How to make a cake shop franchise?
Question: I have a cake shop in Mumbai. Baking is my passion. Every day 30 to 40 cakes are sold and 15 to 18 thousand are traded. What if I want to franchise my shop?
Answer: Selling 30 to 40 cakes a day from a cake shop indicates that the quality of your product is very good. Food products have a 50% margin. Your product has the potential to earn Rs 5,000 per day. This is a great opportunity to transform any product into any franchise chain. Follow the steps below to grow your brand as a franchisee.
1) Franchise Brand Concept: First you have to bring your small shop under a brand name and that will serve as a model for your franchise industry. For this, all kinds of branding collateral have to be made. E.g. Visiting cards, logos, websites, mobile apps, social media presence, effective branding, public relations, and advertising will have to be done. At the same time, all legal matters have to be met.
2) Operations: You will have to arrange training, supply chain, reporting and controlling, branding support etc. from selling the franchise to making legal agreement.
3) Organization Structure: Who will be the CEO of this company? Who will be the training head? You have to decide on the structure from the franchisee sales manager, purchase and supply head finance head, brand management head, as well as middle management to the peon.
4) Capital: There is only desire and no use to convert your product into a franchise brand. So it requires very good capital. Anything else can be disguised, but money cannot be disguised. My guess is that if you want to launch 50 franchises of your brand in the next five years, you will have to spend around Rs 50 lakh on all these processes. You can charge a franchise fee of Rs 3 to 4 lakh for each franchisee and get 15% royalty on monthly sales. It can earn you up to Rs 3 crore and as long as the franchises are running, you will get a separate royalty every month.
5) Leadership Development: Till now you were just making a good cake but now you have to build business leadership qualities in yourself. It is my wish that you come to be known as a good entrepreneur.
As franchise consultants in Mumbai, we at Franchise Birbal always provide individual attention to our clients and help them to establish franchise businesses both in India and internationally. Franchise Birbal helps franchisees start, grow, and protect their franchises. By developing a franchise business with us you get the assurance that you will be able to establish your franchise business successfully. Our franchise consulting and legal documentation services start from Rs. 15000/-* onwards.
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