Retail franchising: what is it and how does it work ?
Franchising involves establishing a new outlet using the brand, trademark, and proven business model of an established and reputable company. Essentially, it is a form of business partnership with a recognised brand. You will own your store and follow the franchiser’s rules. This agreement enables users to utilise the established reputation and success of a well-known brand, thereby reducing some of the risks associated
Benefits of franchise models
Franchise models offer several advantages that make them a popular choice for aspiring entrepreneurs. This business format provides a host of benefits that can contribute to the overall success of a franchise operation.
A well known recognition
Rapid recognition, trust, and familiarity among the public and customers. Opening a store under a popular brand gives you significant advantages in attracting and retaining customers.
Launch the business quickly
Your franchiser has streamlined the process of opening or starting the store and starting sales, so you don’t have to worry about thinking and planning. Get the process plan from the franchiser, then execute it and open the store in no time.
Training & support for on-boarding
Get detailed training and on-boarding support from the franchise system. Providing you with rapid deployment, branding, and configuration advice will ensure that you are ready for success.
Minimum risk
The proven process and business model minimise the risk of your business when compared with the standalone or independent retail stores.
Significantly raise in connections
One of the primary advantages of a franchise business is the opportunity to connect with other business owners who operate under the same brand name. You will connect with them through the company network or at a business conference. This will increase morale and business support for your company. You will see significant growth in your connections.
Starting a franchise store under established brand
KFC, Subway, Kalyan Jewellers, and McDonald’s are one of the top franchisers in India. You can find many other franchisers in India and around the world.
Starting a franchise business can be an exciting opportunity, but if you’re unsure about how to proceed, this article will provide you with the guidance you need. When venturing into the world of franchising, it’s essential to have a clear understanding of
Market research
Know what type of store you want to open, fix this first. Then do research and identify the type of franchise you want to join. Prepare a franchisers list and prioritise them based on your budget and your business goals. Also make sure you checked the legal part.
Contact franchiser
Contact a franchiser’s representative to request a face-to-face meeting appointment and schedule one. Prepare a key question to discuss with the franchiser and ask it during the meeting to gain a clear vision of the franchiser prior to the meeting. Finally, try to obtain brochures and other helpful documents that will allow you to learn more about the franchiser’s business.
Bargain
Believe you have finally decided on a franchiser to work with after conducting extensive research. However, you must remain focused on one thing: negotiations or bargaining. To get the best deal, you must improve your negotiation skills and bargain the contract value with the franchiser.
Sign the contract
After all terms have been accepted, the final step is to sign the contract. However, before signing the contract, consult with a legal expert and get their advice. Also, read the entire document to avoid confusion.