According to the International Franchise Association, 1 out of every 12 retailed establishments in the United States is a franchised business, and a new franchise outlet opens in every 8 minutes. The United States of America has always been the leader when it comes to franchise businesses, but what is the news from the Indian market? Of late, India has been having a surge of both local and foreign franchises and this, in turn, has opened up a new avenue for individuals who have been yearning to become the master of their own boats.
Recently, business franchise opportunities in India have created inroads for high profits. Big brands have started giving professionals the option to open their own stores under the franchise banners. As a result, hundreds of individuals (especially from the IT sector) have taken up the mantle and started shifting from regular desk jobs in order to work independently.
Though it sounds awesome at first, you must remember that like everything in life, partnering with a reputed brand and opening a business store comes with its fair share of pros and cons. So don’t you think it’s better to know the water well before diving right into it?
Pros of a Franchise Business
Rules are already laid out
Perhaps the biggest advantage associated with opening a business under the name of a reputed brand is that the operating system is already present and the franchisee does not have to start from the scratch. When the rules are already established, the process of operation becomes pretty smooth for the franchisee.
Getting a formal training
It is never expected that an aspiring business owner will be aware of every nitty-gritty of a business. In order to make him or her acquainted with the procedures, every big brand provides classroom-style training where software practices, marketing techniques and daily operations are thoroughly taught.
Support staff and Product supply line
As a franchisee is working under the hood of a big brand, he or she will have the benefit of getting a franchise support staff available to assist at beck and call. Moreover, the products are purchased in bulk and as a result, there is a heavy amount of discounts involved.
Cons of a Franchise Business
The reputation of a franchisee is the same as the reputation of the franchiser. If there is a surge in popularity of the brand, the franchisee will also gain a favourable reputation among the masses. If things go awry, however, the reputation of the store will also take a dip along with the overall reputation of the brand.
The rules are fixed
Yes, it is true that the franchisee will benefit a lot from the business rules already laid out. However, the scope of creativity is very limited as the basic business model of the brand is not going to change.
So it is advisable to measure the pros and cons very carefully before starting with a franchise business in India. But if one is dedicated and hardworking, he or she can easily earn great profits from this low investment franchise opportunity in India.