Start a New Franchise in India
India has become one of the most promising markets for franchising for Indian as well as global brands like Bata. As a result, the opportunities for new and experienced entrepreneurs alike are also growing at an exponential rate.
The model of franchising is quite lucrative as it’s based on an established business model that’s expected to work 365 days a year. Apart from that, franchising also comes with benefits such as faster ROI, modest investment, comprehensive business training, planning support, etc.
If you are all set to become a franchise owner, let us guide you through a few important steps that you must follow to shape the future of your franchise. But before that, let us briefly take a look at how to start a franchise.
How to Choose and Buy the Right Franchise
The franchise industry is evolving and, with proper guidance and dedication, can help you not only open new streams of income but also reach your full potential as an entrepreneur.
If you plan to own a franchise, start by carrying out rigorous research. The research will help you shortlist and finalize the prospective franchises; after that, you can contact them and explore their operational branches to see how they function.
Subsequently, the franchisor will communicate with you and invite you to attend ‘Discovery Day’ to clear any doubt. If all goes well – your funds are in place and location is suitable – you will soon be extended a franchise agreement.
The next step for you would be to go through the agreement, solve discrepancies with the franchisor (if any), and sign the agreement.
Now that you have bought a franchise, it’s your time to start it smoothly and turn it into a profitable venture. In our next segment, we discuss how to start a franchise.
How to Start a Franchise
Although it’s considered a safer business model than a start-up, a franchisee must ensure that they follow the proper steps to kickstart their franchise business. To achieve the desired results, here are some steps every franchise owner must follow after signing the agreement:
Not every entrepreneur has the right knowledge, skills or experience to run a franchise. This is the reason why almost every franchisor asks the franchisees to undergo certain training even before they start setting up the outlet.
The franchisors provide different types of training – most probably at their HQ – and on the new site as well. They also conduct follow-up training from time to time. Apart from instilling more business knowledge, the training also makes the franchisor well-versed with the core values of the brand.
Finalize the location and start interior work
After signing the agreement, you must sign the lease agreement and pay a rental deposit – if you have not done that already. Some businesses prefer to finalize the location even before signing the agreement but for others, it takes place after the deal is final.
Either way, the franchisee must start working on the location, which is the prime area where their business will take place. According to the nature of your business, setting up might take any amount of time. So, avoid announcing the inauguration or planning any event before your outlet is perfectly functional.
The franchisor will help you to approach the right vendors, to buy the right equipment as well as the items to decorate interior to maintain the uniformity with the brand. This is also the time to build on the location or improve it, keeping the inputs from the franchisor in mind.
Obtain licenses, permits, and insurance
You cannot start and run a business ethically in the absence of right permits, insurance, and other compliance documents. Do your research, as well as go through the checklist provided by the franchisor, to ensure smoother business flow.
Apart from franchise consultants, you can also talk to fellow franchisees or inquire with the local authority to find out which necessary documents you are required to present. Apart from your proof of identification, the authorities will also require you to get FSSAI Food Safety And Standards Authority License, Liquor License, Eating House License, etc.
Hire and train staff
Hiring and training the staff might seem more like power play and less like work to many – but it should be done with utmost caution. Your staff represents the face of your franchise and the brand image is also at stake. So, you must not just hire the right people with the right skills but also to train them.
As a franchise owner, you must take advice from the franchisor and decide on which roles you would require staff and the number of people for each role. Once you have ascertained all these elements, you can go ahead and consult a recruiting agency.
Your job does not end at hiring. You must create regular training programs as well as encourage your staff members to attend the training conducted by the franchisor too. This way, they will be able to achieve overall development while enhancing their present skills and gaining more insights into the industry.
Open your franchise business
Your time to shine as a franchise begins now! Welcome to the world of franchising where the opportunities are limitless. As a franchise, you get the freedom to decorate and inaugurate your branch as you like while the franchisor does marketing and advertising for your brand.
You can also advertise at a more local level and offer discounts etc to entice a larger number of footfalls. Spread the news, connect with all your networks, invite them over and take feedback from them to grow positively.
Although we agree that franchising is based on a successful business model and has a lower risk of failure, you must not become complacent once the outlet is open. Keep upgrading and using your managerial skills, evaluating costs and put in all your efforts to make your outlet a success. The franchisor will always be there to provide your assistance at any time, so ensure you take full advantage of this service. By following the above-mentioned steps all types of franchisees can learn more about how businesses run and gain better control over the growth of their franchise. To learn more about franchise businesses in India, contact us.