Advantages of Choosing Retail Franchising as a Mode of Business Operation
India is experiencing a boom in the demand and popularity of retail entrepreneurship, which carries huge potential in today’s time. The advancement in the current Indian business ecosystem has offered entrepreneurs different ways for opening and running a business, ranging from an e-commerce store or a brick-and-mortar shop to various other franchise opportunities available in today’s time.
Retail Franchising and some Brands Associated with it
Retail franchising is now a familiar mode of business operation for the last few years in India and across the world. It is a method of establishing a single store based on the name, trademark, branding, and products of an existing business.
In fact, franchising has emerged as a lucrative entrepreneurial option in retail, which is attracting the modern-day investors that are looking to start and grow their businesses to different regions.
Some popular brands that are into retail franchising are Siyaram, McDonald’s, and PC Jewellers, all of which are around us and often the brands we shop or eat at and trust the most. Meanwhile, the investment required for retail franchising differs from brands to brands.
For example, Siyaram’s franchising is available with an investment around INR 20-30 lakhs along with a space ranging from 500-1500 sq. ft. Whereas, PC Jeweller franchise is a bit costly that requires an investment around INR 5-10 Cr along with a space ranging between 1200-2500 sq. ft.
A Faster Pace
With passing years, it has been proven that franchise is a much faster option in many ways than a sole proprietorship for launching a business. According to research, it is believed that a new franchise requires around 2-12 months to launch, whereas an independent business might require 6 months to well over a year for the same.
With franchises, a business model is already in place and franchisors likely have their own guides for franchisees to follow. If you’re looking to open a business quickly, a franchise could be the way to go.
Scouting for a location for a particular business eventually is one of the most daunting and trickiest tasks of retail. Retail business owners often look out for locations that offer some healthy competition along with not being over-saturated with similar businesses. This is where a franchise option wins the heart of several franchisees.
Established franchises help aspiring franchisees to find an optimal site as they have already done their research and have a proven track record of what suits their business.
One of the biggest advantages of walking into the franchising route is having a network of fellow franchisees that can guide new entrepreneurs with proper moral support and advice.
Since all of them will be operating under one brand, the success of one franchisee helps and benefits the rest of its peers.
Thus, retail franchising comes with a lot of rewards that could be enjoyed by both franchisors and franchisees. It allows both the business and brand to grow quickly with time, emerging as a renowned player in the industry.