MAM
How to start a franchise: Step-by-step guide
Mumbai: Unlike starting an entirely new business, when one buys a franchise, it already has a business model and brand image that may be used to its advantage. This prevents one from investing time and risk into building the venture right from scratch, thus giving the new business owners a very good possibility of success.
Franchise businesses can come with a hefty upfront investment or a negligible one. The investment varies across sectors and brands, besides the locations. Major costs include franchise fees, royalties, initial investments, and marketing fees. The franchise fee can vary anywhere between 1 Lakh to 30 Lakh, or even more which is paid for the brand usage and the business model of the franchisor. Then, one must consider the cost for leasing, renovation, equipment, supplies, and setting up technology. Royalties comprise typically four per cent to 15 per cent of monthly earnings. Lastly, there is a certain percentage of marketing fees that one must pay.
Legal compliances:
Making a franchise agreement under the Indian Contract Act, 1872, which describes rights and responsibilities. Registration of the franchisor’s trademark has to be given under the Trade Marks Act of 1999. Lastly, the franchise shall be registered as a private limited company, corporation, or sole proprietorship under the Companies Act, 2013. All these legal steps make the franchise operate under the ambit of Indian business laws.
Getting started
Step 1: Pick an industry
Starting a business means an intensive commitment of resources — thus, one better make sure they are going into an industry they can work on day in and day out. Remember, at this stage, it should be passion over profit, for the more one is driven and engulfed with a venture, the likelier it will be to succeed.
Step 2: Research competition
Looking at franchise opportunities within the target locality could be helpful to gauge the amount of effort you will need and it can also be an indication of the success of the franchise. If there is competition ask whether the businesses are profitable and if there isn’t any, seek to know why is that.
Step 3: Cost Consideration
Becoming a franchisee might require a large financial commitment. Ensuring that one has the upfront funds as well as operational costs. Also, consider whether the business is profitable after royalties.
Step 4: Develop a Business Plan
An ideal next step after the opportunity has been identified is the creation of a business plan. Although this is supplied by many corporations upon acceptance, having an own to edit while working out a unique strategy and showing the franchisor how capable a partner is. A business plan should include market analysis, management plan, and customer service.
Step 5: Creation of Business Entity
Next up, establish a business entity. This means a business entity will shield a business owner from personal risk except, of course, for a sole proprietorship-so it’s smart to have an LLC or corporation set up. Most franchisors will have requirements regarding business entities, so it’s important to check with the company.
Step 6: Meet franchise licence requirements
This is the time when one needs to apply and go through the process of franchise licensing. This can be likened to a job application; Interviews are taken to ascertain whether one is qualified and capable. Once this exercise has been completed, a franchise licence agreement is signed.
Step 7: Find a location
The next step is to find a suitable location. Franchise rules set by the franchisor will likely dictate where a business can be located, and often Franchisors provide help to find a retail space. While this is happening, look for areas that have a good mix of foot traffic to affordable rent.
Step 8: Equipment ordering and human resource hiring
Now, it’s the time to order essential equipment and start interviewing employee candidates. Most of these are financial burdens that must be carried by the franchisees, although the parent company can provide assistance in the form of preferred vendors for equipment and templates for hiring. Automation processes like communication automation can save resources.
When all the above is done, one can open the doors. The parent company may also have contracted an advertisement campaign to announce its new location in town. The rest from here is left is for one to make decisions on how to manage and maintain a profitable business.
This article has been written by FranchiseBatao CEO and founder of Ashish Agrawal
Brands
Eternal posts Rs 54,364 crore revenue, up 168 per cent in FY26
Q4 profit rises to Rs 174 crore as firm streamlines District business
NEW DELHI: Eternal Limited reported a sharp surge in scale for FY26, with consolidated revenue rising 168 per cent year-on-year to Rs 54,364 crore, underscoring strong growth across its core businesses.
The company’s growth was mirrored in its bottom line, with a total annual profit of Rs 366 crore. The fourth quarter was particularly strong, contributing Rs 17,292 crore in revenue and Rs 174 crore in profit, a sharp rise compared to the Rs 39 crore profit recorded in the same period last year.
Key financial metrics from the report include:
- Total assets: Increased to Rs 40,736 crore from last year’s Rs 35,623 crore.
- Delivery charges: The company collected Rs 9,065 crore in delivery and related charges over the year.
- Employee costs: Staffing and benefit expenses amounted to Rs 3,536 crore.
- Liquidity: The firm maintains a cash balance of Rs 996 crore, supported by Rs 632 crore generated from operating activities.
On the strategic front, the company has approved the transfer of its District platform’s technology stack to its wholly owned subsidiary, Wasteland Entertainment Private Limited. The deal, valued at Rs 24.19 crore, will be completed in cash and is expected to close by May 1, 2026, along with the transition of select employees. The move is aimed at consolidating its entertainment and ticketing operations under a focused entity.
From a regulatory standpoint, statutory auditors Deloitte Haskins & Sells issued an unmodified opinion on the financial results. However, they flagged an ongoing show cause notice related to GST on delivery charges, which the company continues to contest, citing a strong legal position.
With robust revenue growth and ongoing structural tweaks, Eternal is clearly sharpening its playbook as it expands beyond its core into a broader consumer services ecosystem.
