After months of forced closures and record-high unemployment, INDIA is ready for an economic recovery, with the franchise industry uniquely positioned to lead the charge from various brands as well as from newly entered businesses.
As per LocalBuyX prediction, 2021 will be the best year of franchise growth in at least a decade, due to several factors, including:
– Relatively higher unemployment rates, with both lower-cost workers and seasoned career professionals who are seeking opportunities in business and non business areas.
– Favorable market conditions that provide ready access to capital for investing in franchises.
– Available commercial real estate due to many of existing business closures in 2020.
Many of the people currently looking for work have management experience and technology skills, and they’re accustomed to life at the top end of the salary range. These are people who want to be in business for themselves, but at this point in their careers, they might not want to build something from scratch
Moreover, it is very important for franchisors to prepare on multiple levels for the expected franchising boom: strategic planning, operations documentation, site selection, marketing and messaging, and franchisee profiling.
As we look to come out on the other side of the pandemic, there will indeed be some challenges; but for companies that are well-prepared, 2021 could represent a once-in-a-lifetime growth opportunity.
The franchises that benefit the most will be those that enter the arena with strong franchise operations and an expansion strategy that allows for aggressive action. It’s always important to have a healthy system in place to deliver positive returns for both the franchisor and the franchisee, but failing to do so now could result in missing out on a once-in-a-lifetime growth opportunity.
defines what must be considered when making the decision to franchise a business.
While, at a minimum, franchisors need franchise legal documents (Franchise Disclosure Document and Franchise Agreement) and an operations manual, they need to also consider the following best practices:
– Providing Appropriate Quality Control Mechanisms
– Building Solid Supplier Relationships
– Maintaining the Franchise Brand
– Focusing on Continuous Concept and System Improvements
By ensuring quality control, optimizing supplier networks, focusing on customer engagement, and remaining committed to continually improve upon the business model, a smart franchisor is taking the vital steps needed in order to build the best franchise program possible.
This will definitely support many of small businesses generating many business expansion opportunities.