Anand Rathi franchise is a popular name in the Indian financial market, specifically in the Indian stock market. Anand Rathi sub-broker program is a well-known program in the industry and those who want to start a franchise in the Broking business may choose to prefer Anand Rathi over other small size broking companies.
In this detailed review, we will have a look at the reasons why one may choose to go ahead with this broker or not.
Anand Rathi Franchise Review
Before we start discussing the specifics of Anand Rathi franchise or sub-broker business models, here is some of the basic information you must be aware of:
With this range of different trading, investment and advisory products, the scope of potential clients definitely increase and you have something to provide to anyone who is looking to make his/her money work for him or her respectively.
It also gives you a chance to cross-sell and up-sell different products, thereby, increasing the average revenue per user you generate on a general basis.
Anand Rathi Franchise Partnership Types
Anand Rathi provides two types of business partnership models to associates:
Anand Rathi Sub-broker
Anand Rathi tries to maintain its brand equity among its business partners. The broker looks for the various factors including the qualitative factor of the business partner. Qualitative factors like client base, the network of the franchise in the market, projected revenue generation etc.
If the broker is satisfied with all the things which they are looking for, it will allow you to use the benefit of its brand as a sub-broker. By maintaining its popularity, the broker allows a good revenue sharing ratio. The revenue sharing ratio ranges from 50%-80%. The investment amount which is required for this model is ₹2 Lakhs- ₹3 Lakhs.
Anand Rathi Remisier:
The second model of partnership provided by Anand Rathi is ‘Remisier’. This model of the broker is also known as the zero cost infrastructure model. This model does not need any expense on infrastructure because you just need to work with the team of Anand Rathi for client acquisition. This model helps the broker to reach the potential clients by words of mouth and network.
It is mandatory that the appointed Remisier have 2-3 years of experience in the financial market. The required experience ensures the quality of knowledge and only knowledgeable Remisier can be associated with the brand. As this model requires zero investment revenue sharing ratio is also accordingly. The revenue sharing ratio in this model is 20%-30%.
Anand Rathi Franchise Eligibility
The criteria to become a partner with Anand Rathi for both the models is almost the same. Here is the list which requires to fulfil for joining the broker as a business partner.
Must have 2-3 years of experience in selling financial products with a good client base.
The capacity to invest a minimum amount of ₹2 Lakhs – ₹3 Lakhs initially for sub-broker and security money of ₹20,000 to ₹50,000 for a remisier.
Must have a good reputation and track record in the market.
For an Anand Rathi franchise or sub-broker partnership, you must have a valid authorized personal certification from SEBI.
Apart from all these quantitative aspects, if you are someone who has a passion for running an enterprise or a business, it will certainly work in your advantages. Yes, it cannot be judged but over a period of time, can certainly work as a valuable asset when you look to expand your business in the stockbroking space.
Anand Rathi Franchise Revenue Sharing
The broker Anand Rathi’s revenue sharing model is on par with the industry. They check experience, credibility in the market and other important things which are required for maintaining the brand name of the broker.
The revenue sharing of Sub-broker is 50%-80%. One should try to bargain the revenue ratio because there is no fixed matrix for the sharing ratio. Actually, it depends on various factors like experience, city, investment amount, revenue base, the performance of the sub-broker etc.
Anand Rathi Remisier:
The revenue sharing ratio of Remisier is 20-30%. As this model does not require any investment that’s why revenue sharing is also less in this model.
Here is a quick summary:
Anand Rathi's Share
50% - 80%
20% - 50%
20% - 30%
70% - 80%
Anand Rathi Franchise Cost
The cost or security deposit required for both the business partnership model is different. Let’s discuss here:
Sub-broker- The initial investment amount which is required for the sub-broker is ₹2 lakhs – ₹3 lakhs. It includes infrastructure setup charges like office, employees, workstations, office space, trading terminal etc. In this amount, some security deposit money is also included which is refundable at the time of termination of the agreement. Remisier: Though it does not require any initial investment, need to deposit some amount as a security deposit. The amount which is required to deposit as security is ₹20,000- ₹50,000 depending upon projected revenue and client base. The broker provides support to a Remisier in arranging trading terminal with the required software, phone, research support, and the back office support.
Here is a quick summary:
₹2 Lakh to ₹3 Lakh
₹20,000 to ₹30,000
Anand Rathi Franchise Benefits
Obviously, before becoming a business partner with Anand Rathi you would like to know the benefits you would get from it. So, here is the list of advantages you will get as a franchise of Anand Rathi.
A reputed brand: Anand Rathi is a brand name in the broking market. All most all who are related to the stock market knows the name of Anand Rathi. So, a client need not research much about the company. And ultimately a franchise will get clients easily.
Years of trust and experience: As a broker, Anand Rathi is an old name has many years of experience in the broking field and has already gained the trust of people.
Attractive revenue sharing model: Revenue sharing ratio between the Anand Rathi and the franchise is attractive. So, Anand Rathi franchise can enjoy the benefits of the favourable revenue sharing model.
Diversified product portfolio: Anand Rathi franchise can provide a diversified product option to their clients. More product option helps to make a strong client.
Good support to the business partner: Anand Rathi gives good support to its business partner to well set the business. They help in almost all the fields where they require support like client acquisition, strong research support etc.
Strong risk management system: Anand Rathi has a strong risk management system which helps to take and come out from the risk efficiently. It means back support to its franchise also.
Investment advisory and wealth management services: As a sub-broker of Anand Rathi one can provide their clients a high level of wealth management and investment advisory services.
Help in the opening of the franchise: Anand Rathi helps their franchisee by giving expert guidance from the head office in the opening of the franchise.
Anand Rathi Franchise Problems
At the same time, there are few concerns about going ahead with Anand Rathi as a franchise partner that you must be aware of:
Initial Investment is relatively high for the sub-broker business with a limited room of negotiation (although you must try).
Strong competition from other full-service stockbrokers.
Anand Rathi franchise Deals
Following are the deals available by the Anand Rathi for the sub-brokers and Authorized person.
Attractive revenue sharing ratio.
Initial investment and security money can be waived.
Customized plans are available to the sub broker’s customers.
Helps business partners by providing them with an extended credit facility.
It gives their business partners a high standard quality of advisory services.
Anand Rathi Franchise Summary
As mentioned above, Anand Rathi is a strong brand in the financial market. One can become a business partner with the broker either by Sub-broker/Authorized person or through remisier. The brand name of the broker helps it’s business partners to start a business of own with limited hurdles.
So, those who want to associate with the broker can certainly look forward to having a positive stride towards the stockbroking business.
In case you are interested to become a sub-broker or a franchise in the Indian stock market, let us assist you in taking things forward.
Anand Rathi Franchise Locations
Anand Rathi franchise is a big name in the field of sub-broker. So, its expansion location is not limited to any specific area. Its availability in different parts of India itself reflects its popularity among clients.
Here are the details of the location of Anand Rathi franchises that are currently operating in the country:
Andaman and Nicobar
Jammu and Kashmir
Daman and Diu
Manipur, West Bengal
Nagaland, Sikkim, Odisha
At the same time, if you compare it with other competition full-service stockbrokers such as Sharekhan, Angel Broking, Motilal Oswal – Anand Rathi still has a long way to go in terms of the offline presence.
More on Anand Rathi
If you wish to learn more about Anand Rathi, here are a few references here: