The green shoots of economic recovery have resulted in a rush of businesses entering the franchise sector in the last few weeks in order to accelerate their growth plans. But a leading franchise expert has warned that companies considering a move into franchising need to ensure their structure and planning is sound.
Indian restaurant chain India At Home, Mexican restraint chain Mad Mex and organic cafÃ© Wray Organic have all announced their debuts into franchising over the past week.
Rajesh Bhatia, director of India At Home, is launching a franchise model for his business that will see prospective franchisees pay between $350,000 and $500,000 for a new location.
Bhatia says franchising will allow his company to grow at a faster pace than he could manage on his own, but he also expects challenges for the new model.
“We’ve come to the point where individually managing a store is more important than growing, in the sense that I can’t be doing both. If we’re going to grow, franchising is ideal, because we can’t just invest all our money in this, other people need to do it too.”
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