Franchising as a concept has become a popular trend in Indian Business Environment in the last 10-15 years. People are flooded with Franchise proposals of all types of Companies. Which Franchise proposal is the right one? Many clients approach me with this dilemma.
Should one go for a popular Brand, or can one go with lesser known brands also? Both have their own merits and demerits. If one can afford, the decision is easy. One must go with the more popular Brand. Dilemma arises when the funds are limited. Answer lies in Chanakya’s Power equation analysis. If with respect to a particular type of Franchise, the local partner is in a position of strength, he can go with the lesser known Brand. Position of strength may be in the form of strong local goodwill the local partner is having, or it may be in the form of a strategic location (if this parameter matters with respect to that particular Franchise). Important point in such situations is to first define the important parameters related to the Franchise. If the local partner is strong on the desired parameters, he can take franchise of a lesser know Brand. If the local partner is in a position of weakness, and the Brand of Franchisor is also weak, never invest even a single rupee in such a Franchise.
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