Best Franchise Development Consultant offering best Franchise Development Business Plan for your Business With Franchise Consulting Services
A franchise development consultant will help companies prepare to become superior. They could also help current franchise systems improve their processes, brand promotion services, and sales.
What is Franchise Business Model?
A franchise business model is a business relationship between two entities, where one party allows another to sell its products or services and gives intellectual property rights. It’s is a right that manufacturers or businesses give to others.
This right allows the franchise beneficiaries to sell the products or services of the franchise sellers or parent organizations. These rights could even be in terms of access to IP rights, intellectual property rights. The franchisor is the original business. It sells the right to another entity to use its name and idea.
The primary role of a franchise development consultant is to provide complete consultation regarding the franchisee. The franchisee is given the right to individual/business to sell its products is called the franchisor, while the business or individual who’s is taking the benefit from it is called the franchise.
The franchise model is a marketing strategy for businesses that helps to cover maximum market share. One significant advantage to purchasing a franchise is to have access to an established company’s brand name. One won’t need to spend resources getting their name and product out to customers.
To an extent, consumers aren’t bothered by who owns the business so long as their brand expectations are met.
Functioning of Franchising
Under a franchise model, the two parties usually enter into a Franchise Agreement. This agreement enables the franchisee to use the franchisor’s brand name and sell its products or services. In return, the franchisee pays an amount to the franchisor in terms of fees.
The franchise holder may sell these products and services by operating and functioning as a branch of the parent company. It may also have permission to use franchising rights by selling these products and services under its business venture.
The franchisor has the right to grant franchising rights to one or several individuals or firms. Therefore, if only one person gets these rights, he gets the right or the authority to sell any franchisee product in a specific market or geographical limit.
In exchange, the franchisor supplies its products, services, technological know-how, brand name, and trade secrets to the franchise. It even gives training and assistance in some cases.
Features of Franchising
Firstly, under a franchising agreement model, the franchisor grants permission to the franchisee to use its intellectual properties such as patents and trademarks.
Secondly, in return, the franchisee pays a fee called the royalty to the franchisor and may even get to share a part of his profits. Instead, the franchisor gives its goods, services, and assistance to the franchise.
Finally, both entities in a franchise arrangement sign a franchising agreement. This agreement is a contract that states terms and conditions applicable concerning the franchise between the franchise seller and buyer.
- A franchise model is a business model in which the franchise owner licenses its operations and products, branding, and knowledge, in exchange for a franchise fee by the franchise beneficiary.
- The franchisor is the entity that sells licenses to franchisees.
- The Franchise Arrangement Rule requires franchisors to disclosure key operating information to prospective franchisees.
- Ongoing royalties in current reality paid to franchisors vary by industry and range between 4.6% and 12.5%.
How Concat Helps As A Franchise Development Consultant?
The Indian Franchise industry is ranked as the most untapped and attractive globally for investment in the franchise model. All the big leading global brands are eyeing India as their target market for investments. The franchising model has been steadily gaining popularity in Indian markets as in the Indian context, a significant chunk of the market is untapped. Here is how Concat Business Consulting help.
- Support the franchisor in finding the right franchisees
- Network with the growing business community
- Experienced Franchise development consultants
- Research & Recommendations regarding Franchises that meet specific requirements along with expert advice
- Legal, Accounting, HR & Finance professionals
- Funding and Investment opportunities
- Implementation and ownership of complete social media initiatives
- Conduct workshops and seminars
Concators offers reliable and perfect HR Shared Services and other services where you can connect with different service providers of various industries like Digital marketing services, Advertising and PR services, Call center setup, Collection & recovery agencies and Customer loyalty & engagement services