There is always a debate between creating one's own brand and using other brands to make money. Here we are, setting up franchise business in India. In this article, we are going to discuss on simple steps to achieve big targets.
Select the business type
Identify the type of business that you would want to get into out of the following.
B2B - Business to Business - When you decide to become a supplier rather than a retailer. Your customers are not the end users, rather the local retailers. Example: Bakery, Spare parts manufacturing unit etc.
B2C - Retail Businesses where you directly transact with the end user. Example: Grocery store, garage etc.
Select the business group
After selecting business type, the next step is to identify the business group. Some business groups that are identified are as follows:
Fast food business
Multicuisine Restaurant
Bakery business
Dining restaurant
Breakfast eateries
Beverage specific outlet
Check for the quotation
Check for the best quotation over the below websites.
Contact the selected brand personally to check for the details and negotiate further.
10 key aspects to note before signing the agreement
Please make sure you keep a note of the below pointers.
Format of franchise along with contract details - Brands offer franchise in multiple formats in terms of size and type with different quotations for each. Make sure you keep a note of this.
Space Requirement - The shop/location where you wish to set up your franchise business.
Investment - This includes the cost of equipments, raw materials, furnitures, staff salary, interiors.
Royalty/Commission % - The amount of commission/royalty to be paid monthly to the brands.
Profit Margin - Calculation of revenue and cost that needs to be accounted.
Brand Fee - The one-time fee paid to the brand for using the brand name and logo.
Staff Requirement - Hiring of staff members
Staff training format - Training of staff members to ensure quality and maintain brand value.
Pre-launch and marketing support - Some brands offer the same where they run campaigns for your franchise.
Periodical review support for food quality, portion, cost control. - An important check to be done to ensure quality is top notch and business flourishes.
Formalise the business with stakeholders
Once all things done and verified, it is important to formalise the legal agreements.
Finalise the location and get the lease agreement ready.
Finalise the term loan for initial capital investment.
Finalise the Open Cash Credit/Overdraft account for working capital expenses.
Finalise the franchise contract with contract term and renewal availability.
Start Executing the plan and start making profits
With all prerequisites done, it is time to start doing business and make money.
These are our simple and most important steps to own a food franchise in India.
If you want to learn any of the above in detail, visit the product site to check out the best packages on business development.
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WE ARE SURE YOU CAN START YOUR FOOD STARTUP JOURNEY WITH A BRANDED FRANCHISE
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