How to Start a food franchise in low investment: business idea

Starting a Fast-food Franchise

Food franchise business

Today, restaurant franchises keep on positioning in the top ten of the most famous food franchise openings available, making them incredible undertakings to capitalize on their prevalence and income producing conceivable outcomes.

Despite the fact that claiming an restaurant franchise might appear like a pyramid scheme to a few, actually it takes a lot of difficult work, time, and cash to keep up with and flourish.

In case you’re considering how to purchase a restaurant, or then again in case it’s an ideal choice for you, set aside effort to separate the benefits and inconveniences of possession prior to turning into a franchisee.

Food is something we cannot live without. Food industry is one of the industries in India which is thrived across the country even in the pandemic situation.

Opening a food business is tough in comparison to buying a food franchise. In India there are so many opportunity for people to start a food franchise business due to its diversity in taste and special dishes of different states. 

In India if you are planning to open a food franchise business there is always a better time because of variety dishes for different seasons, for example Kulfi, Faluda, fruit custard in Summer season and Gajar ka  halwa, sarson ka saag etc in winter season.

In a country like India you can earn more profit on low investment in a food franchise business due to it’s variety of items.

According to a survey fast food industry is expanding at the rate of 40% per year. India ranks 10th in the fast food per capita spending figures with 2.1% of expenditure in annual total spending.

Starting a food franchise with low investment will encourage the young entrepreneur to take the risk easily.

A Restaurant franchise is a legitimate understanding/connection between a franchisor (restaurant owner) and a franchisee (restaurant present operator).

This arrangement gives a chance to the franchise proprietor to begin the restaurant under a similar brand name.

The franchisor upholds the franchisee in working methods, the board preparing, and promoting.

In any case, understanding the fine print is a necessity in any industry, and It is fitting to comprehend the benefits and burdens of claiming a restaurant establishment prior to putting resources into it.

Opening a food franchise business very beneficial in many ways.  The benefits of opening a food franchise are:

 A well established brand name:

One of the best benefits is you get the goodwill and brand name readymade as you need not to work hard to build the reputation In the market.

Some of the restaurants are having a very well established brand name which saves the time of making the goodwill.


Getting a loan is easier for a franchise with a recognized brand. Plus Franchise needs like supplies; equipment, furniture, etc. are usually provided by the franchisor in bulk.

Training Process:           

The training programs are arranged by the franchisor to the franchise which give them the clear idea about the successful running of the restaurant and delivering the positive response from the customer.

Readymade Business:

The franchisor provides some services to the franchisee like searching for location, menu, marketing, chef etc. It includes services like digital marketing, shop area etc.

Guidance is available:

The Franchisor is there is always there to guide you because they want to get their brand to hit on top in the market and they won’t let their brand reputation go down.

Disadvantages of Food Franchise:

High Initial Investment:

Opening a franchise require an initials investment in lakhs. The franchisor may demand annual royalty, kitchen equipment, building maintenance and may more.

Independence is restricted:

You own the franchise not the brand. Even tough you have a creative mind, you cannot apply it to your franchise as you may need to follow the theme provided by the franchisor only. The decision is taken by the owners of the franchisors only and not by you.

Expansion is limited:

You are constrained to your own territory only. You cannot expand your franchise outside your area as it is nopt permitted by the franchisor.

Labor Challenge:

Most franchise hires low wage labors for their business. Training them to have the acceptable quality of food is very challenging and time consuming.

Agreement Termination and renewal

It is in the hands of the franchisor whether to continue with the contract or to end it. Even if you are doing well they can terminate your contract due to violation of their rules and regulations.

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They can also change the terms and conditions, royalties. The Summary is that anyone can start a food franchise business in India which provide earning opportunity to every individual who want to start food business.