How to set-up a Franchise Business in India
If you are frustrated with your current job or do not like your boss and planning to do your own business, you can set-up and start a Franchise business in India. It is one of the fast and safe ways to become instant and successful entrepreneurs. Franchise business in India has opened windows for small and aspired entrepreneurs.
Franchise Business in India
In India, you can open Franchise business with international players like Dominos or Dunkins or domestic players like NIIT or Naturals. Currently Franchise business in India is around Rs 82,500 Crores. It is expected to grow upto Rs 2.9 Lakhs Crores by 2017. There is huge potential in Franchise business in India as domestic and international companies planning to have their footprint and don’t think they can do on their own due to operational and financial pressures. In such situation they are looking for business partners through this Franchise Business in India.
What is Franchise business in India exactly about?
Franchise model is piggybacking, popular, identity, marketing strategy and operational efficiency by paying the Franchisor or owner of the brand. You don’t need to set-up from scratch, build on good will. You need to tie-up with Franchisor, invest and get trained to start the business.
Several reasons to start Franchise Business in India
- Less risk: Faster to set-up. Since business is already set-up in several places, it is less risk to start such business with existing company which is already successful.
- Known Brand: Since the brand is already set-up and running, with some effort, it is easy to get new customers.
- Start from day-one: Since the Franchisor is well established brand, you can start your franchise business from day-one. You would get required training from Franchisor so you need to work on how to make the business more successful.
- You can plan well: Since you already know about the Franchisor, you can plan in advance about the business plan, the customer centric, expected revenues etc.
Points to remember before you start Franchise Business in India
- What are your requirements: You should define your goals clearly. Why you want to take up the franchise business? What is that you want to achieve from this?
- What is your plan: Once you know what you want to achieve, then you can think about your plan. If you think that your plan is to yield Crores of rupees, starting a small school franchise would not help you. Hence your plan would give direction about how much you want to invest and how much do you expect in coming 2 to 5 years period.
- Know how Franchise business runs: Many entrepreneurs jump in to Franchise programe without knowing how it runs and later blame the business. You should clearly know about Franchise business, how it runs, how you get benefitted with it, what are the legal and compliance formalities if you continue or if you exit etc.
- Set your expectations upfront: You should set your expectations upfront with Franchisor. Don’t hide something with Franchisor which you want to achieve in Franchise business.
- Franchisor should approve: Franchisor should approve your application. It would depend upon several factors like investment, your expertise, your commitment towards Franchise business, your thought process etc. Individuals generally fail in understanding the expectations from Franchisor and their franchise application would get rejected.
Step-by-Step process on how to open a Franchise Business in India
Step#1: Select city or location: You can choose Tier-1 cities like Mumbai, Bangalore, Delhi, Hyderabad or other cities like Patna or Orissa. The infrastructure would depend upon the type of city you choose. Also some business would work better in some cities. Some cities have already been saturated with such business you may be choosing.
Step#2: Select Niche: Select Franchise business in the niche which you are interested and in which you are expert in. Else, you may need to hire such experts for your Franchise business. Restaurants, after sales service (computers), consumer good outlets etc. are good options to look for Franchise business in India.
Step#3: Do your legal formalities: You need to first sign the agreement with Franchisor. Register your franchise business with Ministry of Corporate Affairs in India. In case of international Franchisor, you need to have legal formalities to be done at Franchisor resident country.
Step#4: Hire Staff: Hire competent staff. Your Franchisor should be able to help you in knowing the skills required for the staff to run the franchise business.
Step#5: Compliance regulations: You need to apply for service tax registration, sales tax registrations, apply for PAN card etc.
Step#6: Build the infrastructure: Once you have finalized the location and leased out a place, you need to build the infrastructure like interiors, furniture, computer systems etc. required to run the franchise business.
Step#7: Start your franchise business: Once you have set-up every thing, you can inform your franchisor and start the Franchise business. You can periodically update your Franchisor about the business and pay the franchise fees as per agreement.
List of some of the Franchise Business that can be started in India along with Franchise costs
- DTDC Courier and Cargo – Rs 10,000 – Rs 50,000
- SRE Financial planning and research – Rs 2 Lakhs – Rs 5Lakhs
- Kathi Junction – Rs 5 Lakhs – Rs 10 Lakhs
- US$ Dollar Store – Rs 5 Lakhs – Rs 10 Lakhs
- Clublaptop – Rs 5 Lakhs – Rs 10 Lakhs
- Eurokids school – Rs 5 Lakhs – Rs 10 Lakhs
- Siyarams – Rs 10 Lakhs -Rs 20 Lakhs
- Express Car wash – Rs 10 Lakhs -Rs 20 Lakhs
- Dosa plaza – Rs 10 Lakhs -Rs 20 Lakhs
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Team – Allbusinessideas.com