Earlier we talked about how profitable franchise business ideas in Asia. I think so, you Must read that article before this to know better about its importance. Now, we’ll talk about step by step process for this setup.
Points to remember before you start a Franchise Business in Asia
- What are your requirements: You should define your goals clearly. Why do you want to take up the franchise business? What is that you want to achieve from this?
- What is your plan: Once you know what you want to achieve, then you can think about your plan. If you think that you plan to yield Crores of rupees, starting a small school franchise would not help you. Hence your plan would give direction about how much you want to invest and how much you expect in the coming 2 to 5 years period.
- Know how a Franchise business runs: Many entrepreneurs jump into the Franchise program without knowing how it runs and later blames the business. You should know about the Franchise business, how it runs, how you get benefitted from it, what are the legal and compliance formalities if you continue or if you exit etc.
- Set your expectations up front: You should set your expectations upfront with Franchisor. Don’t hide something with Franchisor which you want to achieve in the Franchise business.
- Franchisor should approve: Franchisor should approve your application. It would depend upon several factors like investment, your expertise, your commitment to the Franchise business, your thought process, etc. Individuals generally fail in understanding the expectations of the Franchisor and their franchise application would get rejected.
Step-by-Step process on how to open a Franchise Business in Asia
Step#1: Select city or location:
You can choose Tier-1 cities like Mumbai, Bangalore, Delhi, Hyderabad, or other cities like Patna or Orissa. The infrastructure would depend upon the type of city you choose. Also, some businesses would work better in some cities. Some cities have already been saturated with such businesses you may be choosing.
Step#2: Select Niche:
Select a Franchise business in the niche in which you are interested and in which you are an expert. Else, you may need to hire such experts for your Franchise business. Restaurants, after-sales services (computers), consumer goods outlets, etc. are good options to look for Franchise business in Asia.
Step#3: Do your legal formalities:
You need to first sign the agreement with Franchisor. Register your franchise business with the Ministry of Corporate Affairs in Asia. In the case of an international Franchisor, you need to have legal formalities be done in Franchisor’s resident country.
Step#4: Hire Staff:
Hire competent staff. Your Franchisor should be able to help you in knowing the skills required for the staff to run the franchise business.
Step#5: Compliance regulations:
You need to apply for service tax registration, sales tax registrations, apply for PAN cards, etc.
Step#6: Build the infrastructure:
Once you have finalized the location and leased out a place, you need to build the infrastructure like interiors, furniture, computer systems, etc. required to run the franchise business.
Step#7: Start your franchise business:
Once you have set up everything, you can inform your franchisor and start the Franchise business. You can periodically update your Franchisor about the business and pay the franchise fees as per the agreement.
List of some of the Franchise Businesses that can be started in Asia along with Franchise costs
- DTDC Courier and Cargo – Rs 10,000 – Rs 50,000
- SRE Financial planning and research – Rs 2 Lakhs – Rs 5Lakhs
- Kathi Junction – Rs 5 Lakhs – Rs 10 Lakhs
- US$ Dollar Store – Rs 5 Lakhs – Rs 10 Lakhs
- Clublaptop – Rs 5 Lakhs – Rs 10 Lakhs
- Eurokids school – Rs 5 Lakhs – Rs 10 Lakhs
- Siyarams – Rs 10 Lakhs -Rs 20 Lakhs
- Express Car wash – Rs 10 Lakhs -Rs 20 Lakhs
- Dosa plaza – Rs 10 Lakhs -Rs 20 Lakhs