Seven benefits in purchasing a franchise business in India

franchise business

India is currently gaining a lot of importance as the earth’s one of the real fastest-growing markets and the concept of franchising has been opted by many local and international business firms of this country.

Standing only next to China in terms of Consumer capacity and retailing, India has been a profitable home for the franchising market.

  • Especially in sectors of food and beverages, computer training sectors, and other consumer goods, franchising is gaining fame in India, taking advantage of the country’s huge market and distributional features.
  •  Due to globalization and liberal market emergence in India, it has made awareness among different brands.
  •  The import of foreign brands in the Indian market provides a lot of opportunities for local business owners. 

India is diverse both geographically and culturally and this feature is taken as an advantage by many foreign companies to enter into business with the help of franchising.

Buying a franchise business always associates with some big advantages like:

  • Small businesses are likely to become independent with the support of big business owners.
  • To run a franchise business, the experience is likely not needed. All you need is persistence and consistency in your work. Franchisors will train you how to operate their business model and that will help in starting the business.
  • A Start-up business does not have a higher rate of success than a franchise business.
  • Securing a financer for your franchise business is way easier than finding finance for your start up or small business.
  • Franchise products are reputed internationally and working with the same brand under the banner of the franchisor will make your business grow more reputation, brand image, and profits.

Franchising is a type of business where the franchisee gets the license of the product made by the franchisor and sells it in the market earning huge profits.

In India, franchising is giving a path full of opportunities for business owners and people who are trying to seek a job.

Franchisor has found its very profit motive to open outlets in the Indian market due to its multi-ethnicity and desire for western goods.

Nearly all franchisors after franchise agreement get a primary advantage like growth, risk reduction, and high profits after opening a franchise business in India.

Why is it Beneficial to purchase a franchise business in India?

India has proved to be a mega-market for a profitable franchise business. These days when the jobs are hanging by a thread and the whole country is under limitless chaos, the franchising market has proved to be a boon for small countryside businessmen in India.

Not only there is a huge scope of employment but also limitless profits by enlarging the business into various branches.

All these are possible in India due to its extensive relief features and highly populous cities. Benefits of franchising are:

  1. A country which provides a high capital acquisition 
  • For any other start-up business, in India, getting a loan or a financial sponsor seems very much unlikely.
  • But a franchisor can expand his business without getting involved in loans or debts or investments. 
  • The franchisee provides all the capital required to handle a unit, it does not only allow a company to grow but also to expand onto more branches. 
  1. Management gets motivated 
  • Often finding the right manager proves hectic for a franchisor. An individual hired as a manager often turns tail and disappears after working for some months. 
  • But with a franchise, a franchisee has invested his life’s savings in this company. Not only is he the boss but also he shows full-time commitment towards the business. 
  • It’s his own company and he is solely responsible for his development. This would not only improve operational quality but also the business will run under better quality management personnel.
  1. Growth spurt
  • Fear of losing the competition in the run of the best product often leads to sleep; fewer nights for the franchisee. 
  • He is always under a pressure to perform best in operating the business or else someone else would cross him and win the game of market leadership. This fear leads to a growth spurt.
  • In India franchising allows leverage on finance and humans as well. It allows competitive business owners to compete with other business firms to saturate the markets with their brand.
  1. Liberal minded supervision, unlike other startups companies in India
  • A franchisor won’t be affected by the types of personnel a franchisee hires for his business model neither he is responsible for the day-to-day management and work duties of the workers.
  • A franchisee can hire his son or relatives to manage the outlet so that he doesn’t have to pay a salary and save the extra pence in his pocket. By this, both the franchisor and the franchisee are liberal in handling the units.
  • A franchisor always focuses on the revenues earned at the end of the month and so does a franchisee. They ease out these minute negligible staffs.
  1. More profits!

Franchising in India brings more profits due to a lot of reason:

  • The franchisor is very lenient with the franchisee while staffing leverage which adds an income.
  • Ease of supervision towards workers and letting the franchisee to select his way of working also perks up the income.
  • Franchisor shoulders off all responsibility  to the franchisee like :
  • Local marketing
  • Payroll
  • Hiring
  • Training of personnel
  • Human resources functionaries
  • Location selection

This way he is free to innovate new ways to grow his company, leaving the base work in the hands of the franchisee.

  1. Lesser risk reduction in India
  • Franchising reduces the factor of risk for a franchisor. Since he is not taking any responsibility like investing capital or leasing out land or hiring personnel, so he is not bothered by the risks of failure.
  • All these are undertaken by the franchisee while starting a business, and all the liabilities are faced by him alone.
  • A franchisor in this way can utilize the enlarged market system of India to grow many more outlets without the fear of being failed or lost, all these just by limited investments.
  1. Franchising helps in different business opportunities both for the foreigner over Indian soil and for the Indians
  • It is the safest business as it requires minimum business investment and capital
  • India has a wide opportunistic market and a huge economy with multiple cultural upfront and languages. A variety of products can be sold here.
  • Due to the high population, the cost of labor is low which benefits the franchisor a great deal.
  • India provides everything that a franchisor needs to establish his outlet including the ambiance and the present financial trends.

Some profitable franchise business in India

In India a franchisor can start with anything: be it beauty products, food, education, healthcare, and technology. Franchise business models which have many brands for expansion are naturally the ones who set up their franchise in India. 

Here is some franchise business which has made enormous profits in India after opening up of various outlets throughout the country:

Food and beverages franchise

Among the food and beverages franchise, Subway name comes on the top followed by McDonalds and KFC and Domino’s

Beauty products franchise

In beauty products names of Javed Habib, L’Oreal, affinity salon, and Lakme names come on the top of the list. 

Courier  delivery franchise business

Courier delivery offices like DTDC, Cargo, Blue dart, FedEx, and express are some of the international brands that have found their way into the Indian franchising market.

Fashion products franchise

Among various fashion products franchise, names of Skechers, Zudio , Pantaloons, Max, FabIndia,  Madelyn Maddy, denim, Levis, etc have their name on the top the list.

Education franchise in India

Education has long been franchised in India since the departure of the imperial British. Many international schools and colleges have opened their branches in India for the education of all. Some important franchises are preschool, St. Xavier’s school, St Carmel school, St. Michael school, etc.

Technology franchise business in India

A lot of technological and computer IT-related franchise business has grown in India. some are like cartridge express, peacksoft Ltd, Microsoft Ltd, Mars EnTech Pvt Ltd, Smart Node, and so on. They are providing not only variegated types of software for the cyber development of the country but also endless job opportunities for thousands of people all across the country.

Healthcare franchise in India

In the healthcare sector too, franchise is found everywhere. Apollo Hospital is one of the best healthcare franchisees in India.

Franchise in health care offers a variety of products needed by the people in their daily lives.

 Although there are many pros and cons of franchising your business, with some pre entrepreneurial experience, opening up a franchising market in India can buy you lots of wealth and can generate a significant amount of profit.

Franchising will make one man independent enough to create a set up of his own. With the right decision and right opportunities, franchising can guarantee one not only success but also more coins in the pocket!

My name is Dhinal Baxi and I am from Ahmedabad, Gujarat, India. I am a founder of franchise Insider . As a founder, we have served hundreds of clients. My experience from the financial sector has helped them to achieve great success in the franchise world. Franchise Insider is one of the leading franchise advisory and consulting company.

Franchise Insider is launched with a mission of utilizing my expertise to find freedom for my clients through business ownership and maintaining a laser focus on the happiness of my clients. Through Franchise Insider I have built my own brand identity founded upon honesty and integrity, client satisfaction, and a passion for helping people.

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