Have you ever fantasized about owning a business but been intimidated by hefty fees or complex regulations? Then you should be aware of a no-royalty franchise model that’s creating ripples in India and globally. This business concept allows individuals to open and operate a popular brand outlet, without paying royalty fees every month. Yes, you read correctly! You don’t have to give a portion of your profits repeatedly. Sounds nice? Let’s learn more about it.
It may be difficult to start a business. You require a plan, a nice name, and lots of advertising. That is why most people opt to start a franchise business. In this arrangement, you operate your outlet under the name of a famous brand. The company provides you training, assistance, and products, and you simply model yourself after them. But in the majority of franchise models, the business owner pays royalty, a set proportion of their monthly sales to the company.
Now, suppose you don’t have to shell out that royalty. You get to retain all your earnings after the initial setup fee. That’s what makes the no-royalty model of franchise alluring! It’s ideal for small entrepreneurs, particularly in Tier 2 and Tier 3 cities, who wish to expand rapidly but do not wish for recurring costs. This model offers greater liberty and better returns to the franchise owner.
So, how does this work?
In the no royalty franchise, you pay the brand one fee only. This comprises everything you require, training, setup, equipment, branding, and even marketing assistance in some cases. After your outlet or store is up and running, you pay no additional money to the brand on a monthly basis. That implies the greater your sales are, the higher your profits will be, and you get to keep it all!
This kind of model is expanding in sectors such as food, retailing, education, even beauty parlors. For instance, if a neighborhood food counter has a familiar burger or pizza brand, it can get more customers because of the brand name. Meanwhile, the owner does not need to give away their earnings, which makes them expand quicker. The people enjoy this arrangement because it is easy, straightforward, and allows the business owner more control. You still receive support from the brand, but you don’t have that feeling of working for the brand. It’s your business, your gain, and your vision.
Let’s discuss the core of the subject matter, the FOFO franchise model.
FOFO is short for Franchise Owned, Franchise Operated. This is the most prevalent no-royalty franchise model. In this, you own the store, employ the staff, deal with the franchise day-to-day operations, and make all the decisions. The brand simply provides you with the name, the products, and the support you need. You are the owner. You get to decide how to run the place, while the brand assists you in having the tools to excel.
In other words, the FOFO model is the best of both worlds, you have a large brand’s name and backing, but the company is yours. It’s a wonderful opportunity for young business owners, women entrepreneurs who want to start a business, or retired professionals who want to start something different.
So if you’re considering starting your own business, the no-royalty FOFO franchise model could be the intelligent move you’ve been looking for!