Who should go for franchise model?

Those with leadership skills should go for exploring some kind of business that suits their taste and temperament. Also, if one is not satisfied or not happy or feels stuck in 10 to 6 job, The best thing to do is go for a franchise model of business.

What is a franchise model?

Franchising is a contractual business model or relationship whereby an established brand known as the franchise or allows or gives rights rights to an independent business owner to use its brand ,model and name.

Why franchise model?

*The franchise business model is highly accepted. It helps the investor to earn more in a short span of time with some investment.

* it does not require the expertise for the business.

* The risk is low since the franchise model operates on the know-how of the experts involved for the type of model.

* things like advertisements marketing tools training for sales, branding, and market area is taken care of by the Franchisor.

What are the disadvantages of franchise model?

Every coin has two faces as we all know. Similarly, franchise business model seems a burden when one keeps paying royalty for a longer period of time.

Which franchise model should I opt?

However, if you are looking for investing your hard earned money into any franchise, you need to know the best in India.

What are the types of franchises?

There are three different types of franchises

*Business format franchises *Product distribution franchises (traditional) , also called B2B

*Manufacturing franchises

Please note that the ranking is not exhaustive. It is also not meant to be taken as an endorsement of any of the franchise brands mentioned here.

The top 10 franchise model in India are

School franchise

There are four types of school franchise models namely;

COCO model
COFO model
FOCO model and
FOFO model

School franchise model caters to 3 different segments of the society

Elite or premium class
Middle class and
Underprivileged class

An investor should always go for a royalty free franchise model else it seems like taking care of a white elephant in the long run which needs to be fed every time.

* No royalty franchise model though are very few in India but new and upcoming brands like Brain Discovery Global School and a few more have no royalty model since these are upcoming franchise model. They just wish to expand themselves.

Also, the relationship between the franchisor and franchisee turn SOUR when paying royalty becomes a hurdle in growth.

Dispute between the franchisor and franchisee arise when the hard earned money is shared for a longer period of time

When 10 to 25% of the revenue is shared the profit gets minimised, growth is paralysed.

Therefore, you must go for investing into those franchise models which have no stress of profit sharing.

With an investment that suits your pocket size , you could opt for school franchise model

-Preschool investment -8 to 15lakhs

Area required 1800 to 2500 ft.² -Primary school investment –

25 to 45 lakhs

Area required- 800 square meters

-Secondary school- investment -2 to 4 crores

Area required- varies from state to state though but approximately 1600 square meters

-Senior Secondary school-investment size- 5 to 20crores

Area required- 1 to 2 acres ( though varies from state to state board)

Availability of space is a mandatory requirement from state to state though it varies.

The amount of investment required would depend on the model opted by you.

Patanjali

It is an emerging brand in India that has gained high reputation within a short span of a couple of years. It’s an indigenous brand founded by an Indian saint and Yogi

Area required for mega store is 1200 ft.² and

300 to 1000 ft.² for a general store. Total investment goes from 70 to 80 lakhs for megastore and 7 lakh to 2 cr for general store.

Haldiram

Becoming a Haldiram franchise in India is a very profitable business because the brand is already well established and has a good number of customer base.

Investment size is 1-2 cr

Minimum space requirement is 500 ft.²

Amul

It is the top milk provider worldwide. Business model is very good and has a rapid growth.

Investment size 2 to 6 lakhs

Area required- 100 to 300 ft.²

KFC

Though highly expensive as compared to other franchise models. It’s a US-based company which serves delicious chicken dishes.

Investment size – 1 to 2 cr

Area required-1000 to 500 ft.² in good location.

Domino’s Pizza

It is a US-based company serving pizzas.

Investment size is 65 lakhs to 2CR Area required 500 ft.²

DTDC

It offers national and international parcel and logistic distribution services

Minimum investment- 75,000 to 1,50,000

Area required- 250 ft.²

Dr Lal Pathlabs

It is a diagnostic service provider. All kinds of testing.

Investment size- 3 lakhs

Area required-200 to 250 Sq feet

Batra clinic

It is popular for treating acne, asthma, allergies and many more diseases.

Area required-500 ft.² and Investment required- 25 to 30 lakhs

Giani’s ice creams and desserts

This is one of the oldest well loved Delhi-based ice cream parlour with a wide range of ice creams, Indian deserts like Falooda, Rabri and other fruit shakes.

Investment size-15 to 20 lakhs

Area required-250 square feet

Why franchise model in India is a profitable business idea?

Franchise turnover in Indian economy is 938 billion INR. Even during the pandemic crisis the franchise model were not much affected.

Conclusion: Though franchise business ideas and offers provide a host of benefits when you start up your business, there is a lot of dedication effort and positive approach that goes in.