When you want to open a new business, you should always check out for franchise opportunities.
Franchise business is what allows you to start with support from the main company, sometimes even financial support, and with a known brand and name that will attract new clients very quickly.
If the company you apply to is also a huge and successful company, the opportunity is even greater.
In this article, we’re speaking about one of these opportunities: it is given by the ITC Franchise.
As you’re about to discover, ICT is a big company that is open to franchise deals and that is very clear about costs and gives support. Let’s find out together what this is all about.
About ITC Franchise
The company name is ITC Limited, and (see History of the ITC Franchise) it is no longer an acronym.
The company is active in a lot of different sectors: cigarettes, hotels, consumer goods, and more.
In the last decades, the company has started giving more and more attention to environmental issues: it is now one of the few companies of this size to be carbon, water, and solid waste positive.
Because it is so diverse, ITC Limited provides tons of opportunities for entrepreneurs who want to get into business with them.
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History Of The ITC Franchise
ICT is a huge Indian company. It was founded in 1910 and was initially named Imperial Tobacco Company of India Limited. Now, the company name is ITC Limited.
In the early years, the company would mainly trade tobacco and was able to open its first cigarette factory in 1913.
During these years, despite ITC being an Indian company and the headquarters being located in Kolkata, the leadership wasn’t Indian.
The first Indian chairman was Ajit Narain Haskar, and it didn’t happen until 1969. From that on, the company underwent some important changes.
It went public, and it began diversifying its offer: it no longer traded only tobacco but entered a lot of different sectors: hotels, consumer goods, apparel, education, resorts, information technologies, and more.
Today, ITC still manages multiple businesses, and the ITC no longer stands for Imperial Tobacco Company but has remained to provide continuity with the company’s history.
ITC Business Model
ITC is an organization that is constantly open to franchise collaborators. This is one of the easiest companies to contact for entrepreneurs interested in franchise deals: their website provides all the information you need and a form that you can fill out to start dealing with them.
| Business Model | Diverse organization open to franchise |
|---|---|
| Initial Investment | $2500 to $100,000 (franchise fee excluded) |
| Franchise | YES |
| Franchise Fee | $60,000 |
| Current Finance | $9.7 billion |
How Much Does It Cost To Open An ITC Business?
Being such a diverse company, the initial investment would depend on the type of business that you’ve chosen to open.
However, we can provide some information about the fixed costs, the ones you’ll certainly need to pay when getting into the franchise business with ITC Limited.
The first cost you want to consider is the franchise fee which is quite high: it’s $60,000.
Next, there is a registration fee, a fee you need to pay to register your business with ITC, and that’s $429,86 + 18% GST.
Finally, you need to add the costs you need to sustain to get a business location, hire staff, and purchase inventory and furnishing and that can add up from $2500 to $100,000 to your initial investment.
Requirements
ITC Limited specifies the following requirements for their franchise partners:
- The availability of a business area from 1500 to 4000 sq. ft that included the franchise store and the counter;
- The minimum staff of 10 people;
- ITC only selects franchise partners that are passionate and have the desire to grow their business.
ITC Franchise Revenue & Profit
ITC offers a profit margin of 4%-10% to its distributors, and their product range includes household items.
In case you are willing to take up ITC’s distributorship and get selected, then you can make a good profit from this.
According to the company’s official website, ITC made net sales of over INR 90,104 crores in 2022 and generated profits of INR 15,058 crores.
Training & Support
The ITC franchise provides great training and support. In particular, they offer a 1-week classroom and on-the-job training to all their franchise partners.
The training includes skill training, customer management, and sales training.
Furthermore, the ITC company remains available for anyone who needs help from them through a phone and email support service.
Obligations & Restrictions
On its website, ITC does not specify any restrictions. However, there will certainly be some in your franchise contract, so make sure to read it carefully.
Term Of Agreement & Renewal
The ITC Franchise is a very flexible business model. They provide the same flexibility to their franchise partners, so the length of the contract and the renewals are discussed with you according to your needs and the characteristics of your business.
To start discussing the terms, fill out the franchise form available on the ITC main website. They’ll reach out to you, and a discussion will start.
At the end of it, if you match all their requirements and if you’re happy with their offer, you’ll become an ITC franchise partner!
Financial Assistance
ITC also provides some financial assistance: if you need loans, for example, you can discuss the possibility of getting one from them directly when you start your franchise business.
Comparison Franchise: ITC Limited VS HUL Limited
| Company | ITC Limited | HUL Limited |
|---|---|---|
| Founded | 1910 | 1933 |
| Franchise | YES | YES |
| Franchise Fee | $60,000 | $60,000 |
| Revenue | $7.8 billion | $6.6 billion |
Conclusion
ITC Limited is a big company and it is suitable for franchise partnership if you aim at launching a big business.
The initial investment, as we’ve seen, can be quite high, but the ROI could be greater.
The support and transparency ITC provides to its franchise partners make it worth it to get into business with them.
ITC Franchise: FAQ
Is ITC a franchise or a chain?
ITC is a franchise, and it’s open to franchise applications.
Who is the owner of ITC Limited?
Sanjiv Puri is the current chairman of ITC Limited.
How many employees work with ITC Limited?
ITC Limited coins about $30,000 employees.
Is ITC Franchise a good investment?
The investment is quite big, but it’s worth it because ITC is a well-known and established company.
Is the ITC Franchsie worth it?
If you can afford the initial investment, it can be worth it to invest in an ITC franchise.
The popularity of the brand and the support you’ll be receiving can ensure quick income growth and ROI.
Reference: ITC limited franchise- India (itcfranchiseonline.com)
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.