Franchise business

by Brands Branches Online Marketing Head

A franchised company is one that grants the license to a third party for the conducting of business under their marks. It is a way of expanding business and distributing goods under a licensed relationship.

Franchise business is the most bacciferous businesses in the modern world. Young entrepreneurs consider it a sure-shot investment since it has low risks and hundreds of options. Owning franchises is rapidly becoming the highest grossing passive income options especially in India. The franchising sector has witnessed a trend of multi-unit expansion in recent years which is proof of its profitability. Franchising has changed multiple industries, we can’t think of takeaway food or petrol without thinking of a product produced through a franchised format. The franchising industry is still growing, despite being a mature sector, there growth from new businesses to operators entering the franchise arena.

whether you are a small business owner or a new investor, entering the franchising business would be a prudential decision for you, It shows 2 way profits for both parties; the business owner establishes a brand name in different locations while increasing brand awareness without the need of investing in opening a whole unit and the investor opens a unit with guarantee of success and does not have to spend on advertising and marketing and get on-going support from the brand. International franchisors have started offering additional perks like financial support, unit designing, location selection etc. to the investors to develop their network.

One particular sector that has faced a major paradigm shift due to franchising is the food and beverages sector. Franchising has proven to be a gold mine for people entering the industry and it has pushed many brands into the Fortune-500 list, and evident example of this is Starbucks, Coca Cola, Pepsi.co, McDonald's etc. these companies had humble beginnings too so it is always a good idea to increase networking of your food business and converting it to a home-brand. Forbes expert Ed Texeira believes that “The Quick Serve Restaurant sector, which represents the strongest and most dynamic franchise sector in the franchise industry continues to experience change, much of which is transferred to other franchise venues”

A key element of the franchise business is the lack of competition; new businesses don’t have to compete with established businesses if they join them as franchisees. The absence of iron-clad laws and regulations transfer the control into the parties and leave room for negotiations and possesses potential.