A store that gains popularity in one location often leads to the establishment of additional branches in other areas over time.

These branches, although affiliated with the original business, are not necessarily owned by the original owner. Instead, individuals have the opportunity to own and operate their own franchise business. This business model is commonly referred to as a franchise.

What Is a Franchise?

A franchise is a business where ownership is granted exclusively to an individual or entity to operate a specific business model, which may involve providing goods or services. This business framework is simple and convenient, making it an ideal choice for those who want to become entrepreneurs.

In essence, you obtain a license or trademark for existing products or services. This means you are free from tasks such as branding, acquiring business equipment, setting standard operating procedures (SOPs), designing packaging, managing employees, and handling finances. All the essential components needed to run the business are already in place.

The main requirement is having the capital—monetary funds—to cover royalties. Food and beverage franchises are particularly popular, but non-food franchises are also in demand, covering industries such as logistics, laundry services, and hair salons.

If you already have a business or brand of your own, you can also explore the franchise model. In this role, you generate income by selling business licenses to interested parties. Embracing the franchise system can help expand your business reach and promote growth.

Read: Beware of Illegal Online Loans! Choose Neo Pinjam—Safe and Trusted

Advantages of a Franchise Business

Franchise businesses attract not only beginners but also experienced entrepreneurs. That’s because franchises offer a range of promising benefits.

1. Reduced Risk of Failure

Failure is common in any business venture. However, choosing a franchise can significantly reduce that risk. As mentioned earlier, the franchise model comes with a well-prepared foundation and public recognition.

With established products or services, branding, equipment, SOPs, financial structures, and marketing strategies, you just follow a proven formula. This minimizes risks associated with the above elements. Franchise businesses have already been thoroughly tested in various aspects.

The original franchisor has already laid the groundwork and grown the business toward success. Your role is to maintain and uphold that standard. Of course, sustaining a business still requires dedication and effort—don’t forget that.

2. Easier Access to Funding

If you’re short on capital, banks often offer loans to aspiring entrepreneurs, especially when the business prospect is promising. Franchises typically have strong market appeal, making it easier for banks to approve your loan application.

3. Time and Cost Savings

Since the products and marketing strategies are already developed, you don’t need to spend much time on product development or promotional activities. This allows you to allocate your time and resources elsewhere.

This business model can even serve as a side hustle with minimal time and effort. You simply need to follow the set SOPs.

Franchise Options Under 5 Million Rupiah

Limited capital doesn’t have to stop you from owning a franchise. Many franchise options are available for less than Rp5 million. Often, these are not formally established big brands but rather business packages. These packages typically include a cart or booth, products, banners, and other business equipment. Here are some affordable franchise options:

Budget Dimsum

These business packages are available with or without branding. If you choose an unbranded option, you can name your dimsum cart as you like. All the profits are yours—no royalties required. These packages range from IDR 2.7 million to IDR 3.5 million.

Trendy Drinks

As a partner, you’ll receive a booth and raw materials. You’ll also be trained to prepare and sell the drinks yourself. Typically, you get to keep 100% of the profits with no franchise or royalty fees. Packages for modern drinks range from IDR 2.7 million to Rp4 million.

Fried Chicken

Start a home-based fried chicken business with a package that includes a display case, table, cooking equipment, ingredients, and uniforms. You'll also be taught how to make delicious fried chicken. Prices range from IDR 2.7 million to IDR 4.5 million.

French Fries

A popular snack among kids, these long fries can be branded with your own name and customized in preparation. Franchise packages range from IDR 3 million to IDR 5 million.

Read: Need Working Capital? Neo Pinjam Is the Solution!

Franchise Business Ideas with Capital Over 10 Million Rupiah

Well-known brands typically have higher franchise fees but offer more stable revenue projections. Among the many popular franchise options—from food to logistics—here are some of the best franchise business ideas in Indonesia worth considering:

• Laundry services
• Padang restaurants
• Minimarkets
• Warteg (local food stalls)
• Barbershops
• Refill drinking water stations
• Kebab stands
• Delivery services

These are some franchise business examples and their estimated costs. Now all that’s left is to prepare your capital and get started. Choose a business that fits your budget. It’s perfectly okay to start small—over time, you could achieve even greater success.

Download the neobank app on PlayStore or App Store and apply for a loan through Neo Loan. 

For complete information and terms & conditions regarding Neo Loan, visit the link https://s.id/webneoloan & if you want to apply for Neo Loan, click the link https://s.id/neoloan

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PT Bank Neo Commerce Tbk is licensed and supervised by the Indonesia Financial Service Authority (OJK) and Bank Indonesia (BI), and an insured member of Deposit Insurance Corporation (LPS).