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Franchise Business Model

Earning The Profit By The Brand Name Of Others Is Termed As Franchise Business

What is Franchise?

When a Person plans to start a business but don�t have any idea about the initialization of business, the platform, the type of business, the product or the service to be given, then such people asks for the big brands to give their franchise in exchange of initial franchise fee and the ongoing royalty profit.

The business whose brand is taken for earning the profit and commencing of business is known as franchise and person providing franchise is known as franchisor.

Let�s learn it with an example like if are about to open a clothes outlet and thinks that Levis suits you best to work with. Then Levis will be the franchisor and will provide you with the business plan and the necessary document to start the business, also they will keep advertising in your area to get you the customer. In return you are supposed to give them the Initial amount to loyalty profit.

Franchise Model In India

There are a vast number of groups who offers ground to top plan for franchise business, also while going for a franchise one need to take care of few necessary points.

Area Of Interest
It�s your Business and you have the full right to choose your interest in the chain you wish to start your business in and the franchise you are going to own.

Go for the right business having a good brand name and the maximum profit margin also which suits your place of establishing the business.

Also make yourself unique as a single franchisor and a bulk of people who wants their franchise. So for that you need to be unique enough for grabbing the opportunity of getting the one.

As For Example Now Days Making Property For Rent In Metropolitian City Is The New Business.

The Franchisor

Once you are done with the choosing of industry, now search for the best franchisor which suits your requirements and is the cup of tea for you.

Take a long list, explore more and more and then shortlist the one you are perfectly comfortable with.

Once you shortlist the franchise you want to own apply for the franchise form along with the submission of application with the property documents, ITR, TIN , GST number, ID PROOF, CV OF YOURS.

India don�t have separate norms for franchise agreement or franchise laws it works same with INDIAN CONTRACT ACT, INCOME TAX ACT, COMPETITION ACT.

Agreement To Franchise

After the finalization of the franchise we need to make a agreement with the franchisor mentioning the grounds of business and the amount of fees and royalty amount to be paid.
Negotiation can be done while choosing the royalty profit percent.

Here you must hire a lawyer for ensuring the legal way of the agreement as it�s the initial and final document for commencement of business.

Benefits Of Franchise Model

There are multiple benefits to franchisee as well as franchisor, namely the benefits of the franchisor are as follows:
  • Multiple sources of revenue.
  • Brand exploration.
  • Brand recognition in new locations.
  • Higher profits.
Overall the biggest benefit to the franchisor is that they got the recognition of their brand in other cities on the money of others.

To the franchisee:

  • Expert knowledge
  • Ground to top business model
  • Brand name
  • No more capital
  • Less advertising
  • Minimum staff
When a franchisee gets start it is benefitted as the training of the staff advertising and everything is being looked up by the franchisor and its own fame and brand name is given to the franchisee which help a lot in running the business.

It�s Easy To Start The Work But It�s Hard To Take It Another Level


It�s better to work with the running business then to start your own if you are new to business as the competition is high, so when we talk about franchise it�s the best way of running a profitable business unless the necessary research is being done before opting for franchise.

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