How Will You Setup Your Franchise Business

It is not necessary to get super innovative ideas to establish your business. You can go ahead and extend a business which was already established. Franchise business lets you succeed faster than launching a brand new one.

What is Franchise all about?

 Franchising a business is the practice of using another firm’s successful business model. It is the right granted to an individual or a group who becomes the franchisee to market a company’s goods or services within a certain location. An already successful business leases you the products, business systems, including the brand name and various methodologies to run the business. It becomes easy for an individual to take up franchise and extend an already established business rather than launching a new business.

How to Setup a Franchise?

 Although you will be given an already established business, that does not mean you do not have to work behind it. It is you who will be dealing with your customers and maintain the business and at the end of the day you will be responsible for its success. To make it a success you need to do a lot of research work on franchise and talk to other franchisees so that you can get a fair idea to run a franchise.

Select Your Franchisor

This is the first and the most crucial step as selecting the right franchisor will ensure your success in the long run. Before you start up a franchise business, it is also necessary that you have a good idea on the business you are going to run so that you do not have to face any problem later on. Before you select the company it is necessary that you choose the industry you want to be in. There are several companies from big to small offering franchise business. You can even search online and select the best for yourself.


After you select your franchisor you need to make an agreement with him. An agreement typically lasts from five to thirty years with premature cancellations or terminations of most contracts being serious consequences for franchisees. The license lasts for a fixed period of time and requires time to time renewals. There are certain kinds of payments which is required to be made to the franchisor.

  • Initial Fee, Service Fee
  • Management Fee
  • Royalty for the trademark
  • Reimbursement for the training and advisory services provided to you and your team


The Franchising Law & Business Licences

Franchise agreements are covered under two standard commercial laws:

  • The Contract Act 1872
  • The Specific Relief Act 1963

Both the acts provide specific enforcement of covenants in a contract and remedies in the form of damages for breach of contract. You should make it a point to read the document carefully before signing the contract.

When it comes to business license, you own the brand, trademarks, service marks, trade names or service symbols if you own your own company. In a franchise, the franchisor owns all the above except for individual business, which is owned by the one who is given permission to sell the products.


Though all business operation training and advices is given by the franchisor, the success of your story is in your hands and you can do it with hard work and dedication. But you are not allowed to implement your innovation and creativity. Your hard work and determination along with maintaining the laws of the company will make you flourish