Challenges Associated with Franchising in India
Franchising The first end employees represent the brand and it is very important for them to be skilled to persuade customers to shop. is one of the sectors that has shown resilience and continues to grow in this tough economic environment; the sector is not without risk for franchisees and franchisors. The reality is that no franchise is immune to tough economic conditions - levels of success vary depending on the conditions - levels of success vary depending on the concept, strength of the brand, management and the industry. Points highlighting the challenges faced by franchising system in India: Having Sufficient Capital - Business failing due to undercapitalisation as the cost of creating the franchisee system is not a new thing. New franchisors need to have enough capital to cover the expenses required to set up the franchisee including operations, marketing, administrative, and accounting. The capital should cover franchise program that includes staff and lead generation. Building a Solid Infrastructure - Normally, a franchiser has the set SOP for the franchisee joining the business. But these procedures aren't prioritized by the franchisee often failing to achieve set ROI in the intention of saving on capital. For long term association, it is very important to understand the important to understand the importance of strong infrastructure and guidelines. Hiring the Right staff Increasing Competition (Market Share) - A number of foreign-owned brands are slowly incorporating into the Indian market. The introduction of these brands are giving consumer more choices, hence the competition gets tougher and puts more pressure on the performance of home grown brands.