franchise in india, franchise business


Franchising business concept is relatively new in India. However, its host of benefits has brought it in the certain limelight. The model enjoys prerogative over other business models when it comes to advantages. If you aren’t sold to it already, here are 10 biggest benefits of Franchising.

(Benefits to Franchisees)

  1. Less Capital Requirement- When compared to other setups and growth methods, Franchising requires much less capital. Backed by franchisor, Franchisee enjoys initial training, brand goodwill, and on-going support, which combines to reduce the hefty cost and make this undertaking much less costly than kictstarting an independent company.
  2. Expert Assistance- One of the biggest advantages of this model is that business owner gets expert advises from the Franchisor (as well as the hired consultants). So whenever any confusion or challenges emerge, it is almost always assured to get diffused efficiently.
  3. Fast Expansion Opportunity- Since not constrained by limited budget and expert assistance always at disposal, Franchising offers rapid expansion opportunity. If dedicated enough and backed by the right planning, you can actually get to the top very quickly.
  4. Less Marketing budget and Burden- Since the brand, product or service of the Franchisor is already well renowned and enjoys sufficient market reputation, the marketing budget and burden from the franchisee gets significantly lessened- unlike the case is with starting new company and launching new products.
  5. Small Team of Staff- Although this depends on industries to industries and the Franchisor you have selected but, at large, the number of staffs is relatively lower in the Franchising model. So the stress of assembling and managing a team of staff is much less.

These are 5 benefits to franchisees. The deal is just as lucrative for the franchisors.

(Benefits to Franchisors)

  1. Multiple sources of revenue– The Franchisors enjoy multiple and newer revenue streams, including franchise royalty fees, franchise fees, training fees, sales of promotional items, rebates from suppliers, and fees from services provided to franchisees.
  2. Easy Brand Expansion– With Franchisees handling the promotional and selling end, the companies enjoy easy brand expansion with the least of efforts. While they steer the bigger picture, the franchises help them attain their short term goals.
  3. Reach to new locations– With this model, for example, a company dominating the scene in Johannesburg can enter into the Indian market with much ease and efficiency. Meaning, brands can enter new and distant markets through franchises, easily and quickly.
  4. Large manpower access– Although franchises act independently, but they are a part of Franchisors’ teams. This means, the company enjoys access to a much larger and, at many instances, much qualified manpower who bring their own expertise to the table.
  5. Big profits in relatively shorter span– When all the dots are connected to each other, the larger part of the picture is that the franchisors (and even franchises) end up making big returns from their efforts and strategies in a relatively shorter time period.

Again, to grab these golden apples, the parties involved in these setting needs thorough and thoughtful planning that follows a dominating strategy to start a Franchise company, grow it and sustain it in the longer run.


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