Franchise Business

What is franchising?

Franchising is the legal right to carry out a business in accordance with a particular operational method and under a specific brand. This includes the right to use trademarks, logos, a business system, operating procedures, IT and marketing techniques.

It can be seen as you working for yourself and running your own business; however, you go to market with the benefits of a household name and a dedicated team supporting you with advice and guidance on how to operate effectively.

Franchise route is always Better:

Franchising is like using of a toll expressway rather than chancing less direct, frequently winding and to the traveler unfamiliar with the territory, confusing roads. Expressways are well marked, have service stations in predictable locations and have toll collectors from whom advice and direction may be gained. Those attempting to travel between the same points as connected by an expressway, but using lesser roads, may not get there at all or are subject to a much broader range of estimated arrival times. If predictability of result is important to traveler, it is better to use expressways.

The best thing about franchising as a product or service distribution mechanism is that it is one of those synergistic business relationships in which all of the parties have to benefit for any of them to achieve long term success. In most cases for the franchisee to succeed, the franchisor has to do good job of providing service and equally for the franchisor to succeed, the franchisee must profit. There is no such thing as a successful franchisor that does not have successful franchisees.

Franchising Facts:

  • Franchising as a business model has witnessed high success rate globally. A new franchise opens every 8 minutes of each business day.
  • Statistics reveal that more than 80% of new startups close down within 5 years, whereas 80% of franchisees are still successful after 5 years.
  • Success stories show that franchisee startups that adhere to the franchise system and standards rarely fail.
  • The idea of franchising is that there is no need of reinventing the things which are being already invented by us. If wheel is invented take from us and focus yourself on making a car.


  Start ups Franchised units
Success Rate  10%  90%
 Brand  Yet to be Established  Well Established
 Risk  Very High  Comparatively Low
 Time Frame to Establish  High  Already Establish
 Technical Know How  Self Development  Provided by Franchisor
 Training & Support  Not Avilable  Provided by Franchisor
 Business Model  Risky  Tried and Tested
 Research Development  Very Costly  Available at resonable cost
 Returns  Inconsistent Consistent