The Entrepreneurship Forum of Vidarbha Industries Association recently held a session on ‘Mantras for Successful Franchisee Business’ by Franchisee expert, Corporate Trainer and Motivational speaker Sharad Khandelwal.
Franchise Business is the most successful business model in the World. It creates $ 2Trillion every year around the world and in India alone it has captured USD 7.2 billion with an annual growth rate of 30%.
Khandelwal gave an in depth insights of Franchise Business Models and how to run it successfully. According to him Franchisee business is nothing but the replication of proven business system and the granting of the rights to carry forward the business in a different location against some payment called as the ‘Royalty’. He pointed out that to run a Franchisee business the four factors which are very important are People, Trust, Respect and Individuality. Most Franchisee business fails, if these four factors are not balanced properly. Khandelwal further stated that one should go for a Franchisee business depending upon one’s ability and only after understanding the challenges involved.
Franchise business are majorly success in almost all the sectors like – Food & Beverages, Retail, Hospitality, Services, Education, Real Estate, Automobiles, Health &Wellness, so on and so forth. To start the new Business OR Expand the existing Business, Franchise route is the best, provided due diligence and depth understanding should be there. The advantage of Franchisee business is that one gets a Brand recognition, Training support from the Franchisor, Marketing assistance, an established business model and of course a social status. The flip side however is the burden of payment of a huge fee as Royalty, lack of autonomy for the Franchisee and also the complicated selling system which the Franchisee may find it difficult to handle. But Khandelwal is firmly of the opinion that the success of Franchisee business largely depends on whether one is 100% involved in the business and whether on is passionate about the business. 50% failure happens due to the deficiencies on the part of the Franchisee, 25% due to external factors and the rest 25% due to the Franchisor. The Franchisee must scrutinize the Agreement deed minutely and make an in depth study of Franchisee model.
According to Khandelwal, on the other hand the Franchisor stands to gain more as he gets to raise capital easily, made rapid penetration, overcome operational challenges, build brand extensively and gain market reputation easily.
Since Nagpur city is the 5th fastest growing city in the World as per the study report, budding and established Entrepreneurs will certainly look for owning good franchise by putting right investments. But question remains how to identify the right fit and understand the modus operandi of Franchise business models. Report also claims that, 80% business models fails through Franchise route, the failure rate being much higher in Nagpur being as high as 90%. Hence Investors will always have to be careful while choosing the right business model. Khandelwal pointed out that Nagpur is an ideal place for Franchisee Business as people are looking for good brands and with the economic scene changing rapidly; there is quite a good scope.
According to Khandelwal, Franchisee business can rightly termed as ‘People doing business with People.’
At the outset of the program, speaker Sharad Khandelwal was accorded a warm floral welcome by Atul Pande, President – VIA.
Akash Agrawal Chairman of the Entrepreneurship Forum spoke about the importance of Franchisee business in generating employment and the scope for Start ups to scale up via the Franchisee business model. Atul Pande, in his welcome address termed Franchisee Business as a gainful activity, in which with ones basic input value addition can be done with little efforts and the risk is much less due to the shared efforts.
The program was conducted by Anita Rao, Convener of Entrepreneurship Forum VIA, who also proposed the vote of thanks.
Get the latest Nagpur Business news and updates about the city’s economy, business, and market. For an exclusive & live updates from the Nagpur, stay connected with THE LIVE NAGPUR.