Franchising your Business

If you are a Startup and have successfully established your brand and want to expand and add more chains to your network then franchising is the option to go for. And this also brings in an opportunity for the people looking to taste entrepreneurship with limited risk and large benefits.

What is Franchising?

It is a business concept wherein you allow another business to use your business model, trademark and logo and share your expertise with them. Very good popular examples are McDonald and Cafe coffee Day.

Few countries are having very clear and specific law on franchising where as in India it is an infancy state. Franchise agreements are covered under two standard commercial laws: the Contract Act 1872 and the Specific Relief Act 1963, which provide for both specific enforcement of an agreement in a contract and remedies in the form of damages for breach of contract.

Why go for Franchising?

India is fast emerging markets in the world and growing at a rapid pace, also entrepreneurship is picking trends. People want to start a business which is tried and test and are ready to work to achieve their dreams. Many western brands are seeing the potential and are also entering the market. Below are some of the advantages of franchising your business:

• Adds a Revenue Source – you are allowing the use of you private labelled products, trademark, logo and expertise to another business/person for a fees as royalties, training cost, and percentage share in the franchisees monthly gross sales.
• Brand visibility – More and more shops people see, more and more the brand perception builds in the mind of consumers. If you are bringing in more franchises running your business the more Brand development.
• Better then hiring – Instead of you yourself opening shops and hiring people to run, franchisee owners pay you money and are having a stake which makes them better and responsible managers of the store.
• Increased Sales – Of course more number of outlet, more number of sale of your product.
• Complete Control – You can have an agreement with the franchisee owner to run the business in the terms and condition that you want your business to run on.
• Protection – you can protect your trademark by imposing the business standards and giving proper training to the franchise’s owner and the staff. you can cancel the license anytime you feel there is a breach of agreement.

Now there are disadvantages like extra burden of legal and accounting stuff but if your model is right and you are choosing right people to run your franchise then there should not be any problem.

There are lot of events happening around the country to facilitate the platform for franchisor and franchisee to meet and take business forward. You can put your franchises for sale in various website and choose the best candidate to grant the licence to.

The heart and soul of any successful franchise company is systems. You need to develop and document the systems that a franchisee will use to run their business successfully.The rewards and satisfaction of building a successful franchise company are incredible but so is the price that you’ll pay to reach this goal. Good Luck!