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How to Start a Franchise Business in India?

By Tanuja Akkannavar

If you work hard, you can generate a limitless profit in a short period in business. In today's world, India is one of the most important commercial and economic capitals in South Asia, and many foreign companies are flocking to the country to take advantage of franchising opportunities.

Franchises assist corporations in expanding their footprint in India, and they also play an important part in the economic growth by creating additional jobs. One of the main reasons people are interested in starting a franchise business in India is this. Individuals hunt for business ideas, however, they are unsure if the venture will be beneficial, so they are hesitant to take a chance. However, the risk component is lower in a franchised firm because you have an established brand business plan.

How do you start a franchise business in India?
If you're interested in starting a franchise business, you may look into a variety of opportunities online. Many organizations in India now connect potential entrepreneurs with franchise firms, aiding them from the ground up. You must carefully choose the correct partner, grasp the operational and financial goals, and be willing to work hard. The following are some of the processes that must be taken while launching a franchise business:

1. Evaluate the Market Sphere –
If you're going to launch a franchise, be sure it's in an industry with a large prospective market. Launching a premium brand franchise in a tier-1 town, for example, can never be profitable. It is essential to first research the market and the city in concern before proceeding.

2. Performing the Legalities –
After the first agreement with the franchise provider, anyone wishing to create a franchise in India must register with the Ministry of Corporate Affairs. If the franchisee is not from India, he or she can contact overseas agents such as Franchise International Inc. Depending on the size of the franchise, they can request guidance from overseas agents in the necessary business-related documentation. If international companies want to create a franchise in India are reluctant to stay or at least watch on a routine basis, they should not start operations.

3. Requirements for Talented Employees –
For a new franchisee, It is critical to determine how many employees will be needed at different phases of business. Entrepreneurs must also be aware of their workforce's precise roles. They can also hire consulting firms or staffing agencies to help them find qualified candidates for various positions.

4. Taxation –
It is critical for a franchise owner to pay his taxes on time and to meet other necessary reporting obligations at regular periods. If the owner is from another country, he must likewise follow identical rules in his own country. If they own a franchise in India, they must also meet these conditions, or they can also hire expert accountants with relevant skills and experience.

5. Currency Risk Management –
This applies to multinational firms that own franchises in India. Their principal amount is usually made in foreign currency, but their early earnings are in Indian rupees. In these instances, there is a possibility that the INR will lose value concerning an international currency. They can mitigate these risks by derivatives trading futures contracts denominated in INR or depositing modest amounts in their respective nations' futures markets. However, in the case of currencies valued more than the INR, these measures are not always necessary.

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