As per the reports franchise industry in India is approximately USD 40 Million and in the next five years the industry will grow around USD 150 Billion. Every year franchisee industry is increasing at the rate of 30 to 35%. After the US, India has the second largest franchise market.
Few years back the concept of Franchising was lesser known. Very few people knew about the concept and wanted to pursue it. It is only in the last five years that the industry has taken a drastic turn and more and more people especially professionals from various fields are eager to buy a franchise after quitting their 9 to 5 jobs. Today around 35% of franchise buyers are first time business professionals. In past they have never done business, for them it is a gateway to entrepreneurship.
Some of the reasons why more and more people want to buy franchise rather than starting their own business is:-
Low failure rate:- it is the most reliable business concept and the failure rate is much lower than starting their own start up. You are buying a business with an established brand name that is already flourishing in the industry thus the success rate is high, it’s a proven business idea.
Brand name is well recognized:- at the time when you buy a franchise the brand name has already been established is recognized among consumers. All business techniques has already been taken care such as trademark, product is well trusted, proven marketing method etc. You do not have to start from the scratch instead just have to pursue the business idea with sure returns.
Enjoy the complete rights to market the franchised product in your territory:- along with the franchise you can leverage on the trusted name and purchasing power of your franchisor when it comes to sourcing your supplies from suppliers.
Well established system:- franchisor provide associated franchisee with proven business system which includes accounting system, training, technical support, research and development, marketing assistance, management inventory, planning etc.
These days some franchisors helps the franchisee finance the initial franchise, and/or help with the site selection to ensure that the business is based in an area where it can easily thrive.
Benefits you enjoy as a franchisee
Following are some of the many benefits that you enjoy as a franchisee:-
- You are independent owner of a business with proven and successful business record
- With limited or no experience at all you can start your own business
- You are likely to get good returns on your investments
- You enjoy high prestige and reputation in your community
- You get all marketing material and promotional supplements
- You are provided with all the required gears, technique and training
The common attributes behind successful franchise is focus. When you have a big dream do not let yourself distracted with the things that will not allow you to move forward. For sure, starting a franchise is a valuable idea and profitable investment. Remember, investment takes time to give good returns. Do not assume you will start making money from the day one instead work hard and follow the business strategy.