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Franchising is a method of distributing products or services. In a franchise system: (1) the franchisor, lends his trademark or trade name and a business system; and (2) the franchisee, pays a royalty and often an initial fee for the right to do business under the franchisor's name and its business system. In a textbook, the term "Franchise" is the contract binding the two parties, but the term 'Franchise" is often referred to the actual business that the franchisee operates.
WHAT IS FRANCHISE DISCLOSURE DOCUMENT/FRANCHISE KIT?
The franchise agreement defines the terms of the relationship between the franchisor and franchisee. It is a legal, written document that governs the franchise relationship and specifies the terms of the franchise contract. We strongly recommend that as a prospective franchisee you should review the franchise agreement with a professional franchise advisor before you make the final decision.
HOW FranchiseTV team CAN HELP YOU TO BUY A FRANCHISE?
The Franchise Buying Process: Buying a franchise is a complex process as it involves many factors, you need a guide to take you through the entire process and it could help you save time and money. Our professional franchise advisors specialize in helping prospective franchisees like you to buy a franchise that has a genuine business potential and suits your goals, requirements, lifestyle and wallet.
Once you have decided to buy a franchise, we'll work with you to complete the following multi-phased process.
Understanding your needs: We will arrange a meeting with you to understand the nature of business opportunity that you are interested in, your goals and expectations from a franchise business, and your business background. It will also give us the opportunity to determine if you have adequate resources to purchase a franchise development opportunity, and whether you have the ability to build a high performing team and organization.
Choosing the right franchise: This is the most important step in the entire process as you need to consider many factors before you make your decision. Our franchise consultants have a great understanding of the local markets and trends to help you identify what franchise opportunity would suit you best. We encourage you to search the market and we can work on the franchise opportunities identified by you or the ones already known to you. We will help you choose the franchise that is financially right for you and will give you an idea of the returns that the business will generate for you.
After choosing your franchise: Once you have chosen a franchise that is right for you, we will help you to investigate that company. Before you build a long-lasting relationship, there are a lot of things that you should know about that company so you know it is a right relationship. We will assist you to understand what questions you need to ask the franchisor and how to evaluate a franchisor.
The application: We will work with you to build your perfect candidate profile in order to make sure that your application gets approved. One of our professional franchise consultants will assist you to fill the initial application forms, prepare all necessary documents including required references. Before we forward your application to the chosen company we will ensure that everything is right to improve your chances of approval.
Developing your business plan: Once we have received your initial approval and Franchise Disclosure Document (FDD), we will help you to generate your business plan to move your application one step closer to the final approval. Our experienced advisors will assist you to understand different aspects of the FDD and assist you with your economic analysis of the franchise opportunity.
Purchase: After you have received your final approval and you are ready to buy, we will help you to get a better deal by negotiating different terms of the agreement and franchise fees to save your money. Our franchise experts will carefully examine the agreement to understand what it contains, your limitations, your commitments and any clauses that may result in losing your business. Before you sign the franchise agreement it is important that you get legal, financial and accounting advice from one of our recommended advisors with sound knowledge in franchising.
Start your business: Congratulations! Franchisee approval. Now you are ready to start your business. Set up your company, hire your team, allocate your site and start construction. If you need further help to start your business please view our Brand Launch Assistance program (BLA).
Our Brand Launch Assistance (BLA) program is a tailor-made program to help new franchisees to establish their business successfully and cost-effectively. With a proven track record of developing many international brands in the country, our knowhow of the industry is invaluable. With our expert advice and support you can achieve what our other clients have achieved.
If you are an entrepreneur who got a great business idea but lack relevant experience? Why not benefit from our vast experience and valuable knowledge of the market?? We can assist you to establish your franchised business until it's up and running.
Here is an overview of our Brand Launch Assistance program which is normally customized to fit individual project requirements.
Sub-franchise Program Development
Sub franchise marketing and sales management
Client eligibility assessment and legal agreements for Sub-franchising
WHAT KIND OF INVESTMENT IS NECESSARY TO BUY A FRANCHISE?
Investment required to start a franchise depends on the industry and the type of business you are interested in. The total start-up cost of a franchise can range from Rs. 50,000 or less, to over Rs. 1 crore, depending on the type of franchise selected, and it also depends on if you own or lease the real estate for franchise business. According to an industry study, 70% of Franchisors charge an initial Franchise fee of Rs. 4 lacs or less. For a single unit franchise development the initial franchise fee charged by most franchisors is between Rs.4 lacs and Rs. 20 lacs. The average investment, excluding real estate costs, is between Rs.5-15 lacs. Similarly for a single unit franchise development in India the franchise cost vary in the same fashion. If you are an investor looking to develop an international brand in India through a master franchise agreement or multi-unit development, roughly you should be looking at a minimum Rs.2-5 crores initial investment, again it all varies depending on the type of franchise and industry you choose.
WHAT ARE THE CURRENT TRENDS IN INDIAN FRANCHISE INDUSTRY?
Franchising in India in recent years has become the mainstream industry; from the arrival of many international Brands who have entered the market, yet many more famous names to come. An unsaturated Franchising sector with high growth, high success rate, minimum competition and high returns is drawing the attention of major international Franchisors. With franchising gaining such tremendous popularity many feel this is the right time to enter the Indian market.
The Franchise market of India Comprises of Restaurants, Hotels, Couriers services, Cosmetic, Apparel, Footwear, Jewelry, Technology, B2B services, education and Pharmaceuticals Brands and continues to expand, this trend will continue for the coming years especially for food, Retailing and services sector.
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