Are You Starting A Franchise?

Starting a franchise is simple— but it isn’t easy. Much like venturing any path in the business landscape, it requires advanced planning and impeccable strategy, followed by right execution, to grow and sustain in the long run. There’s a host of things that need to be factored before striding ahead and committing yourself.

Here are 7 broad steps that one should go about to have their foot set in the right direction:

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Step 1- Is your business ready?

Not every business is ready for franchising – most of them aren’t even suited for this model. So before venturing this path, run things through different parameters to make sure yours is an establishment that’s ready to take a giant leap ahead. Do a thorough market research, understand the pros and cons of this model, look at your finances, and then prepare for the big change.

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Step 2- Get familiar with the legal juggernauts

Adapting to the franchising model includes a wide range of legal juggernauts, right from registration to following the country’s various regulations. While you can hire professionals for assistance, you must also get yourself familiar with the entire legal paperwork process. 

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Step 3- Time to make some important decisions

There’s a wide range of important decisions that you are to make in this step. Consider your own goals and preference and then prepare the terms of your franchise agreement. Decide on the geographical area you want to cover, what will be the royalty percentage, the marketing strategy for your franchise and what kind of training will you offer the franchisees. Take a 360 look, factor everything and keep an eye on small details.

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Step 4- Register as a Franchisor

Now that all is done and planned, it’s time to move forward with definite actions. Get together with the experts and create the required paperwork. Register your establishment as a franchisor.

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Step 5- Build a reliable team

When you’re on the journey to create something very big, you need a strong and reliable team of like-minded people—there’s no other option. So when the registration is done, start making key hires and building an awesome team. Have directors, HR, and other important members of the staff first.

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Step 6- Attract the prospects

This is possibly the most important and difficult part. Attracting prospects and selling the franchises. A simple approach is to understand the concerns of the to-be-franchisees and act on them via smart marketing strategies. Leverage powerful tools and social platforms to get your name out there in the market.

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Step 7- Assist and support the Franchisees

If you’re planning to sustain your business for long, it is imperative that to have an excellent support system for the franchisees. Get them familiar with the products and other aspects of your business through the right training. Assist them in getting started and offer them a pleasant experience by addressing their problems and helping them grow with rich resources.

Of course, there’s a lot more to starting a franchise than the mentioned process. But these are the broad steps how one should go about in this direction to keep things quick, simple and efficient.

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One last thing.

So while you thought your team can brave all the imminent complexities on the journey, many a times you will be stuck. And you would require someone to help you through these troubles with higher efficiency and without burning holes in your pockets. You would require Franchise Alpha – Your Expert Franchise Consultant

Happy to help.

Please reach us on +91-9167148910 or email us on



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.

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.

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.

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.

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.


Less Capital Requirments

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.

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.

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.

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.

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.


Given the surging trend in this industry, the opportunities that there is for the new and existing undertakings are remarkably positive. Both the Franchisors and Franchisees are on the receiving end of high-flying outcome. Following the basic franchising framework, the involved parties can swiftly stride towards the ultimate goal of higher revenue.

Too Many Opportunities—Are You Banking on Them?

A franchisor can exponentially expand its wings to new market and wider audience base without getting directly involved in the process. The investment required here is low, with few could-be-bumps in the early stages but a smooth journey in the long-run.

For the Franchisees, the opportunities are just as much to start a company, with less hassle and on-spot expert assistance. The chances of succeeding is much higher, followed by the increased return rate in the given time period.

With all being said though, Franchising is much more than just creating a company’s structure and leveraging brand’s goodwill to own benefits. Even for Franchisors, in the mix of upbeat opportunities, the stake is just as high to preserve their brand’s goodwill by picking the most qualified and dedicated franchisor. The need for reliable professionals and agencies for both the involved parties is essential.

Initial Development

Mentioned already, starting a franchise is simple—it isn’t easy. The real challenge is at the go when things are just taking off. Keeping the fundamental whats, hows and whys clearly sorted, both the Franchiser and Franchisees must have a definite, well written plan to keep the business running smooth and sufficiently.

This plan centres on who you are, what you want to achieve, who’s your partner, what’s your interest—why did you get into this business model? Answer these basic questions to shape your growth plan and strategies that sheer your next course of action.

A Sustainable Model with Low CAC

Franchisees must pay heed to how they can optimally use brand’s market goodwill to penetrate in the market with the least of Customer Acquisition Cost (CAC). After all, just because it’s there, doesn’t mean it’s easy to grab. Just because the brand or partnering company is a renowned name in the industry, doesn’t mean banking on its reputation is going to be easier.

For the franchisors, the initial development phase is equally important. Finding the right franchisee and carrying forward the business in sync with both parties’ goals and preference—it’s a thin line that the franchisors must walk on carefully. They must strive to foster a healthy relationship with the partner that’s beneficial for both.

To keep things sweet, simple and high-rewarding, having professionals by their side is quite important for the Franchisees and Franchisors. Growing and sustaining franchise takes time and right strategy, which subsequently requires experience and expertise.