Getting a franchise 

Choose if you want to become a franchisee. What you need to do to find the right business and how to do it. 

1. An overview 
It is a tried-and-true business idea when you buy a company. When you buy a franchise, you usually run your business under the name of the company that gave you the franchise. They also help and support you. 
There are fewer failures of established franchises than of brand-new businesses. However, you may have to give up some of your own ideas to follow the franchisor's rules. 
This guide will help you choose if you want to become a franchisee. It talks about the most important things you need to think about and how to find the right business. 

2. Different kinds of franchises 
"Franchising" refers to a number of different business setups. It is important to know exactly what you are being given. 
Type of business franchise 
A business model franchise is the type of franchising that most people know about. Someone who owns a business (the franchisor) lets someone else or another business (the partner) use their business idea, usually in a certain area. 
As a partner, you sell the franchisor's goods or services and use the franchisor's trademark or trade name. You also get help and support from the franchisor. In exchange, the partner typically gives the owner an initial fee and then a share of the sales. 
The franchisee is the owner of the store they run. However the franchisors still decide how the goods are sold and promoted, as well as how their business idea is put to use. Some well-known companies that have these kinds of franchises are Kalyan Jewellers, KFC, Hero MotoCorp and ProMunim of India

not the only kinds of arrangements 
There are also different kinds of sales ties that are called companies. 
• As a distributor or store, you sell the goods but don't usually do business under the company name. You can run the business however you want with more freedom. 
• As an agent, you sell things or services for the provider. 
•To be a licensee, all you have to do is make and sell the licensor's goods. Most of the time, you don't have to follow any extra rules when running your business. 

 

Multiple levels marketing on 
There are companies that sell contracts that are really just multi-level marketing scams. Sellers who work for themselves and sell things on behalf of manufacturers do this. You earn money from sales you make and sales made by other marketers you bring on board. 
Keep in mind that some multi-level marketing plans might not be honest or even break the law. 

3. What are the pros and cons of franchising? 
There are good and bad things about getting a franchise: 
The pros 
• You can find out how popular other businesses are before you decide to join one. The business is based on an idea that has worked before. 
• Using a business name and logos that are well known. 
• The owner backs you up by giving you training, help setting up the business, and ongoing advice. 
• In most cases, you have the only rights to your own land. There will be no more businesses for sale in the same area from the owner. 
• It might be easier to get money for the business. When you want to buy a business with a good name, banks may be more willing to give you money. 
• Talking to, sharing ideas with, and getting help from other partners in the network can be helpful. 
• Connections with vendors have already been made. 
Pros and cons 
• The costs might be bigger than you thought. For as long as the owner wants you to, you may have to agree to buy goods from them. 
• The partnership deal will generally tell you how you can't run the business. You might not be able to change things to fit the people in your area. 
• The franchisor could close. 
• Bad partners could hurt the brand's image, so we need to be very careful when hiring. 
• It might be hard to sell your business because you can only do so to someone the owner trusts. 
• Most of the time, all earnings (a portion of sales) are split with the owner. 

4. Buying a franchise 
You should carefully think about whether you have the skills and mindset to run a business well. 
This page will help you figure out if franchising is right for you and which kind of business will work best for you. 
Check yourself out. 
• You need to be ready to sell, and you should have a business spirit. A franchise can help you start a business, but it won't bring you people on its own. 
• It's likely that you'll have to work long hours. Have you committed yourself enough? 
• It can be hard to run your own business. Think about how you handle stress. 
• You might be starting your own business because you want to be your own boss. Would the limits that come with a business make you happy? 
• You might want to do less risk. You might feel more at ease with a company than with starting your own business from scratch. 
The best business for you 
• Do you like working in an office? Or would you rather work in a business that requires you to do actual work or use a certain skill? 
• Are you pleased to work alone? Or are you good at hiring people, teaching them, and overseeing their work? 
• Do you like talking to people from the public? Or would you rather have a company where you sell to businesses? 
• Are you not very good at certain business skills, like money? Is it possible to find a company that can help you in those areas? 

5. Assess a franchise opportunity 
If you want to know if a franchise is a good way to start a business, you should look at: • what the business is and how it works; • where the franchise is located; • how successful the franchise concept is, such as how many franchises there are in India, how long they've been open, and how much money they make; • how much and how strong the competition is from other businesses in the same market sector, both locally and nationally; • any market research that has ana 
You will likely get an information package from the company, but you should still ask questions and look for proof of what they say. 
It's helpful to talk to other owners before choosing a business. Don't just ask for the two most successful owners; get a full list of all of their past and present franchisees. As many different places as you can, you should check out both new and old brands, with varying amounts of success. You should now have a good idea of the problems you will have to deal with if you decide to buy a certain business. 
Use different sites to get knowledge and help. There are licensing experts at a lot of banks. 
What a business plan can do for you? 
A business plan will help you figure out how likely it is that the business will succeed and where it might fall short. It is also necessary for getting money. You should be able to get help from the company with your plan. There are banks with specialized business units that can check to see if your estimates are reasonable. 

6. Cost of a franchise 
You need to look at both the original and regular fees when you figure out how much a business is likely to cost. 
Start-up costs 
A franchiser is a company that sells you a business. They usually charge a fee upfront. Most of the time, a marketer who bases their business on a high starting fee rather than a share of your sales income is likely to believe in the value of their product or service. 
The first things that cost you the most are usually: 
• building 
• tools 
• first stock 
You will need to set up a legal organization for your business. There is a deal between a franchisee and the owner, but each franchisee is its own business. This company is the one that will sign the franchise deal. 
Your franchisor may have specific rules about the type of business form you choose, such as a limited company, a partnership, or a single trader. There will be different prices for each type of business arrangement. 
Long-term costs 
As a management service fee, you generally give the owner a certain amount of your sales income. On the other hand, you could pay some kind of set management fee. 
You might have to buy stock from the company as part of the business deal. See how much they charge. The prices might go up. They might also be able to get them for less because they buy so much of them. 
You also have to pay the normal costs of running a business, like rent, energy bills, and the salaries of any workers you hire. Make sure that the things you buy through the company cost that much. 
Also, check to see if the deal includes any extra fees. To give you an idea, you might have to pay for training or help pay for national advertising efforts. 

7. Franchise agreements 
When you buy a business, think about these things: 
• Find out what franchises are out there and make a short list of them. 
• Carefully consider franchise opportunities, ask questions, and talk to other franchisees. 
• Look into the business's performance and management numbers to see how well it will do financially. 
• Ask your bank if they will consider giving you a loan for the franchise you're interested in. 
• Do your own market research on the business and its competitors in your area. 
   It is suggested that you:
•  Jump at the first chance without looking into other options 
•  let yourself be pushed to make a choice; 
•  commit before, you're sure; 
•  believe that a business will work in your area; 
•  trust the predictions made by the company selling the franchise 
• The business deal is very important. 
• Before you sign anything or pay any fees or deposits, you should talk to an experienced franchise attorney who is accredited by the Franchise Association.
• A sample contract should be given to them to look over. 
• Usually, an agreement spells out: 
• The length of the business, its rules, and any choices for renewing it 
• The territory your franchise covers and whether you have the sole right to sell in it; • the start-up cost and share of sales you will pay; 
• The level of help and support you will get; 
• Any rules on how you can run your business; 
• The ability to sell the franchise. 
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