Types of Food Franchise Business in India

Types of Food Franchise Business in India

What is making the franchise business so popular across the globe? Have you ever thought? Well, low-risk rate, lower failure rate, brand recognition, built-in customer base, and low investment are some of the aspects of the franchise business. For those people who are willing to start a business but do not want to get into the nitty-gritty of starting a company from scratch, owning a food franchise is the best option.

Who is a Franchisor and a Franchisee?

The franchisor: An entity that offers the franchise to a person/organization. This franchise is a right to use the name, products or services, etc. of the entity.

Franchisee: A person/organization that acquires the franchise from the franchisor/ original business owner.

 

Types of food franchises:

Master Franchise

In this, companies act as master franchisors and permit people or business entities to become their master franchisees. These master franchisees have the right to hire new franchisees in a specific region. Taco Bell, Papa John, Yo China, etc., are some examples of those companies that make use of the master franchise.

 

Single-Unit Franchise

Unlike the master franchise, this franchise is quite different. In this, a franchisor offers rights to franchisees to use their name, products, and services only in one location. Single-Unit Franchise is one of the most common franchises in India. Moti Mahal, Sagar Ratna, etc. offer this franchise.

 

Multi-Unit Franchise

In multi-unit franchises, franchisees can acquire more than one franchise from franchisors. Nirula’s and Subway are known to provide this kind of franchise.

 

Area Development Franchise:

In an area development franchise, a franchisee has to open a large number of units in a specific area. There are many well-reckoned brands from Dubai and other countries that are utilizing area development franchises to increase their brand value in India.

 

Company-Owned Franchising:

In a company-owned franchise, companies set up representative offices in targeted locations. These representatives support the franchisees to build the business and increase the customer base. Pizza Hut is one of those companies that use this type of franchise.

 

Food franchise cost:

Food franchise cost is not limited to the initial investment as it also includes a royalty fee or a commission. These royalty fees or commissions are charged by franchisors once or on a quarterly, monthly, or annual basis. Besides, there are refundable security deposits and franchise fees. There are also costs of infrastructure, hiring staff, licensing, etc.

  • Kiosks or small outlets: Opening a kiosk or outlet, especially in a food court is good for those who want to gain experience in this food franchise business. In this, the initial investment is usually between INR 5 lakhs – INR 15 lakhs.
  • Dessert parlors or bakeries: Everyone in India loves desserts and bakery items. Both of these food items have become an integral part of the lifestyle of Indians. Owning bakery shops and dessert parlors will be profitable for sure. In this, the initial investment is usually between INR 15 lakhs – INR 35 lakhs.
  • Casual dining and quick-service restaurants: Opening casual dining and quick-service restaurants have been successful in India for a long time. The one-time investment cost of taking the franchise of casual dining and quick-service restaurant companies is INR 35 lakhs – INR 50 lacs.
  • Bar and lounges: In the modern age, visiting bars and lounges have become very common amongst the Millenials. Anyone who owns a Bar and lounges franchise will surely flourish. The initial investment for such a franchise is above INR 50 lakhs.

 

Some of the Most Profitable Food Franchise Business in India:
Ganesh Foods Apply Now
HFC Food Private Limited Apply Now
Avataram Raju Coconuts Apply Now
Pahelwan Food Products Apply Now
Aayuvardhanam Apply Now

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Gain as much knowledge as you can about the food franchise business before making an investment. If you have a proper understanding, there is a high chance that you will be successful in finding an appropriate franchisor as per your preferences.

There are also some renowned portals like www.getdistributors.com that help you to get in touch with many companies that are looking for franchisees.

 

For More Details :

Email id: helpdesk@getdistributors.com

Visit-GetDistributors-

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