ACQUIRING A HERO MOTO CORP FRANCHISE DEALERSHIP (ARTICLE WRITTEN FOR INDIAFILINGS.COM LEARNING CENTER)

The following article is written by me as a Content Writer for the site IndiaFilings.com in LearningCentre section...

Franchising happens when someone develops a proven business concept and transfers the trademark and business know-how to an entrepreneur termed franchisee. The franchisee usually gets the rights for a specific time period and in a specific geographic area for a one-time franchise fee and royalty. 

Hero Moto Corps is the highest bike selling Company of India. Having more than 6000 sales and service network consisting of authorized dealerships, service and spare parts outlets, and dealer-appointed outlets across the country. . It is now a brand name which is recognized throughout the world and has also bagged various awards. The demand of Hero Moto bikes is still on and it is always profitable business to own a dealership or franchise of Hero Moto Corps. The dealers of Hero Moto Corp make a lot of profit making the franchise extremely beneficial.

TWO WHEELER INDUSTRY IN INDIA:

 India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-wheelers in India stood at around 7600801 units. The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief factors is poor public transport in many parts of India. Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family. Here lies abundant opportunity for young entrepreneurs to set their foot on franchise dealership programs and that too with one of the pioneers in motor industry- HERO MOTO CORPS!

RESURGENCE OF FRANCHISE INDUSTRY IN INDIA:

                The supporting appeal of the franchise industry has been the reason for the surge in its popularity in the past decade. Currently worth Rs 82,500 crore, it is estimated to grow to about Rs 2.91 lakh crore by 2017, according to the Indian Franchise Report 2012. The main reason is that both domestic and international companies want to expand their footprints, but don't consider it a viable proposition to do it on their own due to operational and financial pressures.

They prefer to look for partners who can invest to run a branch of their business. From international brands like Domino's and Dunkin' Donuts, to domestic ones like NIIT and Naturals, a lot of companies are opting for the franchising model. It's estimated that the franchise industry is growing at a rapid pace of 40% a year. 

GUIDELINES TO BECOME A MOTORCYCLE DEALER :

1. Learn everything you can about motorcycles

     To become a dealer one should know what the latest bikes are and how they differ from past models. Learn what common problems are associated with each make and model. 

2. Decide what types of motorcycles you want to sell

     There are many options to choose from and you should decide if you want to stick to a certain type of motorcycle or sell many types. 

3. Learn about sales.

     Learning the art of sales and how you can become good at it will greatly improve your chances of having a thriving business. 

4. Apply for a business license.

     In order to own your own dealership, you must hold a business license. You can apply with your city or state.

5. Get a location for your business.

     You have to find a location that is large enough to be a showroom, and possibly more room to hold some inventory.

6. Gather your inventory.

     You can start small if you do not have the funds to purchase a lot of inventory. 

7. Hire employees if needed.

     If you planned out a large dealership, you may have to bring in some extra workers.

SOME MINIMUM REQUIREMENTS FOR MOTOR SERVICE FRANCHISE :

• A high level of interest and commitment to the business in terms of time and attention.
• A strong entrepreneurial spirit and zeal to succeed.
• Adequate financial resources.
• Ability to manage people.
• A good social standing and reputation in the local market.
• Committed to the highest level of service quality.

SCOPE FOR PROFIT IN DEALERSHIP OF HERO MOTO CORPS SALES AND SERVICE:

Hero Moto Corps is the largest two wheeler manufacturing Company in the World since 2001 and is still maintaining its position. In India it is the highest bike selling Company. The Company is well known globally and had won several awards every year. In 2013 Hero Moto Corps received the "Business Leader of the Year" Award by Honourable President of India, Shri. Pranab Mukherjee.

 Further the market of two wheelers has been increasing substantially even in the remote places of India. With 19 models of two wheelers at present Hero Moto Corps boast in providing style with glamour models, economy with fuel efficient models and durability and ease with latest technology. Thus being associated with Hero Moto Corps by starting dealership for sales and services is not only profitable but also prestigious.

Motor Service is a recession proof business considering the vastness of the opportunity available. The sale of 2 wheelers in India is amongst the highest in the world. In Feb 2009 alone 5.7 lacs two wheelers were sold. The number of opportunities to visit a workshop in the two wheeler servicing world is ever increasing. Interestingly there is a huge demand and supply gap in the servicing sector.

PROCEDURE FOR APPLYING FOR HERO MOTO CORPS DEALERSHIP OR FRANCHISE:

           Don’t get indulged in any third party for getting dealership of Hero Moto Corps. You can apply directly at the head office or regional office mentioning details about your profile, investment capacity, floor area available, Area and city where dealership is required etc. It is entirely the discretion of the Company to provide dealership in sales and services.

There is a toll free number where you can get all your queries answered. The number is 1800 266 0018.

Address, phone no. of Corporate & registered are given below:

Hero MotoCorp Ltd. 34, Community Centre,

Basant Lok, Vasant Vihar,

New Delhi - 110057, India.

Tel: +91-11-26142451, 26144121 Fax: +91-11-26143321, 26143198

Visit official website of Hero Moto Corps

http://www.heromotocorp.com/en-in/reach-us/contact-us.html

INVESTMENT AND COST:

The total investments of starting a franchise of Hero Moto Corps including the setup area and other expenses will be somewhere nearer to 1.3 to 1.4 Crores including setup, spare parts and the expected sale of around 200 vehicles.

SERVICE TAX FOR FRANCHISE SERVICES:

Service Tax has been imposed on Franchisee Services with effect from 1st July, 2003 vide government notification dated 20th June, 2003. The gross amount charged to a franchisee by the franchiser for franchise service shall be chargeable to service tax.

For more information or help starting a HERO MOTO CORP Franchise, talk to an IndiaFilings Business Advisor.