Advisory 2010-09-10

Give Franchisees A Sound Biz Package

Franchising, a compact business model is increasingly gaining prominence in India. Franchisors develop a business concept and transfer that concept to its franchisees. This concept is a complete package or tool kit to run a franchise business. Explore bel

By Sub Editor
Give Franchisees A Sound Biz Package

In order to gain handsome returns, every business requires assistance in a number of ways. Entrepreneurs are hitting hard to get a fair share of their business in this fierce competition. However, franchising business is gaining strong hold in India as it provides a complete business package to the aspirants. Entrepreneurs aspiring to take up business find franchising a risk proof concept to build a successful business empire. Franchisor being the brain behind a business concept has developed a business model which is transferred to the franchisees in the process of developing their and expanding their business.

This article is a must read for all the aspiring and new franchisors who are keen on offering the best business proposals to expand their business successfully.

Best franchise model

The franchise model can be developed by defining the franchise kit necessarily including the structure of the business format and that defines the basic relations between the franchisor and franchisees. This is especially beneficial for the aspirants who are novices in business and needs more security. Although there are many similarities in the franchise packages as formulated by franchisors but they can differ in few ways. One major reason for the difference is the variety in franchise concepts. A franchisor owning a fast food franchise is bound to have a few differences in his package from franchisor having dry-cleaning or jewellery franchise. However, the elements discussed below should be included in a perfect franchise kit for the advantage of franchisees.

Franchise trademark and logo: A businessman earns success through tedious efforts. Therefore sharing the name and logo of his company with others forms a vital part of the kit. In granting a franchise, a franchisor gives franchisees the right to use the name and logo, which have taken a long time to develop. Customers are usually attracted to brands, and owning a franchise gives the franchisee the rights to use the brand and logo of the parent company without any hardships.

Site- selection: The perfect location for a franchise is a must for the success of the outlet. Novice entrepreneurs are not very apt at site selection. Therefore, a good franchise package requires franchisor’s expertise for the selection of a perfect location. Franchisor’s assistance may include advice on the type of location, size of premises required, rent, rates and lease terms.

Aid in investment: Franchisors also provide investment aids to attract more number of potential aspirants to buy their franchise. They can act as guarantors in banks when the franchisees are asking for loans for taking up a franchise. They can also guide the franchisees for third party lending. Thus, a franchise kit must include franchisors’ assistance in investments.

Franchise training: Running a franchise business is not an easy job. Investors who have no prior experience in business need a lot of training, essentially in a service based franchise. A franchise kit must include intensive training for franchisees to help them learn the basic tricks for success. However training should be provided on regular basis to update the business according to new competition or changes.

Supplying franchise products: In a franchise business it is important that all outlets have similar products. This is possible only if the products are brought from one vendor. Franchise kit should inculcate franchisor’s help in supplying products to all his franchisees from his vendor. Often identification of suppliers, negotiation of terms, and provision of products or services to the franchisees form an integral part of the business formula. A good package should also include supplying similar products to franchisees on time.

Conformity of territorial rights: Franchisors should secure franchisees in terms of providing them their territorial rights. They should designate a particular location in which no other franchisee can open another outlet. Therefore a perfect package includes the territorial rights of an aspiring franchisee also.

Advertising and marketing assistance: Success of an outlet depends on marketing and advertising as well. Therefore, marketing is one of the key elements of the franchise package. Franchisees usually expect the franchisor to develop a range of marketing materials and activities such as in-store promotions and PR. Franchisors need to develop marketing techniques for their franchise network as one unit.

Accounting services: The franchisor can also include a particular accounting system in the franchise package. Accounting and audit are difficult to be followed by all novice franchisees as they make mistakes in it. Now-a-days many franchisors have developed convenient ways to safeguard accounts and audits and provide this to all their franchisees.


The given are few of the essential elements that make up a perfect franchise kit. As mentioned earlier other benefits can also be added keeping in mind a particular kind of franchise. In a restaurant franchise, rigorous training is required as compared to a clothing franchise, which requires excellence in selling traits. However, it is essential that a franchisor must provide on-going support to his franchisees. The most common on-going supports include the provision of general business advice and field assistance, including regular meetings, monitoring the franchisee's performance and regular training. With all this support intact franchise would surely generate handsome returns.

star franchise india
ramesh singh : 30, May 2010 at 04:06 AM
I got perfect and evaluable informations for selecting a site for franchise of 'NEXT' at ALLAHABAD [U.P.]
Saumitra : 10, Jun 2010 at 06:28 AM
Nice and consolidated
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