Franchise India Holdings president Gaurav Marya on securing a favourable franchise deal
Invest time in finding information: There are hundreds of opportunities out there for anyone interested. Methods of exploration could include exhibitions, forums, magazines or the internet. Invest time in finding information on opportunities available in the market.
Evaluate the situation: Evaluation is done at two levels — evaluate the company by its past performance and also by how its existing franchisees are doing. At the same time, you must evaluate your capabilities, your operational bandwidth, your temperament, risk appetite and the businesses you can secure.
Capitalise adequately: Before you look for a favourable franchise, you need to conduct a thorough internal check. Most businesses in India fail because they are undercapitalised. And unless you are adequately capitalised, you will not be able to get through unforeseen circumstances.
Be prudent in negotiations: Even if you have chosen and secured the right franchise, negotiation is integral. You need to hire a good law firm that can negotiate on your behalf to make sure agreements are very well structured.
Remember four important fits: Entrepreneurs looking for franchise opportunities must look at four fits — strategic, because you need a strategic advantage in the business; financial, because you need capital for the business; operational, so that you are tuned into your business; and marketing, because there needs to be a marketing capability to make the best use of an opportunity and turn it in your favour.