Earning The Profit By The Brand Name Of Others Is Termed As Franchise
What is Franchise?
When a Person plans to start a business but donï¿½t 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
Letï¿½s 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
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
Area Of Interest
Itï¿½s 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
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 donï¿½t 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 itï¿½s
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
Itï¿½s Easy To Start The Work But Itï¿½s Hard To Take It Another Level
Itï¿½s 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 itï¿½s
the best way of running a profitable business unless the necessary research is
being done before opting for franchise.
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