Ever thought to yourself what exactly does franchise mean? A franchise is nothing but an extension of an already established business. It is a process where owners of an MNC or an extremely successful business sell the right to use their business logo, name, model to an individual or group of individuals. This is done to further the presence of a brand as much as possible.
What All Should be Taken Care Of?
- It takes a franchisee to firstly pay a respective amount to the franchisor to buy the right to operate the same business, with the same logo, same name, and same business model.
- Franchisors also may prude the particular territory to the franchisee to operate the business.
- Franchisees then need to settle on a time period with the franchisors within which they can operate the business, which normally varies somewhere from 5-10 years.
- It is also important to decide on the royalty payment that is usually paid on an annual basis. A royalty payment is defined as the payment made by one party to the other for owning a particular asset
Why Should You Choose Franchise Business?
A franchise is amazing when it comes to offering independence of business ownership supported by the benefits of an already established and thriving enterprise. To successfully run a franchisee you don’t need some fancy degree or experience in the business territory.
You will be given proper training and guidance by the franchisors to operate the model. If you are hesitant to start your own business, running a franchise would be perfect because the success rate is way higher. Last but not least, because you will have a well-established name attached to you, generating funds would be much easier.
But There Are A Few Catches. . .
Be very aware of the fact that you will be formally into an agreement with the franchisor. We are counting this as a catch as franchisees will have little to no room to showcase their creativity at any point in time.
You will have to endure interference in regards to the place you want to operate at, the products you want to sell, and the supplier you want to work with.
Just like one bad apple spoils the entire lot, other franchisees might also have to take a hit when one of the franchisees perform badly.
No matter what the situation is, you will be sharing your profits with your franchisor.
Low-Cost Franchise Business Opportunities
If you have your heart set on buying a franchise, you sure should go forward with it. One fact that is going to help your ambitions is that there are many websites in India itself that could help you with starting a franchise business. You will be offered categories and price ranges to choose from to invest your money in. Some of the websites would also provide the options to choose from the brands available for starting the franchise business. Following are a list of few websites:
All in all, franchise business sounds like an amazing option. However, don’t let the perks overshadow the fact that it takes equal amounts of hard work, sincerely, and dedication to making this business viable and successful. If you promise to put your best foot forward, the journey will be worth your while.