It is always seen that potential investor or an aspiring franchisee will always take up business franchise of a recognizable brand name. People always relate franchising with renowned business chains having a great brand value. India, with little or almost no franchising laws has opened gateway for foreign brands to establish and expand their businesses here in the country. Success in a business is best enrooted through franchising of any successful or established brand. Established or companies with a brand value holds the track record of success in the market with strong presence. Established brands also supports its franchisee through regular training programmes and assist them in managing day-to-day store operations effectively. Mutual cooperation, good and long term relationship and hard work is required by franchisor and franchisee to make a successful venture for both of them.
The thought of starting a new business which has got no recognition at all brings along the defensive thought of failure, rejection and disapproval. But if one plans a business franchise, it is always advisable to get started with a company which has got extensive brand value throughout the country or the world. An established and a successful franchisor will always help a new investor get faster and higher returns on his or her investment in the truest sense.
Let’s take a quick look which elucidates why an established brand is always better than a start-up for Business Franchises:
- Risk Avoidance: An investor planning to invest at a franchise of a bigger brand will always be at a much lower level of risk as the brand itself is established and runs successfully in the market with a set percentage of loyal customers.
- Experience Matters: The bigger the brand name and value, the higher will be the experience to run it successfully. An established brand will always do a well research and survey before launching in a new area/location. Bigger brands will also provide regular training and support to their franchisee so that they can run the business well.
- Funding Option: Strong support to capital need will always be provided by an established brand. A bigger franchisor will always help its franchisees in getting funds, loans and subsidies to commence and continue the business successfully.
- Strong Marketing & PR: As it holds a big name, the franchisor will always benefit its franchisee with right marketing and PR support on a national and PR front.
So it is always advisable to opt for Business Franchise rather than setting up a business of your own as it has got a huge amount of capital, risk of rejection and failure. It is better that you always do a thorough research before setting up a business so that you can succeed in life.