TECHNOLOGIES

HOW EA
TO

C H OS
O
FRANCHISE?
 How to Choose a Franchise?
‘Franchise business is no rocket science!’ Yes, but it
takes same amount of commitment and zeal as
starting any other business - as you are deciding to
be an entrepreneur. Operating a franchise would
need determination, will and continued efforts over
the years for achieving great success. Hence
ensuring to choose not the best franchise but the
one that suits you best is crucial.

“An essential part of the Franchise success, no

matter the kind of Franchise – traditional or a
more niche one, is the ability of a franchisee to
understand the market and have ine
business acumen”.
- N. Murali Mohan,
President,
IIHT Technologies, India.

It is thus critical to understand how to choose a Franchise. Critical analyses of the

following three major components could help in choosing a right franchise most
suitable for an individual.

¬ Self Evaluation
¬ Market Analysis
¬ Franchise Evaluation
Self Evaluation

Self Evaluation in terms of inance, time and other personal circumstances such as
family support is utmost necessary. Carefully analysing and identifying the
in luencing factors helps in determining the ability to choose a franchise that is
most suitable to an individual. Further it also helps in identifying the factors that
could possibly prevent one from running successful business and thus take
necessary steps to resolve issues.

Financial capacitates, access to loan facility and creating an asset portfolio could
also help in determining the range of investment that one could bank on.
 Self Evaluation Post this, considering the factors in choosing a product or service that individual is
more passionate about or is most interested in could be determined. It is always
better to have more than one option. The factors could be then weighed to see if
you have potential to start a business of a chosen product or service. If yes you
could go ahead, if not you could simply put in more efforts to increase your
potential.

Once critical self evaluation is completed and you are determined to invest in a
franchise, it is important to research the market.

Market Analysis
Market research has to start with an extensive
need analysis. If the need for the product exists
it is important to study the demand and supply.
Many suggest, in the ield of franchise, not to
invest in a product or service which are overly
crowded. Ensure t here is not too much
competition. The market for any product today
is volatile hence to check on overall product
behaviour in the market is crucial. Once need
for the product is established and favourable
market is identi ied you could step ahead to -
choosing the franchise.
Franchise Evaluation

With global franchise scenario evolving, the world is truly your Oyster’.

There are many franchise options available in various industries in all sizes and
prices. However, there are many fraudulent or deceiving franchises as well that
have come into light in the fast. Therefore it is essential to create a check list to
evaluate a franchise while selecting franchises.

Post consideration of cost and other criteria’s related to market, create a list of
alternatives that you could choose from. Once the inalised list is ready then
ensure that you evaluate the franchises by talking to franchisees, checking its
authenticity, its past records, its proven success, its ideology, vision and mission
or you could read this article for the checklist.

One could also seek professional advice before choosing the franchise to do
business with.
TECHNOLOGIES
TECHNOLOGIES
Corporate Headquarters
#15,Sri Lakshmi Complex, 4th Floor, St. Marks Road, Bangalore - 560 001. India
Tel: 91 80 6160 4545 e-mail: franchise@iihttechnologies.com
web: www.iihttechnologies.com