How to Start a Franchise Business in India? – Step by Step Guide


In this blog, you will find out Step by Step guide on How to start a Franchise Business in India!

Starting your own business from scratch takes a lot of time and effort.

To start your business, you need to do market research, create your marketing plan, and will also build your brand value.

One of the best ways to shorten the procedure is to be a franchise owner.

Being a franchise business, you need to look for relevant resources and for a brand that has been proving itself in the business field.

Let us check a step-by-step process to Start a Franchise Business in India.

How to Start a Franchise Business in India?

Start a Franchise Business in India – A Detailed Guide

Once you have decided to pursue this type of business, there are many steps for starting the franchise.

First, you can look to pick up the license and secure space. Then, the infrastructure norms and other things like interiors had to be planned per the franchise standards.

Here is how you can start the franchise in eight steps:

Research Franchise Brands

There are many platforms that offer franchise opportunities for you to pursue. You can look for franchise options per your budget, the industry you are interested in, etc.

There are many vital points that you should know before picking up the franchise opportunity:

  • Marketing cost
  • Liquid Capital Required
  • Franchise fees
  • Yearly/monthly revenue
  • Royalty fees

Check out your opportunities

Look around in your locality where you want to open your outlet to ensure that no similar concept exists in that community.

However, there can be some similar businesses that can exist in that city. This is to prevent you from setting up a business in a competitive location, which can be underperforming.

Keep a check on Investment

While starting your franchise business, you must keep a close eye on the most part.

Like other businesses here, there will be regular expenditures like maintenance and rent; apart from them, you need to pay an annual royalty to your franchisor.

Other costs include training, travel, and paying local taxes for starting your business.

Draft your Business Plan

Many business aspects are already defined, and you are in charge of all the business. Once you draft your own business plan, how will you be able to implement it business plan?

Explaining to the community how you would like to serve at your location is essential. At this time, you are the expert, and it will be quite helpful for your franchise too.

Franchise License Agreement

Franchise License Agreement is provided to the franchises to run your business. For signing, always make sure to read it over and understand the standards that are expected from your location.

It is essential to check the business standards for your franchisees and ensure that you are quite comfortable holding up the business.

Create a Business Entity

Once you have drafted a business plan, it’s time to start your company. The franchisors do require business entities that are based on the structure.

These organizations will allow you to categorize your business.

Select your Business Location

When you have your organization at a time, it’s the right time to look for setting up your business headquarters.

Many guidelines can help the franchisor know the type of space required in terms of setup and size.

For example, if you have a restaurant, the interior and appliances specification must be provided to keep everything in line with the brand.

Look for Employees

Once you have sought out the place and agreement, try looking for hiring employees for your company.

The franchisor will be providing the job titles and descriptions to make the task easier and post the job profile so that search for suitable employees starts.

The franchise owner can also post an internal job opening in case any employees from another franchise can look to relocate.

Since you know everything about starting a franchise business, you should now understand why you should start a Franchise business.

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Why Start a Franchise Business in India?

Starting a franchise business allows you to leverage an already existing brand. Here are specific benefits you can avail of by investing in a franchise.


Franchisor offers support branding, training, and process flow, making your venture relatively straightforward.

For instance, starting an ice cream shop will require logo designing, taste testing, menu development, product sourcing, etc.

As a franchise owner, their management team finishes much of the abovementioned work.

Low Failure Rate

The franchise business offers a low failure rate. Once you consider buying the franchise, you must join a proven company already in the industry with many subsidiaries in different locations.

You can also avail many additional business resources and support to help you make a difference in your success journey.

In-built Brand Awareness

Building your brand is one of the things that every owner likes to prove. However, it took a lot of resources and time to pursue.

When you try to buy out a franchise, the branding of the specific company is already completed. Customers around are already aware of the brand and its offering.

It will save you valuable time and bring an in-built client base to your store.

Improved Buying Power

It’s seen in many cases, you can buy out goods and services at a lower rate. Many franchisors negotiate with their vendors to buy out their entire network of franchisees, allowing them to spend less on services and products as they purchase in bulk.

The downside of the benefits is you are never asked to choose your vendors, and sometimes you end up paying a high price.

Although there are many benefits to buying out a franchise, there can be some drawbacks that you should keep in mind.

The flaw can be that you need to pay licensing fees to these corporations, which can be one of the heavier amounts.

In addition, you will always have little control over all business sectors. For instance, if you are opening a restaurant franchise, you will always have little to say about the menu or the vendors ordering the ingredients.

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Start a Franchise Business in India – Conclusion

Starting your own franchise business can only happen by taking a risk. However, the access and support of in-built client models can make it one of the most tempting models for business owners.

Suppose you like working with a dedicated team and can appreciate their support and various other advantages of being a franchisor. In that case, it is the best way to build your enterprise.


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