Here's why online franchise business is a good idea

by Ayesha Siddiqa on 23/02/2018
One of the main concerns potential entrepreneurs face is how to choose a sustainable business model. Usually, this is one of the main steps of setting up a business, and if done right, can prove to be beneficial in the long run. Franchise business is a good way to begin your business endeavour, but what is it? And, how is an offline franchise different from an online one?

Offline v/s Online Franchise business:
A traditional franchise business is one which requires you to purchase a license, invest in an offline store, decorate the space in accordance with the parent model and pay royalty to the franchise owner to sell their merchandise. While this has proven to be a good business proposition, it requires a lot of investment. An online franchise, on the other hand, is all about distributing brand merchandise through various online mediums. Here, the cost is mainly for attaining the license and procuring the products to be sold online.

Therefore, an online franchise could help you succeed due to its proven business model, training, promotions, as well as support. Here are some reasons why an online franchise business may be a god idea for a new business owner:

They are already established: Every business should have a brand identity that a customer relates to, because they place their trust in brands that they recognise. The main advantage of a franchise is that the brand name is, usually, already established. This saves you cost of building a brand name through various strategies. The bigger the name, the better customer retention it offers. Therefore, investing in an established franchise could be a great idea.


They have their own marketing strategies: When you start a business from scratch, you need to invest in marketing, so as to make the brand name recognisable. The business owner generally incurs a humungous cost for the different online and offline marketing avenues. A franchise, due to its well-established nature, already has tried and tested marketing strategies that makes it stand out. More often than not, most of the large franchise businesses have their own marketing teams that care of all the outbound communication. This helps franchisors to concentrate on business rather than market their products, thereby, cutting costs.


Easy to procure stock: For most online businesses, one of the main challenges is to source products. Shipment delays, middlemen mismanagement, physical strain and many other constraints can make this process cumbersome. Whereas, with a franchise, once you have the sufficient licenses, you have the team’s complete support in keeping up inventory. In fact, when there are new additions to the merchandise, you can add it to your inventory without any hassles.


High market demand: When a business grows to the point of having multiple branches and a franchise opportunity, it means that customers are really looking for it. Therefore, online medium serves as an added platform to distribute the products of the particular brand. Additionally, being niche products, the customers who look for these products are already aware of what they want, in most cases. This can be a great advantage for someone who wants to start an online franchise business.


Support provided by the franchise chains: When you are a stand-alone seller, you have to take care of all aspects of your business, alone. With a franchise comes the advantage of support and assistance for the sellers. When something is in a disarray, you need only reach out to the parent company and they will assist you in solving issues. This will help you save time in unwanted disturbances and run your business smoothly.

So, there you are! Some advantages of owning a franchise business. Go ahead, perform market research and invest in franchise that best suits you. What do you do once you get the license? Well, it’s simple. Just register on Amazon and start selling these products seamlessly to crores of customers. You could also check the Start Selling Guide, for tips and tricks of online selling.

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