Franchise – Freeway to fortune

A successful business finds growth prospects in expanding the capacity so as to cater to a larger number of consumers. So a restaurant with ten tables may add ten more tables and increase the staff. An office may move from a smaller place to a bigger one where it can accommodate more staff, computers and serve more customers. What next? A couple of branches in other cities? Probably an office overseas? In line with this thinking, comes the next business model – that of franchise. Franchise means the authorization given by a business organization to another individual or organization to carry on a specific business activity. Franchise is necessarily geographical expansion with multi-location representation of a brand. These are not offices/ outlets owned by the principal organization, but a network of independent businessmen/ owners representing an established brand at multiple locations. In short, a hierarchical partnership of sorts!

Franchise or business chains have become an increasingly popular model of business especially in the service industry like restaurants, couriers, retail shops, service centres, laundries, pathology labs etc.