Franchise Business Ideas, How to Start

Introduction to Franchise Business Ideas, How to Start in India: Franchises are the best option for someone who wants to start a business in a short period of time. The process of buying a franchise in detail involves setting up a business using the brand name of the original company within your state. In order to accomplish this, the company must sign an agreement. Buying a franchise requires convincing the company. You will be unable to alter the pricing and technical specifications of the product once your company has negotiated with you.

A guide to franchise business ideas in India for beginners, steps to starting a franchise business in India, and disadvantages of the franchise business

Franchise Business Ideas
Franchise Business Ideas (Image source: pixabay)

Depending on the nature of the business, there are three types of franchises. You can read more about each type below.

Franchisee Business Format

Most franchises fall into this category. In this case, you are the company’s brand. You will be guided through the process of doing business with the company.

Product Distribution Franchisee

As with this type, Franchisers agree to sell their products to the franchise. The company here doesn’t guide you in business matters. Though you can use the brand name of the company, the company acts as the seller. One of the best examples of these kinds of franchises is petrol pumps.

Product Manufacturing Franchisee

In this type, Franchises are allowed to make their own products or services. Franchises can use the name, logo, and brand message of the franchise company. For an instance, these franchises are commonly used by drinking water companies.

A step-by-step guide to starting a Franchise Business in India

Fees and Percentage offered

Each franchise is charged a fixed fee set by the company. Companies charge different fees for their services. Fees can be lowered by the franchise buyer. Depending on the nature of your business, you will be able to negotiate.

After you purchase a franchise, you will be able to sell the franchised product. In some cases, they take a percentage of the profit they make from selling the service. A company’s fee and share of profit are determined by the agreement you have with the company.

Documents needed to Open a Franchise

A Franchise Disclosure Document is required for the acquisition of a franchise. Detailed information about the franchise will be in the document, from the operational details to the business proposition.

Franchise agreements are another important document. The agreement is like a letter that the company signs. Accepting the terms and conditions of the company is the primary purpose of the company. The agreement is written depending on the terms and conditions of the business.

Terms and conditions to check while taking a Franchise

If you want the franchise, you need to pay the amount required by the company. Additionally, the company considers the location from where you are starting your business when making an offer. Hence, choosing the right location is essential.

To start a franchise, you need a business proposal. The details of the location and the mode of service Detailed information about the location and the service that the franchise plans to provide will be included in the proposal. Therefore, you must prepare an agreement in order to keep proof.

As soon as the contract is signed, you need to tell the company the location of the business, the details of the decoration, where you bought raw staff for decoration, which kind of decoration you are using, etc. you need to let them know about everything as soon as the contract is signed.

The bonds of all the above staff employees will be signed by company officials. Compliance with the company’s guidelines is not possible until you sign the bond. As far as the mode of business is concerned, the company needs to rely on its franchisee. Trusting in the franchise’s success.

In addition, the franchise might have to pay a portion of its profit to the company. It will clearly be stated on the contract if that is the case. If you take over a franchise from Pizza Hut, for example, you must pay Pizza Hut about 5 to 10 percent of the sales in each Pizza location.

What types of companies offer Franchises in India

Food and beverage franchisee– Franchisees are offered by some food and beverage companies. McDonald franchisees, Pizza Hut franchisees, KFC franchisees, Subway franchisees provide franchise opportunities.

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KFC Franchise in India
KFC (Image credit: pixabay)

Franchisee in the educational field– Certain training or education centers offer the opportunity to open franchises in the name of their organization. This can be seen in the case of Main Aloha India, the British Academy for English, and TMC Shipping, for example.

Health and beauty-related franchisee– Health and beauty companies also provide the opportunity to open franchises using their names. Among them are Jawed Habib, Kaya Ayurveda, and Studio 11.

Retailers and consultancy companies– Franchised retailers such as Cotton King, Lakme Salon, Florista, etc. give franchisees access to their stores. As far as opening franchises are concerned, Brain Checker Techno Service and Business Doctor are the best examples.

Other franchise companies– Besides the companies mentioned above, numerous others allow franchisees to buy their own businesses. For instance, Kidg is for children, Choice Hotels are hotels, and Green Lands are home amenities. In addition to internet and computer service providers, companies offer e-worship.

Benefits of the franchiser

With franchise deals, not only is it highly beneficial for the company, but it also benefits the people in the country. By increasing the earnings of the company and providing products and services that are easily accessible to the general public, the company’s earnings will increase.

As a franchiser, if you have chosen someone to manage your business and he does quite well at his work, but he will not take responsibility for the loss of the business, then you can’t fully trust him.

Instead, a franchise can trust its recipient, since he or she is frightened of losing money.

Benefits of the Franchise Business

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McDonald's Franchise in India
Mcdonalds (Pic credit: pixabay)

A franchise is an opportunity for you to grow into your business, as long as the company is a good one.

Your business does not need to have more branches and be marketed. The company itself will handle marketing. Furthermore, the brand name of the business will also attract many people. Getting many customers will require little effort on your part.

Buying a franchise also offers you the benefit of not having to compromise the quality of the product. A brand name will ensure that the value of the product remains intact, regardless of market fluctuations.

Disadvantages of Franchise Business

Franchise businesses can experience a few negative effects because of their shortcomings. You need a clear perspective regarding finances if you purchase a franchise.

Your daily workload will not be limited. Your life goal needs to be clearly defined. It is essential that your family supports you firmly.

Whenever you come up with a new idea for speeding up the business, you should discuss it with the franchisor. Business decisions can’t be made by you alone.

In the case of a closed trade, the franchise cannot interfere with it. Losses incurred by you are your responsibility.

Precautions before opening the Franchisee

Knowing the market demand for the brand is important when you are considering opening a franchise. The company’s workings and their fees must be understood.

In addition, you need to be aware of the possible advantages and disadvantages of the situation. Future problems can be avoided by taking action now.

It is crucial to make sure you are qualified and capable of running a franchise before you make the decision. In order for the business to progress, these two elements must be present.


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