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Presented By:

Quausain JafriApurva Saurav

Shagufta siddiqui

Deepanshu MishraAbishek Rawat

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A continuing relationship in which a franchisor providesa licensed privilege to the franchisee to do business andoffers assistance in organizing, training, merchandising,

marketing and managing in return for a monetaryconsideration. Franchising is a form of business by

which the owner (franchisor) of a product, service ormethod obtains distribution through affiliated dealers

(franchisees).

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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.

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What drives traffic

Who are target customers

Where do target customers live

How and when do these customers interact with theconcept.

Is franchise a destination concept(do your customerscome to you?)

Type of store format

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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.

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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.

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Consideration of malls and markets.

Retail space area required for franchisee.

Minimum frontage site has.

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Once the franchise is selected the activities for setting upthe franchise unit commence immediate.

The franchise has to normally pay an initial commitmentmoney 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 exploreother potential partner for that location.

The franchisor has to be clearly told that there is no goingback. Even after the stage arrangement breaks up thefranchisor can retail a part or whole commitment money ascompensation for opportunity lost.

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The list of activities to be taken has to be laid down bythe franchisor step by step from the date of paymentof the initial commitment money up to the date of thelaunch of the unit.

These activities should be time bound with clearresponsibilities assigned.

It include the steps with deadline for assigning theinterior of the site, obtaining govt. approvals

,recruitment of employees by the franchisee , trainingby the franchisor , procurement of equipment ,rawmaterial /product supplies and the launch of the unit.

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A proper launch of the unit generates awareness about theoutlet in the area.

Also helps to built volume and sales on the launch date andhence act a moral booster for franchisee.

Launch requires proper planning and co ordinationbetween the franchisor and the franchisee.

Before launch marketing and sales activities need to bestarted 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.

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The day of launch should be advertised in the local mediaand should coincide with an event that the franchisee hostsnear 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 orpromotional offers.

This inaugural drive can last for few days or weeks as perthe convenience of the franchisee and policies laid down.

The franchisor should accord equal importance to thelaunch of all the units.

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A senior representative of the franchisor should bepresent at the launch, the event and the pressbriefings.

The franchisors support personnel should be availableduring the initial days to ensure a smooth start of theunit and to help iron out any teething problem thatmay emerge.