A Beginner's Guide to QSR Food Franchise Investments in India
Starting a new business from scratch is a complex process, but a franchise is a lucrative opportunity if you want to enter the food sector because the franchise you choose has a well-known brand name, goodwill, customers, etc. But there are many things you need to consider before investing in a QSR food franchise in India, like investment, location, franchise fees, royalty fees, operational costs, etc. Still confused about profitably investing your money in a food franchise in India? This guide will let you know everything you need to know in detail.
Benefits of Starting a Food Business in India
1. Strong Brand Recognition
One of the best benefits of starting a food business in India is that the franchise you take has its established name. You do not need to make any extra effort to build the brand name from scratch. And your sales start from day one.
2. Ready to use a business model
The business has a proven track record of success and has its vendors and a structured business plan. So, don’t worry about how it works because the franchisor has already done their work.
3. Complete Training and Support
The franchisor gives complete training and support to the franchise owner regarding customer service, inventory management, operations, etc. so that the fresh businessmen also run the outlet successfully.
4. Marketing and Advertising
The franchisor has already done social media marketing and advertising its brand name on large-scale campaigns. So, you are not required to spend large amounts of money on marketing and advertising of your outlet.
5. High Success Rate and ROI
The success rate of franchisee business is high because it has a well-established brand name and sales start from day one, and if managed the outlet well one can achieve the break-even point in less than 24 months.
Factors to Consider Before Buying a Food Franchise in India
1. Investment and Financial Planning
Before buying any franchisee, you must know the initial investment, royalty fees, franchise fees, operational costs, legal terms, etc. Because when we have a clear goal regarding investment then only we can work towards it and achieve our goal.
2. Location and Marketing Demand
To run any business, one should thoroughly examine what consumers demand and what their competitors are in the market. Location also needs to be considered because an easily accessible and busy area increases the sales of your business.
3. Legal Agreement
You need to look for the legal agreement that contains the entry and exit of the contract, contract tenure, renewal fees, profit-sharing ratio, etc. and any other legal terms.
4. Profitability and ROI Timeline
Before investing your money in the food franchise business, make sure to know what its profit margins are, what its break-even point is, and how much time it will take to recover your investment.
Process of Starting a Food Franchise in India
1. Research and Shortlist Brands
Thoroughly research the brands that give franchisees and evaluate various food franchise opportunities, such as their initial investment, brand reputation, market demand, etc. Once you have shortlisted the brands, compare them with your budget first and make sure they align with your budget. Look at their online reviews and visit their existing outlets to have a thorough look at their operations.
2. Contact the Franchisor
The second step in starting a food business is to contact the franchisor, fill out the application form, and submit your inquiry with all necessary details like investment, location, etc. If you are shortlisted, then the franchisor schedules a meeting with you and explains the business model. Now, it is your turn to ask necessary questions regarding how they operate, training and support, marketing, vendors, etc.
3. Legal and Documentation
This is the most important step because in this process, the franchisor gives you details regarding its franchise fees, royalty fees, and other legal terms. Make sure to review the agreement with your lawyer so that there is no chance of mistakes. Once you agree with all terms and conditions sign the franchise agreement.
You also need to apply for the GST number because it is required to operate any business. And also need to apply for FSSAI registration because it is compulsory for operating the food business.
4. Finalization of Location and Setup
Location is the most important because it can make or break the franchise. Franchisors give you an idea about the location after thorough research, but it is up to you to choose your own location. Always choose high-volume areas like shopping malls where there are more chances of sales.
5. Training and Marketing
Training is a crucial step in starting a business. The franchisor provides a training session at the existing outlet regarding food preparation, customer service, and business operations. Pre-launch marketing also gives excitement to people about the opening of the new outlet and this can be done through social media campaigns, print ads etc.
Conclusion
If you also want to invest your money in a lucrative fast food franchise in India, then Baap of Rolls is the one that stands out. Because it gives you a low investment opportunity, high ROI, and has a proven success rate with zero royalty fees. Also, they give training and support to the franchise owner.