Top 10 Point Checklist Before You Start a Franchise Business
If you’re looking for the best franchise business in India to invest in, then its advisable to have a word with a franchise consultant. There are many franchise consultants with adequate expertise required in the field. You can seek their advice when it comes to investing or owning a franchise. As this can prove to be extremely risky sometimes, it’s good to have someone knowledgable to guide you through the process.
However, if you’ve decided a franchise that you want to be a part of, here’s a 10 point checklist you need to follow to identify and start the best franchise business in India
1. The credibility of the brand
The credibility of any brand can be assessed by the time of operation. It is good to choose a company that has been around in the market for at least five years or more. You need to find out, how long the company has been franchising and if it is a subsidiary of another company, its good to research the parent company.
2. Financial stability
Reviewing the company’s recently audited financial statements will provide a clear understanding of their financial ability.
3. Core team
Try to know as much as you can about their core management team and their credibility with franchisees and customers.
4. Future plans
It is recommended to know about their future plans for further development, expansion, diversification and its possible impact on your business dealings.
5. Creative Freedom
You might want to know whether the brand is open to suggestions or not. Whether your contributions as a franchisee will be acknowledged and appreciated or not.
6. Sales target
It is necessary to know about their longterm viability and their sales target. You should figure out how to represent the report to your franchisor.
7. Dispute handling
You need to know whether the brands have a courteous approach to dispute handling or not. You can know this by asking the existing franchisees about how the company deals with disputes and disagreements. Is the brand responsive to the queries of the franchisees?
8. Demographic analysis
It is recommended to have the whole demographic data projection for the next five years. This data should be detailed in terms of age, income, and occupation of people in your area.
9. Competitive Edge
Evaluate the USP, understand the market demands and assess the growth potential of the product. You need to have a detailed understanding of the product warranties, trademark or copyrights of the product.
10. Innovation or not
You need to know whether by being part of the franchise, will you have the right to the franchisor’s latest innovations? And in what way does that impact your business? Not only can you start a new business with franchising but if you already have a successful business, then you can franchise your business and expand your operations with minimal capital investment.