Important Steps To Start A Franchise Business In India
Written by: Kiran James
Do you ever feel like strangling your colleagues, pushing down your boss from the top of a cliff, or getting frustrated with your job feels like getting out and starting your own business? But lack the necessary experience or skills to do so I have the perfect solution for you - ‘start a franchise business.
The Franchise Industry in India has opened itself to thousands of would-be entrepreneurs who lack the necessary knowledge and experience to start a business independently. Franchise helps one to be his boss while minimalizing the risk involved in running an independent business. The only requirement for starting a franchise is that one should be passionate about the industry he chooses and should be willing to put in the necessary work
How To Find the Right Franchise
Opening up a franchise is way less risky when compared to starting a self-made business but that doesn't mean that there aren't any risk elements involved in the process. Like any self-made business sufficient amount of work and skills needs to be put in to ensure the success of a franchise.
Finding the right franchise can be a nerve-racking and time-consuming process but certain things can be evaluated to help you find the right franchisor.
1. Find Your Area Of Interest
The First and foremost thing that is needed for the success of a franchise is the passion for what you have chosen there are many instances where people choose a franchise because of the high returns it produces for other franchisors.
The success of a franchise depends upon the care and supervision that is given by the franchisor to its franchise. But it does not mean that you should have a prior experience in the field you are passionate about. For example, if one doesn't need a degree in hotel management or needs to have experience in the hotel service sector to open up a KFC Franchise you can always hire people with skills and experience.
2. Find The Franchisor
Once you have short-listed the industries that you are passionate about it's time to find a franchisor and this is indeed one of the most important parts of the process. The franchisor you choose can play a big part in the success of your franchisor. When you choose a franchisor there are certain questions that you can ask that will help you evaluate the franchisor.
1. How much marketing support can we expect from you?
2. What are the challenges to overcome while running your franchise?
3. What is the estimated break-even time for your franchise?
If you receive a satisfactory answer to all your questions then you have probably found the right franchisor. Arrange a meeting with your franchisor and clarify all your doubts.
3. Reach An Agreement For The Franchise
Many factors can affect your ability to negotiate the terms of a franchise agreement, including local laws, the size, and reach of the franchisor, market conditions, and the assets you bring to the table.
Prepare for negotiations by researching the industry, the specific business, and other franchisees. For a mid-to large-scale operator, even a small percentage can add up to millions in a few years.
It would be beneficial to ask the franchisor to include the franchise fee, royalties, operational guidelines, and renewal terms and grounds for termination in the franchise contract in order to avoid any future issues.
The Indian franchise market is now the second largest in the world after the United States. There is still tremendous untapped potential for franchises in local and international markets thanks to rapid economic growth and a burgeoning middle class.
Over the next four to five years, it is expected that the Indian franchise industry will grow fourfold. Investing in a franchise business in India is an excellent idea at the moment. Before jumping into a franchise, entrepreneurs should consider each aspect that will affect success - reputation, product/service appeal, financial prospects, feasibility, and plans. It is still your responsibility to build the business from the ground up, not the franchisors.
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