Best Franchise consultants in India

 

FRANCHISE MANTRA

Franchising their brand has become one of the most loved and highly opted for methods of business expansion. Franchising has observed a growth of around 30-35% over the last four-five years with the overall turnover is estimated at around INR 938 billion. Currently, the sector contributes nearly 1.8% to the Indian GDP and is estimated to contribute around 4% by the mid of the year 2022. 

The primary reason most entrepreneurs choose to franchise their venture is that it allows them to expand without the risk of debt or the cost of equity. Since the franchisee provides all the capital required to open and operate a unit, it allows companies to grow using the resources of the franchisees.

Advantages of a franchise

Capital

Since franchisees who will buy your franchise will use their capital, the franchisor has no actual investment at the unit establishment level. Franchising allows companies to leverage off the assets of franchisees and use them as their tools of expansion.

Risk Reduction

Since setting up a franchise does not involve any capital at the franchisor's end, therefore there is negligible risk involved in case the unit fails to perform well. With no capital invested in units, the risk is reduced substantially.

Limited Contingent Liability

In the case of a franchise unit, the franchisor will not be signing leases, taking on financing, etc., and will thus expand his brand's name with limited contingent liability.

Speed of Growth

By using the time and efforts of its franchisees to generate brand performance, a franchisor can grow much faster without adding staff.

Reduced Role in Day-to-Day Operations

As a franchisor, your primary concern involves channelizing the franchisee’s top-line and high-level performance, reducing the scope of your involvement in day-to-day management.

Reduced Indirect Liability

The liability for acts of employees and any mistakes made by them is not to be borne by you For occurrences in the unit (e.g., slip-and-fall)it is a part of the franchise's liability, not the franchisor, for the most part.

Highly Motivated Management

Franchising can provide a company with highly motivated management who will treat individual units as its own. This will result in better performance of the franchise leading to higher profit generation.

Quality Control

Franchisees generally keep their units in better operational shape than unit managers and, as a part of the community, are better able to promote these units locally. They ensure that the goods they sell are consumer-friendly leading to a higher volume of sales.

Long-Term Management

The franchisor can invest in the long-term training of its franchisees, as they are like assets and unlikely to leave short-term.

Unit Performance

Units are generally better to run, as is exhibited in the fact that franchised stores generally outperform company-owned stores in terms of sales volume. This is mainly due to double efforts being put into the success of the unit.

Brand Building

This ability to grow the organization without abundant additions to overhead will allow franchisors to grow their retail presence and their brand will grow more rapidly and effectively.

Advertising

Franchisees will often contribute to a common advertising, marketing, and promotional fund. This fund will be used to promote the brand to increase its sales. This is usually done under the direction of the franchisor along with the franchisee's assistance.

International expansion

International extension becomes easier, faster, and carries far less risk since a local partner becomes involved in setting up the franchise unit. The franchisee can help you to ascertain the working strategies as per the common consumer preference.

Increased Profitability

The staffing leverage and ease of supervision mentioned above allow franchise organizations to run in a highly profitable manner. Since franchisors can depend on their franchisees to engage in site selection, lease negotiation, local marketing, hiring, training, accounting, payroll, and other human resources functions the franchisor’s organization is typically much meagerer (and often leverages off the organization that's already in place to support company operations). So the net result is that a franchise organization can be more profitable.

                         Franchise Mantra:

Franchise performance Consultant

When considering franchising your business, it is essential to engage somebody with the requisite knowledge and experience. More importantly, consultants that have first-hand experience in creating, developing, and managing a thriving franchise network, providing practical and effective solutions to problems that might arise during the setup.

 

Need for a franchise consultant

However successful a business is, franchising your venture is like getting into a new business. Even though they remain in their current business sector, they are also moving into the franchising business which is altogether a new take. They need to learn the science, art, and skills that need to be involved in franchising, and a good consulting firm or a team of experienced and successful consultants will transfer those skills.

●     If you want to franchise your pre-existing business venture, a franchise consultant can help evaluate your interests and goals by assessing your business model. It will help you find suitable franchisees that you may want to engage with through franchise ownership.

●     A franchising consulting may help you to assess, examine the markets, take a closer view of your business situation and then find potential people who would invest and collaborate in expanding the business through being your franchisee.

●     Therefore, an expert franchising consultant is someone who has the skill to channel your thoughts and ideas, evaluate your interests and the markets in a system that brings you to pursue the possibilities that eventually have a high scope for you to succeed.

●     It is necessary to choose a good franchise consultant who has a considerable amount of experience in working with such companies and candidates with a track record that can show successful growth and expansion.

●     Look for sincerity and expertise in a franchise consultant. If you are a franchisor, then there would be a lot of discussion on strategic planning, competitor analysis, industry best practices, staff recommendations, and things like support, royalty, territory selection, franchise structure that may impact the working and reputation of your overall business.

●     The role of a franchise consultant becomes vital in addressing these and giving you the best of possibilities that will help you take your business to great heights.

●     The consultant will either guide the franchisor through the process of producing the manuals and necessary documents or they will do it for them. They will also liaise with the chosen franchise lawyer to draft the agreement and comply with all the legal requirements. This will help in speeding up the process and reducing the cost through previous experience.

 

Thus, the mantra to a successful franchise business is to get a clear idea of your business aims and successfully connect them with the prevalent market scenario. A team of franchise consultants can prove to be a helpful tool when it comes to complying with all the required methods and following a proper procedure. Apart from the assistance offered by a franchise consultant, a highly motivated franchisor who is dedicated to working towards the success of its brand can be the key to the the success of a business.

 Running a franchise requires a strong drive that could lead you towards success with motivation and expertise. Your devotion towards your franchise will deliver a positive brand experience to the customers.

A standardized business process, proper support and training, proper marketing and operational strategies, and a dedicated franchisor are what make a franchise successful.

Business franchise Expansion

 

Franchise Consultants in Mumbai

Marketing Agency in Mumbai

Franchising is a form of business that involves two parties, namely, a franchisor and a franchisee. It is classified as a business relation in which the intellectual property, proprietary business knowledge, business model, brand name, and the rights to sell its branded products and services are granted to a franchisee.

In return, the franchisee pays a certain amount of money known as the franchise fees and agrees to comply with certain obligations, typically set out in a franchise agreement. 

It is based on a marketing concept that can be adopted by an organization as a strategy for business expansion. Not only does franchising provide exposure to a brand but it also helps it to improve its relations and gain goodwill. These market relations, goodwill, and a large expanse of the customer base help the franchisor to entice potential franchisees to invest in buying the franchise of their brand

Buying the franchise of a well-established brand proves to be quite propitious for new entrepreneurs because they receive a tried and tested business model. This reduces the risk factor to a large extent. They are also provided with market goodwill, the creation of which is one of the most challenging tasks faced by any emerging business. A franchise business has better growth prospects than any other startup.

 

UNDERSTAND FRANCHISING

A business chooses to franchise its business largely in two contingencies: When a business wants to increase its share in the market and the sector it is a part of or to increase its geographical reach. It may franchise its product and brand name to do so at a comparatively low cost. A franchise is a business entity yielded from the joint venture between a franchisor and a franchisee.

The franchisor is the one who owns the business. It sells the right to use its name, idea, and products or services produced by it. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and use its intellectual property for earning profits. 

Franchises are a popular way for entrepreneurs to start a business, especially when entering a highly competitive industry such as fast food. One big advantage that comes along with purchasing a franchise is, that you have access to an established company's brand name and consumer base. You won't need to spend in acquiring resources that would assist you in getting your name and product out to customers.

BASIC FRANCHISE RULES AND REGULATIONS

Franchise contracts can be easy at some points but it can be quite complex to formulate policies and vary for various franchisors and franchisees. A franchise agreement contract includes several points, some of which are as follows:

•  The franchisee must purchase the controlled rights, trademark, from the franchisor in exchange for an upfront fee. 

•  The franchisor often receives payment for providing training, equipment, or business advisory services. 

• The franchisor receives either ongoing royalties or a percentage of the operation's sales.

A franchise contract is temporary, similar to a lease or rental of a business. It does not mean that the business is owned by the franchisee. Depending on the contract, franchise agreements may last between five and 30 years.

DIFFERENCE BETWEEN A FRANCHISE AND A STARTUP

People often tend to confuse a franchise with a startup. The two are quite distinct. A startup refers to a business that is started and owned by you. You can resort to a startup if you don't wish to work on someone else's business model. But starting your own company is risky, though it offers rewards both in monetary and personal terms. 

When you plan to start your own business, you're on your own. Many questions that hover in your mind remain unanswered. Will my product sell? Will customers like what I have to offer? Will I make enough money to survive?

The failure rate for a new business is higher than that of a franchise. Roughly 20% of startups don't survive the first year of their establishment. About 50% last until year five, while only a small percentage of 30% continue to stay in business after 10 years.

 Only if your business is going to be able to beat the odds, you will be able to reach the zenith of success. To turn your dream into reality, expect to work for long and hard hours without any sort of support or expert training. 

 If this sounds like too big a burden for you to handle, the franchise route may be a wiser choice.

People tend to purchase a franchise because they see the lesser amount of risk involved and availability of higher growth prospects. . Franchises offer entrepreneurs a stable and tested model for running their business successfully. The success in franchising is nearly 85 percent which is way more when compared to the success rate of startups that is only 53%, in 5 years. 

PROS AND CONS OF OWNING A FRANCHISE

There are many advantages of investing in a franchise but it also comes with a few drawbacks. Widely recognized benefits of investing in a franchise include:

•  A ready-made set of business establishment steps that have to be followed. 

• A franchise comes with market-tested products and services and also established brand recognition. 

• You have a set of operational procedures that have been tested and so there is minimum risk.

• Most of the franchisors offer training and assistance in financial planning and also provide a list of approved suppliers.

• Franchises come with a formula and track record so there is a higher chance to be successful.

The only disadvantage that comes with a franchise includes heavy start-up costs as well as ongoing royalty costs that need to be paid to the franchisor.

HOW TO MAKE A FRANCHISE BUSINESS PLAN?

Preparing, presenting, and defending your business plan as a successful one, both in the short and long run, is a real test of your business vision. A business plan lets you define the goals and objectives of your business in a presentable manner. A Business Plan explains what you plan to do, how much money you need to do it with and how you propose to pay the money back. Your plan will include a Profit Forecast and Cash Flow Model. 

1.Introduction

• Describe the purpose of your Business and briefly outline the concept it is based upon.

• Include your overall business objectives and goals.

• Decide on the legal status of your business. Analyze your business model to ascertain which is the right one for your work.

• Describe accurately the product or service that your business will offer to the franchisees for sale. Include any relevant history of the product or service and try to avoid any gibberish.

• List qualities that make your product or service distinct from what others have to offer and describe your 'Unique Selling Point' (USP). List the key feature which makes your product or service stand out in the marketplace.

• Describe how your product or service can be developed in line in case of a market transition.

3.The faculty

You should remember to include details of anyone who will be involved in the success of your business. These people are an asset. This is a key section of your Business Plan that should necessarily be included.

• A short introduction of each person, including the assessment of their attributes, strengths, and weaknesses.

• Their relevant experience, commitment, and reasons for involvement in your new venture and how are they an asset.

4.The market

This is probably the most important section of the whole Plan - It is extremely important to have a clearly defined market plan for your business to succeed. If you can effectively present this section of your business plan, you will gain credibility for the whole Business plan. 

• Describe the current condition of your product or service in the marketplace for your product or service.

• Detail any relevant facts and figures relating to the market sector(s) that you will be targeting, expected growth ratios, and the type of potential customers who will be purchasing your product or service.

• Give details of your competitors in the market and explain why your potential customers will choose your product or service over those being offered by your competition.

This is the point where a lot of research is required. You should make use of all the business information that is available about markets, competitors, and customers.

The marketing plan

A business without a Marketing Plan is incomplete. Your company must have a clearly defined marketing plan that would help in promoting it. It should include:

• Your marketing objectives 

• Where your product or service can be positioned in the marketplace in terms of price, quality, image, and other factors affecting demand.

• What are your planned marketing communication methods- advertising, leaflets, and brochures, etc.

• How will your product or service be distributed sold eg. Through agents, sales teams, digital marketing, etc.

• What customer care policy is planned and how it will work.

Any sector of interest where you have already generated leads or details of any possible orders you have already taken should be included in the appendix. Unless you have a clearly defined market and a potential customer base, you will not be able to successfully work on your business model.

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