Benefits of Franchising Your Business

Written by Sarvesh Kumar

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!

Implication of Franchise Registration in India

Written by Sarvesh Kumar

Franchise Enrollment in India

When a franchisor is looking at franchising in India, the franchisor should have a blueprint in terms of expansion plans in the number of cities, which franchise model they would be adopting and expanding with. Before expanding in India, Ministry of Corporate Affairs is the platform a franchisor should visit.

So, if you are a foreign brand, who wants to expand business in India. You should visit the Franchise brokers in India. This will help you to understand the nuances of franchising in India and how to set it up.

The legal bindings to make note of is taxation policy according to the state, city, region the brand wishes to franchise. Exploring currency risks as they would be dealing with the currency of their home country. The franchise legal framework in India is directed by laws under Indian Contract Act 1872, Transfer of Property Act 1882, Foreign Exchange Management Act 1999 and more. Before you start a franchise in India visit these institutes.

Franchise Intellectual Property

Businesses expanding into a newer location in the home country or foreign lands has to be certain about few things. A franchise intellectual property has trademarks, design logo, trade secrets of the brand for a brand identity.

An entrepreneur must understand the two types of franchised business which is as follow:

  • Product & Trade name franchising, here the franchisee is given permission to use the trade name and trademark in order to sell the franchisor’s products or service or both
  • Business Format Franchising, franchisor permits the usage of tradename, trademark, trade secrets, functionality and more to the franchisee.

Franchising Consulting Strategy Framework

It is tough for an entrepreneur to franchise since a lot of things are to be considered when franchising. There is a need to develop a commercial strategy for the business and look into legal framework for the business.

The two types of framework are used while developing your franchise business is – Strategic and Operational Support. In the operational support the recommended changes will help the brand in the long run, while looking at different geographies of India. Franchise experts will also give operational tips on the small functions of the office, this includes finance, human resources, procurement and more.

Conclusion

With above given brief details a franchisor regardless of the origin of the brand can understand franchise procedure in India. Also, what are the legal institutions that guide your franchise in India in terms of rules, regulations and more. This calls for an expert when it comes to franchise registration in India and understanding of franchising intellectual property etc. We provide guidance in registration of franchise agreement in India and help you understand steps in franchise registration in India.

At Sparkleminds we conduct a detailed study on the brand and provide consultancy services as per the business functions. The main challenge for us is to understand dynamics of the market and develop a business model on those lines. Therefore, our research is based on primary as well as secondary sources.

We always look at providing the best service when it comes to franchising!

How Much Does It Cost to Franchise A Small Business: Winning A Million Dollar Jackpot?

Written by Aakansha S

It is important to understand or have a clear idea of one of the core factors of franchising: capital. The following article talks about various topics in the arena like what does it take to franchise a business, focusing mainly on how much does it cost to set up a franchise. While tackling these question, we hope to answer queries related to the average cost to franchise a businessfranchise set up coststhe cost of franchising and franchise consultant cost.

Actually, it’s like winning a million-dollar lottery, with the only difference being, that this time you knew the lucky number of the ticket before you bought it. So, think of the initial investment in franchising your business as a ticket to that jackpot. What you are actually asking, is the cost of that ticket.

Before you start a franchise

You’re sure to harbor a well of questions ranging from what type of franchisee profiles to look into to; what does it take to franchise a business to how much does it cost to set up a franchise. These happen to be very essential questions and you’re likely to speed up the process of actualizing your business plan. To start the successful business plan, appropriate capital and resources are required. This will help infiltrate markets and enlarge the consumer base. Take the franchise quiz today and see where you stand and are you really ready to franchise and if yes what is the time and cost, that you will have to invest.

When you are configuring the cost of franchising, you will need to understand the cost of acquiring franchises as well. The type of profiles you seek is defined from the functions they are going to perform. With the right skills, the functions can be performed. So, let’s for a moment look at it from the entrepreneur’s perspective, who is going to take up your franchise. What’s so appealing about the franchise industry that you have to get into it? Well, firstly, the franchise industry has definitely made it a lot less of a risk to start a business.

The Franchise Industry:

The franchise industry has opened a wide window for a lot of aspiring entrepreneurs. Although most entrepreneurs don’t have a lot of expertise, the only requirement is the right amount of zest and passion. Secondly, investing in a franchise means that you are joining a thriving business. This means that when you sign your consent in a franchise agreement. You are getting permission to use various sources like branding, marketing, advertising and other practices of thriving franchises. This makes you a part of larger networks. Thirdly, it helps you figure out what your targets are. This means that you are highly likely to receive help from franchisors in order to find your target market. This means training, hiring and ongoing support. Hence, if you as a franchisor will have to allocate costs to be able to get your backend ready to take on franchises and make them successful.

How much does it cost to franchise your business in India: Initial Costs to Start Franchising your business in India?

Let’s get to the main focus of this article. After all, what is the average cost to franchise a business? The franchise set up costs have multiple layers. Firstly, we have the initial franchise consultant fees: Most franchise consultancy companies, at-least the reputed ones, will require an initial franchise services fee. This fee range starts from INR 300,000 to INR 10,00,000 or more depending upon the complexity of the business. The depth of the franchisor, the systematization of your business and most importantly your franchise readiness. You must remember that you Franchisees usually pay an ongoing franchise fee or royalty. Then comes the marketing fees which is a fund that is usually a fixed contribution. This means that you are investing in creating an appropriate financial model, which when done correctly will give you monthly yield on your franchising.

Pushing this aside, when we look again from a prospective franchisee buyer, we are usually ascertaining, as to how they are valuing a franchisee. Do they look at how much does it cost in India? The cost of franchising varies, of course from franchise to franchise, business to business. Value is like how beauty is in the eye of the beholder. It is subjective and it all starts with the question: “Is the franchise too expensive?” After the assessment of whether the franchise is worth it, prospective franchises are bound to just go for it. Along with all the factor in the business that a franchisor has to pay for, the franchise marketing, advertising, lead generation, franchise consultant cost, and on-boarding. The right franchise is a cost you’ll definitely have to put aside for.

 

Franchise Consultant

Franchise consultant are boons in the franchise world; as they have a lot of experience in the field and are guaranteed to steer you in the right way. Business can have a lot of pitfalls. Make sure you invest in a good franchise consultant to avoid that happening. Also to set up your franchise expansion plan and the rightly priced package. A good franchise consultant will help you develop your franchise development program at a pace. The investments in the franchise system start blooming with the right support system in place. Sometimes you need to recruit slowly and on-board only a few franchises and go-slow step by step.

At times the market dynamics could be that you do not want to lose the first mover advantage or want the rapid expansion to get a certain market share rapidly. All of this is possible, by having experienced franchise consulting firms in India like sparkleminds to help you with all the facets of your franchise development in India.

So, what are you waiting for? Head on to www.sparkleminds.com to figure out the best franchise development services for your business and franchise consultants who are sure to boost your franchise business expansion not only in India but Globally! Happy franchising!

Get A Quote on How Much It Would Cost To Franchise Your Business Here !!!