Tag: ROI

Are you looking to make new venture by investing in a franchise business in India? In such cases, you need to seek the help of a reputed consulting firm which can help you get unmatched value from your franchise business in India. If youre really looking towards opening up a franchise in India, you must need to know this is one of the most widely adopted business options for first time or small entrepreneurs. In this way, you can start from the scratch by buying a franchise of a known brand. This can help you gain significantly in lesser period of time.
The major advantage of taking up a franchise business in India is that it is fully tried and tested model to work upon. Secondly, it gives you the necessary exposure and visibility in the market. The rules of these franchisees are mostly laid out by the franchisor. There are certain factors need to be considered before deciding on a franchise business in India.
Decide the objectives The most important thing you need to do is to determine the primary objective of taking up a franchises in India. What you expect to get in return in terms of return on investment or annual income? If you have plans to start your own business, it is always good to be the owner of a franchisee in India. This mode will definitely help you learn more about modern business environment.
Start it if you have sufficient funds Owning a franchises business in India will cost costly to you. What if you look to get the franchisee of a world-known brand such as McDonalds, PVR, Haldiram, Barista or Subway? Be preparing to bear the cost as the annual franchisee fee itself can run into several hundred thousand rupees.
When it comes to negotiation, the franchisor is likely to sell you some dreams and their ROI estimations will probably focus on initial franchise fee, royalty payments if any and capital expenditure for set up. Always remember that the business is not likely to pay for itself especially in the beginning, so the current requirements will be considerable.
Ensure your worth There are some basics attached to the franchise business. The success of a franchise business in India eventually depends on the skills of your team. Always make a sagacious choice when it comes to choose from a list of franchisors.

Franchising is a popular trend in the Philippines today, and one of the many reasons as to why it gained a lot of popularity among Filipinos is because of its many opportunities. Here are some of those:

Quick ROI (Return of Investment)
One of the many popular benefits of franchise business Philippines is because of its faster ROI or Return of Investment compared to start-up businesses. Part of the reason why is because franchised businesses have already established a name in the market which makes them reliable in their market, unlike that of starting a business from the ground-up which would take a lot of time and effort.

Successful Business
In addition to its faster ROI, another reason why franchising became popular in the Philippines is because of its successful business model. According to business experts, the main advantage of franchising is that it allows its owners to start up quickly based on an already proven trademark, which is unlike that of starting their own business from scratch.

Lesser Maintenance Efforts
One of the reason why franchise business in the Philippines had gained a lot of popularity in the Philippines is because of its lesser maintenance efforts, particularly for food-cart or food-stall businesses. The reason why is that all of its marketing efforts as well as branding had been arranged by its franchisor. Some franchisors in the Philippines would even offer their services to register their franchisees business and arrange all its legal papers. This makes it easier for Filipinos to start their business quickly.

Availability
Another popular reason why franchise businesses had gained a lot of popularity in the country, particularly with food-cart or food-stall businesses in the Philippines. Because of hundreds of franchising companies in the Philippines that offer different brands of franchise businesses, particularly food-cart businesses, Filipinos have the freedom to choose which business suits their passion. Such as if with foods, Filipinos can choose from a wide variety of food-stuffs.

Business Loans
In addition to other benefits, business loans are also the reason why franchise businesses had gained a lot of popularity. A popular example is Ka-Negosyo by BPI.

Ka-Negosyo can offer flexible business loans which offers its clients choices of which plans can accommodate their franchise business Philippines needs, allowing it to cover the franchise cost itself, as well as its overhead expenses, such as its legal papers and registration, rent for its location, as well as its construction (if needed).

Just have a look around the franchise industry and you will be amazed to find that most of the top franchise companies have humble beginnings. Many of the brands that are popular all over the world started as a small family business and through franchising have turned out to be popular. To franchise your business you need to have knowledge about how to franchise in the right manner to ensure success. Thus, if you dream of making your business big and successful, you can consider franchising your business.

There are many business owners who get confused as how to franchise my business. Well, before taking the decision to franchise your business, you need to go through a lot of preparations. It is not just a decision that can be implied within a day. Give some time to research and analyze the market before coming to a conclusion as how to franchise my business. Take help of a franchising consulting firm or some experts to help you make the right decision.

The very first thing that you need to understand is whether your business or company is good enough to undergo such a big a step. You can know if you can franchise your business if it possesses the following qualities:

Business Longevity: Franchise experts say that it is a good idea to franchise your business if it has been in operation for at least three consecutive years and generating profit. Also the size of your business should be good enough to attract other investors. Franchising will be successful only if the company possesses a proven track record of success.

Unique Business Concept: The competition in the franchising industry is quite high, so before deciding on how to franchise, make sure your business concept is unique and easy to duplicate. Organize your business system and concept before thinking of franchising it. Success in franchising industry is very much depended on how well investors are able to replicate your system and concept.

Profitable Business: Your business concept must have the ability to make money. Your business must have a consistent record of financial success so that investors can show their trust in your franchise business. Ultimately, it is the motive of everyone to earn and make money. If your business is profitable, it is just the right time to franchise your business.

Affordable Business Format: Most of the investors look at the initial investment while searching for the right franchise business opportunity. If the initial investment is very high then very limited people will be interested in buying your franchise. Along with cost of the franchise, investors also enquire about the return on investment. If your business format can promise high ROI, many will be interested in your business concept.

Marketability Factor: Before you franchise your business, make sure your business idea is easily marketable. Many companies franchise their business when many investors are asking them to franchise their business. This ensures that the business concept is very unique and that is the reason why potential business partners are ready to invest.

To conclude, if your business has that above mentioned qualities or attributes, you can plan ahead to franchise your business.

Franchising your business possesses fantastic rewards, from a greater return on investment to risk reducing and holding of capital. But prior to you begin the process of franchising your business, you must 1st ascertain if your concept and operating system is franchisable.
Primary tenants of franchisability include:
Uniqueness. Your business must possess adequate differentiation from other franchises either in terms of products and services, marketing, smaller investment cost, or target market.

Straightforward operations. Your system and business model had better be relatively easy for a new franchisee to learn in a small time frame.
Strength of management. Even the most successful company will waver without a strong management team in position.

Adaptability and requirement. Your concept had better adjust easily to numerous locations and in that respect should be sufficient demand for your products or services.
ROI. A franchised business should bear sufficient profit after paying fees and royalties to earn an adequate return on investment.

Credibility. A franchisor must be credible to prospective franchisees.
If your business passes this litmus test, you will need a franchise plan and a business plan. A franchise plan is not the same as a business plan. Essentially, the franchise plan is a plan for franchising your business, detailing all of the steps you will take, as well as the franchise fee. The business plan outlines your overall business strategy over the next five years.

Next you will need an operations manual and training programs for your franchisees. In order to legally sell franchises, you must draft a franchise agreement and a Franchise Disclosure Document (FDD) and file with the appropriate state and national authorities. A franchise attorney can help you create these documents and meet the legislative requirements.

One of the main reasons franchising is attractive to franchisees is that they are buying the rights to use an established trademark and/or brand name. If you have not already done so, make sure that your intellectual property rights are available and register them.

In order to sell franchises, you will need a marketing plan. Marketing efforts could include a sales campaign, such as direct mail initiatives, franchise sales brochure and collateral, a sales videotape, a Web site with franchising information, paid placement on franchise opportunity Web sites, listing with a franchise brokerage firm, and trade show participation.

As you can tell, having the thought to franchise your business and actually franchising your business are two completely different things, they are worlds apart.
It takes a lot of hard work to get your business franchised. in the long run it is worth it so the hard work put in to make it work would be highly worth it.
There are plenty of websites out their that will help with all aspect of franchising if you needed assistance.

Franchising in India is growing at a faster rate in recent years and people find it more lucrative and booming. India is one of the countries that offer better prospects of various franchising and other business models. More franchising and business opportunities have popped up with the incoming of foreign corporate and institutional investors.

Being geographically vast and culturally diverse, India offers favorable franchising environment. While companies benefit by having many profit making outlets in different parts of the country, franchisees in India benefit by being able to generate good ROI with lesser risk.

Entrepreneurs are entering India’s franchising market in larger numbers. There are numerous attractive franchise options available under various sectors. Now, Indian franchisees can select from a vast number of international and domestic franchise brand names.

For foreign direct investment, currently India is comfortably positioned among the top four Asian destinations. It is oblivious from this fact that, more and more foreign companies will be coming soon and setting up their base in India. This means more lucrative franchise and business opportunities in India. The cost of hiring an employee in India is much lower than the European Union (EU) nations and USA. This is one of the major reasons, why so much work is outsourced to India and many companies are setting up their back end operations offices over here.

Franchising in India has also flourished because of the huge consumer market base that spreads across the urban population who are successful, prosperous, and thriving monetarily on this economic boom. That’s why lot of foreign players are attracted to the Indian market. For both the franchisors and franchisees, franchising in India has emerged as a profitable option. The franchisees benefit from an established brand that ensures assured income while the franchisors benefit with the vast consumer market.

India is fast emerging as a favorite destination for global franchisors, according to recent studies. In spite of the stringent licensing regime, foreign investors are coming to India because they know the pain is worth taking. Once, they get their foothold in the Indian market then they can touch the sky. A number of established brand in India are gaining name and fame from franchising and the world is benefiting from the liberalized Indian economy. The franchise option includes educational institutes, retail businesses, telecom companies and many others apart from food business.

Each and every brand and company has its own franchising concept and they are growing at a remarkable speed and you can say that there is tremendous scope in coming time for each sector. Furthermore, there are various sectors which are still untouched and hold much potential. Nowadays you can witness drastic changes taking place in sectors such as pharmaceutical industry, real estate, aviation industry, telecommunication, infrastructure, or even finance market. Thus, we can say franchising in India will be interesting prospects for all the big and small corporate houses, native or foreign, that wants to convert their traditional business into a franchise business model.

About Author :

Sparkleminds consists of franchise consultants with unparalleled proficiency in business development. The business consultancy outlines the way your business will work within your franchise system. It gives you, the franchisee, and your franchisor a clear perceptive of the terms of your business relationship.