The Bilateral Concept Of Franchising

Today, for certain individuals, starting a franchise is a greatly improved choice than starting their own business. They think it is a lot simpler and it has a few points of interest.

In the most recent research, the IFA(International Franchise Association) projected the number of Franchise establishments to grow by 1.9 percent in 2018 to approximately 759,000, with a 2.6 percent increase in 2019.

Also, Franchise Businesses were projected to increase by 6.2 percent in 2018 to $757 billion.

If you are planning to open a franchise, there are numerous significant things you want to know from how franchising works to the expectations of the franchiser and the franchisee with each other. You need to put in effort and time to research.

How does Franchising work?

According to the Business Franchise Association (BFA), it is the giving of a permit by one individual (the franchisor) to the other individual (the franchisee) which qualifies the franchisee to trade under the trademark/tradename of the franchisor and utilize a whole business bundle, including all the components important to build up a formerly untrained individual in the business and run it with consistent help on a predetermined basis.

A settled and demonstrated business franchise should provide :

  • A set-up advertise for the franchisor’s items or services
  • Demonstrated deals, marketing, and operational methods
  • The advantage of a built-up business name
  • Continuous help in maintaining the business

In this blog, I will take a gander at the two different sides of the franchise establishment relationship – that of the Franchisor and the Franchisee. To be fruitful, both need to profit by the relationship.

Franchising from the Franchisor’s Perspective:

Franchising has developed consistently over the last decade and is currently present in all business divisions particularly the food and the on-demand delivery services.

With some outstanding organizations working effective franchise networks, you might be pulled in to the thought yourself. It could be the perfect method to expand your business without enormous capital investment to set-up a completely claimed operation.

As a franchisor, you grant a permit to the local vendors(franchisees) to sell your items and products, use your brand name, logos and some special components for a particular time.

In the beginning, you may be involved in considerable expenditure to grow your franchise operation, but when it comes to the stage of appointment of your franchisees, they will pay you an initial fee that will enable you to repay these costs over time.

When they are in business, you will receive regular income from them by charging a fee for the management service or marking the cost of the good.

It may seem too good to be true at first sight, however, just as advantages, franchising can have its downsides as well. The development of a fruitful franchise network requires consistent planning, persistent observation and, expert support.

Franchising from the franchisees perspective:

Most of us don’t know about the risk associated with starting the business franchisee. However, there is a method for fundamentally diminishing the risks and drawbacks – franchising.

This offers the franchisee to chance to claim and maintain the well-established business under a brand name with a demonstrated business arrangement and the market.


  • Franchising offers business frameworks, products/services, and all the essential components which are market-tested. Therefore, the risk associated with your business is usually reduced.
  • As a franchisee, you don’t need to invest much time and money in your own business because the franchise package normally includes all the regularly incorporate task manuals, accounting, and bookkeeping task frameworks, advertise and marketing. 
  • As a franchisee, you will get full assistance and guidance while setting up your business so you are bound to keep away any early-stage troubles.


  • You sign a conventional agreement undertaking to maintain your business in severe consistency with the franchisor’s specifications. You may feel restricted after some time.
  • As the accomplishments of your business develop, you might need to spread your business in other cities as they already occupied by the other franchisees.

The achievement of your business largely depends on the type of business you have invested in. The products and services provided by the Franchisor play an important role in the overall development and success of any kind of business.

For the same, FATAFAT is here to serve you and make your business successful. FATAFAT understand the needs and demands of their franchisees.

Let’s understand how FATAFAT works as a Franchisor’s perspective and as a Franchisee perspective:

FATAFAT as a Franchisor’s Perspective:

FATAFAT offers the following services to make your business successful:

  • Branding Material: FATAFAT provides all the identifying material which includes Stickers, leaflets, brochures, etc. for free.
  • Complete Technical Support: FATAFAT works around the clock to help you grow your business and maintains a healthy customer base. FATAFAT understands the needs of its franchisees and makes sure they get full customer support every time.
  • Complete services: FATAFAT provides incorporate task manuals, bookkeeping, marketing, and advertising.

FATAFAT as a Franchisee’s Perspective:

 FATAFAT is always there to serve its franchisee’s in the best possible way but as a franchisor, they will expect the following from its Franchisee’s:

  • Backlog Recovery: All the payment and commission related queries are handled by the franchisee. The franchisee has to collect it from all the merchants.
  • Driver Escalation: Any driver-related query and issue are always solved by the franchisee. Franchisees are also responsible for the recruitment of service providers.
  • Panel Decision On Mutual Consent: It means who will be going to use the Franchise Panel, it will be decided on the mutual consent between the franchisor and the franchisee.

Want to become a proud Franchise Owner? So it’s time to start your own business by starting a Franchise that is India’s Top On-demand Delivery service provider. The easiest and fastest way to get your business online.

Want to know more about FATAFAT, visit our website here!

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