5 Types and Process to start a food Franchise business in India

Process to start a food franchise business in India and 5 types of food franchise business model


Those looking to make a name for themselves in the food industry should consider franchising first. You can accelerate your journey by operating under the aegis of a well-known brand name. Restaurant owners begin to make money after opening their doors, and they must then look to expand their food business by pursuing the franchise route. Here in this guide you will learn about franchise business, the advantages of food franchise business in India, Types of food franchise business, and “How to start a food franchise business in India?”

About Franchise Business

Franchises are businesses that allow franchisees to use the names and models of the franchisors. In a franchise business, you practically own the company, but you must adhere to the franchisor’s set of rules and regulations.


A franchisee operates it under the brand of a national or multinational corporation. Starting a franchise can be advantageous if the brand already has a large number of loyal customers who frequently support it.


Essentially, franchisees adopt the franchisor’s entire business model, from pricing to marketing/branding. Once approved, the franchisee gains access to the franchiser’s brand as well as additional resources such as logistics, accounting, and professional consulting.


Suggested Read: Franchise Business Registration in India

5 Types of food franchise business model

  • Multi – unit Franchising

    A multi-unit franchising model is one in which a franchisor grants a franchisee the right to own and operate more than one unit. The franchisee is in charge of growing the business for all of these locations. If a unit is successful, the franchisee and franchisor may decide to work together in the future.

  • Master Franchising

    It is a contract based on the franchisor-franchisee relationship in which the restaurant owner (master franchisor) delegated some power to the master franchisee to control and manage the franchising activities of a specific territory. The master franchisee provides support to all franchisees that they sign within the boundaries of this territory.

  • Single – unit Franchising

    The responsibility for managing the restaurant is in the hands of the restaurant’s owner in this case. In a nutshell, the owner is also the operator. Another term for this is direct franchising. New business owners believe that a single-unit franchise is the best way to go.

  • Company – owned Franchising

    In this type of franchising, the brand establishes its own representative office in the country and works with the franchisee to build a business. The representative office team members collaborate with the franchisee and are known for improving the brand image and promoting a healthy consumer-brand connection.

  • Area development Franchising

    Multi-unit franchising and area development franchising have some similarities. It differs in that it associates a greater number of units spreading its wings across a larger territorial division. When it comes to increasing brand awareness, area developers have the most options.

Advantages of starting a Franchise business in India

  • More successful than start-ups.
  • Failure rate is low.
  • Improved financial security.
  • The reputation of a franchise is already a well-known and well-established name.
  • Clients who are loyal to the brand.

Process to start a food Franchise business in India

  • Documentation

    The first step is to complete the necessary documents with the franchise provider. A word of caution: if the franchisee is from another country, it is critical that he or she communicate with the company’s international representatives.

  • Create legal entity

    When all of the documentation is completed, it is critical to create your own legal entity so that no potential problems arise in the future. This includes having standing witnesses to avoid potential stumbling blocks.

  • Establishing of a franchise

    Since you are filling out licensing paperwork, the next one demonstrates one of the most important stages in this business plan. You cannot establish a franchise if there are no licensing requirements.

  • HRM (Human Resource Management)

    The following section is about Human Resource (HR) management. Without the professional presence of Human Resources, no business will succeed, especially if you are looking to invest in franchise businesses that grant many customers. Furthermore, you must consider and recognize the various types of employees that will be required at each stage.

  • Taxation and other compliances

    We have arrived at the final stage, which is inquiring about taxes and currency risks, as we have already explained the main essential stages. As an expert, you must be aware of the types of taxes you will have to pay in the future (i.e, Goods and Services Tax, ITR Filing and other annual compliances). During this stage, you can take control and increase your chances of saving taxes.


Investing in a food franchise business in India can achieve more profit than starting any other business. However, you should have sufficient knowledge to understand the requirements of starting a franchise in depth for ease of doing business in the market, and the more you know, the more money you will make.

Zarana Mehta: Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.
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