Need assistance to buy a Global Franchise?

    Buying a franchise is a good option for entrepreneurs who want to start a business but don’t want to go through the hard work of establishing a new brand and system. However, purchasing a franchise is not as simple as it may seem. To know which franchise is a good fit for you, it’s important to first research typical franchise requirements to ensure you qualify and have the proper information. ParsBEM Consultants Private Limited conducts your self-analysis and where you determine your own skills, resources, and interests. Once all of this is done, we opt-in for the right franchise to buy with respect to your budget.

    Average of top 10 best franchise businesses in India

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    Franchise qualification requirements:

    Qualification requirements vary significantly depending on the franchisers and the type of franchise you’re buying. However, the following are often taken into consideration:

    • Credit score – Minimum credit scores vary by franchiser, but generally, a score of 680 or higher is ideal.
    • Net worth – If your franchise requires a large initial investment, you’ll need a comparatively higher net worth to qualify.
    • Cash on hand – You need to have enough cash on hand to either cover the franchise costs or cover a down payment if financing the purchase.
    • Outside income – You should have other forms of income and resources to help with living expenses while you get the franchise off the ground.
    • Industry experience – Although some franchises do not require business and/or industry-related experience, franchisers are typically all more confident if you have relevant experience.
    • Management experience – As a franchisee, you will be primarily responsible for leading a team and managing a business. Lack of management experience can be a red flag that you might not succeed.
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    When finding a franchise opportunity, here are few of the things that you need to consider

    • Total investment required – This includes franchise fees, training expenses, costs for leasehold improvements or real estate, employees, inventory, marketing, furniture and fixtures, and equipment.
    • Ongoing costs – This includes royalty fees and marketing/advertising fees on top of your regular operational expenses.
    • Training and support – Find out what training and support are provided by the franchisors, if you will be charged for these and how much, and where will the training take place.
    • Competition – Know how close other franchises to your location and if there are any existing businesses already in competition with you.

    Benefits of Franchisee

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    Lower risks in business

    There is a low risk due to the tried and tested formula. Buying a franchise business provides a higher chance for success. They get the benefit of owning a proven business formula that has been tested and shown to work well in other locations. In addition, they receive the support from the main company toward establishing the business, and the training to operate it successfully.
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    Lower Start-up Costs

    There are lower start-up costs since the business idea was already developed.
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    They are buying a name and brand that is recognized by the public. So they have a big advantage over starting a business from scratch, as they already have an established customer base.

    Business Security

    A franchise gives more security from the beginning. New independent businesses are known to have as high as a 90% failure rate, often causing the business owner heavy losses and at times bankruptcy.
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    Established Business

    When you start a business from scratch, you spend huge amounts of time trying to operate the business without being successful because you may not have the necessary skills for that particular area. When you purchase a franchise, all the necessary groundwork has been done already. In addition, the franchisee gets training and head office support from the franchisor; this may be essential if the franchisee is new to running a business and has no experience or business knowledge.
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    Readymade Business

    Since all the product selection and the marketing have been already developed, you simply have to take care of the daily operations of the business. Your goal will be to grow from an established foundation and expand from there.
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    Business Learning

    The new franchise owner gains many benefits from the association with the main franchise company. The franchisor offers a great deal of business experience that would take years for the average business person to acquire.

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