ROI is the return on investment.The time period required to get back the amount of money invested in the business is called Return on investment. For more information please check the link.

Profit margin is the final amount that remains in our hand after all expenditures are made in the business operations.For more information please check the link.

No, franchise fees are not refundable.But if the brand commits on this, it will be mentioned in the agreement paper. For more information please check the link.

A franchise fee is a charge paid by the franchisee to the franchisor to use all the privileges like brand name, brand value, logo, business policy etc.

In case you face a certain issue, you can exit the business, but of course, in line and abiding the mentioned policy during the agreement. In this exit process of franchise, brand may buy your equipment and other inventory or you may have to dispose of them on your own. For more information please check the link.

Agreement year depends upon brand to brand. It is the duration when the agreement is valid in the contract. Once finished, it can be renewed.For more information please check the link.

The brand will provide a research analysis report that will help to find the business trend in the next 5 years and accordingly the location will get finalized based on the report.For more information please check the link.

Menu pricing is the amount set of each dishes, that is decided by the brand in most cases.

Brand will provide the raw materials if you are dealing with a finished product, but if you deal with multiple products, the brand has their vendor tie up who will provide the raw materials. For more information please check the link.

In FOCO model, the franchise owns the business and the company operates it. On the other hand, in FOFO models the entire business process and all other activities related to the business is solely handled by the franchisee. For more information please check the link.

In the training process, you will be taught in a comprehensive way on how to set-up the business, run the operations, customer service, technical aspects, marketing, logistics, advertising, promotions, sales, how to handle the low trending situations, hiring staffs, analysing skill sets required and many other things that best suit for up scaling your business. For more information please check the link.

Royalty is an ongoing payment made to the brand by the franchisee for the continued support provided by the brand till the time the franchise agreement exists. For more information please check the link. link.

Once we take a franchise, it will take approximately 45-60 days to complete the setup process. At times it depends on brand to brand as well.

Franchise laws of India are the laws that are mandated to be followed by the franchisor and franchisee when they agree to associate in the franchise business for more watch video.For more information please check the link. link.

To franchise your brand, first you need to analyse whether it is in a position to be extended for franchising. Then document work needs to be taken care of. There are many other parameters to franchise the brand.

In order to discover the right brand, you need to do a deep research of the brand, their products, financial reports, business trends, customer behaviour and acceptance of the product etc.

Common mistakes of franchise investors are not analysing the location, lack of financial understanding, no decisions in haste, lack of experience etc. For more information please check the link.

There is no mandatory criteria of experience required in the franchise business. However, it is recommended that if you have basic work experience it will be easier for you to understand the business, and carry out the operations. For more information please check the link.

To start a restaurant business with zero experience might be little risky. It is better to have a minimum 6 months experience or internship in a restaurant to run smoothly. For more information please check the link.

To discontinue the franchise in the middle, you need to follow the exit policy as mentioned in the agreement paper. For more information please check thelink.

In franchise business, the role of an area developer is to develop the brand in that location along with checking on the logistics, stock, marketing and supply etc. For more information please check the link. link.

Food cost and product cost are similar.Food cost is the cost incurred to buy the raw material or ingredients of a particular product necessary to make the finished product. For more information please check the link.

Working capital is the amount of day-to-day cash available with the business. Until the business is in full swing it is vital to ensure the working capital covers a length depending on the size and expenses. For more information please check the link.

The point when you get back the invested amount or a no profit no loss point is called break even point.Some even says it as ROI. For more information please check the link.

Fixed cost and recurring expenses are the cost that includes rent, electricity bill, salary etc and called fixed cost because even business generates no profit these costs have to be incurred. For more information please check the link.

Cost bifurcation is a calculation with which we know the costing for each product or service very specifically.Cost bifurcation is mostly used in retail industry. For more information please refer to the link.

Revenue sharing determines the percentage share of each partner involved in the business.For more information please refer to the link.

CapEx is the fund used by the company to acquire, upgrade, and extend the life of fixed assets of an organization. To be precise, CapEx is an expense that a company capitalizes and shows in its balance sheet as an investment.

In Joint venture, two parties or companies associate and run the business together in a single name. For more information please refer to the link.

Master franchise is a kind of business model where you work at par with the brand. In Master franchise a detailed knowledge of experience, your skills has to be there. Master franchisee takes the responsibility to grow the brand at few locations within a territory and help grow the business. For more information please refer to the link.

Profit margin is the amount that remains after all deductions(expenses).Profit Margin means Total sales - total expenses - Discount = Profit. For more information please refer to the link.

FOFO model means franchise owned and franchise operated model. According to this concept, you will be the owner and you will operate the entire business. For more information please refer to the link.

The bakery industry may work under stand alone concept or live kitchen concept.In Stand alone, the store gets its products from the central kitchen and sell it in a stipulated time.Whereas, in Live kitchen, the products are manufactured in the store kitchen and then sold to consumers. For more information please refer to the link.

To finalize the location, the brand will do a proper analysis of the area, understand the customer behaviour, research on customer demands, and set the location.