bizzday March 23, 2019 No Comments
Franchise business, is no new term now ever since these popular brands like KFC, CCD, McDonalds etc., have entered the market. More often than not, entrepreneurs having surplus funds like to send on franchising a business. Franchising a business can be a great idea for an outright novice entrepreneur to get started if the business model is already proven successful and is led by a strong existing and recognized brand.
What is a franchise business?
In a franchise business model, the owner of the business originally is known as the franchisor. He holds all the rights to let a franchisee (an entrepreneur) use his brand. It is a responsibility of the franchisor to provide the franchisee with ongoing support in almost all the areas to set up the business module such as business operations, marketing, obtaining financing, so on and so forth. On the contrary, the franchisee agrees to follow the franchise business model as per the deal and pay percentage of sales unit as royalties to the franchisor. Instead of going with business for sale it’s better to try with franchise model to expand. Recently a deal of Restaurant for franchise in Delhi was finalized by an entrepreneur through bizzday.com business broker.
Today many business have changed their tag of selling ‘online business for sale‘to ‘online business franchise for sale’ tag shown in business broking sites. Franchise businesses are very powerful if it goes in right track.
- Benefits of franchise business:
Franchising a business model is beneficial for the entrepreneurs who do not really want to spend their own money to start a business on their own; also, it allows business owners to grow their businesses without spending their own money to build new units. Therefore, the risk of plausible failure is transferred to the franchisee that comes up with the initial capital. Not only this but for novice business owners with no or little business experience, franchising business gives them a successful business model to follow, or a blueprint to work upon, which is comparatively better to start something from scratch. One can find myriads of options of online business for sale.
- The budget for starting a franchise business model:
First thing first, while you are looking for a franchise business model, it is necessary that you know that there an upfront brand fee associated with it and also an estimate of required investment. So, it is highly recommended to visit bizzday.com to get all the required details before you begin to search. There are motley options available for sale a business.
Like if you are looking for a restaurant for sale in India it might probably cost you upfront brand fee around INR 6 lakhs and approximately INR 55-65 lakhs investment for opening the outlet.
7 STEPS TO FRANCHISE YOUR BUSINESS:
Step 1: Evaluate if Your Business is suited to be franchised
The first and the foremost step are to assess your business, whether your business is ready for franchising. Not only having a good track record of sales and profitability will do the needful, in fact, there are various other factors than consider, like:
- Your concept should be appealing to both end users and to prospective franchisee.
- Your financials, it is mandatory that your business is already making profit in the area than only you can think of franchising it to other places.
- Market research to see the demand beyond your locality.
- As a franchisor you include in absolutely different activities which you probably not be doing as an owner, be ready for the change.
- To see if franchising a business really helps you.
Step 2: See the Legal Requirements.
If you want to legally franchise your business in India, you must complete and register franchise agreement, it is a legal document that governs the rights and obligations of both the franchisor and the franchisee including all the details of the business.
You can meet the lawyer for the same or otherwise at bizzday.com it is easy to franchise business in India or franchise business in Chennai, Hyderabad, Bangalore and Delhi becomes easy as all the legal requirements are taken care.
Step 3: Important Questions about Your Model to Be Answered Beforehand.
As you prepare your franchise agreement, there are many details which you’ll need to operate as a franchisor. Which includes?
- What will be the franchise fee and royalty percentage?
- What will be the term of your franchise agreement?
- What will be the territory size you will award each franchisee?
- What will be the area (geographically) you will offer franchises within?
- What will be the type and length of training program you will offer?
- Whether your franchisees will buy products/equipment from your company or outside?
- What is the basic business experience and net worth franchisees than to proceed?
- How will you market the franchises?
- Whether it will be an owner-operator for each unit or area/master franchisees?
Step 4: Paperwork and Registration as a Franchisor
Once step three is done, you are ready to start paperwork and register yourself as franchisor. All this can easily be done with the help of bizzday.com as we have a team of professionals to undertake all these tasks.
Step 5: Hire Staff
Recruitment of staff is also very much required when you prepare to become a franchisor. All the essential staff members along with the trainer you will need to hire.
Step 6: Franchise It
Now that you’re done with all the legalities of franchising your business as a franchisor, it’s time to find franchisees and convince them to buy your concept. Besides, word of mouth, you can also try at bizzday.com there you can get unlimited franchisees to franchise your business. Just make sure that your concept of franchising a business in India or in USA is appealing.
Process for franchising a business model:
- As a franchisor, you need to conduct the due diligence of the franchisee; also, the franchisee can also do a due diligence of the franchise.
- When all the conditions will be meet to the franchisee, franchisor will grant approval to the franchisee.
- Lastly, if both the parties are okay with the deal, the franchisee will sign the franchisor’s agreement and can start the franchise.
Don’t think that your company is sick or average in business performance. For instance I have seen many ads in the past in business broking websites like Buy Business Delhi, Business For Sale, Automobile Company For Sale, Automotive Business For Sale, Restaurants For Sale, Manufacturing Business For Sale, Online Business For Sale, Sell A Business, Website For Sale, Profitable Website For Sale
Step 7: Your Support is Important to the Franchisees
You might think that only franchising your business model will be enough, but your job is not complete yet. As a franchisor, you’ll have to support your franchisee network. There are several ways you can do provide support to your franchisee network from organizing training programs to marketing efforts. Only when you as a franchisor will support the franchisee network, you can make sure of uniform experience of the brand across the entire franchise network.
Whether you are franchising a manufacturing unit, or franchising an automotive business, or franchising a restaurant, or a school unit, your support is mandatory in any case.