Overcoming Layoff Fears: Starting a Franchise in India

on Feb 27, 2023 | 12445 views

By Shifa Qaiyum 

The unemployment rate in India has reached 10.09%, as shown by the recent CMIE report. Even though the nation’s unemployment rate has always been high, recent figures show that it would rise in the coming years. The government of India has forecasted that there would be around 1 million job vacancies but it will not be sufficient for 220 million individuals who are looking for jobs.

The fear of losing their jobs should not stop the individual from looking for an alternative business. The franchise business is providing many opportunities for them to enter the entrepreneurial sector. The franchisors have found a gold mine of prospective franchisees with professional managerial experience due to the layoffs. A franchise will allow the person to live his entrepreneurial dream without the risk of high losses.

Recent layoffs have caused panic among employees. What are the reasons for being let go?

Layoff refers to the permanent suspension of a person from their job. This has a huge impact on the person’s life and also on the corporate. The market value of the company is also affected due to the dismissal of the employees.

Here are some reasons for layoffs in India -

  • Cost-Reducing measures- The company is trying to be economical by laying off some of its staff. The reasons can be that the company has to pay off its debt, the sales are less and there is no financial backing from the investors. Abolishing some positions and allocating those funds elsewhere is one way to save money.
  • Acquisitions- When a company purchases another company, it is called an acquisition. This usually comes with new leadership and business strategies and a change in company policies. There may be employees of the new company who perform the same jobs as others which leads to some employees losing their jobs.
  • Loss of funds- Another big reason for a loss of company funds is the dropping off of an investor. If a company is not making preferred profits then its financial status is not enough to pay the employees, leading to layoffs.

Why do Indians fear being laid off from their jobs?

Recent research has shown that there has been an increase in the unemployment situation in India mostly due to economic reasons. There has been a panic among the individuals regarding their jobs for the following reasons

  • Loss of Job Security- Computerisation has created great terror among individuals regarding their jobs who believe that traditional jobs will not be in demand in the future. Employees would be hired on the basis of their skills as per need for project-based work. Research shows that 86% of people feel that very few people will have long-term employment in the future and they feel that the government should work to protect jobs.
  • Social Stigma around Unemployment- Many individuals believe that they will be a disgrace in front of everyone if they are laid off from their jobs. Clinical Psychologists and Employee wellness companies are addressing extreme insomnia, stress and panic among employees as the layoff season is taking a toll.
  • Fear of Financial Insecurity- Financial instability refers to the panic caused by likely exposure to unfavourable economic conditions. India has seen a rise in financial instability in the past few years. A lot of people without full-time jobs are facing financial problems due to mass layoffs and pay cuts in India. Full-time employees are more relieved than part-time employees due to the financial insecurity of the latter due to recent economic conditions.


Want to overcome the fear of layoff? Starting a franchise business is the way to go.

In recent years, people are living a life of uncertainty and have let fear rule their lives. Entrepreneurship is a balancing act and owning a franchise is a safe option because it is a proven business model, reducing financial risk. Here are a few reasons why franchising is an amazing option

  • Reclaiming your career- Many people are realising that there is more to their lives than the boring 9 to 5 jobs. Franchising is an option to invest in a business and revamp their careers.
  • Recession-free- There have been a lot of people who fear that they would lose their jobs due to the recession. If a person loses a job, their financial stability might be in danger. If you fear unemployment, exploring the franchise business is a good option. You will be the owner of your business without the worry of being laid off due to the recession and you will have a source of income.
  • Pandemic-free- Franchise businesses have been tried and tested and proved themselves much stronger even after going through the pandemic. Many brands have changed their marketing and operational strategies and have grown their businesses even during the pandemic.


Still, confused if you should Invest in a Franchise? These advantages will help you with your decision.

India has seen a rise in the franchise business. Many people are opting to invest in a franchise rather than starting their own business because it is a tried and tested model with low financial risk. Owning a franchise also gives you a sense of ownership.

Some advantages of franchising are: 

  • Be your own Boss- When you invest in a franchise it feels like you own the business with the added advantage of the franchisor’s guidance to run the business.

Owning a business is a long haul but it gives you a sense of freedom to create your schedule and decide your career.

  • Business Support- One of the biggest advantages of opening a franchise is the support that the franchisor provides you with to run your business. The franchisee might receive a complete business operation, depending upon the franchise agreement and the business structure. The franchisor may provide you with the brand, supplies, equipment, and the advertising plan, basically everything required to operate the business. The franchisor provides you the basic knowledge to run the business successfully.
  • Brand Awareness- Brand awareness is one of the biggest advantages that a franchisee receives by investing in the franchise business. If you start a company from scratch, it would take time to build a brand reputation. When you open a business with a reputed brand name, the customer base is also high because the people already know all about your products and services.
  • Lower failure Risk- When you buy a franchise, you join a successful brand. They provide you with guidance and support to run the business making it less likely to go into losses.The franchisors have already proven their business approach, so you have relief that the products and services you will be providing are in demand.
  • Higher Profits- Most customers flock to buy products and services from a brand that is reputable. This acceptance leads to high profits at an early time.
  • Lower Operating Cost- Some franchisors negotiate the volume pricing and group buying on behalf of the franchisors because they are aware of the market conditions. This can help save operating costs which include marketing, advertising, equipment and staff training.
  • Training and technical support- The franchisor provided support to the franchisee by providing training to the staff for the smooth functioning of the business. This saves you time to look for qualified employees.

See more: Advantages of being a franchise owner.

Chai Sutta Bar: A Success Story

Chai Sutta Bar is a tea chain which is famous for its bar-like atmosphere. It was founded by Anubhav Dubey and Anand Nayak in 2016. The company has expanded to more than 150 outlets across India.

Initial Struggle of the Company

Anubhav wanted to become a real-estate businessman just like his father but he did not have enough money. On the other hand Anubhav’s friend, Anand Nayak was also struggling in his life. Both of them wanted to earn big money and therefore decided to start a business. They could only come up with INR 3 lakhs collectively and decided to open a tea shop in Indore.

After searching for a good location in Indore, they came across a good spot near a girl hostel. They bought second-hand furnitures and other required items which were in good conditions at a cheap price. They sold free tea on their first day to attract customers but very few people dropped by.

Anubhav and Anand decided to call their college friends and girls from the hostel which was able to attract the crowd’s attention. Soon they started getting regular customers which led to an increase in their income. They prepared 20 varieties of tea and replaced paper cups with Kulhad.

Initial challenges faced by the company

 Anubhav and Anand were not satisfied with their small shops and wanted to expand further. They drafted a plan and registered their company. After registering, they started franchising their company to aspiring franchisees. The idea was life-changing and in the first 6 months, Anubhav and Anand managed to sell 2 franchises. The franchise cost was INR 6 lakhs and they managed to open their fourth franchise in Mumbai within a year.


Year by year the number of chai sutta bazaar franchises kept increasing making it around 150 outlets in India and abroad. They now sell 3 lakhs kulhads of tea every day. The CSB has employed more than 500 people of different age groups and backgrounds.

Success Team of Chai Sutta Bar

CSB has a team of 100 energetic, mostly youths to assist the owners. The present turnover of Chai Sutta Bar is more than 100cr.

Future Vision of Chai Sutta Bar

Anubhav and Anand wants to open more than 400 CSB outlets seeing the rise in the food and beverages sector in India. Their success story is an inspiration to many youths who want to live their entrepreneurial dream without the fear of being laid off from their jobs.


Frequently Asked Questions

What is the high-profit franchise in India?

Ans. India has seen a great increase in the franchise sector in the past few years due to the large amount of support being provided by the franchisors to run the business. Patanjali and Giani’s are said to be the high-profit franchise in India.

Is it better to start your own business or invest in a franchise?

Ans. It is better to invest in a franchise rather than starting your business because it takes a lot of time to build your business from scratch. A franchisor provides you with all the necessary support that is required for the smooth operation of a business. It is also very difficult to build a loyal customer base for a new start up where as a franchise already has a large number of trustworthy customers.

Get more insights on: Franchise v/s Start up


India has shown a large increase in the unemployment rate in the past few years and the individuals have shown a great anxiety due to fear of being laid off.

Franchising is the best option to curb this fear. You have financial stability if you invest in the franchise of a reputable brand. It also gives you a chance to follow something you are passionate about. The franchise gives the employee a chance to be their own boss with an alternative to overcome their fear of being sacked from their job.

Thank you for reading. I hope you liked the article and please share your thoughts with us.

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