One of the greatest aspirations of any business-owner is to grow their business to unscalable heights. Every business-owner founds a business with utmost passion and hopes to achieve success in numbers and quality. Most businesses take at least a year before they can be termed profitable and a lot shut down even before reaching profitability. Establishing a business is a highly demanding and lengthy Endeavour, however, once established, its success can be easily replicated by franchising. Branching out amid the operations of an earlier outlet and opening a new store or outlet can be daunting. This is where franchising comes in handy. It is a great business opportunity, which helps established businesses to reach out to new customers and increase its customer base. A well managed franchisee outlet adds value to the brand and helps in building customers’ trust towards the brand, thus solidifying the brand’s proposition and promise of quality or delivery. Franchising is a cost-effective and low-risk solution to both, the franchisor and the franchisee. The franchisor can reap the benefits of having another branch while not having to worry about daily operations and the investment required to open a new branch. While the franchisee reaps the benefits of being a part of an existing brand and cashing on the familiarity of the brand within the customers’ minds. Franchising also makes it a great opportunity for new business entrants, who want to own a business but do not have a specific business model to follow or are looking to adopt established models. A franchisee agreement or license can be established between an existing brand, which wants to expand and grow its business by providing its services or products in a new location. Companies generally conduct market research to ensure that these new locations have a demand for the said product or services and can provide enough business to launch a profitable branch. Interested investors or entrepreneurs, who want to invest or operate the new branch by taking a franchise will sign up as the franchisee and will be responsible for the investment and the operations of the branch. The franchisor would provide the franchisee with rights and trademarks to conduct the business under their brand name against an agreed upon royalty sum or a combination of an initial sum and a rolling profit sharing system.
Along with this the franchisor also helps the franchisee in the implementation of systems and in adopting the business and sales model of the brand. The franchisor is also responsible for regulating quality at the branch as it is the franchisor’s brand image at stake. Depending on the type of business, the franchisee might also utilize the suppliers or vendors of the existing brand, which also adds to the ease of the franchisee. As seen, a franchise works as a win-win option for both, the franchisor and the franchisee. The franchisor gets to expand without the hassle of actually setting up another branch themselves and the franchisee gets to own an established business with certain expected sales and an established model and system. Today, we cannot even imagine our lives without franchises. The clothes we wear, the food we eat even the places we shop at, are all franchises and it says a lot about our current market scenario. The customer today is hammered with options and before committing to any product or service, the customer expects to be able to purchase the same product anywhere. The customer also expects the same standard and quality to be maintained, all this is only possible through franchising. Apart from adding new customers in new locations, franchises also add value to the brand by differentiating from a local store or outlet. It gives the customer the freedom to purchase their products from any of the franchise outlets by providing the same standard throughout. A customer might not commit to a cafe for a daily need like coffee, if he or she doesn’t think that they can obtain the same coffee even while travelling. A franchise adds the impression of quality to a product because the customer is familiar with the brand and trusts its quality, which is a highly sought after goal for any business and through a franchise, the franchisee gets to achieve this with minimal effort for creation of brand awareness. The franchisee gets to capitalize on the brand of the franchisor for a fee and in return gets to run a business, which if he were to start without an existing brand name would have taken him years to even generate interest in his potential customers. Clearly, in order to succeed today, whether being a brand or an investor or an entrepreneur looking to start a new venture, franchising is the way to go forward. India is one of the biggest emerging markets in the world. The middle class has been increasing over the years and as has its disposable income, which enables them to spend more money on goods and services. India is being targeted by the world as we see new brands entering the country every day. This is the perfect time to take up a franchise and increase your chances of owning a successful and low-risk business with a bright future. The stock of familiarity is the highest that it has ever been, so much so that even the entertainment industry in India is franchising and creating sequels and series and remakes of familiar content. With the wide exposure of the internet, customers are aware of all brands and products and they are weary of buying new and unknown brands. In this scenario, the best way to increase sales is to get into the franchising business and take up a franchise of an existing brand and reach out to customers. If you are an already existing business with profitable sales, then this is the time to branch out and create franchises and expand and grow your business. This is the time to acquire new customers in different locations before they already become loyal to brands available in their areas, this is the time to venture out in these areas and convert them while they are still new to the rampant consumerism that has taken over the country. So, do not waste anymore time, grab this business opportunity and start franchising your way to success immediately and become a part of something big.
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