If that strong urge to enter a franchise business has brought you here, well, you have landed in the right place.
Remember that the term “franchise” gives you two great options. You may either launch your franchise and build your business empire or buy a franchise from a company.
Quite easy! Right?
But, issues spike as you flip through the tricky franchising concepts without knowing exactly how the business model works in India.
So, let’s help you reach the depth of this entrepreneurial thing you want to learn.
Franchise Business: In Brief
A franchise business allows startups and firms to expand beyond their local trade areas. It helps them widen their products and services reach to more audiences through business sub-divisions.
A major quality of the best franchise business is to provide high-end support to its franchisees.
All these sub-divisions market and sell products under the single trade name of a franchiser (an entrepreneur with a licensed business model). Similarly, people who take up this sub-division are called “Franchise Partners.”
These partners pay a royalty to a franchiser to get the right-to-do business under its trademark. Each of them makes an effort to keep themselves and the brand profitable.
In short, the franchise business is a strategy to grow on a large scale with the shared collaboration of people and work.
So, do you intend to start a franchise business in India now? The next discussion may help you well. So get ready to take a plunge-
Steps to Launching a Franchise in India
Now that we’re about to launch a franchise business in India, it’s time to get serious about the entire process. Here is a step-by-step guide to getting started.
Identifying your business niche
Only start once you are confident in your business niche. It’s worthwhile to analyze the industry you are aiming to enter. Such as, if there’s already a competitor with a similar franchise model, try entering with a solid basis of the plan.
Before granting a franchisee the right to do business in your brand name, identify their locations. Location is pivotal in deciding whether a business will succeed or fail beforehand.
To keep it simple, start learning about your customers today. Analyze market conditions and demand graphs to overview your business niche better.
Passing the Formalities
An unregistered firm cannot legally run its business or provide its franchise to someone. Each business entity opening a franchise in India must register with the Ministry of Corporate Affairs first. An overseas franchise should have a license from Franchise International, Inc.
Similarly, they must also have the right to sell or trade a product, mainly if the franchise operates in the medical or chemical industries. Taxation or ITR is also a critical parameter you can discuss with your CA or Tax Advisor.
Determine team members
If you own a franchise and are looking for people to promote your product and service, start running ads on the internet. Digital marketing is the only vehicle to attract aspirants ready to purchase your franchise.
On the other hand, if you want to purchase a franchise, Internet World is the best source to get it. But as you finalize the deal, you should look for team members. It will only be possible to scale your franchise business with a workforce.
So consider hiring a team you can trust, who are smart enough to handle your franchise in your absence.
Giving Up on Manual, Being Technical
When you think about “franchise,” you are thinking about multitasking. A time comes when your business experiences millions of sales—manually. That is hard to tackle, for sure.
This is where businesses are harnessing software and technology capabilities. Companies are giving up on manual tasking because it has become much easier with data-powered tools and software.
A Sales Manager, Marketing Manager, or Business Head can review its franchise eco-system through a single window. The franchisee manager can review the in-house activities.
Tech integration even facilitates ease of profit and revenue tracking.
Start and monitor!
Once you are legally and technically geared up, the workforce is also prepared. Launch your franchise and use tracking tools to monitor your business’s progress. Expand your franchise business as it starts to flourish.
Try handing over your minor responsibilities to managers and good people in the team to lessen the burden. Your full focus must be on how to scale your business.
Final Words
These are the basics of the franchise business; how it works and how you can launch one, explained above. It may start with a careful selection of partners.
However, technicalities and legal formalities are crucial connecting points that aid in establishing a business empire.
Interesting Related Article: “Types of Sub Broker Franchise & What is the Role of Sub Broker?“