How To Select The Right Franchise Model? Part 8 in Hindi |Franchise

Area of Interest

It is important for a person to know his area of interest before getting into a franchising model.
This is to ensure that he/she does not get bored from the business if the franchise is not working properly.
A person who takes franchise as per his/her area of interest will enjoy the work and do his best because of the satisfaction he/she gets from the work.

Financial Capacity

You should plan the business model as per your financial capacity. All the costs of the franchise business should be under your budget. The costs to be considered are:

Franchise purchase cost
Inventory opening cost
Working capital cost
Contingency fund

Investment of Time

You have to invest both time and effort in a franchise business or starting a business from scratch.
The success of a franchise also depends on the involvement and time invested in the business. Certain franchises like seasonal franchises of vacation cottages, ice-cream business, wedding planning, etc. need more of a franchisee’s time in the peak season of business.
A franchisee needs to be actively involved in the business to nurture and grow it.

Look for Franchisor and Do Research Work

You should start searching for the franchisor or do research work after self-evaluation, area of interest, and financial capacity. The main areas of research should be franchisor’s:

Average success rate
Success stories

Speak to Existing Franchisee
It is important to speak to the existing franchisee and determine:

What challenges does the existing franchisee faced and how they overcome them?
What were the key success factors for them?
What advice existing franchises want to give to new franchisees?
How much time did they require to reach profitability?
What are the most important parts of franchise business which need to be focused on?

Think about Exit
Evaluate the exit in case the franchise fails.

The factors that should be looked into are:

Legal compliances
Asset division
Rights to start a new business in future
Different franchises may suit different people. So, take a franchise as per your interest and experience.

Key Outcomes of the Video

Do self-evaluation to know your interest area for doing a business
Invest enough time in the franchise business to make it successful
Choose the franchise business as per your experience and interest
Speak to existing franchisees to know the real situation of franchise business