2020, but all real estate activities came to a sudden halt in late March with the lockdown. Although the economy started to unlock from June onwards, the situation remained grim through September as construction activities were stalled because of labour paucity, while sales were down on account of concerns over economic growth. The threat of job losses loomed large, which had a major dampening effect on consumer sentiment.

With no site visits possible during the lockdown, real estate developers and property brokers swiftly adopted digital technologies to launch new projects and market their properties, with a fair amount of success. As a positive, the pandemic accelerated the pace of digital adoption in real estate, which will go a long way in transforming how properties are sold in the country going forward. Hence in spite of the situation going down no matter the industry pulled to its socks right on time and ran with the pace of aiming profits and its gross revenue.

The market growth and value

The Construction industry in value terms is expected to record a CAGR of 15.7% to reach $ 738.5 billion by 2022. The Construction industry in India consists of the Real estate as well as the urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, amongst others. While urban development segment broadly consists of sub-segments such as water supply, Sanitation, Urban transport, Schools, and Healthcare. Indian real estate attracted $5 billion in institutional investments in 2020.

•           By 2025, Construction market in India is expected to emerge as the third largest globally

•           By 2025, Construction output is expected to grow on average by 7.1% each year

•           By 2020, Construction equipment industry’s revenue is estimated to reach $ 5 billion

100% FDI under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions.

100% FDI is allowed under the automatic route for urban infrastructures such as urban transport, water supply and sewerage and sewage treatment.

Real estate is a field wherein aspiring entrepreneurs can find many paths to success. Many of today’s wealthiest individuals have made their fortunes in real estate, and it’s one of the few business sectors that can deliver fast turnarounds and establish lucrative careers quickly. That said, if you’re getting into real estate to get rich quick, you might need to get real about both your expectations of success and how you’re going to get there.

If you have a passion for real estate, and you are considering making it a business, it can be a   rewarding career, if you’re willing to put in the hard work. These hints can help any budding real estate mogul enter the field armed with the insight they need to avoid pitfalls and optimize their paths to success.

The bottom line

The Securities and Exchange Board of India (SEBI) has given its approval for the Real Estate Investment Trust (REIT) platform, which allows all kind of investors to invest in the Indian real estate market. It would create an opportunity worth Rs. 1.25 trillion (US$ 19.65 billion) in the Indian market in the coming years. Responding to an increasingly well-informed consumer base and bearing in mind the aspect of globalization, Indian real estate developers have shifted gears and accepted fresh challenges. The most marked change has been the shift from family owned businesses to that of professionally managed ones. Real estate developers, in meeting the growing need for managing multiple projects across cities, are also investing in centralized processes to source material and organize manpower and hiring qualified professionals in areas like project management, architecture, and engineering.

The residential sector is expected to grow significantly, with the central government aiming to build 20 million affordable houses in urban areas across the country by 2022, under the ambitious Pradhan Mantri Awas Yojana (PMAY) scheme of the Union Ministry of Housing and Urban Affairs. Expected growth in the number of housing units in urban areas will increase the demand for commercial and retail office space.

The current shortage of housing in urban areas is estimated to be ~10 million units. An additional 25 million units of affordable housing are required by 2030 to meet the growth in the country’s urban population.

The growing flow of FDI in Indian real estate is encouraging increased transparency. Developers, in order to attract funding, have revamped their accounting and management systems to meet due diligence standards. Indian real estate is expected to attract a substantial amount of FDI in the next two years, with a US$ 8 billion capital infusion by FY22.

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Franchise Agreement – Answer to Legalities of Franchising

Written by Sparkleminds

Franchise agreements play an important part between a franchisor and a franchisee. It is the legal binding of the parties. With the increasing number of franchises, international and national, understanding the franchise agreements is equally important for the same.

It is important for a franchisor and franchisee to understand why does one need franchise agreements in place. Franchise agreement further helps in avoiding franchise disputes. The agreement also contains the day-to-day operations of the franchise with maintaining the standards of the business.

Every franchise business is different vis-à-vis the industry; therefore, it is necessary to understand the suitable franchise agreements for business. There are mainly 4 types of franchise agreements a franchisor and a franchisee need to understand – namely:

I) Single-Unit Franchise:

A single unit franchise is when the franchisor gives the franchisee the right to open a single unit of their franchise. It is to understand the market dynamics and capabilities of the franchisee.

II) Multi-Unit Franchise Agreement:

In this type of franchise agreement, the franchisor gives the franchisee the permission to open and operate more than one unit of a franchise business. The franchisee is told to develop a few pre-determined numbers of units to be set up. In case he/she fails the franchisor can opt for another franchisee.

III) Area Development Franchise Agreement:

This type of franchise is similar to Multi-unit franchise. The only difference is the franchisor grants an exclusive right to develop franchisees in that location. No other franchisee is given permission to set up a franchise there. Therefore, no other franchisee is given permission in setting up a franchise there.

IV) Master Franchise Agreement:

This type of franchise is a lot bigger than the area development franchise. Here, the franchisor gives the sole rights the franchisee not only to open a set number of units, but also the franchisee can give out franchises within their geographical location. It is more or less like a franchisor in one particular area geographically.

From the mentioned types of franchise agreements, we can understand the types of franchise format. Each of them requires a different type of franchise agreement between the franchisor and the franchisee. They also have to take note of different types of franchise laws applicable and how do these laws have a direct or an indirect effect on the franchises. Here it is important for a franchisor to take help from a franchise consultant and understand all the intricacies of the same.

As the functionalities of every franchise are different it is important for a franchisee to seek guidance from a franchise expert. Sparkleminds is your answer here, a franchise expert in India with over 20+ years of experience and has helped 1000’s of brand expand via franchise in various categories of business at a successful rate.

Sparkleminds is a leading franchise development company in India, they have been in the industry for over 20+ years and have helped 1000’s of brands across industries establish in India by guiding them through the franchise route.

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Benefits of Franchising Your Business

Written by Sparkleminds

Franchise Consultancy

I am sure you would be familiar with the term “Franchise Consultancy” but do you know what do they do. Well if you don’t know we can help you understand. A franchise consultancy is a platform where you can expand your business from present location to pan India level. This is where we pitch in and help you cater to the demand of your product/service via “Franchise mode”. Therefore, there are a lot of benefits of franchising your business in India.

Confusing? Well in simple words we help you expand your business via the franchise mode, where, we provide our expertise in building a sustainable franchise model, with pre-defined rules & regulations, procedures, business functionalities, and more. The entrepreneur(franchisee) will only have to abide by the mentioned franchise manual.

What does Franchise Consultancy Include?

There are 4 main points of the consultancy namely:

  • Strategy Development: At Sparkleminds, we develop a strategy that will help you boost your business multi-folds and start franchising soon. Our experts study a business already existing which is similar to you or we build a prototype with the help or R&D team and study the same.
  • Franchise your business: Once the study has been conducted, we now plunge into actually developing your franchise model and creating your franchise brand.
  • Merits and Demerits of franchising: When the franchise model is developed, we help you understand the aspect of franchising and how its pros and cons, based on your business.
  • Franchise FAQ’s: Developing an FAQ is important as a franchisor will be able to learn what could be the possible flaws in the business and how the brand can overcome these flaws.

Going Global from Local

There are businesses that have established successfully in the country, created a brand and a local market for their business. But, now what? This is the perfect time for a business to now explore international waters and cater to different but a similar product or service demand at a foreign land. At Sparkleminds we are in constant touch with businesses that are unique and have made a market for themselves, we help them build their brand at foreign markets.

Franchising Your Business

A brand needs to understand if his/her business is really capable to expand by giving out franchisees to interested entrepreneurs. There are a few things that need to be kept in mind while looking at franchising your business. Are expansion strategy, legal docs, marketing materials and more. Sparkleminds have has worked with a large number of brands and set up the best franchise model for their business. We serve to new businesses, as well as to established ventures as well.

Stages to Franchise a Business

A franchise is a lucrative form of expansion, but it is not an easy task to do the same. There are a few steps which needs to be looked at while franchising your business, the steps are as follows:

  • Can your business be replicated?
  • How good is your business concept?
  • Are your financials stable?
  • Is there any other alternative for your business? and more.

Understanding the Legality of Franchising

Franchising a business is not as easy as it looks. There are a lot of legal undertakings to abide by. It is hard to clear local hindrances to a franchise than getting permission from than the national ones.

Once documents submitted, the business is to be presented as a franchise to the authorities. A brand can start franchising when it is completely ready to be franchised. It will take the authorities some time you get back to you with required changes.

Publicize your Franchise

The main reason to franchise business is for the public to know about your distinctive service. It is necessary for the franchisor to make use of advertising platforms and notify the public about your product/services. You can also invite them to take up a franchise of your business in case they wish to start same. There are a lot more benefits of franchising you business.

Time Span required to Franchise your Business

Franchising a business does consume a lot of time. There are a lot of formalities that have to be done before the business can actually start giving out franchises. Franchising has to be done at the right time. Doing this will help you understanf the benefits of franshising your business. This calls for expert advice to understand the best time to franchise your business. Also, understand the procedure and rules to be followed.

It would ideally take you 3-12 months to start franchising after building the perfect franchise development program. At Sparkleminds we can help with cutting down the time to a large extent without compromising with the quality of the service.

Price of Franchising a Venture

“Cost” of starting a franchise is one of the main points, which arises out of any entrepreneur or business owner when thinking of franchising their business. A franchisor should understand that franchising is not as easy as it sounds. There are many intricacies to be followed while building a feasible franchise model to sustain the test of times. The franchise model built should be adaptable as per the changing business dynamics.

Franchising is a good form of expanding any business in the country and overseas. But it is equally tough to build a sustainable, precise franchise model for the same. Brands that are looking at franchising have to do a thorough study on if they can really franchise and do, they have all the required resources to start franchising.

The cost of franchising would ideally cost you in thousands in the initial stage and go up a few lakhs for a full-fledged franchise service. A few of the inclusive of a franchise program include – general manuals, training manuals, marketing services, franchise recruitments etc.

Where and How to Start Franchising?

It is important to know where and how to start franchising. A business owner should once pay a visit to franchise consultants and have detailed discussion. Doing this will help them understand the right way to start franchising and what would be the right location to a franchise. Franchisors should visit Sparkleminds and fill in their franchise expansion form and also take up their franchise quiz, by doing this they will be able to understand better if their brand is ready to franchise or they will have to work towards it for a longer period.

Franchising your Business Concepts

An established entrepreneur often wishes to expand his/her business, either by setting it on their own or by providing franchise. While taking the franchise route the franchisor comes across a lot of doubts. A few of them could be, how good is my idea, what if someone copies it before I start, will franchising my idea work? Etc.

At this juncture, Sparkleminds will be of your help. We previously have had a lot of client meetings where they have discussed potential ideas with us and we have helped them understand if they are franchisable or it needs more work. If your business franchisable.

It is suggested to start franchising if your business sync with the below mentioned points:

  • Unique: Is your business different and unique enough to expand domestically and internationally as well.
  • Profitability: Is it different enough to rake in enough profits to keep the franchise alive and running.
  • Systematized: There has to be a systematic line of a function of the brand, so as to include it in a manual, which could be issued as and when you expand.
  • Training: The training should be easy and perfect enough for the duties they will be undertaking.
  • Excellent Margin: The brand should generate enough margins to keep the brand exciting and remembered.
  • Affordable: The franchise should not be expensive, due to the fact being if it is expensive only a few would be able to afford it. This will reduce your count on a number of franchises owned. India is a price sensitive market and having a franchise of more than 50Lakh may not have many takers. Ideally, a franchise should range from 5 – 50 Lakh ₹. There is a high number of entrepreneurs who can invest in franchises in this limit, which will, in turn, make your brand popular and worth exploring franchises in any location.

Franchise Your Big Business in India

Your brand should start franchising when it has a great market, set business model, customer base and brand popularity. The best way to understand if your business is franchise-able is to visit franchise consultants in India. Having a detailed discussion with them will give you insights into your brand can be franchised.

Alternatively, if you wish to do a self-assessment of your brand with respect to franchising, you can take up a franchise quiz of Sparkleminds. At the end of the quiz, you will receive a score and this will give you insights on if your business is franchise ready. If the score is positive then the team of experts at Sparkleminds will have a workshop done with you to understand your business. The workshop will include developing franchise module, administrative guidelines, marketing strategies and more.

Edifice a Franchise Brand  

Franchising is not as easy as it sounds, it takes a lot of brainstorming and hours of discussion to come to conclusions. There are a lot of things that go into building a franchise. There are a lot of brands that have used the franchise mode of expansion but were not able to stand the test of times. This could be due to not having a good franchise model, marketing was not in place and could be many more.

A few points to note, while looking at expanding via franchise are:

  • Does your venture have a set business model?
  • Is your business generating good profits?
  • Do you have a set/established customer base?
  • Do you have the required financials to expand? And more.

There are a lot more intricacies to make note of while franchising your business. To understand all this, it calls for expert advice. Sparkleminds is the most sort after franchise consultants in the country you will be interested to visit.

With experts at Sparkleminds, we will help your business grow exponentially to greater heights by means of a franchise. We will help you build a feasible franchise model, marketing strategy, financials, legal documentation and more. We will also help you understand how you can build a franchise brand to fund its own franchising growth.

With the help of our experts, we can help you comprehend how much does it cost to franchise your business or what it takes on how to start a franchise business. It is a hard task to answer should I franchise my business? we at Sparkleminds can help with this.

Visit us and we will be delighted to serve you with the best of our services for your growth!

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