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New Franchise Brands Risky?

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A franchisee and a franchisor form a joint venture. The original company, known as the franchisor, sells the right to use its name and concept in the future. The franchisee buys the right to sell the franchisor’s goods or services while retaining the franchisor’s existing business model and trademark.

Every industry has franchise opportunities. Despite the fact that it is used in fashion, retail, and even furniture. The franchising industry in India is rapidly expanding. Every bazaar in India would greet you with the most well-known brands.


Maintaining relationships between franchisees and franchisors is central to franchising. Many people consider franchising in terms of the law first and foremost.While the law is important, it is not the most important aspect of franchising to understand. At its core, franchising is about the franchisor’s brand value, how the franchisor supports its franchisees, how the franchisee fulfils his or her obligations to deliver products and services in accordance with the system’s brand standards, and, most importantly, franchising is about the relationship between the franchisor and its franchisees. So, if there is a disagreement between franchisees and franchisors, running the franchise business becomes extremely difficult.

To the general public, franchises appear to be similar to any other chain of branded businesses, but they are not. The brand owner does not manage and operate the locations that provide products and services to customers on a daily basis in a franchise system. The role and responsibility of the franchisee are to serve the consumer.

A licensor and a licensee have a contractual relationship that allows the business owner to distribute products or services to consumers using the licensor’s brand and business model. If the Licensee does anything wrong, the licensor has full authority to take action against them. Moving forward, we will learn about the benefits that a franchise receives when entering the Indian market.

If we conclude then there are mixed up views about different franchises in every sector. A thorough study before franchising would be the right call before considering it a risk.

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