By Gopal Singh
www.franchisezing.com | +91-9717899733
An arrangement whereby someone with a good idea for a business (franchisor) sells the rights to use the business name and sell a product or service (franchise) to others (franchisees) in a given territory
www.franchisezing.com | +91-9717899733
Franchisor is a person or company that grants the license to a third party for the conducting of a business under their marks
Franchisee is the party in a franchising agreement that is purchasing the right to use a business's trademarks, associated brands and other proprietary knowledge in order to open a branch.
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The ability to expand using franchisees capitalFranchisees are typically more motivated to succeed
than managersFranchising promotes increased quality at the unit levelFranchising enables a company to grow faster than it
otherwise would through corporate expansionReduced risk and liability for the franchisorFewer concerns over day-to-day operations
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* Investment Franchise: Investment franchises are operated by the fast-
food and restaurant chains, as well as by some well-known hotels.
The franchisee has overall control of the business Employs his or her own senior management and
staff
* Executive Franchise: Involves the provision of professional services,
Financial advice, legal services or recruitment assistance.
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* Retail Franchise: The franchisee runs the outlet, employs staff and
displays goods approved by the franchisor.
* Distribution Franchise: A distribution franchise permits the franchisee to
operate from a depot or central office that is usually owned by the franchisor
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* Depot Franchise: The franchisee is the operator and sole occupant
of the depot This type of franchise is generally available to
courier companies and parts suppliers, for whom a depot is an essential part of the business.
Job Franchise: Usually a one-person business, operated by the
franchisee from home Home-delivery operations, such as lawn care, car
repairs or furniture refurbishing, are examples of job franchises
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* Management Franchise: A management franchise is where the franchisee
will be responsible for both running the franchise and employing and managing a team of operatives
www.franchisezing.com | +91-9717899733
Franchising has a Huge Growth ahead in IndiaRelatively New Concept for IndiaAround 1,200 Franchisors in the country (200
are foreign) More than 100,000 franchiseesCurrent market size in India: $10 billion$25 billion by 2014 (30 % Growth Rate)3% of the total Retail Sales12 % of retail sale revenues are from
franchising800+ Malls, 2500+ Supermarkets
Franchising infrastructure is in place in India
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Franchising Reduces Business Risks90% of start-ups fail in the first year. In a
franchised business, over 90% succeed.Proven business model, recognized brand,
customer acceptanceEstablished methods and qualityPre-opening (site selection, financing etc) and
operational assistance: staff, training, advertising
Wider market penetration Relatively low capital investment Ready Product Acceptance Quick Start
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The franchisor gets easier access to capital for rapid growth
The franchisor leverages the franchisee’s knowledge of the domestic market & regulations
Franchisees are far more motivated to maximize sales and profits than salaried branch managers.
Franchisees are an important source of new marketing and product concepts
www.franchisezing.com | +91-9717899733
Franchise Zing239, West End MargNear Saket Metro Station,MB RoadNew Delhi – 110030India
Phone: +91-9717899733Email: [email protected]