siliconindia | | MAY 20229CONSULTANTSTHE RAPID GROWTH HAS SEEN THE FRANCHISE INDUSTRY GENERATE ALMOST TWO PERCENT OF INDIA'S GDP, AND IT'S FURTHER ESTIMATED BY 2025, IT WILL HAVE RISEN TO ABOUT FIVE PERCENT OF THE GROSS NATIONAL INCOMEEARNING PASSIVE INCOME THROUGH INVESTING IN FRANCHISEIndia presents many opportunities for brand expansion, with sectors like food service, retail and wellness contributing to almost 60 percent of the overall franchising. There are several franchising models in India, but the most common are the Franchise Owned Company Operated (FOCO) and Franchise Owned Franchise Operated (FOFO). More people are getting drawn into franchising because it offers high-yield returns and is resistant to both inflation and recession. However, the traditional franchise ownership model has a lot of challenges that prevent many investors from investing in it. For example, owning a franchise requires a lot of capital in upfront investment. It also requires some degree of experience in managing a franchise which may deter qualified investors from participating in a franchise. These and other challenges have hindered many from investing in franchises. FOCO is the ideal model if you want to earn passive income from franchising. This means you invest in your preferred franchise, and the company takes care of the business operations. The business has no involvement from the owner, making them ideal for investors who want to build wealth without working in two or more jobs.BUT HOW IS THIS POSSIBLE?This model of franchising was rare until FranShares came along. FranShares makes it possible to generate passive income through the fractionalized approach. Learn more about how FranShares funding work by following the FranShares review. The platform is available to all investors regardless of your status, and you can invest anywhere from $500 to $500,000.HOW FRACTIONALIZED INVESTING WORKSAs the name suggests, fractionalized investing owns a portion of a company's share. It allows investors to invest in expensive shares or assets like a private jet, vacation homes and racehorses. Typically, fractional share investing allows individuals to buy less than a full share. This is ideal when share prices are too high for an investor to afford. FranShares is bringing this ownership strategy to franchise investing. The approach allows accredited and non-accredited investors to have partial ownership in managed franchise locations with high-yield potential. FranShares act as the franchise operator and distribute the franchise profits to every investor. The fractional ownership idea is becoming more prevalent in physical assets and stocks ownership. Also, with fractionalized ownership approach, investors can diversify their franchise holdings. Having a portfolio of franchises across different sectors and geographies can help you avoid losses if the franchise or one location shuts down or temporarily stops its services.
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