Franchise kya hai- Friends, do you know what Franchise is? Or what is Franchise? Or you want to know about it then today in this article you are going to get complete information about the franchise. Read this article well and completely so that you can get complete information about the franchise.
Nowadays everyone wants to do business and earn a lot of money. Someone is earning money online and someone is earning offline. And everyone wants to start their own business. Because freedom lies in doing business and not in doing job.
But many times people do not understand what they should do business with. Money is also needed to do business. And along with this, a lot of hard work also has to be done.
Do you also want to start a new business? Do you also want to get good profits in your business in a short time? So welcome you to this article which is related to business. Today in this post we will tell you about franchise.
Many big companies do business on franchise model, these include companies in many segments. One can earn good income by taking franchise of these companies. The contribution of the franchise segment in last year’s GDP was around four percent. It has potential for 30 percent growth annually.
Table of Contents
- What is a franchise?
- How to get a franchise?
- What are the advantages and disadvantages of taking franchise?
- Benefits of taking a franchise –
- Disadvantages of taking franchise-
- Types of Franchise in Hindi
- Product delivery franchising
- Product Manufacturing Franchisee
- Business format franchise
- Ideas for franchise business (Franchise Business Ideas in Hindi)
- Terms & Conditions for taking Franchise
- Documents required for opening a franchise
What is Franchise?
A franchise is a type of license that provides the franchisee access to business knowledge, processes and trademarks owned by the franchisor, thus allowing the franchisee to sell a product or service under the franchisor’s business name. In exchange for obtaining a franchise, the franchisee usually pays an initial start-up fee and an annual license fee to the franchisor.
If you understand what a franchise is in simple words, then to understand this we explain it to you in very simple language. Suppose you want to start a new business and you need profit in it in a very short time.
This means that you have to earn a lot of money in a few months but you are new in business and you do not have much understanding of running a business well, making products and marketing.
At such times, franchises come in handy. It means that you sell the products of a famous and reputed company in your shop and earn money. In this type of business, you earn well because you do not need to make or promote your product because it is already very famous and is a brand of a good company.
But to take a franchise from a famous company, you have to take permission from the company and also pay the fee prescribed by it. In this type of business there is good profit with less risk.
What are the advantages and disadvantages of taking a franchise?
- If you take franchise of any company then you can get a lot of benefit from it. By taking franchise of a company, you not only get to know their working style but also get to know many other things.
- By taking the franchise of a good company, you do not need to do much marketing or promotion, this work is done by the company for which you are taking the franchise. It is they who do the marketing or promotion.
- If you take franchise of a good company then you can get a lot of customers, because a good company or brand is already famous, and people get attracted towards it, and your customers keep increasing.
- You do not need to compromise with the price of the product. When their price increases or decreases, you always benefit from it.
- The franchisee gets to understand the technology of doing business by the company and can take his business to great heights in a very short period of time.
- There is no hassle of manufacturing and marketing the product. The franchisee has to only sell the company’s product and pay some percentage to the company. And in this the franchise also gets good profits and that too with very less risk.
Disadvantages of taking Franchise –
- To take any franchise, you need a lot of money, and if you do not have the money then you have to take a loan for it.
- Some companies ask for a sales percentage in return for giving the franchise, meaning you will have to pay them a percentage of the sales made, and you will also have to withdraw your profits from it.
- For any change in the franchise, you have to repeatedly talk to the franchise company because according to the terms and conditions, you cannot make any changes in it yourself.
- Whether the franchise is good or bad, some part of the sales made in your business definitely goes to the franchise company.
- You may incur losses in taking franchise of wrong company. You may also suffer loss in business, therefore, before taking franchise of any company, get complete information about it.
Types of Franchise
- Product delivery franchising
In this type of franchise, the company allows you to sell its products but the company does not provide you any help in running the business. Also, you can do business in your own way, there are no guidelines or restrictions given by the company. - Product manufacturing franchise
This is this type of franchise in which the company allows its franchisees to manufacture and sell the product. It also allows its franchisees to use the company’s name, brand, sign and logo. - Business format franchising
In this type of franchise, you have to use the company’s brand, company name, company’s method of doing business. Besides this, you also have to follow the guidelines given by the company.
In simple language, you have to do business according to the business format of the company. This type of franchise is a very common franchise which is mostly used in businesses.
Ideas for Franchisee Business
You can know about the franchise business ideas mentioned below and which franchise businesses you can do.
- Retail.
- Placing a shop in a busy commercial area or in a mall helps in attracting more people. However, for this also, parking facility is necessary.
- Children’s entertainment place.
- Good money can be earned by keeping children busy also. For this you should have a place where it can be easily reached. It is very important that this place be safe for children.
- Food and beverages.
- Easy access to restaurants and coffee shops is essential. Apart from this, being at a well visible place is also better in increasing the number of customers. For this also it is necessary to have parking space.
- Service center or garage.
- It is also important for the service center and garage to have easy access and a busy road in front. Visibility is very important for a car showroom. A nearby cluster market is necessary for spare parts shops.
- Education.
- There should be enough space for the children’s education as well as adequate arrangements for their play. Security and ease of access are important things for this also.
- Garments.
- The clothing business in the country holds seven percent share of the total franchise market. The shop space should be on a main road or in a mall/shopping area.
- Health and wellness.
- A lot of profit can be earned from a gym and salon in or around a residential area. It is necessary for pharmacy and lab to be on the main road, only then more customers can be brought.
Terms and conditions for taking franchise
- To take franchise from the company, you have to pay the fee prescribed by the company. And the company also inspects the place for opening your franchise to see whether that place is suitable or not.
- You also have to give a business proposal to the company in which you tell what will be the location of the franchise and you give all the documents related to it to the company so that the company also has these documents.
- After this you also have to sign the franchise bond. Before signing the franchise bond, you must read all the terms and conditions carefully and follow them compulsorily. You also have to assure the company that you will follow the company’s guidelines in future and run this franchise of the company well.
- To take a franchise, you not only have to pay the franchise fee to the company, but also you have to give some percentage of the profit made on selling each product to the company.
Documents required to open a franchise
To open any franchise, you require two types of documents. The first one in this is the Franchise Disclosure Document. It contains full information related to your franchise. It tells where you have to open the franchise, how to open it, how to run the business, etc.
The second important document in this is the franchise agreement. It bears the signatures of both the company and the franchisee. This is a certificate that states that you will follow all the terms and conditions of the company.
