Franchising is a new way of doing several businesses in India and for many, it is quickly becoming a career path. Franchise models can come in different setups depending on the parties who are involved on both sides but the popular ones are one, where the franchisor provides the franchisee with main support— including the brand name, products and services, helps in the operating system. This means the franchisee also receives site selection, operating manuals, training, quality control, marketing assistance, and anything else that’s critical to the success and consistency of the business.
The other one is less of doing business and selling the product or services from the company. Here, the main business still relies heavily on the franchise than the franchiser, mostly carving out the path of business.
There is a much longer list of Franchising sectors that are available to choose from but F&B, FMCG and Healthcare are the most successful in India, currently tasting good profits and out of which Food Franchising and models like CDR, QSR is the fastest growing business over the past decade.
Say if you were to do business by franchising, there are some fundamentals to be followed.
Below are the 5 things you must do before choosing a franchise:-
- Self-assessment-
At the time of your research, find out what your strengths are. Conduct research about different industries and find out what kind of set up are you comfortable with. Would you like to make it home-based, office-based, outlet based, etc. What kind of timings will you be able to allot in a day? In today’s world where one person is investing in several businesses, it is good to look at options which require less physical presence in the stores and can operate in minimal manpower.
- Prepare your costings-
Yes, you must have a ballpark figure already but it is better to take help for financial authorities and sit down with a cost structure which covers the cost which you need to pay upfront to the franchise for buying it, then the set up/ operational costs for running the place and the payment you pay to the franchisor for a royalty based on weekly or monthly gross income. You might also need to calculate the marketing or advertising cost for which the amount is usually calculated in the actual cost of ads that you may be running.
- Talk to the other Franchisees-
No one can guide you the way the industry people who are doing similar things like you. Find them in business circles, use those LinkedIN invites and have a one on one with everyone you feel is knowledgeable. Try to understand their expectations, concerns, costings, surprises and industry know-how and use their insights to bring in your plan to success.
- Get Ready to work hard-
Many franchises fail simply due to lack of will for the franchise owners to follow the operating guidelines provided from their franchisers or lack of interest in performing daily ops. Running a franchise does not mean to sit remotely and expect a profit and loss statement at the end of the month. It requires time and effort like any other business. Buying a franchise ensure a safe-way to success but to reach there, it asks the same amount of will which any business does from its owner.
- Be aggressive, not impulsive-
Any new business as a matter of fact demands a little ambition and aggression in terms of the time they spent, leap they are ready to take for the next stage of business and of course demand of more money. It is also important to remember and evaluate key factors at any growth stage of the franchise. It is advisable to take things at a rate that is calculated and not rushed and make smarter choices at the bottom line.
Food Franchise IN 