Franchise services in India are the chariot for expanding and grooming the business. In the current scenario, working smart is in fashion rather than working hard. With the progressing economy, we strive to achieve success in less time and cost-efficient manner. Budding entrepreneurs are no longer following the traditional pattern of carrying on business activities but adopting advanced ways and techniques to run a successful business. Establishing a new venture can be a tedious and risky, especially for young entrepreneurs who have fewer resources and capital. Buying an established business instead of carrying the burden of setting up a new one is a good option for new potential entrepreneurs. Yes! We are pointing towards franchise services in India. Though this term franchise is not unique to us, only a few of us are fully aware of what this term implies.
Franchising has the effect of creating relationships between one economy and another. It promotes the sharing of technologies, trademarks, marketing, strategies, intellectual property, etc. Franchising is one of the world’s fastest-growing and most lucrative industries. Franchise businesses will be turning over an estimated $ 2 trillion (which is roughly equal to twenty times the size of India’s current GDP).
Franchise Services in India
Franchising in general means granting specific rights by one party (the franchisor) to another (the franchisee) in return for a certain sum of money. The franchisee then obtains the authority to exercises those rights under the direction of the franchisor. When describing what a franchise is, the important component is “the right to do business in a prescribed manner.” While describing the franchise briefly- it is “the right to do the business in the prescribed manner.”
The franchise is a legal agreement that allows one organization with a product, idea, name, or trademark to grant certain rights and privileges about operating a business to an independent business owner. In return, the business owner (franchisee) pays a fee and royalties to the owner.
Franchising permits business organizations to grow more rapidly than any other way—increasing efficiency by which goods and services bring impressive gains to any economy. Franchising is one of the few developments that generate employment, earnings, and entrepreneurship simultaneously. It circulates ownership rights and decision-making power to thousands of small operating units. For developing countries, or countries shifting to a market economy,
Franchise services in India allow building its commercial base and developing its domestically oriented businesses efficiently and profitably. There are 4,600 franchisors in India (50 percent regional brands, 34 percent national brands, and 16 percent global brands). India has nearly 200,000 franchise outlets operated by almost 170,000 franchisees.
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Critical factors attracting franchise services in India include:
- Cultural warmth within the country.
- Less capital requirement.
- The geographical extent of the country.
- Harnessing local market knowledge.
Advantages for Taking up Frachising
Some advantages for taking up Franchising as the next mode of business structure:
Capital – The franchisor’s capital requirements will be lower because the franchisees provide the money to open each outlet. Comparatively, less capital is required to set up a franchise business.
- Motivated management and effective working – The local control of each franchised unit will be highly motivated and useful. They treat the franchise units as their business unit, which will usually lead to higher productivity and profits.
- Few employees – The number of employees a franchisor requires to operate a franchise network is quite less in number than they would need to run a company owned by themselves.
- Limited liability and reduced risk – Due to the brand name and popularity, the franchised unit’s chance of running into losses is very less.
- International expansion becomes easy – As the franchisee possesses the local knowledge, thereby the scope of expanding the business is quite easy and fast.
- Exclusive rights – Franchisees shall have proprietary rights over the territory as the franchisor won’t sell the franchise in the same area, thereby, giving the scope of growth, etc.
Franchising is an entrepreneurial alliance. It is more or less like any commercial business partnership wherein the franchisor provides the brand name, manufacturing/service delivery process, and access to the private information and system. The franchisee provides the capital and includes upfront of the delivery system. Franchise services in India are based on the sound principle of excellent and consistent quality associated with a brand name.
As an Aatmnirbhar Sena, we provide full aid and assistance to the curious entrepreneurs and help them with replacing the traditional pattern of business operations with new upcoming patterns. Also, we are digging hard to make them realize the relevance of Franchise services in India to avail full benefits out of the current opportunity and make the business operations grow and glow.
