How To Go About Starting A Franchise

Last Updated at: Oct 21, 2020
In India, FranchiseMart will help to remain continue franchising services in lock-down time, The Corona Virus is an extremely serious threat to our people and our economy, but business opportunity is more needed in our country.


If one person is starting a new business it is always not necessary to commence it with a new and creative idea. They can start the new business franchise by owning one of the franchises of the company which is already popular and successful.

What is a Franchise?

Franchising is a kind of practice which is about using another company’s successful business model. It is a right given to individuals or groups who are in this business to market the products and services for a particular region. Basically, it is the successful company leasing out the rights of its goods and services, operating and trading methods etc. to the individuals and groups to run the business on their own. Some of the famous franchises in India include KFC, Subway, Café Coffee Day etc. And there you go, you can start a franchise anytime. 

Setting up a franchise

While starting a business franchise with an already existing business model which is quite popular does not mean that one has to work less. It also takes the same kind of effort and hard work to make it successful. When one is starting a franchise business it is advised to talk to other franchisors who are running the business for a long time to know the pros and cons.

Prepare Your Business Plan

Finding the right franchisor

Finding the right franchisor is one of the crucial things while starting a franchise business. One has to wisely chose the area of business they want to get in. They have to see which franchise is successful and has good dealings related to other agreements as many of the small and medium firms are offering franchising deals these days. If these things are taken care of then it will ensure a successful franchise business.


Basically, franchise agreements last for five years to thirty years. If there are any kind of terminations or cancellations of the agreements then serious consequences are faced by the franchises. A franchise license lasts for a certain time period which has to be renewed from time to time. Franchise owner also has a right to specify the specific geographic area surrounding the shop.

Two types:

1)   Licensing of a brand

2)   Licensing of a business model

Types of payments that need to be made to franchisors-

1)   Initial fee

2)   Management fee

3)   Service fee

4)   Royalty for the trademark R

5)   Reimbursement for the training and advisory services

Business Licenses

In an individual business brand, service marks, trademarks, trade names etc. are owned by an individual. But when it comes to the franchise all of these are already owned by the franchisor. But this does not stop the individual getting all the registrations done while starting a new franchise business.

Types of business registrations depend as to which one the owner wants to choose. Such as Sole Proprietor, Limited Liability Partnership (LLP), Limited Liability Company (LLC), Private Limited Company etc.

Other than these one needs to get GST registration, current bank account, shop and establishments registration etc.


Though all the employees are trained by the franchisor then also making the franchise successful depends upon the person who takes it for lease. How much ever successful the franchise might be if it is not managed properly the business will face so many losses. So, always the owner needs to ensure that all the employees are properly trained and manages the business well to make it successful.