Best Franchise Business Opportunities in India 2023

Franchise Business in India

As per different reports and studies by national and international organizations, Franchise Opportunities are growing rapidly in India.

As per those reports, there were more than 6000 franchisors and close to 2.5 lakhs of franchisees around 2021, and the number has been growing very quickly.

What is a Franchise ? or Franchise Meaning

Franchise business refers to a business model where multiple people take part ownership of an already well-known business or brand, generate revenue for the main business, and get a share of the same revenue. For example, KFC has multiple outlets, and these are franchises.

So, there is one KFC where people purchase franchise rights from the company to use the company’s name, brand value, and services and products to generate business for KFC and get a portion of the revenue as their share.

Here the brand owner is the franchisor, who sells the franchise right, and the person buying the same and selling the products and services of the business for a share of revenue is the franchisee.

You must be wondering what a franchise business is, and if you know what it is, you want to know how it works and how you can start it.

So, here in this article, we will guide you on how a franchise business works, how you can start one and the requirements, how much you can earn, and other different factors you need to know before diving into the franchise world.

How does a Franchise Business work?

If you are wondering how Franchise Business in India works, then it is quite simple.

Suppose there is a popular business entity that everyone is aware of and wants to expand their business in different parts of the country.

They offer franchise opportunities to people who want to invest and buy the franchise right.

Once you buy the franchise right, you can sell the products and services offered by the main business. They will also offer you support and training for selling their business products and services.

Now, once you start generating revenue for the business house, they will share a percentage of your revenue with you. So, this way, both the business entity and your business grow.

However, there are different models for Franchises in India, and accordingly, they work. These are discussed in the next section of the article.

Business Models in Franchise India

There are two different models for India’s Franchise Business –

Single-unit Franchise

When a franchisee opens one single franchise, it is the single-unit franchise model. There can be other franchises of the same business in the same city or town that compete with each other.

Master Franchise

Suppose the franchisee has complete control over an area or city and is the only franchise of a particular business selling all the products and services across the area or a region.

In that case, it is known as the Master franchise business model. Here, there is no other competition for the franchisee in that region.

Apart from these, there are 2 more models that provide more options in this business.

FOFO Model

A FOFO Model is also known as a Franchise owned & Franchise operated model, where the franchisee owns the business & also the franchisee runs it.

The Franchisor here only provides outside support to the Franchise Owner. The Franchisee itself runs all operations. In this model, the Franchisee keeps most of the Revenue Share.

FOCO Model

A FOCO Model is also known as a Franchise owned & Company operated model where the business is owned & invested by the franchisee, but the franchisor or the Brand runs it.

Here the Franchisor takes care of all operations of the business along with marketing & other necessary works required to grow the franchise business.

The franchisee only invests and takes some part of the revenue sharing. Here, the majority of the Revenue is kept by the Franchisor.

Benefits of Franchise Business

The franchise business has witnessed around 30% to 35% growth in the past five years.

As per the number of franchisors, and franchisees, India comes second in franchise business opportunities after the USA.

Around 1.8% of the GDP comes from franchise business while the figure is estimated to grow to 4% in 2022. The reason behind this huge growth is as follows –

• There are hundreds of Best Franchise Businesses in India. You can open any of them as per your investment budget, business goals, and the sector you have experience in. Every sector has a franchise, especially in the food business, stock broking, medical equipment, and others.
• There are many Low Investment Franchise businesses in India. If you consider a stock broking franchise, you can start with just Rs. 2 lakhs to Rs. 3 lakhs.
• A franchise business helps build an independent business where you are the boss.
• Franchisors are always there to guide and provide multiple support to build your business, so even if you are a new entrepreneur, you have a guiding hand upon you.
• You get popularity in your business as most of the franchisors in India to have huge brand value.

How to find the right Franchise Opportunities in India?

To find the right and Latest Franchise Opportunities in India, you have to –

• Research the new franchise opportunities that are open in the market
• Identify the potential franchisors and brand companies
• Then match whether you qualify their eligibility criteria or not
• If you are eligible for becoming a franchisee of a business, then apply for the opportunity
• Wait for the call and the interview.
• Build a business plan in the meantime to impress the franchisors
• If your business plan is accepted and your profile is selected for the franchise opportunity, then you will be provided with the franchise disclosure documents, which you need to go through thoroughly and understand the clauses
• If both parties accept all the clauses, then you can assign the agreement and venture into the franchise business.

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