A franchise and a franchisor form a partnership. The initial business i.e. the franchisor, sells the right to utilise its name and concept in the future. The franchisee purchases the right to sell the franchisor’s goods or services using the franchisor’s existing business model and trademark.
Franchises are available in every sector. Though it is in fashion, retail, and even furnishings. The franchising industry in India is growing at a rapid pace. In India, each bazaar would welcome you with the most well-known brands.
franchising is all about Maintaining Relations between franchisees and franchisors. Many people think of franchising first and foremost in terms of the law. While the law is crucial, it is not the most critical aspect of franchising to comprehend. At its core, franchising is about the franchisor’s brand value, how the franchisor supports its franchisees, how the franchisee fulfils his or her obligations to deliver products and services following the system’s brand standards, and, most importantly, franchising is about the franchisor’s relationship with its franchisees. So if there is any dispute between franchisees and franchisors then it becomes very difficult to run the franchise business.
Franchises appear to the general public to be similar to any other chain of branded businesses, but they are not. In a franchise system, the brand owner does not manage and operate the locations that provide products and services to customers daily. The franchisee’s role and responsibility are to serve the consumer.
A licensor and a licensee have a contractual relationship that permits the business owner to use the licensor’s brand and manner of doing business to distribute products or services to consumers. If any wrong has happened from the side of the Licensee then the licensor has full authority to take action Against them. Now by moving further ahead we will understand the Advantages a franchise get when they enter the Indian market.
- India is a wide market that produces several products in the world.
- No Problem with customer Generation as India is wide in population too.
- India is a growing economy where a large number of opportunities are produced regularly.
- No problems with employment as we have a large number of Trained Employees.
- Cheaper And more resources.
Do you feel that you can’t succeed in franchising a new brand? Well, consider these first.
- An investor may open a franchise unit for a seemingly profitable company, only to see it fail because of the unsuitability of its place.
- One of the most typical reasons for franchisee failure is a lack of finance.
- When franchisors get carried away, they may engage unsuitable franchisees or expand the network before putting in place the resources to maintain it.
- Consistency is the foundation of a franchise, as it ensures that clients receive a consistent product or service throughout the network. As a result, franchisors must establish strict guidelines to prevent investors from deviating too far from the original concept of the firm.
If we conclude then there are mixed up views about different franchises in every sector. A thorough study before franchising would be the right call before considering it a risk.