Presented By: Quausain Jafri Apurva Saurav Shagufta siddiqui Deepanshu Mishra Abishek Rawat

A continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees).

 What is the upfront cost of franchising.

Other fees required for franchising.

How is franchisor making money. What restriction do one have on supplier.

Regional protection offered.

Empire building opportunities for franchisee. No of franchise fail in a year.

Value of resold franchisee.

How to get out of the deal , if necessary.

 What drives traffic

Who are target customers

Where do target customers live How and when do these customers interact with the

concept. Is franchise a destination concept(do your customers come to you?) Type of store format

 Business potential of the location .

Study of demography of the location .

demand for the product. Pre existing franchising unit.

viability of a franchise unit at that location.

 Site franchisee is able to provide for the outlet.

The ideal location desired.

Commercial , industrial , recreational and educational

establishment around it. Accessibility of the location Its visibility to customers. Parking space. Direction density and qualification of traffic.

 Consideration of malls and markets.

Retail space area required for franchisee.

Minimum frontage site has.

 Once the franchise is selected the activities for setting up

the franchise unit commence immediate. The franchise has to normally pay an initial commitment money towards the franchise start up fees which is around 20-30% of the total franchise fees. Upon payment it is understood that the franchisee has been finally selected and the franchisor will not explore other potential partner for that location. The franchisor has to be clearly told that there is no going back. Even after the stage arrangement breaks up the franchisor can retail a part or whole commitment money as compensation for opportunity lost.

 The list of activities to be taken has to be laid down by

the franchisor step by step from the date of payment of the initial commitment money up to the date of the launch of the unit. These activities should be time bound with clear responsibilities assigned. It include the steps with deadline for assigning the interior of the site, obtaining govt. approvals ,recruitment of employees by the franchisee , training by the franchisor , procurement of equipment ,raw material /product supplies and the launch of the unit.

 A proper launch of the unit generates awareness about the

outlet in the area. Also helps to built volume and sales on the launch date and hence act a moral booster for franchisee. Launch requires proper planning and co ordination between the franchisor and the franchisee. Before launch marketing and sales activities need to be started in the area ,in order to generate awareness about the launch events in the neighborhood . Poster, banner, newspaper inserts , print adds , radio jingles etc. can be used for this purpose as per budget allocated.

 The day of launch should be advertised in the local media

and should coincide with an event that the franchisee hosts near or at the unit location. This event could be seminar, a music show or a cultural event and should attract the right audience. The launch date should also announce a special promotional drive at the unit with discount , freebies or promotional offers. This inaugural drive can last for few days or weeks as per the convenience of the franchisee and policies laid down. The franchisor should accord equal importance to the launch of all the units.

 A senior representative of the franchisor should be

present at the launch, the event and the press briefings. The franchisors support personnel should be available during the initial days to ensure a smooth start of the unit and to help iron out any teething problem that may emerge.