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A layman’s guide on franchise business

Today, there are countless prospects for entrepreneurship, but it’s always a good idea to launch a company that already has a recognised name. Owning a franchise is an option for those who want to get a taste of the obligations that come with running a business. People are frequently lured to franchising because it signifies joining a winning concept. Even though there will be many obstacles to overcome, it is still preferable to beginning a brand-new company from scratch with an unproven idea.

We need to have a fundamental understanding of what a franchise is before continuing.

How is a franchise created?

“A franchise is only a licence that a party purchases, giving it access to the confidential information, established business procedures, and registered trademarks. This is done in order for the party (Franchisee) to market goods or services under the brand of the aforementioned company (Franchisor). Instead, the franchisee consents to pay the franchisor start-up costs up front and ongoing licencing fees.”

Currently, many individuals believe that chains like McDonald’s, Subway, Burger King, etc. are franchises. Because these businesses have the licencing rights to their brand names, manufacturing techniques, and distribution channels, other businesses cannot call their burgers “Big Macs,” for example. It would first need to obtain McDonald’s consent to do so. This is the point at which the franchise idea is put into practise. These businesses opted to sell the licenses to use their brand name in conjunction with their goods and processes because they believed that opening and maintaining thousands of restaurants would be much too expensive to help their worldwide business grow. In this approach, they may earn just by widening the reach of their brand without having to invest in new assets.

Let’s use the well regarded shoe company Fabindia as an example.

A Fabindia franchise store is often privately held, and in order to keep its franchise, it is required to pay the parent company a set sum each year. Additionally, it must follow specific manufacturing and quality specifications. Did you ever question why each Fabindia location is identical? Why is the store’s layout, decor, and every other aspect uniform throughout?

This is so that each franchisee may maintain their location exactly as instructed by the franchisor.

Various Franchise Types

There are several possibilities available when deciding what sort of franchise you wish to own.

Because these sorts of franchises are so prevalent, restaurants spring to mind when we think about the franchise. McDonald’s, Burger King, KFC, and Subway are all well-known franchises. With 42,998 locations throughout 112 countries and territories, Subway is the largest and fastest-growing restaurant brand in the world.
Children’s entertainment/educational franchises include play areas like Kidzee and Eurokids as well as tuition facilities like Kumon. Recently, this industry has experienced exceptionally rapid growth.
Gyms and numerous studios for specialised activities like pilates are examples of fitness venues. Anytime Fitness is a fantastic illustration of this.
Jawed Habib and Supercuts are two examples of companies in the beauty/spa sector.

Let’s discuss the following section now that we are aware of the choices you have.

How to launch a franchise:

Financial Actions:

You should be aware that a franchise fee is always included. In order to get the Franchisor trademarks, which include all the information you need to own and run your franchise firm, you must first pay the franchisor a franchisee fee.

Potential franchisees frequently receive financial support from franchisors. It would be wise to go over your assets and personal finances with a fine-tooth comb before beginning to hunt for chances that fit within your budget. Franchisers provide you a broad overview of the required tools and their acquisition. Even financing alternatives are provided by some franchisees for these upfront expenses. The franchisor also contributes significantly to the choice of locations and other crucial choices.

Both of the franchisee and franchisor will need to go through a formal interview to go through the intricacies of a franchise and discuss how to make the franchise successful after assessing how much money you’ll need to start the franchise.


The agreement comes next. A franchise agreement is a written contract with a list of rules and regulations that grants you the authority to start a franchise. To get assistance with your franchise agreement, it is advisable to speak with an expert attorney. If there are any inconsistencies between the verbal commitments and the written contract, ensure that you bring them up well with franchisor when you discuss the arrangement and your expectations. Your degree of commitment to this venture is demonstrated by your signing of the franchise agreement.

The choice of a place for your franchise would come next. You may either buy a house or rent an interesting place, depending on your budget.

You can rely on your franchisor to choose a site that meets the demands of the business and to make sure that foot and traffic patterns match the hours that your franchise will be open.


Every person who aspires to buy a franchise must take the following step.

Attendance at the franchisor’s supplied franchise training programmes is required. These courses not only include all the data you’ll need to know about goods or services, but also teach you how to market them, negotiate with suppliers, hire and manage employees, run operations, apply for permits, file reports, keep books, and much more. Typically, it lasts a week to a month.

Last Word

The employment of personnel and staff training are among the other actions that need to be taken. Another crucial factor for the efficient operation of a firm is the hiring of quality staff.

Putting up a big inauguration for your franchise would be the final phase. On opening day, you have a variety of discounts and deals to choose from. Additionally, you may inquire with your franchisor about what other franchisees did for their launch ceremony.

You are prepared to launch your business now that everything is in order. For the greatest franchise opportunities in India, get in touch here.

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.

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