What is a Franchise?
“Franchise” is a type of license that is given to an individual or a group of individuals by the owner to function, operate and make profit by running the business under his name. In other words, where a franchisor (the original owner of business) sells his rights of using the name and idea of a business to the franchisee (the one who buys business) to run the said business under his name. The franchisee buys these rights from the franchisor in exchange for money. This particular idea helps in increasing the market share of business and make it convenient for end users by being in a desired reach. The owner gives the power of running the business to the franchisee. Let’s look at Concept of Franchise in Vending Machine Business in detail.
Concept of Franchise in Vending Machine Business depends on various models:
What is the Role of Franchise in Vending Machine Business?
In order to start a vending machine business in India there are a number of factors one has to take care of. This includes, what type of vending machine should be installed? at which location? How to install it? What products to include in it? Where to get those products from? How to make it easily operational? Etc., etc. Franchise Business Model allows an individual to run business by joining hands with the original owner. A franchise business model provides an opportunity to start your own business even if one does not have proper strategy to follow. With this model, an individual does not necessarily have to go through all that initial course of labor and pain. Everything comes in-hand which makes business freely scalable.
How to get a Franchise in Vending Machine Business in India?
Before buying a franchise, you must hire a franchise attorney. A Franchise attorney can be a resource of excellence who will help in measuring the compliances dealing with lengthy franchise agreements. Now, in order to start a successful vending machine business in India; location, investment and resources are the three very important things that you would need.
Before getting a franchise, there are few things one should keep in mind:
- Research about the business
In order to buy a franchise of any brand, you should do an in-depth research about the brand. You should focus on market share it holds. You must know how well it is doing. Also, how scalable buying a franchise of that business will be.
- Choose the location
Brainstorm your marketing skills and search for the best suited location that would provide you with a good footfall. This will help in knowing about the areas that can provide good sales. Choosing a location for installing a vending machine is one of the biggest decisions, and one must take it decisively.
- Plan your investment/loan/fund
Buying a franchise requires a good amount for purchase. Plan about this investment by taking knowledge regarding schemes, loans/funds provided by banks that support entrepreneurs and business makers. They help you to expand business. They provide you funds for that.
- Connect with vendors
Connect with vendors/distributors of the product you wish to put into vending machines. You must know what type of products it will include. This makes buying process convenient. Connecting with those specific vendors prior would also make it easy for franchisors to understand your vision behind buying their franchise.
To get Franchise in Vending Machine Business in India-
- Intimate the company via email or call
Mention your interest in buying the franchise. Send an electronic mail or set up a call. Show your initial interest over the medium you choose. This will be the first step towards buying a franchise of vending business.
- Start by filling up an application form given by the franchisor
The company shall provide you an application form. This will include details you need to fill. Such as, the possible location, purpose of installing, products to distribute via machine, how beneficial it is, etc.
- Initiative by company
After you submit the application and the owner finds it satisfactory, he would reach out to you and would show interest in your application by selling his rights of vending business.
- Make an agreement
Make an agreement between both the parties. It should state all the information regarding the buying and selling of business, its obligations, liabilities, profits, etc. This will help in avoiding conflicts in future. One must hire a Franchise attorney to carry out legal formalities.
One of the biggest advantages that makes it attractive to own a franchise in vending machine business is the brand name of the company. However, everything comes with a cost. Owning a franchise costs a hefty amount. It is a ready-made business formula and a track record of successful functioning.
In order to know more about the franchisee business models, you can refer to our YouTube video https://www.youtube.com/watch?v=VL6f75mSL7U&t=306s