Franchise Business: Promising Business Opportunities in 2023

Interested in starting a business but have no experience at all or don't want to go to the trouble of starting from scratch? Don't worry, franchise business is the right choice!

So, what do we need to know about this type of business? Let's peel thoroughly in the following description!

1. What is a Franchise Business?

A franchise business is a business that operates a cooperative system between the brand owner (franchisor) and the party using the brand (franchisee) by paying a certain fee. In short, you can run a business using a well-known brand and have loyal customers.

1.1 Kelebihan Usaha Franchise

The franchise business has many advantages. Among them are as follows.

• Don't bother creating a business concept, product, or marketing strategy from scratch, everything has been prepared by the franchisor.

• You can take advantage of the reputation and network that the franchisor already has, making it easier to attract customers.

• Obtain guidance and support from the franchisor in terms of operations, management, training, and so on.

• Reducing the risk of business failure, because it has been proven successful in the market.

1.2 Disadvantages of Franchise Business

Even though a franchise business has a number of advantages that are very profitable for you, there's nothing wrong if you understand what the disadvantages are in this type of business.

• You have to pay a number of fees to the franchisor, such as a franchise fee (initial fee for buying business rights), royalty fees (a monthly fee or a percentage of turnover), and other fees according to the agreement.
• Must follow the rules and standards set by the franchisor, so it is less flexible in developing the business.
• Compete with other franchisees who run businesses with the same brand in the same or adjacent areas.

1.3 Terms Related to Franchise Business

At this point, maybe you already understand enough about franchising and are interested in getting into it. However, make sure you understand the following terms that we often encounter in the franchise world.

• Franchise: a system of cooperation between two parties, namely the franchisor and the franchisee, in running a business using a certain brand.
• Franchisor: a party that owns the rights to a brand and grants a license to other parties to use the mark in running a business.
• Franchisee: a party that uses the franchisor's brand by paying a certain fee and following the rules set by the franchisor.
• Franchise fee: the initial fee that must be paid by the franchisee to the franchisor to purchase business rights.
• Royalty fee: monthly fee or percentage of turnover that must be paid by the franchisee to the franchisor in return for using the brand.

2. Franchise Business Regulations

The government clearly regulates franchise business policies. This is stated in the Regulation of the Minister of Trade Number 71 of 2019 regarding franchising. Other regulations that support this policy are:

• Law No. 15 of 2001 concerning Marks
• Law No. 14 of 2001 concerning Patents
• Regulation of the Minister of Industry and Trade of the Republic of Indonesia No. 31/M-DAG/PER/8?20018 concerning Franchise Operations
• Decree of the Minister of Industry and Trade of the Republic of Indonesia No. 259/MPP/KEP/7/1997 regarding Provisions for the Implementation of Franchise Business Registration

3. List of the Most Promising Franchise Businesses in 2023

BFI friends, if you are looking for a franchise business opportunity, here is a list of the most popular franchises that offer promising benefits in 2023.

Image Source: Pexels/Amina Filkins

3.1. Contemporary Beverage Franchise

This business has significant growth. This is because contemporary drinks are much loved by the younger generation with a variety of interesting variants. Starting from boba, cheese tea, drinks with the main ingredients of coffee or tea, and so on.

Some examples of popular contemporary beverage franchises include Chatime, Kopi Kenangan, Gulu Gulu, and many more.

3.2. Franchise Mixue

As is the case with current drinks, mixue is a type of F&B franchise with quite a lot of fans. Because there are so many connoisseurs of ice cream-based drinks mixed with this topping, the Mixue franchise has very many branches in various cities throughout Indonesia.

3.3. Franchise Martabak

Who doesn't know martabak? This thin dough snack is loved by various groups throughout Indonesia. It tastes delicious with a wide selection of flavors that can be adjusted according to taste, martabak prices tend to be affordable for many people. You can choose a martabak business as a franchise business option.

3.4. Korean Street Food

Korean culture fever seems to have been fairly evenly distributed in Indonesia. Many people like many things about Korea, and the food is no exception! You can sell Korean specialties that are usually sold on the side of the road, such as tteokbokki, odeng, kimbap, and others. This food is in great demand by K-pop and K-drama fans who want to experience Korean culinary sensations.

3.5. Franchise Dimsum

This business offers typical Chinese food in the form of steamed or fried dishes containing meat, vegetables, or seafood. Dimsum is perfect for breakfast or snacks on the sidelines. Some examples of successful dim sum franchises are Dimsum Inc, Dimsum Go!, and others.

3.6. Franchise Toast

Toast is a modern bread that has recently been on the rise and has become a hot topic of conversation everywhere, especially for young people. With so many toast enthusiasts, you can take advantage of this opportunity to open a toast franchise business, either independently or by joining a franchise.

3.7. Franchise Dessert

Sweet and fresh desserts, such as ice cream, pudding, cake, brownies, and others. Dessert is loved by many people as a stress reliever or entertainment.

3.8. Franchise Tahu Crispy (Crispy Tofu)

The crispy tofu (tahu crispy) business is one of the home-based businesses that are now turning to snack franchises in various cities. The reason is that there are so many fans of crispy tofu.

Not a few of them also make this food as comfort food because it has a savory, delicious taste, is easy to get, and of course, has an affordable price. Crispy tofu is perfect to eat as a side dish or snack.

3.9. Franchise Alfamart / Minimarket

Alfamart or similar minimarkets are supermarkets that sell various kinds of daily needs at affordable prices. Their presence is needed by the community because they are easily accessible and complete. You can choose the following franchise businesses if you are interested in the retail business.

3.10. Franchise Laundry

A laundry franchise is a business that is always needed in everyday life. With a busy lifestyle, many people are looking for a trusted and reliable laundry service.

By opening a laundry business in strategic locations such as office areas and student areas, you can get a good profit and even have the potential to be used as regular income.

You don't need to worry about running a laundry business because a laundry franchise offers convenience in starting a business, including providing tools and goods, training, to marketing. Another advantage is that it allows you to work with hotels, restaurants, and so on that can increase your income. Interesting right?

3.11. Franchise Fashion

For those of you who are interested in opening a clothing store but don't want to bother starting everything from scratch, you can choose a franchise that already has a name and is well-known to the wider community. That way it will be easier for you to attract consumer interest and achieve high sales.

Another advantage of a clothing store franchise is that it has support in terms of product design, stock management, and marketing strategies that have proven successful.

3.12. Franchise Skincare

The next non-food franchise business idea that you shouldn't miss is the skincare business! This one business has been very popular lately and has been able to bring fantastic profits.

Not surprisingly, many old and new business players are competing to enter this industry. If you're interested in getting into it, you don't have to worry or sweat a lot.

Simply by choosing a quality brand and already having a well-known name, you can easily start a franchise business. Most importantly, make sure to do research regarding the brand in advance, starting with product safety, market demand, and popularity.

3.13. Franchise Pet Shop

The pet shop business is now increasingly popular and attracts a lot of attention from business people. For those of you who are interested in opening a petshop business but are confused about where to start and take care of existing management, you can join a petshop franchise business.

Joining a franchise allows you to keep your business running smoothly, from selling pet food, tools, toys, and grooming services.

3.14. Franchise SPBU Mini

Almost all Indonesian citizens own a vehicle. Both private and group vehicles. Opening a gas station franchise can be one of the right breakthroughs in obtaining promising profits.

This is because the demand for fuel, especially for vehicles, will continue to increase and you can be sure that this business will never be empty of enthusiasts as long as the price and quality of the fuel you offer is in accordance with what is circulating in the community.

In addition, as with franchise businesses in general, you will receive full support from the franchisor regarding marketing, inventory, and operational management.

3.15. Franchise Ekspedition

With the increasing need for goods and parcel delivery, you can take advantage of this high demand to generate stable income by starting a freight forwarding business.

Choose a courier service that is trusted and able to provide support in carrying out daily operations. You can compare one expedition with another before settling on choosing an expeditionary service franchise. Some examples of trusted expedition franchises are JNE, TIKI, J&T Express, and others.

4. Tips for Choosing a Franchise Business for Beginners

After knowing some of the lists of the most promising franchise businesses in 2023, you might be interested in trying one of them. However, before deciding to run this business, there are some tips you can follow so you don't choose the wrong one.

Image Source: Pexels/Sam Lion

4.1. Choose a Business According to Your Interests and Passion

Don't just be tempted by the turnover or benefits offered by the franchisor. Make sure you have an interest and ability in the field of business you choose. Do not let yourself feel discouraged and stop in the middle of the road, especially if the capital spent is not small.

Also read: Successful Home Business Tips for Beginners

4.2. Do Market Research Related to the Business You are Interested In

Find as much information as possible about the business, such as the products or services offered, target market, competitors, growth opportunities, and so on. You can find information from the internet, social media, and business magazines, or directly visit franchisee outlets that are already operating.

Also read: Marketing Research: Definition, Purpose and How to Do It

4.3. Compare Several Existing Franchise Businesses

After getting various information about the franchise business that you are interested in, you can compare several existing options based on several aspects, such as franchise fees, royalty fees, business location, facilities provided by the franchisor, brand reputation, franchisee testimonials, and others. Choose the franchise that best fits your budget and needs.

4.4. Study the Bid Documents Carefully

A franchise offer document (offer document) is an official document that contains complete and accurate information about the business offered by the franchisor to prospective franchisees.

This document must be read and properly understood by prospective franchisees before signing a franchise agreement. This document usually contains the franchisor's vision and mission, company profile, products or services offered, franchise fees, royalty fees, rights and obligations of the franchisor and franchisee, and others.

4.5. Follow the Existing Selection and Training Process

After agreeing to the franchise offer document, you must follow the selection and training process organized by the franchisor.

The selection process aims to assess your eligibility as a potential franchisee, while the training process aims to provide the knowledge and skills needed to run a franchise business. You have to take this process seriously and enthusiastically so that you can pass the selection and be ready to operate.

4.6. Prepare Sufficient Business Capital

Business capital is one of the important factors that determine the success of a business. You must prepare sufficient business capital to pay franchise fees, rent or buy a business location, buy business equipment or supplies, pay employee salaries, and so on.

You can seek business capital from personal savings, family or friend loans, or financing companies.

Also read: Business Tips; Signs You Need a Business Capital Loan

5. Easy Ways to Get Business Capital

Friends BFI, that's the discussion about the franchise business. If you are having trouble finding business capital to run the business, don't worry. There is an easy way to get business capital at BFI Finance.

BFI Finance is a company that provides multi-purpose loans with guarantees for motorbike bpkb, car bpkb, and house or shophouse certificates