Keep Plan B in mind when buying a franchise
Mr. Gajanan Pawar graduated with a B.A. Ed done. He got a job in a private company by paying Rs 20 lakh. This year I will get a grant, next year I will get a grant so I spent four years for free. Finally got bored and learned catering. Meanwhile, a franchise was reported. Launched Rs 25 lakh restaurant with franchisee. Initially, the franchise company told big things and Gajanan Pawar forgot about it and started a restaurant franchise with an investment of Rs 25 lakh. The first 5-6 months went well but then some restaurants started around. The price of food in their restaurant was even higher than in the surrounding restaurants. Gajanan Pawar’s tension began to rise as his business gradually declined. Workers’ salaries, light bills, hotel rents, franchise commissions became unaffordable, and the brand did not offer any support. What should we do if there is a shortage of customers? The market is down, what should we do? What do we have to do with increased competition? Will it benefit, did we write this? Gajanan Pawar started getting such irrational and irresponsible answers from the brand. The agreement clause states that if the restaurant is closed within three years, the franchise deposit of Rs 2 lakh will not be refunded. But Gajanan Pawar used his head. It seemed crazy to bear a loss of Rs 50,000 a month to save two lakh franchise deposits. Just like when a prey gets behind the sail, the sail breaks its tail and saves its life. He set up his own new restaurant in the same area, taking another cook with his self-taught catering skills and help, despite dropping a Rs 2 lakh deposit. A spicy Kolhapuri red-and-white gravy, mutton on the stove, bread, Mast Idli for breakfast, Coconut Chutney, Saturday-Sunday Paya Soup, Dum Biryani, Desi Chicken Handi and some banners were put up on the road around the hotel. Well advertised on social media. A Marathi actress was invited to the inauguration by paying Rs. 50,000. Dhoom inaugurated the hotel in a big way and restarted and in just 3-4 months the business started making more than one lakh profit. Like Gajanan Pawar, you should always have Plan B in your head. The brand will not fight for you in times of trouble. So you have to find your own way and you have to fight for yourself.
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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