Reasons Why You Should Opt For A Franchised Business

Vaishnavi Gupta
Vaishnavi Gupta Mar 17 2020 - 4 min read
Reasons Why You Should Opt For A Franchised Business
If you are confused about what business model you should operate on, then read on this article as here we present reasons as to why you should opt for a franchised business.

When you think of start-ups, franchise might not be the first thing to strike your mind. But the terms "start-up" and "franchise" make a great combination. Owning a Franchise can provide the perfect vehicle for start-up entrepreneurs for achieving financial success. Franchising stands stronger than independent ventures on many parameters. 

The popularity of franchising business model in India can be seen by the fact that the franchised businesses have captured a market size of $7.2 billion with an annual growth rate of 30%.

For those who think franchising is a skeptical concept for them to adopt as a business model, we bring some facts that will clear all the doubts about franchising, and will help the business succeed regardless of the industry.

Here we present five reasons as to why you should go for a franchised business:

Startup Cost

Starting up with a business means you have to do start everything from scratch. One has to be prepared about a lot of things like thinking of a business idea, devising a business plan, hiring staff, marketing strategies, funding and the list goes on. So, an overall start-up cost often exceeds the expectation of an amateur business person. Independent startups might need higher investment costs to buy and operate a business.

On the other hand, if you start a franchise business, one can save a lot of expenditure. One can buy franchise business at a typically lower cost as all of the other setup is provided by franchisors. The franchisee has to fulfil obligations set by franchisors. For instance, franchisees provide franchisors with franchise fee and time-to-time royalties on an ongoing basis. When it comes to experimenting with the business and another urgent decision making in terms of investments, the franchisor often has the right to remodel and help franchisees in doing so. So this way, franchise business saves a lot of money for a franchisee.

Brand Recognition 

In today’s highly competitive market, recognised and reputed brands rule the industry. Start-ups have to work hard to establish their name and sustain amidst them. Choosing a franchise makes it easier for your brand to stand out above your local competition.

Franchises bring brand awareness with their names from day one. Therefore, customers will know about your products that will increase your sales. By buying a franchise, you are actually buying a turnkey business that is ready and waiting for you to start.

Along with a reputed name, you will also get a loyal consumer base. There is an immediate trust level that comes with name recognition.

Higher Success Rate

The advantage of operating in a franchising model is that it has a lower failure rate. When one buys a franchise, they buy an established concept that has been successful.

As per some recent reports, a franchise business is much more financially-rewarding than that of an independent business. Also, the chances of success are more in franchise business than in an independent business that has 70-80% chances of not surviving in the market.

A franchise is a proven system. All franchisees operate under a common system and they are only responsible for their day to day operations. Also, they get trained about the product line, marketing, how to deal with staff and other aspects of their daily activities. Basically, they get ongoing support for their businesses which brings them success.

Guidance and support

There’s a long list of licenses and regulations every business must follow to start their venture. When your start-up is a franchise, you will be getting extensive support from your franchisor. Your franchisor will help you navigate these hurdles.

Many franchisors provide the complete package to start the business (including equipment, supplies, and training) and the franchisee executes the plan. Buying a franchise allows start-ups an ideal balance between being independent and receiving guidance.


One of the major advantages of starting a franchise is the scalability factor. A franchise allows an entrepreneur to expand the business more effectively and efficiently.

A franchise system is based on the principle of replicating a proven business model, they are easily scalable in multiple ways. You can scale your business geographically by starting in one area and gradually expanding to multiple locations.


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