How to franchise sports equipment business?

Written by Sparkleminds
sports equipment business

In 2020, the Indian sports equipment business will be worth USD 3,944.8 million. Moreover, the market is expected to grow at an annual rate of 8.9% from 2022 to 2027, reaching USD 6,579.5 million in 2026. The industry’s primary drivers, such as rising disposable incomes, rising population, rising health awareness, the rising popularity of various sports, rising prevalence of lifestyle disorders, and expanding product demand from the younger population, are predicted to boost the market growth. 

This market is booming, and now is the best moment to start a sports equipment franchise.

Factors driving Indian sports industry growth. 

In addition to cultivating sporting talent, sports have become a strategic sector for the Indian government in terms of creating jobs, generating revenue, and attracting investment into the country. 

Sport is a secure industry to invest in India because of its rapid growth. More than a few important international sporting events are held in the country, and an increasing number of leagues demonstrate a desire to expand. 

Various government agencies are attempting to promote and grow sports throughout the country. The federal government has set aside US$262 million (Rs 1,756 crore) for its “Khelo India” (Play India) program for 2018-20.

Outside of arenas, tracks, and pitches, this means that additional professionals are required. Sports management is no longer considered a specialty. It’s a requirement.

Does your Sports equipment business have what it takes to become a franchise?

Franchising a business is a wonderful choice that offers up numerous prospects and can result in significant income creation. 

Each business should ideally be a franchise, but it isn’t. As a result, you should identify a few aspects of your company that indicate whether or not it is ready for franchising. 

Before you choose a franchise, here are some questions you should ask yourself.

What’s the Status of Your Business?

Each business person’s idea of success is different, but in the business world, success is defined as staying in business and earning a profit. 

You should not contemplate franchising if your business does not have a consistent revenue source. You should be able to recognize issues and solve them to make your business profitable.

Would your franchisee be able to get a sufficient return from your business?

A franchisee who is also a sole proprietor hopes to make a profit on both his or her franchise investment and the time spent running the firm. 

If you plan to franchise your firm, you must provide an adequate return to your franchisees. If your franchisees do not receive adequate returns, they will grow dissatisfied, causing the brand name to suffer. When considering franchising, make sure your franchisees are getting enough returns.

Are you offering a credible, long-lasting product or service?

Purchasing a franchise is an investment that will pay off in the long run. The product or service should be able to sustain regular use while also evolving and expanding to meet future market demands. The company’s product is also meant to appeal to people in other parts of the country.

Can you handle the responsibilities of a franchisor?

Franchises are a great way to build your business quickly, but you must be committed to supporting and coaching all of your franchisees as the company grows and performs. 

You should be prepared to create a complete training program to ensure that your franchisees are replicating your product and service according to your ideals. 

If you’re thinking about franchising your Sports equipment business in India, you should analyze all of the elements and ask yourself all of the questions we outlined above. Every year, the Indian sports industry expands, and people are investing in franchises for profit. If your company is constantly expanding, you should probably consider franchising it.

Is franchising the best strategy for your sports equipment?

Before deciding on a franchise, it’s critical to think about all of your alternatives. You might also wish to start by growing on your own. To ensure that you have the correct location for your sports equipment business, open a new store first. 

There are a few measures you should do if franchising your sports equipment is found to be the best option for you.

Steps to take to franchise your Sports equipment business

Step 1

A financial investment is required to begin franchising. Working with a franchise lawyer and consultant can help you figure out how much that investment will cost and how much you can afford. Make sure your new enterprise does not harm your present firm.

Step 2

Create a 5-year business plan that details how your firm will expand and what approach it will employ. You must ensure that the measures required to become a franchisor are in line with your other business objectives.

Step 3

To be a successful franchisor, you must ensure the success of your franchisees. As a result, establish extensive franchise operation manuals and training programs to ensure their success. If you want your sports equipment to be as successful as your original company, you must provide them with all of the necessary tools and assistance. You must also determine how much assistance you will supply and what guidelines they must follow. Will you compel your franchisees to purchase all of their ingredients from you? Will you impose any design constraints on the store? Are you willing to help with marketing?

It’s critical to determine the fees that your franchisees will pay you in addition to the franchise price. A franchise fee is a one-time payment made when a new franchisee signs a franchise agreement. Following that, there are royalties to pay. Royalties are usually paid monthly and are calculated as a proportion of the gross sales of the franchise unit. Fees for advertising and system management may also be charged by franchisees.

Step 4

You must also file several legal documents, including a franchise agreement and a franchise disclosure form, as well as the necessary state and national documentation, when selling franchises. To help you with the paperwork, you should contact a franchise lawyer.

Step 5

Because the quality of your franchisees determines its success, you’ll need a solid infrastructure to handle both selling and supporting your franchise. You’ll need a marketing strategy to entice franchisees, as well as salespeople to clinch the deal. To produce new revenue, your new employees will require a variety of instruments.

It’s important to keep in mind that becoming a franchisor isn’t a get-rich-quick plan. Rather, it is for business owners who are truly committed to expanding their brand and assisting other businesses. Franchisors frequently fail because they misjudge the amount of money needed to build a franchise program or because they rush through the entire process without first determining whether their sports equipment is suitable for franchising. It is critical to complete your homework to succeed in this procedure. 

Due to the large choice of things to investigate within the sports equipment sector, this industry has the potential and net value of generating a tremendous amount of net value. 

If you want to franchise you Sport Equipment Business, you can connect with sparkle★minds. We have more than 20 year of experience in the franchising field. Connect with us today to grow your business into different levels. 

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How to Franchise Your Clothing Business

Written by Sparkleminds
What is the process to franchise your clothing business?

India’s textile industry dates back centuries, making it one of the oldest in the world. The industry is extremely diverse, with hand-spun and hand-woven textile sectors at one end of the spectrum, and sophisticated mills at the other. Textiles are dominated by the decentralized power loom, hosiery, and knitting sectors. India’s textile industry is well-positioned to produce a variety of products suitable for different market segments, both within the country and overseas. Let’s look at why you should franchise your clothing business can create a huge impact in the business world.

The Textile industry in India employs around 4.5 crore people, including 35.22 lakh handloom workers. In value terms, the industry contributed 7% of the industry’s output in 2018-19. India’s textiles and apparel industry were responsible for 2% of the GDP, 12% of export earnings, and 5% of global textile and apparel trade in 2018-19. In the period between April 2021 and September 2021, textile exports reached US$ 19.4 billion.

So how to franchise your clothing business ??

In an industry that is constantly in the fast lane, you have to bring something unique to the table that makes you stand out from the crowd. Most likely you’ve noticed a gap in the fashion market and have some creative ideas for how to fill it. Regardless of what motivated you to begin, the most effective thing you can do when starting is to pick your niche.

The organization of your franchise should be as good as it can be. Here are a few things to consider seriously:

  1. Where to expand? Will it be online, have a physical location, or some combination of both? Which cities and town are you focusing to expand in India?
  2. How does it work? Will you be an online retailer with your own website? Will you sell on social media? Will you open a bricks and mortar stall? How are your franchisees going to operate?
  3. Key personnel in your business? Even if you’re the main person, are there other key people helping you? This helps in knowing the number of experts present on the panel to execute the plans.
  4. What plans do you have for sales and marketing?

What is the process to franchise your clothing business?

Growing any business through online and retail store operations is a key strategic issue. After initial launch and consolidation, it is inevitable that, over the course of the brand’s life cycle, the expansion will be considered. Where to grow and how to grow will then be equally as important.

You can access new markets in many ways, including by increasing your online presence, developing flagship stores and forming joint ventures with partners. Franchising has increasingly proven to be a premier strategy for a wider variety of brands across a spectrum, as it allows both brand control and capital management. Essentially, it is an easy route into new markets, and the local expertise can be leveraged.

You must consider many factors when considering franchising as a means of expansion to minimize loss of control and damage to the reputation of the brand while maximizing franchise potential and revenue streams. Franchises are a great way to expand clothing brands. Here are five tips for clothing brands.

1. Understanding and protecting your brand and other intellectual property.

Branding is king in the clothing world. Your products, stores, and online presence are all manifestations of your brand personality that are currently attracting customers and will attract franchisees as well. Franchisees will also be attracted to your business knowledge – that you understand how to reach your target market and manage a business. It is, therefore, crucial to think about how your brand, products, know-how, and other valuable intellectual properties will be packaged and distributed in other markets.

Brands should be concerned about protecting their intellectual property. Successful brands are inevitably copied. Laws protecting intellectual property include trademarks, know-how, designs, copyright, and trade secrets.

2. Territories and network planning: regional versus national considerations.

If you’re planning an expansion, think about the type of rights you’ll grant to your franchisees. Is the franchise exclusive, non-exclusive, or a sole franchise? A master franchise or an area development franchise?

Almost every prospective franchisee wants to expand their territory or have the option to take on additional territories. In general, the more rights you grant a franchisee (including territory and duration of exclusivity), the more power and reliance you put on that franchisee.

Giving large territories may be a good idea in a region where key players have established networks that will open doors and provide access to prime real estate. A longer-term agreement may be appropriate if there is a substantial investment that must be recuperated by the franchisee in a mature market. There may be an issue with this strategy in mature markets with a large choice of franchisees and structuring options.

3. Franchise should be structured appropriately.

You also need to make sure your clothing brand is having the potential to be franchised.

The effectiveness of your monitoring system (whether it is done by a third party or in-house) is critical. By maintaining your trademark registrations, and by making your brand consistent, regardless of whether your franchisee is presenting your products to customers, you are maintaining the validity of your trademark registrations.

4. Consider how your offer may attract franchisees and prepare it accordingly.

Choosing how to sell your upcoming franchise proposition is another step. As part of the preparations for franchising, you will need to develop a franchisee pack that explains how you will grow your brand. Having a credible franchisee pack demonstrates your commitment to growing your brand.

This package should contain your concepts for the brand, the stores, product range, and online presence. It will enable a prospective franchisee to make an informed decision on whether to proceed to enter into commercial discussions with you. You will need to provide financial information – such as the range of royalty and other services payments, order lead times, franchisee criteria (such as how much capital is required), and any franchise fees.

Do not forget that this is your pitch. You may need to comply with other pre-disclosure obligations in addition to the disclosure document. This is not your franchise contract. The information provided must be accurate. No marketing information should misrepresent what your franchise offer is to be.

Nevertheless, you should not include any confidential information and your franchise operations manual should never be included in your pack. It is vital that you place in place a non-disclosure agreement before sharing your confidential information with anyone.

5. Make sure the right commercial terms are in place

When you and a franchisee have the right commercial terms, you will both have the appropriate allocation of risk, and the obligations and responsibilities will be clear. Franchises are about relationships and interdependencies. There needs to be an appropriate balance of risk allocation in the contract.

In order to manage your legal risks, you need to be aware of your power position when negotiating with the prospective franchisee. This is so that you can determine what you are willing to concede and what you cannot. You will know what is and is not “market” if you have a competent adviser. When your brand is the latest, hottest thing, and you have a queue of potential franchisees interested in doing business with you, then a firmer franchise agreement that benefits you will be necessary.

If this is not the case, and yet you continue to press for unrealistic commercial terms, then you will ultimately have a complex, protracted negotiation with your prospective franchisee. This will result in delays and increased legal costs. Additionally, you may attract a franchisee who is too eager to do business with you on the wrong terms. The smart franchisees may be less willing.

In conclusion, many clothing brands are growing through franchising. By following these top tips, you can be sure you are ready to take that next step to franchise your clothing business. If you are thinking of expansion, planning and implementing the right strategy is key. Sparkleminds can help you to grow your clothing business. We are ideally placed to make sure you get the right advice and the right commercial terms in place to franchise your clothing business.

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How to Expand your Coffee Franchise Business in India

Written by Sparkleminds
Coffee franchise business in India, franchise your business, franchise owners

Starting with a coffee franchise business in India has become a rage in recent years because of the great demands from a large number of coffee lovers in most of the developing regions. After tea, coffee is the second leading preferred beverage in India. India is known for producing close to around 3.5% of coffee production in the world. The climatic growing coffee beans in the North-Eastern and Southern parts of the country.

Indians are very fond of freshly brewed coffee to refresh them and feel energetic and lively. Indian coffee is getting worldwide acknowledgement because of its pleasant fragrance and exotic taste. It is irrefutably right to say that beginning with a coffee shop business in India is the right choice because it is a worthwhile field to enter for young entrepreneurs who comprehend the taste and preferences of modern consumers.

Coffee Franchise Business Growth in India 

As we probably are aware, in a season a few years back, India produced 5.5 million bags of coffee. A prevalence of the country’s coffee is grown in the three southern states of Karnataka, Tamil Nadu, and Kerala, trailed by Andhra Pradesh and Telangana, which was a part of Andhra Pradesh until recently.

Almost 65% of the whole production comes from Karnataka, while Tamil Nadu contributes around 15%, and Kerala makes up around 20%. When calculated, it was found that there are more than 210,000 coffee producers in India, most of whom are smallholder cultivators with plots around two hectares.

Reasons Why Owning a Coffee Franchise Business Shop in India Is a Great Idea

Claiming a business can be somewhat overpowering on certain events, especially assuming that you’re a first-time proprietor, yet there are countless benefits, especially with regards to possessing something like a bistro! On the off chance that you dream to open up an independent venture, you should consider this a decision, as it’s not difficult to run and fledgling agreeable! So here are more explanations for why claiming a coffee business is a mind-blowing business.

  • Work for yourself

Something really doesn’t add up about possessing a business that feels better, you are your chief and that is what makes it the most unique! You get to make your rules and set the tone any way you really want! On the off chance that you are worn out on working for someone else, or need to rejuvenate your fantasies, why not assume responsibility for issues and open up a coffeehouse you had for a long time needed?

  • Coffee shops are consistently in style

By working independently, infers you can make the ideal coffeehouse for you. Individuals are straightforward, they love espresso, nonetheless, that doesn’t, mean you shouldn’t offer another thing of real value and arrange your coffeehouse a particular way, this adds such a lot to the overall insight! Obviously, you can go with exemplary natural energy, yet you can moreover go a substitute course and pick to make a themed café.

  • Small Investment

In all actuality, one of the many reasons why owning a café pays off as time goes on, is the way that you don’t need to burn through a gigantic measure of cash immediately! Besides finding the right space for the shop, you’ll need a tool, luckily nothing excessively convoluted and monstrous! From coffee processors, dribble espresso machines, coffee machines with a milk decoration to capacity arrangements and a fridge, and the vast majority of these are genuinely modest. Regardless, consistently recall that putting resources into great hardware toward the beginning of the business will set aside your cash over the long haul.

How Franchising helped top coffee Businesses

Franchising has been the top pick by every entrepreneur in the market who is looking forward to expanding their business in a shorter period. All the top coffee brands that you might have heard of is franchise business. Let’s have a look at some of the top coffee franchise businesses in India

  • LUVOCO ORGANIC COFFEE

Luvoco franchise from Gano Excel International, the world’s largest producer of organic Ganoderma, entered the global market in 1995 and produces 100% organic Ganoderma lucidum (Reishi mushroom) operating in 110 countries. With its coffee processing systems, Luvoco offers superior flavoured coffee with antioxidant Ganoderma extract. The brand could grow this big today via franchising their business in different locations of different countries.

  • CAFE COFFEE DAY

Café Coffee Day, one of the most popular cafes for young people. The first store opened in 1996 on Brigade Road in Bangalore, Karnataka, India. With the help of franchising, the Cafe Coffee Day network today covers 209 cities and more than 1,423 locations throughout India.

  • STARBUCKS

Starbucks Corporation, an American company and coffeehouse chain, was founded in 1971 in the city of Seattle, Washington. The company was started by Jerry Baldwin, Zev Siegl and Gordon Bowker who met each other while they were students at the University of San Francisco. Today Starbucks has around 221 stores solely in India, and all via franchising.

  • BARISTA

Barista is an Indian chain of espresso bars that operate in South Asia. Barista is the pioneer in coffee culture in India started in the year 2000. It is 2nd largest coffee chain in India. The company was incorporated in 1999 and is based in Noida, India with cafes in India, Sri Lanka, Oman, and the United Arab Emirates. The company also provides franchise opportunities as they believe franchising their business is the best expansion plan. As of 2021, Barista operates 275 franchises worldwide.

How to know if your coffee business is ready to franchise?

Before you decide to franchise your business, always remember that it is not an easy route and you should always consider a few factors which help you in knowing if your business is ready to be franchised or not.

  1. Examine the Market

If you are planning to franchise your business, you’ll need to begin by attempting another area, preferably in an alternate city through and through where you can genuinely scrutinize your thought. What works in your city may not work in each city as a result of social nuances, a city’s background or history, or even the environment and occasional variables. Simply be certain that you’re not missing a factor that could be adding to your business success.

  • Contemplate the expenses

As a matter of first importance, entrepreneurs who are willing to franchise need to consider the amount it will cost. Things like purchase expenses, inventory, and working capital are everything you wanted to ponder before franchising so you put yourself in a good position. Franchising a business requires a huge amount of capital and you need to be prepared with the same.

Keep in mind, the people you welcome will be the essence of your business, so you should be extremely cautious with regards to whom you select. Do they have faith in your business? Would they be able to focus on your way of life consistently? Also, would they be able to be extraordinary pioneers? The eventual fate of your business could be in question, which is the thing that should be at the forefront of your thoughts when screening potential franchisees.

  • Maintain clear policies and procedures

One tip for entrepreneurs pondering franchising their organization is to have unmistakably set policies and procedures. Record your procedures as a whole and ensure that they’re just about as impeccable as could be expected. Why? Since then, at that point, while franchising your organization, it will be simpler to recreate a generally working model of doing business.

  • Quality Management

A significant number of big business people today are franchise owners. What is being seen to be the greatest downfall when initially franchising an organization isn’t having a quality control framework set up. You ought to have frameworks that guarantee the quality of your product or administration is conveyed reliably across all of your franchisees. If not, your brands’ name will be tarnished within no time.

At the end of the day, the coffee franchise business is a great passion project, regardless of whether you planning to start a new one just thinking of expanding your current one. All in all, owning a coffee shop is a lot of fun, even if it’s a lot of work as well, but the things you gain from it are far more precious than the hard work you put in!

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Operating Your Business Post COVID-19: Tips and Guidelines

Written by Sparkleminds

Every businessman was planning their new growth goals for the year 2020 and the whole game of business transformed by the impact of a new virus. The blow of Corona virus (COVID-19) is pervasive worldwide and all businesses are affected by it. Leaders are facing a wide range of issues like ensuring the safety of their employees and customers, prop up cash and liquidity, supporting complex government support programs and reorienting operations. As COVID-19 poses further economic threat and uncertainty, managing risk, maximizing profit and ensuring the stability of your business demands a deep analysis of dynamics of changing market conditions and government policy. Timely and deep analysis of economic and political scenario for the pandemic and the potential ways of recovery for individual economies is increasingly crucial to business planning and commercial decisions.

While there was always pressure on the development team to generate new franchisees and unit openings, that pressure could very well increase, now that franchisors have suffered a drop in revenues from loss of royalties to fewer or delayed new openings.

The risk here is that this pressure could lead to exacerbating the same mistakes that have plagued many franchisors for years: choosing the wrong franchisees, sites, and territories to achieve short-term objectives. Don’t let that happen. Take the time to assess your business and build a plan for long-term success.

RISE OF TECHNOLOGY

Talent and technology are blending in innovative ways to enhance customer experience, operational efficiency and competitive advantage. Digitalisation has become a necessity which we have to use to gain positive outcomes. Whether it’s channelling data, streamlining processes or shaping entirely new ways of business, thesis about unifying every part of the enterprise in a common purpose. The use of technology to increase efficiency is used by small and medium-sized companies as well.

AUTOMATION

COVID-19 has already urged companies to accept their future far quicker than they would have naturally – from agile working and digitalization, to automation and investment in renewables. If you know where you are going, actions to respond to the crisis today can set you up for the years ahead.

Understanding ‘what’s next’ for your business means knowing what’s next for the world; what may have been right for your business before-COVID may not be right in the ‘new reality’ that we will soon face. Anticipating a post COVID-19 world requires prediction of two key questions: when will it happen; and what will it look like? 

It seems India is slowly moving towards a gradual removal of the lockdown for some sectors of the economy. The biggest challenge businesses will face will be restarting their operations. Even while a larger part of the empowering system continues to be in lockdown. Parts like public transportation, etc., is likely to continue to be in lockdown and within the constraints of what we are allowed to do, we’re going to have to ensure that we get our businesses back on track.

OPERATION OF OFFICES AND MANUFACTURING UNITS

There are two aspects to the lockdown, one is operations for offices and the other is operations for manufacturing units. The government will have a major part regarding these two issues. They are going to allow the relaxation of the lockdown in a phased manner. We are going to have to really go through a series of steps to ensure that we are complying with those government guidelines, but at the same time, ensuring that our people are safe, and are able to be active as well, because at the end of the day, we have to run a business.

Overcome Uncertainty: What to do now and next

As governments make significant interventions in response to the coronavirus, businesses are rapidly adjusting to the changing needs of their people, their customers and suppliers, while navigating the financial and operational challenges. With every industry, function and geography affected, the amount of potential change to think through can be disheartening. We are here to help.

  • Charting out the list of only the necessary employees

 A detailed planning activity, where we need to identify which employees really need to come to work, even after the lockdown is lifted. Others can continue to work from home. That clarity is important.

  • Regular testing and Transportation of employees

Companies should ensure transportation for their workers. At the offices there should be a series of checkpoints where testing can be done. There should be holding areas for colleagues to ensure that a red flag can be raised if someone’s feeling unwell.

  • NO CROWDING!!

We have to ensure there is no crowding in our office spaces, ensure that only 25 or 50% of the workspace is actually occupied.

  • Sanitization and Doctors

The workplace should be sanitized regularly and should always have a doctor to assist with any medical inconvenience.

These have to be strategized efforts to ensure that while we open up our offices, we take every step conceivable to minimize the impact on employees and ensure their wellbeing and safety.

There will be other elements that are easier for a smaller company, but pose significant challenges for a large company. This can include transportation. larger organization will face a lot more difficulty to take control of the commute or put people in guest houses or other accommodation than smaller companies. This will put significant financial strain on a lot of organizations. So, there will be a drop in the pace of operations. The focus has to be on enabling work from home, wherever possible, so that it’s just a proportion of the employees that are impacted. Even when we open up, not everyone will be allowed into office at the same time. You have to create schedules where teams come in at certain times during the day complete their work, and leave.

We all know that the condition is grave but there is always a silver lining. The fact that more people are working from home is making it easier for some organizations to reach their clients, current and potential. People have learned to engage more effectively over video calls than they did earlier which opens an opportunity to utilize untapped markets – countries that until now have been either too far, too small or difficult to penetrate. We know that we will overcome this grave situation with our smart strategies. Hope you all stay safe and healthy.

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Do you want to Franchise your Business? Let not success influence but guide you!!

Written by Sparkleminds

The successful growth of various start-ups and small businesses has inspired  business owners to take the franchise route. Year over year we have several businesses sprouting with franchise to grow domestically and globally.

Today, though franchising is considered a profitable approach to grow either a small or big business, entrepreneurs who are on the verge of taking this route should thoroughly understand the pros and cons and just not assume that franchise business model can drive complete success.

There are certain businesses which have taken up franchising and have failed to appoint any franchisee finally routed back to their earlier business operations. Growing your business needs lot of effort, a proper strategy, research and also need to consider various loopholes related to franchise your business.

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