Almost every business can be franchised and enjoy its presence everywhere. But still there are certain basic characteristics that must be met by the business organisation to take on the franchise route. To know more just read the article.
Franchise is undoubtedly a great way to expand your business. It helps you cover the entire nation under the umbrella of your brand. To make a franchise business work, it is important for both the franchisor and the franchisee to build a healthy business relation. K.V. Rajan, Executive Director, Veta says, “Franchise is more like a relationship management that decides the win-win situation for both the franchisor and the franchisee.”
To opt for franchise model for expanding the presence of your business across the state or nation, you have to check the following features in your business.
If your business meets the above criteria, then you can expand through franchising. Before finalising your decision of taking a franchise route, it is very important to develop a sound business plan. This plan must incorporate the vital issues like the tactics to speed up growth, financial analysis in terms of franchise fees and royalty, territorial development, training and support services. Importantly, make sure that you can invest enough time and inclination to support your franchisees.
The list does not get over here. Once you are done with the business plan, your next important concern is the franchise agreement. You have to prepare a legal document, which includes the whole data regarding the franchise business viz. the franchise fees, royalty, monthly overheads, training and support, exclusive rights given to the territorial franchisee, return on investment, break-even period, property details, franchise term, its renewing ability, and so on. The decisions made regarding these complex issues will ultimately dictate your success as a franchisor.
So, if you also have a business which is doing perfectly well for quite a long time, and now you also think of expanding its reach across India, then franchising is the perfect option for you. It is like finding a way to expand and maintain the set standards of your business simultaneously. Franchising is the most suitable way to continue to gain brand recognition and market dominance.
To summarise, you can say that a business that has the potential to be sold as a franchise opportunity usually have the characteristics such as an established business, its unique selling preposition, teaching ability, and the promise of an adequate return on the investment. If your business has all these characteristics then do not waste time, go ahead and cover the nation.