Franchise Business In Pakistan

The franchise is the authority to carry out commercial activities under the name and logo of that company or organization. The franchise business is well established and has a developing carrier in Pakistan. When a person buys a franchise, he is bound to sell the products of that specific company. A company grants its rights and license to a particular person to sell their products under their trademark in a franchise.

Ingredients of Franchising

The franchise consists of the following ingredients:

• The common public identity.
• Combined resources.
• A contractual relationship between the franchise owner and the company or organization.
• Availability of branded products and branded services to the customers.
• The marketing procedures are easily processed.

Types of franchise

There are the following types of a franchise in Pakistan:

Business Format Franchise

It is a franchise that consists of a unique operating system. It mainly consists of the retail business and provides services to customers.

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Single Unit Franchise

It is the type of franchise in which only one franchise can be established. The extension in this franchise can not occur. It is an area-specific franchise. In this franchise, only one branch of a company or organization can be opened and regulated. It needs a small investment.

 Multi-Unit Franchise

It is a type of franchise in which several units can be easily opened at the same time. It is used for commercial business and needs a large scale of investment.

Benefits of a franchise from the company or organization

The franchise owner has many benefits from the parent organization. The benefits that the company or organization provides are listed below:

• Company or organization helps in the location selection. The parent company is an expert in the business, so it guides the franchise owner to open the branch in the customer's area.
• A prepared product is delivered to the franchise. The company does the product, its design, attractive look, and development. Franchises do not need to design the product. The attractive and facilitated product grabs the attention of the customer.
• The parent company provides a complete guide to the franchise about product marketing. It also facilitates the franchise in the advertisement.
• Parent companies establish a training period for the franchise owner to run the franchise excellently. This training is useful for the franchise business.
• The parent company provides specific criteria for store design. It provides the uniform outlook of the franchise. The company helps in franchise development.
• The parent company has standards and policies. So the franchise has to follow those policies. These policies are beneficial for the franchise's progress. The policy provides a unique and standard look to the franchise.
• The parent company does not provide training and instructions one time. They provide counseling throughout the business. It gives confidence to the franchise owner. As a result, franchise progress in a better way under the supervision of experts.
• The parent company helps in developing the customer's standards. The company sets the goals of the franchise according to its customer's needs and demands. The company tries its best that the customers do not lose their standards in that franchise.
• The parent company provides financial support to the franchise. The financial support could be at the beginning, and it continues onwards.

Steps to Open a Franchise

To start a franchise business franchisor should follow these given steps. These steps will help to open a successful franchise.

Research

To start any business, research that business. To do a franchise business research, it needs investment, benefits, market value, and profit. Focus on your google and move forward. To start a profitable and productive business, business people must consult with professionals. Search the location deeply and its development speed.

Start your business in a location that has the power to progress. Research the franchise of the given company around you. Never open the franchise of the company when any of its franchise exists near your decided location.

Self Evaluation

Evaluate yourself before opening the franchise. The franchise business needs hard work and long working hours. Before opening the business, prepare yourself for the business. Always start the business when you are mentally prepared for that business. Check that you are willing to work for long hours and on vacations, especially weekends.

Get advice from a franchise expert

The information about the franchise is present on the internet. To start a business, it's better to consult with a franchise consultant. A person having experience in any given field could provide useful information about it. The consultant can assist the business opportunities. He can give you tips and tricks that one can not obtain from the internet. A franchise consultant gives honest reviews about the business.

Search the franchise

The selection of the franchise is essential. The entire business is based on the selection of the franchise. Before getting the franchise, it's better to search for the franchise which suits you. Arrange meetings with different companies and organizations. Observe the instructions after visiting several organizations and companies. Select one company for the franchise. The company should have instructions that you can follow easily.

Location for Franchise

Select a location where you get maximum customers of that company. Franchises should have valuable traffic for a good profit. The parent company can provide you information about their already present franchises and customers. Selected franchise locations need approval from the parent company or organization.

Business Plan

A well-developed business plan is a key to success for any business. Each business needs planning and management according to the plan. Develop a plan for franchise working, product receiving, customers, product delivery to customers, and profit or loss. Write a detailed summary of the franchise business and its working.

Create a market strategy for your business. It will help you to stand in the market.

Draw the map of your annual progress and profit. With the help of this map, one can watch the most profitable and less profitable year. By using this map, a franchisor can make progress and move in the right direction.

Keep the record of your expenses so that one can calculate its profit at the end of the year. It will give the exact value of your profit. Provide your excellent services to the client. Keep check and balance on your services. Note how you can improve services. It will help you in leading the business towards progress.

Measure the progress of your business plan. Check whether your business is running according to your plan. According to the plan, the business should progress and earn a profit. Review your plan if it is not giving a good outcome. Make new strategies and developments if the plan is not working in good condition. Technology is a very useful tool for business. Introduce new and effective technologies in the business.

Funding for Franchise

Choose the funding medium for your franchise. One can use bank loans to establish a business. Keep one thing in mind: how long it will take to return the loan to the bank. For applying for bank loans, calculate the profit and loan ratio for your business. After that, get a suitable amount of loan from the bank.

Social Marketing

The technology is grooming rapidly and creates room for income and progress. Online marketing is also known as social media marketing. It needs a computer or a laptop and a stable internet connection. Establish a website for your business. The website should be attractive and have all information regarding your business. It helps in business promotion. You can also use Whatsapp, Twitter, Facebook, Google, etc., for promotion purposes.

Agreement

When you proceed from all the above steps, the next step is to sign an agreement with your desired company. The agreement is between the two parties. An agreement should have the following information in it:

• The amount that the franchise owner pays to the company.
• The initial cost through which franchise is established.
• Record of the documents from both sides.
• The duration of the franchise and its termination date should be mentioned clearly.
• Restrictions that are implemented on the franchise.
• Details of training sections
• Standards of the franchise.

Insurance of franchise business

It is good to have insurance for your business. Insurance is for bad times. It guarantees the recovery of your loss. The business should have insurance as there come ups and downs in every business.

Staff selection

Hire a good working staff. The working staff should be polite and kind. A well-behaved working staff creates a friendly environment with customers. Customers feel relaxed with kind and patient staff. Monitor the cleanliness, behavior, and dealing of staff with customers.

Advantages of a franchise business

The franchise business has the following advantages:

• It is beneficial for small investors and provides owners with a little investment.
• It does not require experience.
• A franchise progresses under the supervision of experts.
• It has an opportunity for success.
• It provides financial support from a company.
• The company provides training to the franchise owner.
• It is easy and secure as compared to other businesses.
• It provides a full-time approach with the company experts.
• The franchise has the reputation and standard of the original company or organization.