How to start a franchise business in India

 

Do you want to grow your sales fast ? Are you looking for a franchise consultant in India who can set up your franchise business. If you are a business owner and want to start your own franchise business at low investment then this place is for you. Check all the details about how to start a franchise business in India in this blog. Let’s begin !

 

WHAT IS FRANCHISE BUSINESS ?

Franchise business model is a system in which you uses a brand name of someone who established his/her company as a source of remarkable profit and this someone is called franchiser. The franchisor helps you in setting up your business from ground level. He/she helps in marketing, hiring, staff management and so on. If you want to own a franchise then you have to pay a franchise fee to franchisor.

 

PROBLEMS WHEN YOU START YOUR OWN BRAND

1. If you start your own brand from scratch you will face competition.
2. marketing and staff management in your own brand.
3. Generating a stable source of income for your own brand.

 

FRANCHISE BUSINESS MODELS IN INDIA 

DIFFERENT TYPES OF FRANCHISE BUSINESS MODELS IN INDIA

1. FOFO MODEL

• FOFO MODEL MEANS FRANCHISE ON FRANCHISE OPERATED.
• This means investment and marketing of the business is your responsibility.
• In this model, the organization gives its image name to the establishment financial backer. Furthermore, they give it for a specific non-refundable total (establishment charge) and for a pre-concurred time-frame.
• The Prices and product for the power source are chosen by the brands. Along these lines, the establishment financial backer is the proprietor of the store, and all the functional expense must be borne by the actual establishment.
• Franchise needs to pay some rate portion of income (eminence) to the Brand too.
• FOFO Brand Examples – More than 80% of the brands lean towards this model.

 

2. FOCO MODEL

• FOCO means franchise on company operated model.
• In this model we invest money in a company and get some ROI every month.
• All the control will be in the hands of company only. The underlying arrangement cost is brought into the world by the financial backer (establishment) in the FOCO model. Furthermore, activities are overseen by the Brand. The running expense (tasks) is borne by the Brand.
• In this way, the franchisee receives a base assurance or level of income procured in kind . Here, the establishment financial backer is the proprietor of the business, and the organization will be liable for working it and dealing with everything important to run an outlet.
• The organization will likewise need to give a proper level of benefit offers to the proprietor of the establishment.

3. COCO MODEL

• COCO means company on company operated model
• A person doesn’t have to do anything with franchise
• Brand owns the company and invest the franchise itself.
• Receive rental income every month.

 

REQUIREMENTS TO START A FRANCHISE BUSINESS MODEL IN INDIA

These are the basic requirements to start a franchise business in India-

1. PROPOSAL DISCUSSION
2. SHARING OF DRAFT AGREEMENT
3. MEETING AND SIGNING OF FORMAL AGREEMENT
4. KICK STARTING THE OPERATIONS
5. STORE LOCATION
6. HIRING AND TRAINING THE STAFF
7. MARKETING
8. LAUNCH

BEST FRANCHISE CONSULTANTS IN INDIA

Franchise Batao is a Top Franchise Consultants in India. If you want to start your own franchise business in India at low investment then You can also visit our upcoming event to collaborate with brands on 3rd July 2022. Click here for more details about that event. If you have any queries regarding how to start a franchise business in India then drop a comment below or click here to Whatsapp us directly.