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Exploring The Types and Franchise Business Models in Kolkata

Are you fed up looking for the best franchise business in Kolkata to start your own business? Well, we are glad to tell you that we have the best destination for you. Shoppingara is an online franchise business that offers individuals an opportunity to start their own businesses. We are a well-recognized e-commerce franchise that offers individuals a platform and an amazing opportunity to set up their own online selling business with low investment. We have been in this e shop franchise business for more than ten years. 

A franchise has several benefits that an individual can adapt to when starting their online business. Your business can grow under our well-recognized and best franchise business in Kolkata and you can reach your potential customers faster. Our franchise has wide recognition and demand in India so you do not need to invest in advertising your products. In this blog post, we are going to delve into the types and models of franchises. 

What is a franchise? 

The term "franchise" refers to a business model that gives franchisees access to a franchisor's proprietary business know-how, procedures, and trademarks. The franchisee can then market a good or service using the franchisor's name, branding, and well-established business model. Franchise fees, which frequently include an initial start-up fee and ongoing licensing fees, must be paid to the franchisor in exchange for obtaining a franchise.

According to the franchise business model, the franchisor gives the franchisee the right to run their business in accordance with their own highly effective system for a predetermined period of time. It will be stated in the franchise agreement between the franchisor and the franchisee, which may vary depending on the franchise or the industry. This franchise agreement is a contract that also spells out the franchisee's rights and obligations in relation to operating the low investment franchise business. 

Types of franchise:

There are five main types of franchise businesses and these types are as follows:

1. Product franchises:

Franchises of this type are centered around a specific product, and their entire business model is based on supplier-dealer relationships. By excluding a complete operating system from franchisees, the franchisor licenses its brand name. These franchises typically sell large items like appliances, vending machines, spare parts, etc. Franchises that sell specific products have the highest retail sales.  

2. Business format franchises:

These kinds of franchises launch their own businesses using both the franchisor's trademark and the entire enterprise. Shoppingara is the best online franchise business in India that allows users to start their own online business format franchise. A comprehensive agreement and process on how to establish a business model are provided by the franchisor. The franchise industry is largely dominated by these types of businesses. If you have a specific business plan in mind, feel free to contact us.  

3. Manufacturing franchises:

A manufacturing franchise is a type of business arrangement whereby an existing franchise grants a license to a new franchise. It does mean that an already recognized franchise allows new online businesses to start their own online business of selling products and services. Shoppingara, the best franchise business in Kolkata, is a live example of this kind of franchise and we are providing a platform and our franchise name to new online businesses that are looking to start a business with a low investment. 

4. Job franchises:

This is a type of home-based or low investment franchise business in which an individual who wants to start running an online business handles their business alone. These franchises are most likely to be started by a single person and they sell products generally within a trade or franchise. A wide range of services that fall under these types of franchises include travel agencies, coffee vans, garden care services, event planning, and many more. 

5. Investment franchises:

These types of franchises require huge investments and are large-scale franchises. Examples of these types of franchises are big restaurants and businesses. In this type of franchise, the franchisee basically invests money in the business and sends a representative to run it. It can be explained using the example of the stock market, where a person purchases shares of a company and makes a sizable profit. 

How does a franchise work?

Before processing further, we want to remind you about the concept of a franchise. There is a franchisor that owns the franchise and sells their trademark or can say the name of the franchise to the franchisees who want to start their business. Shoppingara is the best franchise business in Kolkata that offers entrepreneurs a platform to start their low investment franchise business and earn high profits. There are many rules and obligations to start a new business with the support of a well-established franchise and you have to run your business according to the rules defined by the franchise. Now, we are going to let you know about the working process of a franchise:

To start your business with a franchise, you need to sign the contract that the franchisor has given you. The agreement is a complex one, and you need to agree on all the terms and conditions to become a franchisee. To start your own e shop franchise or else with an existing franchise, you need to pay fees in three defined teams:

• The trademark:

A trademark is also known as the controlled rights of a franchisor that you have agreed upon. This trademark part has a fee that you have to submit only once and in the initials only. A franchisee needs to pay the trademark fee to get the name of that franchise on their business. You can start your e shop franchise with the help of this option. 

• Training, equipment, or business advisory service fees:

Franchisees are responsible for covering the cost of any services, tools, or other items provided by the franchisor to the franchisee. These expenses will completely depend on the things that are provided by the franchisors to the franchisees. 

• Ongoing royalties: 

A franchiser will additionally get recurring royalties or a cut of the franchisee's sales. The franchisor collects this percentage on a monthly basis; depending on the industry, it can range from 4.6% to 12.5%.

What are the franchise models in India?

Franchise models are the models on which franchises are operated in India. There are four types of franchise models that are operated in India:

1) FOCO (Franchise Owned Company Operated):

The franchisee is in charge of making all additional capital investments and is the legal owner of the real estate. The franchising company is in charge of overseeing operations at the stores and outlets. Alternatively, it is referred to as a franchise-operated business. You can start your low investment franchise business with the help of this option. 

2) FOFO (Franchise Owned, Franchise Operated):

A franchise that already exists lends its name to another in this style of franchise business model. They agree to this in return for a non-refundable franchise fee and a set time frame. The prices and products for the outlet are determined by the brands. The franchise investor is the store's owner as a result, and the franchise is responsible for paying all operating expenses. A royalty payment is also expected from the franchise to the brand as part of the agreement. 

3) COFO (Company Owned and Franchise Operated):

In this scenario, the franchisor makes an investment in the franchise business, which is then operated in accordance with the company policies of the franchisee. The majority of companies that invest in growing their operations opt to do so independently, making this unusual and uncommon in the market.

4) COCO (Company Owned and Company Operated):

According to the COCO business model, the franchise store is owned and operated by the brand. There is absolutely no connection to franchising. As a result, the company provides all of the funding for the franchise. The franchise is managed by brand employees.  


I hope you are now aware of the types and business models of franchises. All I want to inform you of is that there are many options available for you that will support you in starting your online business. Shoppingara is a franchise business model that has huge recognition as the best franchise business in Kolkata. We offer a platform to all individuals who are looking to start their business with a low investment. Our online franchise business in India offers business opportunities to all individuals who have ever dreamed about starting an online business. Contact us right away through the contact details provided on our website or you can directly get in touch with us by filling out the form available on our website. Get in touch with Shoppingara, the best franchise business in Kolkata, and live your dream of starting an online business. 

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