When was the last time you stopped and brought a cup of coffee or tea before heading to work? Have you noticed the brand is recognizable and has multiple stores throughout the city or town, like McDonald's, Cafe Coffee Day, or any other? Your favorite food joint may be a franchise of a renowned brand.
If buying an existing business doesn't compliment you but starting from scratch sounds risky and intimidating, franchise ownership is an opportunity. Which is the franchise at low cost, and how to know if you are choosing the right one?
Franchise opportunities in India emerge in different shapes and sizes, from consumer-facing retail chains to small home-based operated businesses. The significant advantage is that you don't need a high amount to start a profitable business; there are plenty of opportunities you could buy with Rs.50,000 to 1 Lac. Franchises could be from sports to auto care, taxi services, and much more; there are plenty of options that blend with your interest, strengths, and budgets.
Franchising is thriving, in past years, we have experienced a 50% increment in size year, and there are no signs of slowing down. Franchises yield high profitability and significantly lower the risks of failure than startups, so it's not surprising that it is the most opted choice for those who want to leave employment or get retired to take great control over their working life.
Franchise Opportunities in India
Beyond owning a brand name, buying a franchise offers myriad advantages that aren't available to entrepreneurs trying hands-on building business from scratch. The most significant benefit is you get the opportunity for proven system operation and training in how to use it. However, comparing new franchisees reduces the room for mistakes compared to startup entrepreneurs as the franchisor has already perfected its daily operation through the trial and error method. 8 Profitable Franchise Industries Are:
1. Automobile
2. Beauty and Salon
3. Business Services
4. Dealers and Distributors
5. Education
6. Health and Wellness
7. Food and Beverage
8. Retail
How To Evaluate A Franchise
A franchise is no one-size-fits-all. To gain a small or top franchise in India, you must consider their budgetary constraints and franchiser's support system while evaluating.
Criteria You Should Consider:
1. Franchise Fees and Set up costs
Every franchise demands an upfront fee; it could be from thousands to lakhs of rupees. If you have budget constraints, go for low cost business franchises that do not involve hefty marketing costs and hidden fees or marketing fees. BE sure to know the estimated cost of owning a franchise and make sure it's best for you and your family.
2. Look for Territory Exclusivity
After evaluating the brand's strength and other expenditures, don't forget to consider exclusive territory to set up your low cost business franchise. Not all franchisers are looking to establish and lead in a particular geographical area. It wouldn't be profitable to open a business or franchise just miles from another.
3. Brand Recognition Or Growth
Do you need to evaluate how reputed the brand is that you will be franchising? Is it a smaller brand or an international one? Has it seen significant growth in past years? These characteristics would help you determine the profitability of a franchise for a prospective brand. Sometimes entering into recognizable brand segments isn't a big idea, but the upfront costs and other costs might surge up and dent your budget. However, more minor is easy in terms of entry point, as long as brands show revenue growth.
4. Profitability
After a vast or substantial investment, you need to assess the profitability. It is imperative to know the opportunity if it is worth the money. Determining the profitability for a top franchise in India isn't an exact science, but there few factors to examine:
- Unit growth - How many units are recently opened in your city.
- Success rate - Evaluate the percentage gain of new franchises.
- Franchise’s financial statement - Analyze the disclosure document and examine the average sales per unit.
In A Nutshell,
Generally, franchise works are similar to selling your other business. A franchise is rewarding, but you need to go through different aspects and major points before plunging into it. Elevate your budget, assess your budget, scrutinize other factors, and dive into franchise opportunities in India.
