top of page

How about establishing a franchise business

Updated: Jul 5, 2019

It is very complicated process to initiate a new business. Earlier you need to find out the project plan for your business. You need to picture out the right business suitable for you. Once you initiate the process, you need to run behind other functional procedures such as branding, marketing, sales, hiring etc. you need to break your head for every single process and finally raise enough fund to execute your plans.

If you feel much burdened thinking all these stuff, here we can help you with a new process called “Franchise Business”.

Franchise business

Many could have been wondering hearing the term franchise business. A franchise business is much easier and comfortable when compared with your regular business. A business system which sells the rights of business logo, model and the name of their MNC for the franchise to run it in different locations is referred as franchise business.

Franchise business is powerful because it acts as an extension of an existing successful business. Franchise business is under execution in all over the world. The parent business governs all the franchise all over the world. They provide them all the mandatory stuffs to start up your business. A legal contract will be established in between the owner and the seller. Some common examples are Starbucks, Dominos, KFC etc.

Initiating the process

You need to deal a contract with the organization and pay an initial fee for buying rights to the business methods, equipment, marketing techniques etc. once you are done with the initial tasks you get access to the trade marked things of the brand such as brand name, logos, slogans etc.

The time period of the contract and specific territory for the selling of franchisor will be provided in the contract agreement to be followed. Generally the time period ranges from 05-10 years and you could renew it whenever needed.

When the business starts up, you need to pay a good amount as a royalty payment probably on annual or monthly basis. The amount is calculated on the total sales made by the franchise retail outlet.

Pros and cons


> Risk

The risk factor is very low when compared with regular business as you are about to invest into a business which is already tested and proven to be successful.

> Training

When you buy the rights to franchise the business, there is a great advantage that they will train you with all the latest technologies that the established business is already executing. And this paves you way to be with soft hands trained on the methodologies of already tested field.

> Supportive

Franchiser will support for all the needs of the franchise. Not only through methods and technologies they provide, they could join hands to sort out any kind of dilemma that you could face. Franchisers even support you in providing a proper location for your outlet. A good location would surely create a positive impact in the profit.

> Marketing strategies

When you start up a franchiser business, you need not worry about marketing techniques. You will be provided with already working business strategies and advertising pamphlets that will help you in promoting your business.

> Links and connections

You could get connected with other franchise who might help you as they could have experienced the same problems you face. You could sort it out by sharing your problems and discussing among other franchisers.


> Initial payment

The initial payments varies from brand to brand but a must fee to buy the license of the business. It usually a handful amount to pay.

> Royalty payments

It is calculated on the basis of total sales of your outlet. It may vary depending on the parent business. You may have to pay your royalty amount in regular intervals as monthly or annual basis.

> You have to follow the rules

You need to follow all the rules and regulations that are predefined. These rules are followed in order to bring a common identity and discipline for your business.

> Marketing fund

Though you would get all the marketing techniques to be followed, you will be charged to pay 1 to 2 percent of the sales as the marketing fee.

> Selling your franchisee

You can’t simply sell your franchise to someone if you are about to step back. The franchiser has to approve the buyer you’re enforcing. You can’t sell it to any random person in hand.

And finally consider having a good website for your franchisee that would boost your profit. Companies like Wixgle have provided stunning unique website designs for their clients.

21 views0 comments

Recent Posts

See All


bottom of page