A Project Report On BUSINESS DEVELOPMENT AND FRANCHISING At

Coffee Day Xpress

SUMAN EDUCATION TRUST DILKAP RESEARCH CENTER AND INSTITUTE OF MANAGEMENT STUDIES 2009-2010

Submitted by NUKSAR KHAN

Submitted to MR.SANDEEP GADA (Business Development manager coffee day express)

Acknowledgement

I would like to express my profound gratitude to the management of COFFEE DAY XPRESS for providing an opportunity to do project report on business development and franchising as a part of curriculum management study for MMS course.

My sincere thanks to Sandeep Gada (Senior manager for business development.) for his valuable guidance & co-operation. Also I would specially like to thank Mr.Deekshith, Mr.Dheeraj, Mr.pankaj Singh and Ms.Milan for their help & their advice in preparing report all the necessary information and contents about the project.

Last but not the Least I wish my regard my sincere thanks to all the employees of Coffee day Xpress who directly or indirectly helped me completion of project.

THANK YOU

Nuksar khan

-: PREFACE:-

In my Project I have tried to study Marketing under which business development and franchising was the key concept. How the business at CDX is developed is learnt. Besides this I have also learnt what is marketing promotion and alliance from the fellow trainees My tenure as vocational trainee in Coffee day Xpress has help me in understanding the role of a Marketer professional in an organization and to understand the phenomenon of which will be of great benefit to me when I join the corporate world as an Marketer professional. People working in this organization have been very helpful and friendly. They were always ready to help me in my project.

SUMAN EDUCATION TRUST DILKAP RESEARCH CENTER AND INSTITUTE OF MANAGEMENT STUDIES

Certificate
Certified that this Report Submitted by

NUKSAR KHAN

Student of the course Master in Management Studies as a project work for subject

BUSINESS DEVELOPMENT AND FRANCHISING

AT COFFEE DAY EXPRESS And that I have instructed/Guided for the said work from time to time & found to be satisfactorily progressive.
MR.SANDEEP GADA (Business Development manager coffee day express-west region)

Place: Date: Signature

DECLARATION

I am Nuksar khan, the students of MMS programme (3rd semester, 2nd year) at the Institute of management studies, Neral do here by declare that this project report entitled BUSINESS DEVELOPMENT AND FRANCHISING AT COFFEE DAY EXPRESS Sakinaka-Andheri, is the outcome of my own work based on personal study that have been carried out by me under the guidance of MR. SANDEEP GADA and MR.TANMOY SAHA as per the norms prescribed by the University of Mumbai , and the same work has not been copied from any source directly without acknowledging for the part/section that has been adopted from published /non published work.

Date:-___________ Place:-____________

Signature Nuksar khan

INDEX
TOPIC Introduction : 1. Amalgamated Bean Coffee Trading Company Limited(ABCTCL) 2. Coffee Day Xpress What is Business Development? Business development at coffee day xpress What Is Franchising? Advantages and disadvantages of Franchising Franchising in coffee day xpress Learning experience at coffee day xpress Conclusion Page no 6-10

12 13-19 19-21 21-23 23-28 29-30 31

INTRODUCTION :ABOUT THECOMPANY

Coffee Day Xpress (A division of Amalgamated Bean Coffee Trading Company Limited)
ABCTCL Brief Amalgamated Bean Coffee Trading Company Ltd.(ABCTCL) Popularly known as CoffeeDay ,Indias largest Coffee Conglomerate. Roots in the golden soil of chickmanglur and its future as a vision of a true entrepreneur, coffee Day has its business growing and spanning the entire value chain of coffee consumption in India Rs 700+ Crores ISO 9002 certified company. CoffeeDay group grows Coffee in its own estates of 10000 acres and another 4000 acres managed by it .Apart from this ,the group also sources coffee from 15000 small growers CoffeeDay is one of the Indias leading coffee Exports with clients across USA, Europe and Japan.

Group Profile
Caf Coffee Day 1996 Freshn Ground 1996 ABC Exports 1999 Take Away 2002 Coffee Day Xpress 2003 Perfect 2003

Logo Philosophy

RED stands for leadership, vitality and passion Logo box stands for the invigorating and uplifting nature of coffee and the ambience at Coffee Day The Xpress, symbolizes our convenience caf concept and the quick service offered to our customers. Coffee Day is in stylized font called Revue to preserve some of the linkages with Coffee Day,

Coffee Day Xpress

Date Commenced Operations : 2003 : 2003

Date Commenced Franchising / Distribution

Xpress -- An unique concept of convenient cafe, an idea that feeds a world that's continuously in transit Quick and Unfailing Service -- An efficient and delightful small format kiosk that serves hot and cold beverages and a variety of food items Locations -- Kiosk are placed @ shopping malls ,complexes, Multiplexes/Movie theatres, stores/Supermarkets ,Airports /Rail Stations/ Bus Depots

Coffee Day Xpress Objectives

Our Company Policy:

Proactively identify and implement retail service standards that exceeds the changing needs of customers Xpress Values:

Integrity, Transparency, Respect, Accountability, Discipline, Team work

Our Journey to Success

Founded in the year 2003 Core Business- Retail (Take away counters) Corporate office in Bangalore with 4 Regional Offices in India Presence in more than 17 Cities Growing Revenues at 100% YOY for 3 years

Our Competitive Advantage

Franchising Concept Coffee without blends Service to the Mass

At the busy city crossroads, between home and office, when there's not enough time for hot cup of coffee or a leisurely meal, you can trust a Coffee Day Xpress to provide fast, fresh, hygienic, convenient-to-eat and affordable food & beverages. Spectacular success has greeted Coffee Day Xpress at:

Shopping malls Supermarkets Multiplexes Corporates Airports Railway stations Depots Petrol pumps Parks Getaways Educational institutions...

In a short period of just three years, the Coffee Day Xpress has managed to excite customers in 18 cities across India. With a growing presence in airports and the railways, Coffee Day Xpress is perhaps the only national coffee brand that is capturing the imagination of modern resurgent
India.

Coffee Day Xpress (CDX) is a unique concept of convenient cafe, an idea that feeds the world that`s continuously in transit. At the busy city crossroads, between home and office, when there is not enough time for a hot cup of coffee or a leisurely meal, you can trust a Coffee Day Xpress to provide fast, hygienic, convenient to eat and affordable food & beverages. Coffee Day Xpress-part of Indias largest coffee conglomerate Amalgamated Bean Coffee Trading Co, Ltd. or ABC, as it is better known is fully integrated coffee company with a rich heritage that stretches over a century. Its endeavors fine expression from coffee plantations to innovative retail concepts and even exports.

ABC is one of the largest exporters of green coffee from India since 1994. ABC knows coffee intimately. And is constantly adapting this knowledge to cater to the dynamic coffee market by offering a variety of branded products. To ensure that it remains a dominant force in the coffee

sector. ABC has invested extensively in Research & Development to ensure quality coffee blends. ABC has pioneered the caf concept in India through its well-known brand Caf Coffee Day which has more than 650 cafes across the country and abroad (Austria, Pakistan, Dubai). This is the Convenience Cafe format, which fills the slot between the traditional caf and vending machine, thereby providing for fast, hygienic food and beverage at very convenient indoor/outdoor locations from Corporate, Supermarkets, Malls, Hospitals and Educational Institutions to High Streets such as shopping malls, petrol pumps, railways, airport and business. The Coffee Day Xpress kiosk is a sanctuary where the harried urbanite can pause for refreshment before getting on with life. Retail custom-made for the 21st century. Catering to a world that needs coffee on the go! At high-traffic locations. With hot and cold beverages and a variety of ready-to-eat snacks. Amalgamated Bean Coffee Trading Company Limited or ABC, as it is better known is a fully integrated coffee company with a rich heritage that stretches over a century. Its endeavors find expression from coffee plantations to innovative retail concepts and even exports. To ensure that it remains a dominant force in the coffee sector, ABC has invested extensively in Research & Development to ensure quality coffee blends.

PRODUCTS
Coffee Day Xpress believe in the complete refreshing experience. They have the entire range of coffee; Cappuccino Latte Espresso Mocha.

And a host of beverages, including teas, shakes and even hot chocolate. To round off the experience, you could also tuck into a variety of snacks (like sandwiches, submarines, burgers, puffs, samosas, wraps and pastries). The truth lies in the fact that, Coffee Day Xpress range of food varies from region to region. What they try to do is to incorporate regional favorites in their menu. And to balance the salt with the sweet... The global and the local tongue-tickling tastes to suit all palettes. That's what the Coffee Day Xpress spread consists of.

Different types of coffee from B2C Machine

Cappuccino - Strong Coffee. More of Coffee, less of milk, topped by foam Latte - Light Coffee. Less of Coffee, more of milk, topped by foam Espresso - Black Coffee

At Coffee Day Xpress we believe in the complete refreshing experience.

Coffee day express have the entire range of coffee. Cappuchinno. Latte. Espresso. Mocha. And a host of beverages, including teas, shakes and even hot chocolate. To round off the experience, you could also tuck into a variety of snacks (like sandwiches, submarines, burgers, puffs, samosas, wraps and pastries). Truth to be told, the Coffee Day Xpress range of food varies from region to region. What Coffee day express try to do is to incorporate regional favorites in their menu. And to balance the salt with the sweet...The global and the local tongue-tickling tastes to suit all palettes. That's what the Coffee Day Xpress spread consists of.

CDXs Competitors
Owing to vast domain expertise, our organization is also engaged in the distribution of various other products. Procured from well established manufacturers, these products cater to the demands of corporate houses and other specialized institutions. We provide kiosk facility to the clients and serve various food items such as beverages, ice creams, snack, water and others. KIOSK- LIPTON

KIOSK of Lipton with all snacks items for companies with employee strength of 2000 & more. Includes Beverages, ICE creams, Snack both Veg & Non Veg, Cold Drink, Water etc....

Major Indian Coffee Shops in the Retail Business:

Cafe Coffee Day: Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), owns and operates India's largest coffee chain - Cafe Coffee Day popularly known by an abbreviation amongst the Indian youth as CCD . It is a ISO 9002 certified company. Cafe format of CCD include Music Cafes, Sports Cafe and Book Cafes. First cafe of CCD opened at Brigade Road in Bangalore in 1996, which was also an Internet browsing cafe then. Currently, there are more than 620 cafes in 102 cities across India and the World.

Barista Coffee Company: Barista has 130 outlets in three countries namely India, Dubai and Sri Lanka. Barista has plant to increase the total number of outlets to 300 and is focusing on different business models for expansion - corporate ones [Store outlets on-campus], high street area of high footfalls such as malls and company owned exclusive stores. Barista has seen series of management changes. Turner Morrison sold to Tata Coffee which in-turn offloaded to Opportunist businessman Sivasankaran who finally sold it at a hefty premium to Italy's Lavazza.

Mocha: Mocha was opened in Mumbai in December 2001. Mocha Coffees & Conversations has 20 units out of which 12 are franchised. The largest Mocha in India with 10,000 sq. feet.

Major MNC / Foreign Coffee Shops in the Retail Business:

Costa Coffee: UK based cafe chain Costa Coffee entered in India in 2005 through master franchisee tie-up with Ravi Jaipuria owned Devyani International Limited (DIL), the company that owns the franchisee for Pizza Hut and KFC in India. It has around 36 stores in India and more than 850 stores worldwide.

Coffee Bean and Tea Leaf: California based coffee houses like Coffee Bean and Tea Leaf have started operations in New Delhi. Company is planning to open Coffee Bean and Tea Leaf outlets in almost all the major metros and at prominent and prime locations. The company plans to open 60 stores in five years and with investment of Rs 100 crore. Blue Foods has franchise agreement with California-based coffee chain Coffee Beans & Tea Leaf.

Barnie's: US based coffee chain Barnies Coffee and Tea Company started its operation in India in August 2005. Barnie's opened its first store in Noida. Victoria Impex Pvt. Ltd. is the master franchisee of Barnies Coffee. Barnies Coffee & Tea Company Inc was found in 1980 in the US.

Gloria Jean's Coffees: Australian Coffee house Gloria Jeans (GJC) entered in India through master franchise agreement with Citymax India, (part of the Dubai based global retail giant, Landmark Group), a leading hospitality, leisure and food retail company.

Illycaffe: Italian coffee brand Illycaffe has partnered with Narang Group, distributor of high end beverages, as master franchisee. The cafes will carry the "espressamente illy" brand name. It also operates Espressamente illy at Bangalore international airport followed by its first flagship outlet in Mumbai.

What is Business Development?

Business development is among the foremost concerns of any organization, and as a

manager, much of your attention will be devoted to developing and exploiting the business opportunities that are presented to you and your company. Business development and making your organization successful is reliant on good knowledge of best practice and management theories. Business development management involves asking yourself some searching questions. Are you prepared to change to realize the vision created by your business development strategy? What must your business excel at? How does that affect processes, people and customers? Who does the planning and controls the implementation of the business development ideas, answering to which goals, actions and measures? Perhaps most significant of all, you have to decide whether to be radical rather than incremental are you revolutionary in your skills as a business development manager or are you more evolutionary? The process of business development can be applied to just about any corporate situation. Even companies that are small need this type of activity in order to remain stable and to achieve growth over time. Often, the inclusion of at least one person who is focused on the activity of business development makes it possible to capture a view of the company that is hard for people with responsibility for specific functions with the organization to achieve without help. It is important to note that the successful business development specialist is not focused solely on making sales or keeping current customers happy. While those aspects are part of the overall picture, the development specialist will also be concerned with making the best use of the companys resources, refining the process and function of management and various departments, and addressing any legality that must be observed as the company continues to move forward. In many organizations, this gives the business development specialist a wide range of authority to solicit information from anywhere within the corporate structure and to influence every aspect of company function. At the same time, the specialist will also work with customer care professionals to assess the feedback gathered from existing clients on the perception of the company and its products. This type of activity can often identify ways to refine current sales and marketing techniques in order to capture a wider share of consumers within sectors where the business already has a presence. At the same time, the addition of the data acquired through customer care contacts may help

identify applications for the product line that are not promoted at present and could lead to capturing new markets if marketed properly.

Business development at coffee day express:Business Development in Coffee Day Xpress plays a tremendous role in developing the business at a right Place in right time to serve the best to customers. So that the business should be profitable with the customers. BDs in Coffee Day Xpress basically concentrating on two aspects. Outlets Franchising

Outlets:
Outlets is basically a Kiosk concept. Where it depends on the fixed number of crowd and where it can be the place to suit for customers taste and preference. Outlets Kiosk can be of many types. Such as Indoor Kiosk Outdoor Kiosk Customized Kiosk Premium Kiosk These kiosk can be done in the places like Institutes, corporate, Malls, Hospitals, etc..

Indoor kiosk

Outdoor kiosk

Kiosk: 10 ft by 7 ft and 8-10 ft in height. 100-sqft-area approx.

 For setting up coffee day express outlet we have following requirement: 1) CDX requires the necessary floor space (minimum of 100 sq. ft. for the outdoor and 80 sq.ft. for the indoor kiosk). 2) We request client to provide us the 8.5 KVA power with 3-phase connection. Besides it we need 30 ampere 4 poles MCB to run the kiosk. 3) Water Supply: If possible, the water connection for the cleaning purposes, also an outlet for the sewage water. 4) CDX will provide all the necessary structure, consumable & disposable and all the necessary services required for running the kiosk/set up. 5) Operation timings can be mutually decided. 6) CDX requires minimum one weeks time to start the operation, once the client signs an agreement.

 Various Machines & Their Current Requirement are as Follows

Sl.No

Machine

Voltage

Current

Power Power in in KW KVA

Power Power Top Socket in in Amps Amps

Power Switch in Amps

Coffee 1 Machine Thick Shake 2 - Mitora Pastry Cooler - 3 3 feet Refrigerator 4 - 220 ltrs Microwave 5 Oven Griller 6 Domestic 7 Blender 8 POS Sinage 16 Lighting

230

16

3.3

3.7

16

16

16

230

1.2

1.4

16

16

16

230

0.6

0.7

230

0.4

0.5

230

0.6

0.7

230 230 230

3 0.7 2.3

0.6 0.1 0.5

0.7 0.2 0.5

6 6 6

6 6 6

6 6 6

230

3.5

0.7

0.8

MUMBAI STANDARD MENU

Factors for a Outlet:

The Main coincidence factors for the outlets are. 1. Strength of the Footfall: It depends on the number of Walk-ins in to the outlet daily. 2. Quality of the Customers: The outlet is based upon the taste and preference of the customer. 3. Competition: It always lies in the brand perception between the Coffee Day and the Customers. 4. Location: It should always visible to the customers, so that the place should be unforgettable.

What Is Franchising?
Franchising is one of three business strategies a company may use in capturing market share. The others are company owned units or a combination of company owned and franchised units.

Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy the customer needs.

Franchising is a network of interdependent business relationships that allows a number of people to share:

A brand identification A successful method of doing business A proven marketing and distribution system

In short, franchising is a strategic alliance between groups of people who have specific relationships and responsibilities with a common goal to dominate markets, i.e., to get and keep more customers than their competitors.

There are many misconceptions about franchising, but probably the most widely held is that you as a franchisee are "buying a franchise." In reality you are investing your assets in a system to utilize the brand name, operating system and ongoing support. You and everyone in the system are licensed to use the brand name and operating system.

The business relationship is a joint commitment by all franchisees to get and keep customers. Legally you are bound to get and keep them using the prescribed marketing and operating systems of the franchisor.

To be successful in franchising you must understand the business and legal ramifications of your relationship with the franchisor and all the franchisees. Your focus must be on working with other franchisees and company managers to market the brand, and fully use the operating system to get and keep customers.

Throughout this article we will discuss in detail some of the benefits of conducting business as part of a larger group.

Other franchisees and company operated units are not your competition. The opposite is true. They and you share the task of establishing the brand as the dominant brand in all markets entered and reinforcing the customers's familiarity with and trust in the brand. So in this respect you are working as a team with others in the system. Other franchisees share with you the responsibility for quality, consistency, convenience, and other factors that define your franchise and insures repeat business for everyone. Increasing the value of the brand name is a shared responsibility of the franchisor and franchisee.

An "ownership mentality" destroys the reason franchised and company-operated units are successful. Think about it. If you think you "bought" a franchise, you become an "owner" and begin to think and act like an owner. You will want to change the system because of your needs, you will wonder what you are paying the royalty for, and you will begin thinking of other franchisees as your competitors. For these and many other reasons you do not want to think of yourself as an "independent owner."

As a franchisee you own the assets of your company, which you have chosen to invest in someone else's brand and operating system and ongoing support. You own the assets of your company, but you are licensed to operate someone else's business system.

Finally, your desire to become a franchisee must be grounded in your belief that you can be more successful using someone else's brand and operating according to their systems and methods, than you could if you opened up your own independent business and competed against them. You want to look for a franchisor who is building a system of interdependent franchisees who are committed to getting and keeping customers, to growing faster than the market, to growing faster than the competitors, and to do all of that with high margins. When you discover a franchisor who understands this relationship, you have a franchisor worth your consideration.

The Strength of Franchising A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business.

Franchising is the most popular system for growing a business in the United States today. According to every government survey, franchising has experienced explosive growth since the mid-70s and is expected to be the leading method of doing business in the new century.

Each franchise business has been authorized by a parent company, or franchisor, to sell their goods and/or services either in a retail space or a designated geographical area. The franchise

governs the method of conducting business between the two parties. Generally, a franchise sells goods or services supplied by the franchisor or that meet the franchisor's quality standards. This relationship is regulated by FTC laws.

Franchising advantages over going into business for you include; opening quicker, experiencing success sooner, developing a customer base faster, having less risk and being more profitable. A company franchises because it wants to quickly and in great numbers replicate its successful company operations without significantly increasing its debt. Because it has been successful at teaching its own employees to operate the business, the company believes it can repeat the same success by teaching others to do it.

In franchising, the operating system becomes identified with the brand or trade name that you license as a franchisee. Each franchise system uses precise methods to service and satisfy the customer. By documenting these practices, the franchisor institutionalizes the buying experience. Because customers don't like surprises this consistency in operations, unit to unit, builds customer loyalty to the brand.

Advantages and Disadvantages of franchising

Buying a franchise can be a quick way to set up your own business without starting from scratch. But there are also a number of drawbacks. Advantages

Lower Failure Rate. Your business is based on a proven idea. You can check how successful other franchises are before committing yourself. You can use a recognized brand name and trademarks. You benefit from any advertising or promotion by the owner of the franchise - the 'franchisor'. The franchisor gives you support - usually including training, help setting up the business, a manual telling you how to run the business and ongoing advice.

You usually have exclusive rights in your territory. The franchisor won't sell any other franchises in the same territory. Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation. You benefit from communicating and sharing ideas with and receiving support from other franchisees in the network Relationships with suppliers have already been established.

Disadvantages

Ongoing Costs. Costs may be higher than you expect. As well as the initial costs of buying the franchise, you

pay continuing management service fees and you may have to agree to buy products from the franchisor. The franchise agreement usually includes restrictions on how you run the business. You might not be able to make changes to suit your local market. The franchisor might go out of business. Other franchisees could give the brand a bad reputation. You may find it difficult to sell your franchise - you can only sell it to someone approved by the franchisor. All profits are shared with the franchisor

Franchising Model in coffee day xpress:Franchising is a concept of establishing the Kiosk with respect to the desired venture. For Ventures, the following are the types of franchises. Beverage: which include all beverage outlets i.e. Beverage (Corporate/Retail/ Institution/ Hospitals, etc.). Standard: includes all corporate and institutional outlets (Indoor/Outdoor). We have removed separate deposit category of outdoor kiosks. Retail: outlets in Hospital and High Street/Mall/Multiplex & any other Retail locations (Indoor/ Outdoor).

Module

Refundable Security Deposit

Registration Fee

Administration Fee

Total

Beverage Rs. 1,80,000/Standard Rs. 2,40,000/Retail Rs. 3,00,000/Rs.1,00,000Rs. 20,000/Rs. 4,20,000/Rs. 60,000/Rs. 20,000/Rs. 3,20,000/Rs. 20,000/Rs. 20,000/Rs. 2,20,000/-

Factors to be considered by franchisee:1.20% & 25% of Redeposit is non refundable after 3 - 5yrs. 2. Rs 20000/- Of entire Deposited will be non refundable. 3. Beverage 20% Fr. Commission, Standard 25% Fr. Commission, Retail 30% Fr. Commission. 4. Overheads will be born by the franchisee if applicable. (Salary, Wastage, Rent, Elericity)This details are tentative Salary 6000/- Wastage 1000/- (Rent & Elericity IF APPALICIABLE) 5. C&D items and maintenance are free from company's end. 6. Weekly settlement of accounts. 7. Wastage items are charged to franchisee at cost price. 8. Rs. 5000/- maintenance charge after the completion of first year. 9. 567/- will be charged for Pos Machine.

Refund Process: Any additional furniture and fixtures purchase by franchisee for their outlet, cannot be taken back by the company at the time of termination. Unless and until Kiosk Closing Form is completely filled and authenticated by all respective departments- Projects, MIS, HR, Maintenance, F&B, Audit, City Head, SCM, RM, Finance & Franchisee- F&F cannot be processed for refunds. No franchisee deposit would be refunded before Lock In Period compulsorily. Agency Fee: If Franchisee is unable to deploy the staff (bean buddy) on his behalf to work in the outlet, we shall employ the staff. However Franchisee has to bear the one time Agency fee and monthly expenses, whatever we incur on actual. Maintenance and Refurbishment Charge: Franchise has to pay Rs. 5,000/- per year per outlet. This will be collected on yearly basis, after the successful completion of each year. Administration charges: Franchisee has to pay Rs. 20,000/- (one time nonrefundable amount) as a administrative support rendered by us Additional Equipments: Any extra equipment like tables/chairs/umbrella has to be procured by franchisee themselves or in the event it is provided by Company, same shall be charged on actual.

Franchising Process:
All new franchising has to happen with complete documentation & Franchisee Interview: Franchise Application Form, Photos, PAN copy, Address proof, 3 months Bank statement & PDCs for first quarter. Prospectus franchisee should be completely aware of our agreement before collection the deposit.

KIOSK OPENING FORM FOR FRANCHISEE

Name of Franchisee: Kiosk Name: Location of Kiosk: Title of Kiosk Property: Own / Rented: If rented, name of Lessee: (The arrangement is valid till) Amount of Rent: As applicable per month Notional Rent: Rs. __NA____ (per month) [Applicable if property is owned by Franchisee and no rent is actually payable] Liability for Payment of Rent: Franchisee Insurance Coverage: Yes/No Commencement Date (Date of Opening/Allotment): Administration charge (Non Refundable): Rs. /Paid on: Registration Fee (Non Refundable): Rs. /Paid on: Refundable interest-free Security Deposit: Rs. /- (refundable at time of termination after deducting all dues and upon return of all equipment and kiosk) Paid through Cheque no: Total Term of Kiosk: (As per the location) Initial Term / Lock-In Period for Kiosk: --- years Subsequent renewals (subsequent lock in periods): Every -- years Other Charges: (subject to change, as actual)

1. 2. 3. 4. 5.

Telephone Charges: Rs. 392/- per month (POS)Paper Roll: Rs. 175/- per month or on actual (POS)Support Charges: Rs.250/- per month (applicable after first year) Uniform Charges: Rs.300/- per set Maintenance and Refurbishment charge of Kiosk & Equipments Rs.5,000/- per year Computation of penalties to Franchisee for non performance of the contract 1. Interest on outstanding due: 18% per annum or 500 per day whichever is higher 2. Non usage of Point of Sale (POS): Rs. 50/- per day. Equipment(s) to be provided at Kiosk: (Indoor/ Outdoor) Sr. No. Equipment Particulars (Type / Make/ Yes/No Serial Number / Any other identification for the Equipment) B2C Ignis & Icicles Yes Yes No. of Units installed

1. 2.

Vending Machine Thick Machines Shake

1 1

1. 2.

Pastry Coolers AMDL 9600 Billing Machine WLL Terminals Refrigerator Blender Griller Microwave Electrical and MCB fitting

Yes Yes

1 1

3. 4. 5. 6. 7. 8.

Yes Yes Yes Yes Yes

1 1 1 1 1

No. of Kiosk operator/s: One Employed (by franchisee)/Contracted: __________ If Contracted: (Detail of Contract) __________ Franchise Fees: The Franchisee shall earn his fee as and by way of Discount on the Net Sales made by the Franchisee from the Company as follows; Products: ---% Minimum Performance: Expected Average Sales per Day (ASPD): Rs ---/(Franchisee Commission on Birth day cake and bulk sale of cake will be 15% on Net sale) Merchandise Products: Variable, based on product category, and as shall be communicated from time to time, at the time of the launch of each Merchandise Product.

Subject to the performance of its obligations by the FRANCHISEE under this agreement, the COMPANY will until further notice, pay the FRANCHISEE a commission of --% on Net sales/ Turnover of each product listed in Annexure A, save and except for on Puff, Samosa and Noodles, in respect of which, commission shall be 15% on the Net sale. Company shall pay variable commission of 5 to15% on Net sales/Turnover of each Merchandise products listed in Annexure B. I hereby confirm receipt of the Equipment as stated in this KOF in a good, working order and condition. The terms and conditions set out in this KOF, which are subject to the Franchise Agreement, are acceptable to us:

SIGNED: FRANCHISEE COMPANY

Note: Documents to be submitted along with Kiosk Opening Form: 1. 2. 3. 4. 5. Address proof of the Franchisee. Latest Tax Paid Receipt. Registration Certificate of the Firm/Company. Latest Bank Statement. Business Reference Guarantee 2-persons

LEARNING AND EXPERIENCE AT COFFEE DAY XPRESS

I STARTED THE WORK AT COFEE DAY XPRESS ON 01/05/10 AND COMPLETED ON 30/05/10 WHICH WAS A 60 DAY PROGRAM. Then we had the induction held on the first day of working. We went through the introduction and the ppt about the company. Second day onwards we went to visit outlets and locations were our company had setups. First week went by understanding about the profile of work to be done. I am into business development and franchising of the business. Second week onwards I was sent to the field for search of the setting up of new outlets and later on franchising. I went to first sahar plaza in andheri were we already have our outlet and we wanted to set up a new one .I got contact of Mr jayesh bhatt (site manager of sahar plaza).I also got administration no. of reliance. There after I contacted the following companies through phone: 1. Kingfisher 2. Essar office 3. Mufti office 4. Nature knights 5. Corporate centre 6. Bank of Baroda 7. Financial technologies

8. Bisleri corporate enclave 9. Wockhardt bkc 10. Abu Dhabi Commercial Bank ADCB 11. Medpace Clinical Research India Pvt. ltd. 12. St. Andrews College 13. Narsee Monjee Institute of Management Studies 14. Business solitare park- Andheri(E) I had follow ups going around with all these companies out which some agreed some didnt and for some still awaiting response. The places I have visited for Business development contacts and meetings: 1. 2. 3. 4. 5. Financial technologiesAndheri(e) Business park Corporate enclave Mind space Malad.(Bharti Airtel and Sony entertainment) Marwah centre were me and my reporting senior had the meeting with Mr vidhur Marwah (director) of Marvah group for business development for setting up of kiosk.

The places I visited for franchising of the outlets. 1. Mr. PAVAN MAHAWAR (160BY2.COM) works as a sms solution consultant was interested in standard model of coffee day xpress. 2. Mr. GANESH HEDGE has his own shop of snacks and wants the beverage model of coffee day xpress. The above two people will give a positive reply for the proposal in the coming week. Launches of the kiosk that happened during my training period. 1. Bharati Axa Life --------21/05/10 2. Merrill lynch --------01/06/10 The next launch will be at Reena Mehta College in Bhyander soon. Therefore I conclude by saying that the experience achieved by working at coffee day xpress was very exciting and helpful for making my project report as well as a great help for my future career in the field of Marketing.

Conclusion
My working at CoffeeDay Xpress was a very important and helpful phase in my life at the starting stages of my career. I was thankful to all the sub departments head helping me in my work during training. I got to learn all about business development and franchising and also got to learn about marketing promotions and alliance. Hence specializing in marketing will be of great help through this learning experience practically and to learn from my mistakes done while completing the training.