/  Franchise Investment   /  5 Questions On How to Choose the Right Franchise Business Opportunity

5 Questions On How to Choose the Right Franchise Business Opportunity

5 Questions On How to Choose the Right Franchise Business Opportunity

India is a desirable and mostly unexplored market for franchise sector as it makes progress toward becoming the world’s economy with the greatest rate of growth. With over 4600 franchisors and 1.5 lakh franchisees, India is currently the second-largest franchise market, yet many investors are unable to locate suitable franchise business possibilities there.

Given that the proven business strategy that comes with opening a franchise outlet is its primary benefit, you could readily assume that the only other requirement for success is selecting the appropriate business partners. But this couldn’t be further from the truth. Even the most helpful business partner or the most successful business concept may be useless if the company you start doesn’t reflect your beliefs and aspirations. Potential investors and businesspeople should also ask themselves, “How do I know that this firm is the correct match for me?” in addition to queries concerning profitability, capital needs, and operational procedures.

Let’s look at a few objections to posing this question before we begin to respond to it. Positive and negative aspects of a number of elements outweigh a person’s desire to invest in a franchise business opportunity. In order to properly frame the questions we must ask ourselves, let’s analyse some franchise investment benefits and drawbacks.


Reliable Business Model

Since there is already a proven method in place and it functions, a new franchise owner does not need to create a new business plan. This gives some stability and naturally lowers the risk of beginning a new business.

Training Provision

Due to the thorough training that is offered on business procedures and staff management, a franchise may be a secure decision even for those who lack the necessary business acumen. This makes it easier for the business to function smoothly right away.

Support for Marketing and Advertising

Since the franchisor also offers assistance with marketing and promotion, the franchise owner may spend and concentrate on enhancing the essential components of the company while benefiting from the already-recognized brand name.

Entrepreneur Network

The fact that you have a connection of others in your industry is arguably the finest benefit of owning a franchise. You can rely on them to provide help and will be more equipped to handle any difficulties that may arise while running your company.


Franchise fees and Initial setup costs

For an established franchise, the initial setup costs can be fairly substantial and may end up costing you more than it would to launch your own company.


The majority of franchise agreements call for franchise owners to contribute a set recurring sum in addition to splitting a portion of the business’s earnings. Initially, it may be difficult to maintain this.

No or little flexibility

There is minimal to no room for modification because you are investing in an established company strategy. The current system is blindly obeyed and may appear constrictive to many.

Long-Term Agreement

A franchise owner is typically bound by a lengthy contract; as a result, even if their firm is failing, they are unable to move to another until the lock-in time has passed. This keeps many business owners and investors out of the franchising sector.

Despite the aforementioned advantages and hazards, one of the single largest factors that might decide a franchise outlet’s success or failure are the owner’s aims and aspirations. With the aforementioned details in mind, let’s take a closer look a few queries that any entrepreneur, whether new or experienced, ought to ask before launching a franchise.

What to do to Make All the Right Financial Decisions: Asking the Essential Question

The majority of people are drawn to franchises by their desire to run their own business and the possibility of quick earnings. Many people, nevertheless, struggle when it comes to picking the best franchise business option for themselves. It is important to think, do your research, and ask the appropriate questions rather than just going along with the crowd. So, to assist you choose the best franchise, consider the following questions before making an investment:

What do I want to gain by operating a franchise?

Spend some time reflecting while you respond to this. Why do you wish to invest in a franchise, other the quick cash? Do you want to manage a business because you’ve always wanted to but were unsure how, or is it to provide for your family? Do you want to do it for a short while before starting your own business? Why do you feel the need to act now?

You must establish your priorities clearly. Even before you begin compiling a list of franchises you are considering, you should be well aware of the short- and long-term goals. Do not respond till you are certain of the answers. Make sure you are fully committed to running a franchise business because doing so might be financially devastating.

How can I choose the best franchise for me?

Once you are clear on your motivations for opening a franchise, consider whether there is a market or type of business that you have always wanted to break into. Use the elimination method to eliminate any franchises that don’t fit with your ideals. The franchises can be grouped according to the sort of business they are, such as retail, industrial, home-based, or based on an idea or concept.

Next, it’s crucial to understand how much cash you have on hand, what kind of profit margins you anticipate, and how quickly you intend to break even. If you don’t have the required funds or expertise, you may now think about enlisting the help of additional partners. Knowing the answers to these questions might help you narrow down your selection of brands to those that support your objectives and financial limitations.

Exactly what does the franchise need of me?

Once your selection is complete, you must conduct extensive research to determine which franchise is the best fit for you. Considering what the franchisor is asking of you and how much flexibility you would have is a great method to make this decision. The majority of franchises will provide you with adequate details on the startup fees, royalties, marketing and advertising expenses, as well as any other ongoing charges. At this point, you should also investigate the sort of training and assistance offered and personally meet the franchise representatives. Always remember to visit at least 2-3 current franchise locations to confirm the franchisor’s claims.

Is the franchisor trustworthy and open?

Establishing the franchisor’s credibility is a crucial aspect of the puzzle. You would get a document known as the Franchise Disclosure Document (FDD) after submitting the application for a franchise. This paper provides all the information you want regarding the franchise, including its business and legal background, as well as predictions for your first year’s earnings and any potential liabilities. Make sure you carefully review the paperwork and get it evaluated by a knowledgeable business attorney to see any potential red flags, such as an excessively high charge, assertive terms, unfair conditions, or undue control. Make good use of the few days you typically have to consider whether or not to sign the FDD after receiving it. You should only consider signing the FDD if you are certain that everything is in order.

Do I have what it takes?

Ask oneself if you are prepared to begin a new chapter in your life and what you hope to achieve and learn from it before making the decisive step. Are you willing to invest the necessary time and money to make your company successful? What security measures are in place to protect you from being duped by your franchisor, workers, or clients? You should pause and think things over if you have any reservations.

Understand the workings of the company’s system, cash flow, and establish backup plans. A strong squad would still be necessary for a club to prosper. Do you possess the necessary skills to make wise hiring decisions? It’s great to have the required resources, a prime location, and the motivation to operate a business, but there are some real-world situations that you must be ready for. Before signing the FDD, be sure you know the answers to all of these.


If you want to start a franchise store, resist the urge to be seduced by the promise of business ownership and immediate financial success. Keep in mind that you will still need to put in a lot of effort and consider some difficult issues before proceeding. It would be a good idea to engage a franchise solution consultant to conduct the legwork and research your top options for you. Their knowledge will enable them to sort through businesses and assist you in making the best decision.

The bottom truth is that owning a franchise involves running a successful business as well as generating money. So, put money into a franchise that you love. You will struggle to reconcile your ideals with it if you don’t believe in the idea or the firm.

An engineer by qualification, Gaurav started his career in sales and marketing due to his affinity towards networking with people. After learning the tips and tricks of the trade, he made a fresh start as an entrepreneur in the franchising industry back in early 2018, with a vision to bring order and transparency to an unorganized sector. He founded and spearheaded Frankart Global Private Limited, where he consulted, developed, and scaled more than 120 domestic and international brands all over India ranging from different industries such as food & beverage, beauty & wellness, and FMCG retail to name a few. Post-Covid, in mid-2021, he developed FranDocX, India’s first ready-to-use franchise documentation service portal, for the MSME entrepreneurs who were severely affected by the pandemic, and wanted to avail an affordable franchise solution service. His aim is to regularize ethical business practices in the franchising sector so that a greater number of investors can participate and avail the benefits of a structured franchise framework.

You cannot copy content of this page