How to Set-up Franchise Business in India?

How to Set-up Franchise Business in India

There is an obvious appeal to investing in a franchise of business that has a wide market share. Whereas, starting a fresh business comes with a lot of painstaking tasks. However, it doesn’t imply that starting and running a franchise business is a cinch. You need to have a business acumen to work in a franchise as well. For sure, your franchisor will always come forward to help you. But, as a franchisee, you should know the nitty-gritty of running a business. So, are you planning to invest in a franchise? Well, before you move ahead, let us tell you that you need to take care of several things before you start a franchise. You need to be a strong player to deal with the jolts and bolts of the business environment.

If you’re brooding over the idea of buying a franchise, you need to know what you are getting yourself into. So, what are your plans? In which type of franchise do you want to invest? We would suggest you invest in an education franchise in India. The education sector is one of those sectors that is rapidly growing in India and you can earn whopping profits from it. However, the choice is yours, you can choose to invest in a restaurant, clothing, or any other franchise. Are you confused about how to set up a franchise business in India? Don’t worry, we have jotted some helpful points in this article that can help you establish a thriving franchise business in India.

Consider the below-mentioned points before you start a franchise business in India:

1. Know your area of interest

What decides your success in any venture? Of course, it’s passion. You need to have the zeal to run a business. Also, you need to invest in a type of business that is profitable. So, first of all, make a list of franchises you are interested in. Afterward, see the brand value of that franchise. Doing this can help you choose a good fit franchise for yourself.

2. Find the right franchisor

Let us tell you, finding a good fit franchise is not enough, you need to associate with like-minded franchisors as well. So, before you enter the contract you need to make sure that your franchisor is calm and cool-minded. You can inquire about the franchisor from his/her present franchisees as well. Also, before entering into the contract, you can ask your franchisor the following things:

  • Will you get regular training from your franchisor?
  • How much profit a franchise unit earns in a month?
  • Will your franchisor help you to do effective marketing?
  • How much franchise fee do you need to pay your franchisor?

3. Read the FDD carefully

FDD is basically a Franchise Disclosure Document. This document contains meticulous information about the franchise business. Franchisor offers this document to franchisees at least 14 days prior to the date of signing the contract. So, it is advisable to read this document carefully. Note that this document contains the responsibilities and obligations of a franchisee. Read all those points carefully before you sign a franchise agreement.

4. Sign the franchise agreement

When everything suits you perfectly, you can enter into a contract with your franchisor. After entering into the contract with your franchisor, you need to pay the initial fee, management fee, advertising fee to your franchisor. Also, you need to pay a royalty fee to your franchisor monthly. Note that you need to abide by every rule and obligation mentioned in the franchise agreement. If you breach any of the rules, it can drag you to some serious legal troubles.

5. Do effective marketing

To tell your targeted customers about your products and services, you need to do effective marketing. No doubt, your franchisor will help you to do effective marketing every time. But, you need to make efforts to do local marketing. Here are some of the effective marketing techniques that you can use for your franchises:

  • Email marketing
  • Social media marketing
  • Create a local website
  • Guerilla marketing

As a franchisee, you can use any of the above marketing strategies to proliferate your franchise business. For sure, it can help you capture the attention of a throng of customers.

6. Human resource requirements

Business organizations run because of employees only. So, it is important for you to know the number of employees you need to run a franchise unit. Make a list of professionals you need to operate your franchise business. Your franchisor will help you to recruit adept personnel in your franchise unit. Make sure you are communicating your hiring requirements with your franchisor. They can help you hire suitable employees for every role. However, it is not mandatory to depend on your franchisor for hiring employees. As an owner, you can also recruit suitable employees for your franchise business.

7. Coordinate with your franchisor

It is essential to have cordial relations with your franchisor. An ideal franchisor will always conduct regular meetings with his/her franchisees to share business ideas with them. Also, they motivate their franchisees to share their ideas with them. Note that as a franchisee you can’t implement plans for your franchise unit without the permission of your franchisor. You need to approach your franchisor first and share your plans with him/her. It can help you maintain brand consistency.

So, have you made up your mind to start a franchise business? If yes, then investing in a coaching institute franchise can prove beneficial for you. Make sure you fulfill all the legal formalities before commencing a franchise business.


There’s no fortuitous time to start a franchise business in India. You can start a franchise business in India when you are ready to work as an entrepreneur. So, before you start a franchise business, don’t forget to consider the above-written points. We hope that these points can help you make the right decision.

Read More: The Mashtun