Read On To Know Some Key Advantages Of Franchising Which Makes It A Fruitful Business Option

Did you ever notice why franchising is suddenly among the most popular buzzwords within the Indian business ecosystem?

By Features Writer
Read On To Know Some Key Advantages Of Franchising Which Makes It A Fruitful Business Option

Did you ever notice why franchising is suddenly among the most popular buzzwords within the Indian business ecosystem?

The Indian soil is now home to various brands that are catering to their target audiences, depending upon their products, services, vision, and planning. Being the second largest startup hub globally, India has tremendous business opportunities for investors that are looking to establish their careers in this sector.

While understanding and utilizing the opportunities lying in the Indian territories, investors have been taking the franchising route for ages that has eventually grabbed pace from the last decade. It’s no more a surprise to see investors and entrepreneurs switching to franchising as a number of advantages wait for them as they join and grow the industry.

Here is a list of some primary advantages of franchising that makes it a lucrative and profitable business option in today’s time.


While talking about the primary advantages of franchising, capital is the first element that strikes our mind. When a person franchises a business, the franchisor’s capital requirement gets lower as the franchisees furnish the capital to open a franchised outlet.

Anubhav Dubey, Founder, Chai Sutta Bar says, “Minimum the investment, maximum the investor. I found this as a thumb rule in franchising. Everyone is an investor if he/she gets the right deal in their budget.”

Effective and Well-proven Management

This is another major advantage that franchising has for its investors. Designing and running an effective management operation is not an easy task, especially if you are new into the industry. The Indian business industry is constantly being flooded with new entrants that are increasing the competition within the industry, making it difficult to establish an effective management system.

Franchising allows complete guidance and management services to its franchisees, motivating them and making it effective. Every franchise brand has its own management team that treats the franchise units as its own that eventually results in higher sales and profits.

Speed of Growth

One of the common nightmares of entrepreneurs or startups is that one might be able to beat them to the market with their own concept. The speed of growth while setting up a business from scratch is comparatively slower than that of franchising. This is where franchising becomes beneficial.

Franchising can allow entrepreneurs to capture the market in less time, ensuring their position in the business ecosystem before competitors outclass them with similar business ideas.

“Speed in business is very important because it’s very essential to become a brand before someone else beat your business idea with the same concept,” adds Anubhav.

Reduced Risk as a Franchisor

Going by the business model’s nature, franchising undoubtedly reduces the risk for franchisors unless and until they plan to do things differently. Here, franchisees are responsible for all sorts of investments that are required in the franchise operation.

Anubhav explains, “In a franchising model, a franchisee has the risk of his/her capital whereas if any outlet is closed than it is the brand image dilution.”

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