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How does a food franchise work?

Starting a food business is one step. But building a recognizable brand name that attracts customers everywhere takes years of work.

If you are looking to enter into the restaurant industry, franchising might be a logical option for you to start with. It fast tracks your journey by attaching a well-known brand name.

Confused with where to start? In this blog post, we are answering all questions related to food franchising in India. So that you are equipped with all the knowledge to start your journey.

Let’s begin!

Is taking food franchise profitable in India?

According to Restaurant India, the Indian franchising industry is estimated at $24 billion with an expectation to reach $35 billion by 2020.

How does a food franchise work?

The basic franchising terminology:

Franchisee: The entity that purchases the rights to the business and runs its day-to-day operations.

Franchiser: The entity that owns the intellectual property.

Franchise: Granting rights for another entity to use your name, recipe, look & feel, trademarks to conduct business.

Entering into a franchise agreement means that you — the franchisee — purchase the right to sell goods or services using the franchisor’s trademark or trade name for a specified period of time.

Types of food franchising model

Master Franchising

It’s a franchising contract in which the master franchisor (the owner of restaurant) hands over the control of the franchising activities in a specify territory to a person or entity, called the ‘Master Franchise’

Single — Unit Franchising

These are ‘owner-operators’, i.e. in addition to being owner, you have to work as the primary operator or the manager for your restaurant. Single-unit franchising is also known as direct franchising which is popular in India.

Multi — Unit Franchising

A franchise purchases more than one franchise from a franchiser. The franchisee takes up the ownership and responsibility to grow the business for all these units.

Company — Owned Franchising

The brand establishes its own representative office in the country and helps the franchise in setting up a business. The representative office has a team to work closely with the franchisee and is responsible for creating the brand image and consumers connect with the brand.

How much does a food franchise cost?

The one-time investment of opening a franchise is a collation of various charges. It includes the setting of the required infrastructure, from couches to software, to the hiring staff and their uniforms.

How to find your franchise match

It is always good to have a third party consultant with you during the process. They can help you getting in touch with different franchisers, creating business plan and figure out investment areas.

If you are looking a franchise Select Dine will help you to make your dream of owning Franchise into a reality. It builds your brand with passion. It is a Consultancy company in the ‘Food and Beverage’ Industry that helps people to set up new restaurants, and existing brands to expand.

Hey there, foodies! Planning to start a restaurant, but have no ideas? Are you everything about food & dining? Say no more, we’ve got your back! A collection of unusual content you cannot find elsewhere-SelectDine is the solution for all your queries related to food industry.


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