Frequently Asked Questions

A franchise is a business model where a franchisor (the brand owner) grants a franchisee (you) the right to operate a business using their trademark, systems, and support in exchange for fees and royalties.

Here’s how it typically works:

• You pay an initial franchise fee
• You receive training and support from the franchisor
• You operate the business according to the franchisor’s system
• You pay ongoing royalties based on your sales
• You benefit from the franchisor’s brand recognition and marketing

Franchising offers several advantages over starting an independent business:

• Proven Business Model: Franchises have established systems that have been tested and refined
• Brand Recognition: You benefit from the franchisor’s established brand and marketing
• Training & Support: Most franchises provide comprehensive training and ongoing support
• Lower Risk: Franchises generally have higher success rates than independent startups
• Purchasing Power: Franchisors often negotiate better deals with suppliers that you can benefit from

Choosing the right franchise involves several factors:

• Your Interests & Skills: Select a business that aligns with your passions and abilities
• Investment Level: Consider franchises within your budget range
• Market Demand: Research the demand for the product/service in your area
• Franchisor Reputation: Investigate the franchisor’s track record and support system
• Growth Potential: Look for industries with strong growth prospects

Our franchise consultants can help you evaluate opportunities based on these factors.

Franchise investments vary widely depending on the brand and industry. Here’s a general breakdown:

• Automotive Franchises: ₹1 crore – ₹5 crore
• Food & Beverage: ₹20 lakh – ₹2 crore
• Retail: ₹10 lakh – ₹1 crore
• Service Businesses: ₹5 lakh – ₹50 lakh
• Education: ₹15 lakh – ₹1.5 crore

This typically includes the franchise fee, equipment, inventory, and working capital but excludes real estate costs.

Yes, there are several financing options available for franchisees:

• Bank Loans: Many banks offer special loan programs for franchise businesses
• SBA Loans: Government-backed loans with favorable terms
• Franchisor Financing: Some franchisors offer in-house financing options
• Investors: You can partner with investors who provide capital
• Personal Savings: Many franchisees use personal savings for part of the investment

Our financial planning services can help you explore these options and prepare loan applications.

Beyond the initial investment, franchisees typically have these ongoing costs:

• Royalty Fees: Usually 4-8% of gross sales paid weekly or monthly
• Marketing Fees: 1-4% for national/regional advertising funds
• Rent/Mortgage: For your business location
• Inventory/Supplies: Ongoing product or material costs
• Staff Salaries: Wages for your employees
• Utilities & Insurance: Regular business operating expenses

The Franchise Disclosure Document (FDD) will detail all fees for specific franchises.

The franchise approval process typically takes 3-6 months from initial inquiry to opening, depending on:

• The franchisor’s requirements
• Your preparedness with documentation and finances
• Location selection and build-out time
• Training schedule availability

Here’s a general timeline:

• Initial Research: 1-4 weeks
• Application & Approval: 2-8 weeks
• Location Selection: 4-12 weeks
• Build-out/Renovation: 4-16 weeks
• Training: 1-4 weeks

While requirements vary by franchise, you’ll typically need:

• Application Form: Completed franchise application
• Financial Documents: Bank statements, tax returns, net worth statement
• Business Plan: For some franchises
• Personal Resume: Highlighting relevant experience
• Identification: Government-issued ID proof
• Location Details: If you already have a site in mind

Our application assistance service can help you prepare all required documents.

Most franchises provide comprehensive training and support, including:

• Initial Training: 1-4 weeks covering operations, marketing, and management
• Operations Manual: Detailed guide to running the business
• Ongoing Support: Regular check-ins from franchise consultants
• Marketing Assistance: Brand materials and local marketing guidance
• Technology: POS systems, inventory management, etc.
• Supplier Networks: Established vendor relationships

The exact support varies by franchise, so review the FDD carefully.

Automotive franchise space requirements vary by brand but generally:

• Car Dealerships: 10,000-30,000 sq.ft (including showroom, service center, parking)
• Auto Service Centers: 3,000-10,000 sq.ft
• Specialty Automotive: 1,500-5,000 sq.ft (for parts, accessories, etc.)

Key considerations include:

• High visibility and accessibility
• Adequate parking for inventory and customers
• Proper zoning for automotive businesses
• Room for future expansion

Return on investment (ROI) periods for automotive franchises typically range from 3-5 years, depending on:

• Brand: Premium brands may have faster ROI
• Location: High-traffic areas tend to perform better
• Market Conditions: Local demand and competition
• Management: Your business acumen and experience

Here are some general benchmarks:

• New Car Dealerships: 4-6 years
• Used Car Dealerships: 3-5 years
• Auto Service Centers: 2-4 years
• Specialty Automotive: 3-5 years