Investing in a food franchise would be a wonderful and much safer option if you’re trying to go into the restaurant business. Nevertheless, purchasing a franchise is a significant choice. You must carefully choose not only the type of food franchise business, but also the brand, location, etc.
Before getting into the details, let’s first understand what a franchise business is.
What is a franchise business?
A franchise is basically the firm owners’ official license to market and sell their products or services in a certain region or location.
The business gives you permission to sell its goods and charges you a flat fee, a royalty, and a portion of the revenue you generate from the sale of their goods or services.
Now that we have understood how a franchise business works, let’s examine various food franchise business so you may choose the one that best suits your needs.
Types of food franchise business in India
Single unit franchise
With this kind of franchise, the franchisee can run their business from a single location. It also goes by the name of “direct franchising.” In India, it is the most prevalent type of franchise. If you have made an investment in a franchise of this type, you are permitted to establish a franchise in a specific location and to be named as the primary operator and manager.
Moti Mahal and Sagar Ratna are examples of single unit franchises.
Multi unit franchise
A multi-unit food franchise enables the franchisee to open the business in various locations. The franchisee gets various areas from the franchisor. To develop and keep up the operations of these units, the franchisee takes ownership and responsibility.
For instance, Subway, McDonald’s, etc.
Company owned franchise
In this type of franchise, the franchisor makes the initial investments and controls every aspect of the business. The business is in charge of every area, including developing the brand image, quality assurance, product development, etc. Additionally, it appoints a franchise agent to represent the brand and operate on its behalf.
Examples include Taco Bell, Bikanerwala, and Café Coffee Day.
In this kind of franchise, the franchisor transfers complete ownership and management of the franchising operations to the franchisee of a specific location or organization. The franchisee can modify their operations to be more relevant in their area.
Example: Domino’s, KFC, Pizza Hut, etc.
Joint venture franchise
The joint venture franchise model is often used by an international brand to collaborate with a local business and establish a new company that serves as a master franchise. The master franchise then assumes responsibility for managing the franchise in the local country because the local company has a stronger understanding of the market, consumers, and local laws. With this franchise model, the global company can actually quickly boost brand recognition among its target market.
An example of this is Burger King.
These are the types of food franchise business in India. Choose the best one for you based on your budget and expertise.
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So what are you waiting for?
Contact Naadbramha Idli now and get the best idli franchise in Mumbai.