Thursday, December 31, 2009

Franchising Poised To Explode In Small Format Retail In 2010

Mumbai: Even as retailers shelved their expansion plans last year and struggled to keep company-owned stores running, they figured out a way to multiply their stores and sustain business — through franchising.

Franchise India Holding Ltd, estimates a rise in the adoption of franchise model by small-format retail players in the country since the slowdown last year.

As per its estimates, 85% of all small-format retail business in India now operates on the franchise model.

“Earlier, only 50% of small-box retail companies in India operated through franchise model, while the rest is operated only through company owned stores. This is a very significant growth from what it used to be a year or two ago,” Gaurav Marya, president, Franchise India Holding said.

During the recession, most retailers were starved of capital for expansion. Franchising offered a model to sustain their business.

“That was when we saw the growth in retail and companies that were earlier not franchising started looking at the model,” Marya said.

Brands such as Koutons, Levis, Reebok and Adidas, which were traditionally not franchising, have lately started looking at the model.

So much so, the retail format ratio for most brands now stands at 80% dedicated to franchising and 20% for company run at strategic locations.

According to Franchise India, large-box retailers typically desist from taking the franchise route, although some, like Trent’s Westside chain, are franchised.

Videocon India, which runs two retail formats — Next (electronics chain) and Planet M (music and departmental chain) — is now starting to franchise Planet M, which was earlier being expanded through company-run stores.

Bata India, the largest retailer and manufacturer of footwear in the country with 1,200 stores, is starting its own franchise network to expand retail presence in a few months, Marcelo Villagran, managing director and chief executive officer of the company, had told DNA Money in October. Bata is looking at opening 60 flagship stores every year and tapping the franchise model will help the brand accelerate further in the market that is getting highly competitive.

Cookie Man, the retail chain store owned by Australian Foods Ltd, which runs over 50 stores across India, is looking at reaching a total of 250 stores through franchising in another 5-6 years.

“Not only does the franchisee bring in the capital, but also, the retailers are able to save 4-8% on the point of sales,” Marya of Franchise India said.

Currently, 45% of organised retail sales in India are through franchised outlets.

This is in line with the developed world countries like US and Europe, where these models are well incepted in the business world.

As per Franchise India estimates, the fashion retail industry in the country is pegged at $29 billion and growing at 12% per annum. India is now opening up as a competitive apparel retail market.

The market potential for footwear is 1.1 billion pairs and it is estimated to be a $2 billion sector.

The jewellery market is estimated at $9.7 billion, with gold contributing 98% to retailing. And the industry is touting retail franchising as the best mode of tapping the market’s potential.

Source:Shailaja Sharma / DNA
Friday, January 1, 2010 2:17 IST

Wednesday, December 30, 2009

Zapak to set up 300 gaming centres in India.

Anil Dhirubhai Ambani Group's gaming and entertainment arm, Zapak, expects to break-even this fiscal and plans to scale-up its gaming centres to 300 by June next, a top company official said.

"We are planning to set up 300 gaming cafes in across 50 cities in India. All the new cafes will be opened through the franchise route," Zapak's CFO Rohit Sharma told PTI.

Zapak, the country's largest online gaming portal, has 75 live cafes and has signed another 120 franchises last month, which would get operationalised in the next few months, Sharma said, without divulging investment details.

The gaming cafes would offer games of all genres like racing, shooting, cricket, counter strike, need for speed, crazy kart, flat out and many more.

"The gameplexes will have the latest technology and infrastructure besides providing world-class content for Indian gamers of all ages," Sharma said.

With the gaming industry growing at a pace of 30-40 per cent, Zapak is also likely to break-even this fiscal, he said.\

The company, which is also the largest distributor of gaming CDs, has 4,000 retail outlets. It also sells gaming merchandises like keyboards, consoles, headphones and other gaming accessories.

Recently, Zapak has launched two toys for Christmas--Zubber and Aquasand.

Zubber, a dough, can be used by kids to make various shapes. It comes in different colours and on mixing with a white-coloured activator, hardens into a rubber-like material.

Aquasand is a magic sand that never gets wet and can be used with accompanying moulds to create underwater sculptures using the squeezer bottles filled with Aquasand.

Within the next 2-3 years Zapak aims to expand its user base to 1.5 crore and create the biggest distribution network in the country.


source:http://www.business-standard.com/india/news

Tuesday, December 29, 2009

Worlds Finest Food Franchise Companies In India

BANGALORE: Amit Burman, vice-chairman of Dabur India, never thought that a casual stroll down one of south Delhi’s upcoming localities would
provide an idea for a unique business opportunity.

In 2006, the US-returned Burman and his friend Rohit Aggarwal were in Saket, standing outside one of the outlets of the international chain, Subway. The place was crowded, with people, especially in the 18-35 age group, buzzing in and out constantly. Burman and Aggarwal paused their conversation and wondered if there was a business opportunity here.

“Franchising Subway began as a hobby,” Burman says laughing. In the initial months, the team had to work on creating the sandwich category and tailoring it to local tastes. The classic cold-cut turkey and tuna subs had to share space with chicken tikka and chicken seekh kabab fare. “People were very doubtful about the venture and would ask if I planned to make sandwiches all my life,” jokes Burman.

He needn’t have worried. In three years, Burman’s Lite Bite Foods has become Subway’s largest franchisee in India. The company operates 40 quick- service restaurant (QSR) outlets and has added other international brands apart from Subway to its menu. Street Foods of India serves roti-kababs and rajma-chawal though kiosks, bakery cafe Bakers Street at airports, Pino’s Pasta Pizza and Rapps. It will also franchise US-based fried chicken brand Pollo Campero in the next few months. “We intend to become a restaurant chain with 200 outlets, including 30 QSRs, in three years,” he added.

Consumers’ growing penchant for eating out and taking quick meals in between long working hours has spawned a boom in the Indian QSR industry. Across the country, businessmen are either venturing into QSR market on their own or through franchisee tie-ups with foreign chains such as Domino’s and Papa John. Unlike fine dining restaurants, QSRs largely operate through smaller self-service outlets that provide value-for-money food that can also be consumed while on the go. It is estimated to be worth about Rs 2,500 crore and is growing at 30-40% annually.

Bangalore, which is a favoured choice for many people to open restaurants, has also seen an explosion in the number of QSRs in the recent past. This includes Spencer’s Retail’s Au Bon Pain, Global Franchisee Architects’s Cream and Fudge Factory and Donut Baker as well as Italian coffee brand Caffe Pascucci. US chain Melting Pot is ready to invest $5-$7.5 million in the Indian market by 2010.

“Many international franchise food brands are successfully operating in the country and these success stories have sent positive signals to other US franchisors to actively look at India for expansion,” said US Consulate’s principal commercial officer, Aileen Crowe Nandi. The consulate recently held a programme to introduce Indian entrepreneurs to American fast-food outlets such as CKE Restaurants, Round Table Pizza, Tropical Sno, Melting Pot and Church’s Chicken.

QSR segment operates on a high volume-low margin business model. Not only does it focus on delivering products with speed within high footfall areas but its ability to push sales even in recent months by tapping into captive audiences at malls, educational institutions and airports through evolving formats such as kiosks, drive-ins or even take-away joints has been critical.

“India offers tremendous opportunity due to its sheer size which will see the Papa John’s outlets quadruple to 100 in four years,” said Tapan
Vaidya, general manager, restaurant division, of the Jawad Business Group—the franchisee for pizza take-away chain Papa John’s in India and Middle East.

International brands are not the only ones to cash in on this trend. Local entrepreneurs have jumped into the fray with different concepts and ideas. Sunil Cherian, who runs the Chennai-based Burgerman is one such. Burgerman’s core business proposition is to offer 25 burger variants within a 25 sq ft kiosk. With 50 outlets in Chennai and 30 in Bangalore by the month-end, the chain has tied up with retail chains to grab captive consumers at Big Bazaar, Foodworld, Nilgiris or even HPCL and BPCL.

BuddyChef, which comes from the stables of Pune’s organic farming firm Orgreen, aims to sell pre-cooked Indian and Chinese meals under $1 across every pin code. With seven outlets across Pune, it is selling 5,000 meals a day across the counter to working couples, students and small offices.

Franchising has been a catalyst in fuelling the QSR concept in India. Sanjesh Thakur, Ernst & Young’s associate director, retail & consumer products practice, says that around 17% of the F&B outlets within the organised sector are operated through franchisees and over 30% of the upcoming outlets are projected to be based on this model.

The QSR trend was kicked off by the likes of McDonald’s and Yum! Restaurant’s KFC, which began operations in the 1990s. “Since the market opened up in the ‘90s, consumer habits including eating-out behaviour has gradually undergone a change,” said KFC India’s marketing director Unnat Varma. KFC added 27 outlets last year taking its total count to 72.

All this growth needs money and investors have started opening their purses to the industry.

Bangalore-based East West Ethnic Foods, the holding company of wraps chain Kaati Zone which is adding 100 outlets by next fiscal across Maharashtra, is in talks with two-three private equity players to raise between Rs 12-15 crore.

It received its first round of funding from Accel Partners India, Draper Investment company and the founder of Helion Ventures, Ashish Gupta.

Source:30 Dec 2009, 0006 hrs IST, Sarah Jacob, ET Bureau

Fitness Centers, Gyms, Womens Only Gyms Franchise Business Opportunities

After all the New Year parties are over, it will be time to atone for excesses and make resolutions. And getting in shape is high on the list,
especially for those who went overboard celebrating the economy’s rebound act. But whether these resolutions are kept or recycled for the next year, fitness chains are rejoicing because 2010 is expected to bring joyous tidings of healthy business.

While there is no estimate of the number of fitness outlets in India owing to the local and fragmented nature of the industry, a Technopak Advisors report says that the gym and fitness centre market is worth around Rs 690 crore. The anti-obesity market, worth Rs 1,800 crore, is projected to grow at a 13% CAGR through 2010, the report adds.

There are a handful of big brand names in this sector, at present, and literally hundreds of smaller ones, with new gyms being added every day. And while fewer Indians (around 1%) actively participate in physical activities than their counterparts in the West, the trend is said to be slowly reversing, mainly in the upper middle-class segment where attitudes towards fitness and health are changing.

Talwalkars is by far the oldest and largest brand in India, but foreign chains like Gold’s Gym, set up in 2002, were also attracted by the lure of India’s population and the lack of a mass ‘fitness culture’. Gradually, other homegrown brands like Leena Mogre Fitness Centre, Barbarian Power Gym, FitnessOne and Sykz emerged from the unorganised clutter of fitness centres. They have survived the slowdown and are working out growth strategies.

FitnessOne, for instance, was set up in 2004 by P Vivekanand, a former pilot in the US. Says Vivekanand, “Lifestyle diseases are rising alarmingly and people are becoming increasingly aware of the need to exercise regularly.” FitnessOne, with an average annual membership fee of Rs 20,000, was clearly targeted at moneyed classes. And the response was great. By its first anniversary in 2005, FitnessOne had five centres in South India. That number kept growing as the brand grew. “Even last year, we clocked around 40% growth,” Vivekanand says.

The group also started Pink, a women-only fitness chain that opened to a rousing welcome in Chennai. FitnessOne is a Southern success story, and plans to stay that way on the retail side, adding over 40 centres to its existing 24 retail outlets next fiscal. It is also in talks with private equity players and plans to close a funding deal in 2010.

The fitness craze has been partially caused by six-packed and body beautiful Hindi movie actors, who in turn, rely on people like Satyajit and Devashish Chourasia. Their gym, Barbarian Power Gym, was started way back in 1991 in Betul, Madhya Pradesh. But the founders got their big break in Mumbai in 1996 after they met actor Aamir Khan on a movie set, and he encouraged them to start a professional gym in Mumbai. Satyajit and Devashish decided to sell off their Nagpur outlet, took a quick loan and shifted to Mumbai. They started with a 1,400 sq ft gym at Lokhandwala and have not looked back since. Today, Barbarian has a total of eight outlets spread across Mumbai, Delhi, Nagpur, Betul and Mathura.

Satyajit has personally trained Aamir Khan, Saif Ali Khan, Hritik Roshan, Ajay Devgn, Rani Mukherjee, Esha Deol and many others. Among corporates, he has trained Lakshmi Mittal, Anil Ambani and Sanjay Reddy (of GVK). “We want to take the company public in the next five years,” he says, adding, “There is huge opportunity. At the moment, only a fraction of the population has been tapped.” In the plan is taking his gyms to smaller cities. He has already started outlets in Ahmedabad and has signed up for more in Lucknow, Rajkot, Baroda, Surat and about 12,000 sq ft of space at a mall in Indore. “We have decided to take the pure franchise route ahead.”


Indeed, the franchise route is being favoured by many. Sykz, a five-gym chain, is also taking the route. Its founding partners Nitin Gupta and Aman Bhandari are planning to add at least 6-8 gyms a year from 2010 onwards. “It’s a 16-hour job. We cannot be involved with too many centres. We are looking for partners in various cities who are equally passionate about fitness as we are,” says Bhandari. Sykz is looking at expanding to other tier-I cities as well as tier-II towns such as Gurgaon, Noida, Chandigarh, Ludhiana, Ahmedabad, Indore, Jaipur and others.

Many fitness chains are banking on smaller cities to bring in business. Leena Mogre, director of Leena Mogre Fitness Centre, says, “The market is still untapped. New demand will keep getting generated in Tier II and III towns.” Mogre plans to open 50 outlets in smaller cities over the next seven years and is also in talks with investors. “Private funding is an option and we are meeting some investors who’ve shown interest in the sector,” she says.

The boom in fitness, especially in smaller cities has also benefited equipment suppliers like Rajesh Rai, managing director of Jerai Fitness. “Our equipment helps set up a gym in some part of the country every second day,” Rai claims. Rai, who started his own manufacturing unit in 2000, says that he gets regular orders to supply to gyms in Indore, Nagpur, Pune, Raipur, etc. And since many of his customers are smaller organisations, Rai offers them an equipment buyback scheme. “And if they’ve been filing their tax returns regularly, we also try and get them funding through nationalised banks,” Rai says.

As the lure of fitness becomes apparent, celebrities are jumping into it— just like many did with the restaurant business. Models-turned-actors Milind Soman and Rahul Dev launched a fitness centre, Breathe, in Delhi last year. Soman calls this an experiment. “Both of us got into the business because of our background in modeling and also because we anticipate a huge fitness wave in India,” he says. Soman also wants to bust fitness myths propagated by traditional gyms, which hawk supplements and concentrate on machine-based training. “India has never had a sports culture, forget about a fitness culture,” he says, adding, “We plan to promote sports fitness and have very little dependence on isolation machines to achieve fitness.”

For the duo, it’s about creating an environment, which is conducive to working out well. At Breathe, people from beyond a 4 km radius around the gym are not allowed to become members. “The idea is to ensure that all members come to the gym,” says Soman.

Hence you have a lot of options that you could explore before you take up a health and fitness franchise.
Source:25 Dec 2009, 0325 hrs IST, Nikhil Menon & Ravi Teja Sharma, ET Bureau

IACM to appoint 500 Franchisees

New DelhiDelhi based computer hardware, networking and electronic security system training institute, IACM plans to appoint five hundred odd franchisees in tier two and tier cities besides six major metros over next four years. When it’s accomplished, IACM will be one of the largest franchising brand in education in the country.

Beginning this December, IACM, has launched an one of its kind road show titled ‘Show Me The Business’. It’ll be a nationwide chain of seminars that will be organized in 100 cities across the country on entrepreneurship opportunities with IACM.

Never before have an education institute embarked on such large scale mass contact program to enroll franchisees particularly from small towns. Said Ravinder Goyal, Director, IACM, “We are planning to plough close to Rupees Twenty-Fifty crores to finance the ambitious expansion of computer hardware, networking and electronic security system training across India.”

Interestingly, the franchisee development seminar aims at targeting upwardly mobile small business families who had been traditionally in managing retail stores in Tier 2 or Tier 3 cities but now plans to enter larger business arena.

IACM is trying to assist small retail store owners to set up a franchisee based business for the next generation which is now educated and computer savvy too. Says Ravinder Goyal, Director, IACM, “we have identified a unique segment among old business owners whose children are educated and computer savvy and refuses to be a part of retail store concept. IACM offers a white collared business venture for the second generation of these families.”

It’s an interesting trend. For the first time ever, IACM is trying to broad base education entrepreneurship like never before. Sample this list; ranging from jewellers to doctors to hoteliers to transporters to textile mill owner ---- the list of those who have jumped into the fray of education is intriguing.

IACM has been successful in roping in a diverse segment of small entrepreneurs in education business.

Says Ravinder Goyal, Director, IACM; “After ten years of operation, we were just six centers up until two years back”. However, in a dramatic way, over last two years, ever since we embarked in franchisee development we added sixty centers in fifty cities across the country. I personally can’t yet believe the potential of education franchising in India. This current fiscal year we are likely to touch 90-100 franchisees. This will scale up to five hundred franchisee over next four years in total.

And there’s a queue of people from all walks of life wanting to take up education training as a business. All that we have succeeded in doing is investing in the Brand, creating an unparalleled online testing system and online student and center management system which work to the benefit of franchisees”.

IACM has drawn up an ambitious investment plan to support the franchisee development programme. A sum of rupees Twenty - Fifty crore has been targeted to fund the projected franchisee development programme. Says Ravinder Goyal “We are actively seeking private equity funding as well to meet the fund requirement required to meet the projected expansion plan”.

Source:http://www.financialexpress.com/news

Thursday, December 24, 2009

How to Become A Franchise Consultant

If you have been seing the growth of franchising In India and understand that franchising could be a profession that you could embark upon then one of the options to garner a pie in the ever growing franchise industry could be to become a franchise consultant.Once you make the decision to become a franchise consultant, what would be the most efficient process to follow in order to make this happen?

Step 1: Research franchise consulting firms
In order to determine which franchise consulting organization to affiliate with, it is recommended that you investigate several firms. Determine the reputation of each company including how long it has been in operation and also the number and types of franchises it represents.

The company should market for at least several hundred franchises representing a wide variety of services. Additionally, the organization should provide a comprehensive training program as well as continuous support to their franchise consultants.

It is advisable to interview current franchise consultants if possible. Find out their thoughts on the organization.

Step 2: Get your financing in order
It is important to become cognizant of what your cost will be to join the consulting companies that you are investigating.

There is typically a one-time fee to join a consulting company as a franchise consultant. This includes training and ongoing support. The cost usually ranges somewhere between Rs100,000 and Rs 500,000

Also factor in funds that you will need to set up your office. Most franchise consultants operate from their homes, thereby minimizing overhead costs.There are options of using your existing offices also to be a full time franchise consultant and have a exclusive/shared office.

If you don't have the capital readily available, you may need to apply for a loan or for a partial loan. Sometimes franchise organizations can point you in the right direction in obtaining financing.Typically, loans are provided on your individual IT returns and the collaterals you are willing to offer to the bank.

Step 3: Participate in training provided by the consulting organization
Part of your investigation of franchise consulting firms included finding out the type of training and support provided. Once you sign on, you will be attending training sessions that should equip you with all the material and skills that you will need to successfully link franchisees with franchise businesses. Take advantage of all of the training offered.

Step 4: Set up your office
Franchise consultants usually operate out of a home office. Much of the work is done via computer, telephone, and fax machine. For optimum working conditions, an up-to-date computer system is recommended. Also, it is usually advisable to set up a separate telephone line for your business. You will learn all of this in training.

Step 5: Work schedule
Finally, based on your lifestyle and income needs, decide if you will work part-time or full time and then prepare your schedule accordingly. Keep in mind that most of your time will be spent contacting leads, doing phone interviews with franchise candidates, and conducting research to determine the best matches for the franchisees as well as the franchisors.

Amit Nahar is a well known franchise professional who consults with franchise systems and franchise seekers. As an author, public speaker & franchise consultant Amit has educated thousands of people about their options in the franchise industry.He typically specialises in franchise development and consulting for companies seeking to strategize their franchising and building franchise organization. Amit is also the CEO of Sparkleminds. If you have questions or want to become a franchise consultant visit sparkleminds.com.

Sushmita Sens TEPL To Be India Franchisee For Miss Universe Pageant.

It’s a dream come true!”
The multi-talented diva-esque Sushmita Sen has always believed in wearing many hats and excelling in all that she undertakes. Be it winning the first Miss Universe crown for India, becoming a top-notch Bollywood actor, adopting a baby girl at the age of 24 or establishing a business house way ahead of most of her contemporaries, Sushmita has been a forerunner of sorts.

However, the Ex-Miss Universe’s heart was still pining to attain one particular thing: “I have always maintained that I am what I am because of Miss Universe, and I always wanted to take that association ahead in some way. Due to an array of reasons, it had remained a pipe dream till about 1 ½ months back, when Paula Shugart, president of the Miss Universe Organisation made a fateful call to me, asking if my company Tantra Entertainment Private Limited (TEPL) would like to become the India franchise owner for holding the preliminary to Miss Universe 2010, which also would entrust TEPL the responsibility of holding a national pageant to select Miss Universe India 2010? I have always believed that the universe conspires to give you what you really want, and that too all in good time. Well, I just had an exemplary revelation of the Universe’s way of working. What better an association could I have asked for?” smiles Sushmita, whose company has thus become the India franchise owner for holding the preliminary to Miss Universe 2010. Primarily into feature film production and distribution, TEPL has ventured into the pageant industry with this franchise and calling the national pageant.

Elaborating about this new business venture of hers, Sushmita says “We’ve launched a mother brand called ‘I AM’ – in keeping with my belief that every individual’s journey begins and blossoms forth from these two words, they’re what define you. This mother brand will work in several verticals, which will be disclosed in good time. However, to begin with, we’ve launched the vertical called ‘I AM She’, a refreshing new platform that will select the next Miss India Universe, who will represent India at the global Miss Universe® competition. ‘I AM She’ has found an able sponsor in the Alchemist group, a leading conglomerate in fields such as healthcare, real estate, F&B etc. We’ve also launched the CSR vertical called ‘I AM Foundation’ which will undertake several CSR initiatives, especially with the participation of the girls chosen as finalists for the Miss Universe India pageant. This year, we’ll be working closely with the Cancer Patients Aid Association (CPAA), The Energy and Resources Institute (TERI), Bal Asha Trust, The Research Society and The ANI Foundation.”

Having bagged the franchise, Sushmita has set her sights firmly on having the best of Indian girls/women get a chance to represent the country on the prestigious platform. “I have been closely involved in the process of choosing the perfect girls, and by perfect I do not mean just physically perfect. We’re looking for girls who have a balanced body and mind, a strong set of values, confidence, and intelligence. More so, I want the participants to be highly people-oriented - they should be able to connect with all kinds of people in a genuine way. I’ve been very keen on inducing academically oriented and highly qualified girls in the pageant, because, I want to send out the message that participating in a beauty pageant does not demean your intelligence or stature – if at all, it helps you use your looks and personality for a larger good. Details regarding the pageant, which will be open for girls between 17-27 years of age, and will be held at the historical Jag Mandir in Udaipur on 27th February 2010, can be found on the website www.iam-she.com.”

Franchise Expo @ Ahmedabad on 8/9 Jan 2010

Franchise Business seekers in Ahmedabad & the Gujarat region can look forward to the franchise expo at ahmedabad at the grand bhagwati on the 8th & 9th Jan 2010.

Companies seeking franchisees/business partners in ahmedabad and looking to expand their business in the gujarat region can seek this opportunity to interact with more than 5000 serious franchise buyers expected to visit the expo.

Entrepreneurs could look forward to companies in the food, education, retail, services, home based opportunities, low investment option, master franchisees, international franchisees and all kinds of businesses that would be displayed at the event during the 2 days.

You could also catch up with the franchise experts /franchise consultants (www.sparkleminds.com) who would help you choose a business of your choice or help you expand your business through franchising.

Visit us at the franchise expo amdavad for complete franchise solutions.

Naturals Unisex Salons: Franchising their way to 450 Outlets In India

Salon chain Naturals Beauty India presence by 2013 by opening 450 outlets

Leading salon chain Naturals Beauty India is all set to have pan-India presence by 2013 by opening 450 outlets at an investment of Rs 50 crore, according to a top company official.

“Our aim is to be the number one salon chain in India by 2013. To reach that target, we will grow by having 120 salons by 2012. We will take it up to 200 salons by December 2011 and to 450 outlets by 2013″, Naturals Beauty Salon India founder-director CK Kumaravel told reporters after launching the company’s 50th outlet in Tamil Nadu in Chennai last night.

Ninety per cent of these outlets would be franchise based and the balance company owned outlets, he said.

The company would initially invest Rs 30 crore to set up the outlets and another Rs 20 crore by 2011-12.

Initially, the company would open one outlet each in Pune, Ahmedabad and Surat over the next few weeks, he said, adding that all stores across the country would range in size from 1,200 square feet to 1,500 square feet.

The company presently has outlets in other cities like Hyderabad, Bangalore, Mangalore Kochi, Calicut and Trivandrum.

On revenue targets, company’s chief Financial Officer J Gurumurthi said that they reported a turnover of Rs 22 crore in 2008-09 and would reach Rs 40 crore by the end of 2009-2010.

The industry has been witnessing a growth with organized players like Lakme Beauty Salons,Kaya Skin Clinics and many other players in the segment aiming a pie of their share in the multi million industry.

Subway Franchise

The Story Of Subway And How Their Franchise Organisation Has Become One The Worlds Major Growing Franchises.

The famous brand Subway is an international restaurant franchise that sells sandwiches and salads. The creators of this franchise were Fred De Luca and Peter Buck who formed the restaurant in 1965. Subway is not the commercial name of the franchise it is Doctor’s Associates Inc or DAI. The business is truly international and is the world’s quickest growing franchise, with Franchises now higher than 27,000 in 85 different countries. The 1st franchise was begun in 1974 in Wallingford, Connecticut, USA.

The Franchises have positioned themselves as a healthier option restaurant, which adds enormous market attraction in today’s health conscious society but much of the Franchises expansion is down to its rare business model. Unlike most Franchises, the parent business does not run any restaurants. The Franchise Opportunity is given to regional Franchises to run the various stores and Subway holds the contract to be their development agent for that area. The development agent, Subway, is then responsible for developing these existing and new locations, studying the stores on a monthly basis and overall support for the various Franchises in whatever struggles that may occur. The break down of percentages for the Franchise For Sale choices are broken down like this, 8% of sales at each site go to royalties, 4.5% of sales go into a holding called the Subway Franchisee Advertising Fund Trust or SFAFT, which is lead by a board of directors voted in by the franchisees. The Franchise Opportunity comprises of the leasing of equipment, help with the franchise cost for minorities and for existing owners the Franchise For Sale choice comprises of remodelling, relocation and expansion loans.

The Franchise Opportunity comes with mandatory requirements. Each franchisee must attend a two week training course, this course teaches business concepts, methods of operation and basic management skills. The time for the training is split between the classroom and on site within a neighbouring Subway restaurant for work experience. After the training course each possible franchisee must pass a thorough exam in order to become possible for a Franchise Opportunity with Subway. As the Subway Franchise For Sale propositions are international there are training places in the UK, USA, Australia, China, Canada, Germany, Korea, India, Lebanon and Russia, and as the Franchises are developing everywhere so will the training places. Other courses on hand are for managers, multi owners of franchises, field consultants and development agents.

Like any franchise nothing is guaranteed, an amount of effort and hard work will be required to build your 1st franchise and especially if you decide to own multiple Franchises. The initial investment is quite good and owning a Subway franchise will give you a high income if you pick the appropriate location.

The speed at which the franchise is developing is remarkable and newest figures show that Franchises are opening at about 1,000 per year internationally, this is a clear signal that this business model will continue to build and lead the market for a lot of years to come. Subway Franchises can be found across the world and with the appropriate person at the appropriate location a Franchise Opportunity is there for you.

Wednesday, December 9, 2009

Franchise Business In India:Pathway to Success & Wealth

Rajat Mathur, 36,
CookieMan Franchisee Mumbai
had always wanted to strike out on his own. So, when he left the i-flex Solutions office in Mumbai as its senior banking analyst for the last time, he did not regret it. An alumnus of the IIT-Mumbai and IIM-Lucknow, he had worked at Times Bank and ICICI Bank before i-flex.

You would walk into Orbit Mall on the Malad-Goregaon Road in Mumbai to the aroma of freshly baked cookies. The bouquet will lead you past the Good Earth store on your left, and round the corner to the Cookie Man shop. And there, presiding over chocolate and honey-almond cookies, you would meet Mathur again. Counting the cash, checking the cookies, and serving them straight out of the oven at the back to the crowds thronging the counter. “I always wanted to do something on my own as I think that’s where the real fun is. You can never get that in a nine-to-five job.” Mathur’s entrepreneurial spirit is alive and well.


Jaya Patodia 34
Lakme Beauty Salon, Delhi
She invested Rs 25 lakh initially and now has a monthly income of Rs 50,000-60,000. Her average monthly turnover is Rs 3.5 lakh
“I have a Swiss watch store in Khan Market, but that was not giving me good returns. The turnaround happened when a friend, who owned a Lakme franchise, told me about it.”Franchisee Checklist

While Mathur cut loose, a lot of others wanting to do so have not. With responsibilities and dependents, they don’t dare to leave the warmth of a regular income and plunge into the financial turbulence a new business could bring. But today, the ‘fresher’ can go in with the safety tube of franchising. That’s what Mathur did. T.K.S. Kumar, a franchisee of Whirlpool Service Centre in Chennai for a decade now, says: “I wanted to realise my long-cherished dream of becoming an employment giver from an employment seeker.” But P. Ramarao, president, Australian Foods, which owns Cookie Man, warns: “It’s not for people who aren’t passionate.”

WHAT IS A FRANCHISE?

During the Great Depression, Colonel Harland Sanders started selling fried chicken in the little town of Corbin, Kentucky, on the road to Florida. He is said to have used 11 herbs and spices in a secret recipe that gave the chicken its distinctive taste. Sanders’ fare gained fame and Corbin was a routine stop en route to Florida till a new highway bypassed it. That’s when the colonel shut shop and tried selling his chicken to restaurant owners. In 1952, Pete Harman of South Salt Lake, Utah, signed an agreement to sell Sanders’ chicken and pay him five cents for each piece sold. The eatery was called Kentucky Fried Chicken. It was the world’s first franchise. While Sanders was sharing proprietory knowledge and reputation with Harman for a fee, the latter was running the business on Sanders’ behalf. And that is the essence of a franchise even today.

WHY A FRANCHISE?

The simple answer is to mitigate risk. “The franchiser can expand its reach by investing almost no money and capital, while the franchisee is almost sure of success as he is working in a tested area,” says C.Y. Pal, president, Franchising Association of India, an industry body. A US Department of Commerce study conducted during 1971 to 1997 showed that less than five per cent of franchises closed down each year. In contrast, a study by the US Small Business Administration found that from 1978 to 1998, 62 per cent of non-franchised businesses could not make it past the sixth year. But remember that a franchise will never give the returns that a successful own business will. For example, Biocon CEO Kiran Mazumdar-Shaw, who started her business with Rs 10,000 in 1978, is now the richest woman in India with a net worth of about Rs 2,000 crore. Some franchises could give you annual returns of 70 per cent, but most will be in the 20-40 per cent range.

Good franchisers will help you get your business rolling and to keep it that way. Vivek Kaicker, 44, runs a US$ Dollar Store franchise in Delhi. “I had a retail business, but I liked this concept and thought it would increase footfall,” he says.

Retail giant Wal-Mart, with a turnover of $316 billion, announced that it would franchise its Indian operations to Sunil Mittal’s Bharti Enterprises. The latter would own and run Wal-Mart retail stores in India. Wal-Mart would also set up a joint venture with Bharti for the supply chain. Thus, systems honed over 46 years would be Bharti’s from Day One. Overnight, Bharti, whose retail plans had earlier been dwarfed by the Rs 3,200-crore investment announced by Mukesh Ambani’s Reliance Retail, was being billed as the company that would battle for supremacy in organised Indian retail. That’s the kind of fillip the right franchise can give. The model is versatile enough to work for Mittal, as well as Mathur. And it can work for you.

WHY IS THIS A GOOD TIME?

As a share of GDP, franchising accounts for 12 per cent in the US, but not even one per cent in India. The comparison gives an idea of where it could go. Industry estimates indicate franchising has grown to a Rs 8,000-crore sector now, from Rs 4,578 in 2004. Pal says there are over 750 franchisers in India today. Throw in the foreign franchisers, and the opportunity grows even bigger. It is attracting local talent in sectors such as food, lifestyle, retail, business services, healthcare, communication, education, entertainment and travel, among others. India is now the world’s largest franchise market after North America and is growing at about 30 per cent a year, says Tony White, managing director, White Connections, which advises franchise companies.

A big opportunity is in the Rs 40,000-crore organised retail sector, of which less than a fifth is franchised. It is expected to grow at 30 per cent a year for the next five years. But it may not be for everyone. “Retail often involves high costs as prime real estate, decoration and furnishing,” says Gaurav Marya, president, Franchise India Holdings, an integrated franchise solutions company. A cheaper option is a service franchise. Instead of the local guy, more people are getting specialists to, say, find a match, or clean a water tank. For a money-spinner education franchise, “in most cases all you need is a room and the course material”, Marya adds. “Eating out constitutes 11 per cent of the wallet of Indians; mom and pop stores are being replaced by organised F&B outlets,” says Ajay Bansal, director (business development), Yum International, which owns Kentucky Fried Chicken. But growth is concentrated more in the takeaways and value eateries than fine diners (see 26 Hot Franchises: An Invitation to Join the Fast-growing Fraternity, page 24).

WHICH FRANCHISE?

While buying a franchise, you have to consider several issues.

Abilities. This is the time for brutal self-assessment. Rule of thumb: stay off what does not interest you. If you are indifferent to food, stay off restaurants. If kids exasperate you, avoid play schools. But don’t lose heart. Your passion for travelling may make you one of the best equipped to plan holidays. Go for that. “I had already done a few beauty courses,” says Jaya Patodia, 34, who runs a Lakme Beauty Salon in Delhi.

More likely than not, a good franchiser will check out whether you fit the bill. Shahnaz Hussain, for instance, looks for people who are “passionate about beauty care”. Most franchisers will look for specific skills apart from “entrepreneurial attitude and open mind”. Institute of Computer & Finance Executives asks for no less then a chartered accountant, and Spykar Jeans wants a year’s experience in franchising.

Since this will be a new business, it will need a lot of hard work to get it running. “The initial one year is very important as this is when you build up a customer base,” says Hema Malini, 36, who, along with Ambika Viswanath, 24, run a Ferns ‘N’ Petals franchise in Chennai. Most franchisers want the franchisee to be involved personally. Ratan Jalan, CEO, The Apollo Clinic, says: “We need a person who is himself going to run the franchise.” But some may let you hire a manager and work at the franchise part-time. Remember, the monthly expense estimate franchisers give you assume that you will work full time.

Costs & finances. The big question is: how much can you invest in a franchise? Some service franchises could cost as little as Rs 2 lakh. You would need just a room, a table, a couple of chairs and a telephone connection. At the other end are beauty parlours, fine dining restaurants, or retail jewellery outlets. Here, investments could go to a crore or higher.

Now add on recurring costs—royalty (usually a percentage of sales to be paid every week or month). In some cases, Ferns 'N’ Petals and Angeos Academy, it is the higher of percentage of net sales or a lumpsum. There would also be working capital, which would include salary of staff, power bills, rent, and some fixed overheads like ad fees. When a franchiser talks about working capital needs, ask whether it includes rent. If not, this could be a chunky add-on. Check how much you can borrow from banks and at what rate and decide whether you want to do so (see Money Matters).

The amount of capital you can raise will partly determine how long you can wait for the business to pay back. Some franchisers will say that you can start making profits from the first month itself, but it is always wise to give yourself a cushion of at least a few months. Your reserves or savings will decide how critical immediate cash flow is. Also, ask yourself how much money you can afford to lose. It would be smart to have a contingency fund.

Goals. What do you want your franchise to do for you? Will it be the primary or a supplementary source of income? Are you looking to make any specific amount every year? What is the return you want on your investment? Develop a three-tier strategy for investing, a long-term strategy and an exit strategy. Ask where you see yourself five to 10 years down the line. Do you intend to make money and shut shop, or do you want to set up more outlets later? Remember, buying a very successful franchise for a high fee makes no sense until your outlet gives returns.

After you apply these filters, your list should get down to at most four or five franchises. But you still need to zero in on one.

Due diligence. Ultimately, you are investing in a franchise and need to know what you are buying. So, bring out the acid and do the test. The first thing to ask is whether the franchise is likely to be profitable. Check the record of the franchiser and the prospects of the industry it operates in. Find out how many franchisees it has, its growth plans and how many of its franchises have shut shop. Talk to the franchiser and at least five existing franchisees to get the low down. Often, even better known franchisers like Archies Gallery and Subway won’t give you their numbers. Others like Ferns ‘N’ Petals and Turtle will encourage you to meet franchisees. Cookie Man and Tech Kidz will even give you their profit and loss details. Says Pal: “In advanced countries, a franchiser is compelled by law to disclose information about its business, on other franchisees and expected earnings. In India, it’s not so.”

One proof of a franchiser is in the way it trains its franchisees, whether it provides initial training and upgrades your skills regularly. You may have to pay a small amount for that. It should also give steady help in marketing and managing the franchise. Cost of equipment and other inputs should also be lower than the market prices as the franchiser should buy them in bulk and supply them to you.

In most cases, the franchiser will help you find a spot, but check whether it has other franchises close by. The size of the area you serve could make the difference between profits and losses. Also remember all products and services are not in demand everywhere, or throughout the year. Stay with better brands as they could mean better business. “Brands can bring people into your store; the rest of the work you have to do yourself,” says Gagan Singh, managing director, Benetton India. Don’t buy a franchise just because someone will sell you one.

By now you should have enough information to home in on one. That would leave just one step—signing the agreement.

THE FINAL CHECKLIST

Understanding the franchise agreement is a must as it formalises your rights and obligations. Whether it is a two-pager or a whole booklet, once you sign it, you will have to abide by it. In the US, all the franchisers have to provide a uniform franchise offering circular (UFOC) to prospective franchisees at least 10 business days before any money is paid or agreement to purchase is signed.

There are strict guidelines about what the UFOC should include. There is no such rule in India. “The franchiser and the franchisee need to be on the same plane,” says Reebok India managing director Subhinder Singh. So, always get a lawyer to explain the agreement to you. He should also assist you with negotiations, if any. He may charge Rs 20,000-50,000, says Srijoy Das, an advocate at law firm Archer & Angels, but you should spend it as it might save you bigger losses later. And always look out for the following in the agreement you sign.

Term. The duration of the franchisee agreement and whether it is renewable should be clearly stated. Usually it would be for three years, and could be renewed for a fee.

Territorial rights. Most franchisers do not allow two outlets within 3 km of each other. But watch out for the ‘good business’ clause and make sure you know what it means in numbers. If you do not measure up, it will allow the franchiser to sell another franchise in your area. Also check out whether you can buy more franchises in neighbouring area if you want.

Exit and resale. But what if you want to shut shop before the term ends? Normally, there would be a notice period and you should get back any deposit you made. Deductions, if any, for a loss-making business should be included. Some franchisers let you sell the franchise. If the franchiser is part of the deal, you should know how much of your money you can recover. No franchiser actually likes to talk about selling options when you are buying a franchise. But it is good to be prepared for the worst.

Termination. In the whole franchisee game, the franchiser is bigger and stronger and, therefore, has the advantage over you. It might decide to terminate the franchise any time. Know by heart the reasons for which it can.

THE BOTTOM LINE

Franchising is an easier way to start your business, but certainly not an easy way to do it. It is a challenge, but one that may be worth taking. As the fraternity says: “When you are a franchisee, you are for yourself, but not by yourself.”

Source:Outlook Money.Com

Tuesday, December 8, 2009

Canon To Open 6 'Prozone' outlets through franchise model in all major cities of India.

Leading digital imaging company Canon India will open six outlets in various cities in the country over the next few months. According to the Canon India Senior Vice-President Alok Bhardwaj, these outlets name 'Prozone' will display its 160 products under one roof and would be set up on the franchise model in Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad during the next few months.

The company was witnessing tremendous growth in Tier-II cities on sales of its flagship model 'digital single lens reflector (DSLR)' cameras. The company had only three exclusive outlets so far-in Bangalore, Gurgaon and Mumbai. He added that they were getting a huge response particularly in the mid-end DSLR cameras.

The lower-end Canon cameras range between Rs.26,000 to Rs.50,000, while the mid-end between Rs.50,000 to Rs.1.50 lakh and the high-end cameras were priced above Rs.1.50 lakh. Bhardwaj told that the company had launched the new DSLR Electro Optical System (EOS) 7D with new features in the mid-end category, priced at Rs.1.10 lakh. The EOS 7D has a resolution of 18 megapixel and features a lock, which helps camera setting s not to change without the knowledge of the photographer.

He also mentioned that this year witnessed the highest growth in the sales of DSLR cameras despite the global meltdown. The company grew over 30 per cent in the last three years. Canon India is the currently the market leader in DSLR Cameras. It has 54 per cent market share. South India was the largest market for Canon, contributing 28 per cent on its total sales.

Canon India currently has 10 exclusive service centres across various cities. The company reported a turnover of Rs.665 crore last financial year and hopes to reach Rs.830 crore this financial year.

Source:Paisewaise.com

Monday, December 7, 2009

Starwood Hotels Opens Up In Pune.

Starwood Hotels & Resorts Worldwide (NYSE: HOT) today announces the opening of The Westin Pune Koregaon Park - the first of six new Westin Hotels to open in India over the next three years and the brand's 25th Hotel in Asia Pacific. The hotel is illustrative of Starwood's overall growth in India with 24 existing hotels and plans to grow its footprint by 60 percent by 2012.

"As home to the world's fastest growing population, India represents a significant opportunity for Starwood and our development partners," said Frits van Paasschen, President and CEO for Starwood Hotels & Resorts Worldwide, Inc.

India makes up 21 percent of the world's incremental growth, and by 2016, its population is expected to be larger than that of Europe, Russia, Australia, New Zealand, Japan, Canada and the United States combined.

"Coinciding with its population boom is the rise of India's middle class, which is driving domestic tourism growth. In this decade, disposable income in India has grown about 10 percent annually, and much of that is being spent on travel," added van Paasschen. "By working to further establish relationships with travelers in this critical, high-growth market today, we are ensuring the success of Starwood tomorrow."

In 2009, Starwood made meaningful gains in India with the debut of the Four Points by Sheraton brand in Mumbai and Jaipur. And looking ahead to 2010, Starwood will launch its Aloft brand in India, opening the first three of its six hotels in the pipeline

"India's dynamic and resilient economy makes it a highly attractive choice for further hotel development," said Miguel Ko, Chairman and President of Starwood Asia Pacific. "India has a strong GDP growth rate, an established role as global hub for the outsourcing industry and the infrastructure to support travel to and within the country. And with our plans to grow our footprint by 60 percent in the next three years, Starwood is well positioned to meet the pent-up demand for our lifestyle brands throughout India."

While India is a growth powerhouse in and of itself, when combined with China, the implications for Starwood are even farther reaching.

"The potential numbers of new international travelers from India and China are staggering," said Simon Turner, President of Global Development for Starwood. "When you take a look at India and China, you have 40 percent of the world's population, and between them, they are averaging 8 percent growth in GDP. Furthermore, by 2015, 400 million Chinese and Indians will have sufficient incomes to travel abroad - as a point of perspective that is seven times the number of international travelers who visited the United States last year."

Starwood Hotels & Resorts Worldwide is one of the leading hotel and leisure companies in the world with 982 properties in more than 100 countries and 145,000 employees at its owned and managed properties. Starwood Hotels is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Four Points by Sheraton, and the recently launched Aloft, and Element SM. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts.

Source:Real Estate Channel

McDonalds Real Business Burgers or Real Estate

Last time when I went to McDonald’s outlet in Delhi with my nephew (my sis’ elder son), I decided to irritate him a bit. I just love it when he is frustrated with my questions. He is all of 8, but just like any other kid, outspoken and naughty.

I wanted to give him a tough time and as we entered McDonald’s outlet, I told him that I am not going to buy him a cold drink if he is not able to answer my answer which obviously was to irritate him and he was definitely going to have the cold drinks irrespective of his answer.

“So, Chummu (his nickname) tell me what do McDonald’s sell?”, the moment I asked this question, he frowned at me as if I am a fool or trying to make fun of him by asking this stupid question. He didn’t uttered anything for next two minutes and was double checking at the back of his mind whether the answer he is going to say is correct or not.

I reiterated, “Chummu tell me what is the business of McDonald, what do they deal in?” The purpose of irritating him was seeing some accomplishment as I started smiling and he finally opened his mouth – “mamu don’t make fun of me! They sell burgers aur kya.” I knew this was coming and then started tweaking the question which was not his cup of tea.” Hey dude! I agree with you that they sell burgers but selling burgers is not their core business.

I mean they don’t make enough money from selling burgers. So, what is it which fetches money to them?” The mercury was rising as he could not counter me and made a second guess that McDonald’s then must be making enough money from cold drinks.

On the face of it, Chummu is absolutely right that McDonald’s sell burgers and cold drinks and it is a common perception too. McDonald’s do sell burger but they don’t make enough money from selling burgers as they do from real estate business. Yes, this is what they do in most of the countries abroad. Close to 15% outlets are owned by McDonald and as per their business model which is completely different from other food chain models, they charge rent on the basis of sales. Apart from this, as in case of normal franchise business they also charge franchise fees and marketing fees.

The former CFO of McDonald’s CFO, Harry J. Sonneborn is often quoted as having said -

“We are not basically in the food business. We are in the real estate business.”

“We are in the real estate business. The only reason we sell hamburgers is because they are the greatest producer of revenue from which our tenants can pay us rent.”

It is a common belief among masses that McDonald’s, the largest chain of fast food restaurants is a market leader in hamburgers which is true but actually it is a real estate power house. It is the largest commercial real estate landowner in the United States. McDonald’s property portfolio was estimated to be valued around eight billion dollars, as of 2001. To explain it further, McDonald’s makes money on real estate by buying and selling properties which are generally restaurant lots. On the one hand, it invests in hot locations while under performing locations are also sold out to balance the portfolio.

Well !! Chummu is too young to understand the business model of McDonald’s and he finally had his share of cold drinks but next time you don’t lose on yours if someone asks you – What is the business of McDonald’s ?

SOURCE:Amit Khandelia on forum4ca.com

Rosebys to Expand Using The Franchise Route

07 December 2009


The UK's largest specialist textiles, lifestyle and home décor retailer Rosebys plans to expand its stores in India and also re-enter the European market which it quit three years ago. However, it will stick to the franchise route rather than own the stores.

Rosebys chief executive Aloke Banerjee told reporters on the sidelines of a textiles conference in New Delhi on Saturfay that the company is targeting a presence across India with stores evenly spread across the metros as well as smaller towns. He said the store would increase its presence from the current 100 stores to 300 by 2011.

Banerjee said that Rosebys India is likely to generate revenues of about Rs100 crore for the current fiscal, and expects annual sales to reach Rs500crore over the next four years aided by its brand-building exercises store additions. "Our biggest cost is on brand building and there will be no let down on that,'' he added.

Rosebys, which sells products such as bed linen and cushions, is poised to benefit from rising demand for home textiles products in India, Banerjee said. He added that the company would leverage its Indian expertise to re-launch in Europe.

Indian conglomerate Gujarat Heavy Chemicals Ltd (GHCL) acquired the UK's Rosebys chain in a $40 million (Rs180 crore) deal in 2006. After the acquisition, the company promptly closed down all 320 stores in the UK.

"After the buyout, the recession hit; and we wanted to restructure the business in the UK. In the meantime we started the India operations. Now we are expanding to Belgium, France, Poland and Romania," Banerjee said. "By the end of this fiscal itself you will see our presence in one or two of those countries.''

Australian Food Brands In India

Retail Food Group Limited, a leading Australian retail food brand manager and franchisor, has decided to enter Indian market next year. The company is aiming revenue of US$87 million from the country within five years from start of operations.
"We expect revenues of $87 million from our Indian operations within five years. In 20 years, we expect Indian operations to be bigger than the Australian business," Mr. Gavin Nixon, Sales and Leasing Manager, Retail Food Group (RFG) told reporters.
RFG, the largest retail chain in Australia, last year the company’s turnover was US$505 million in the domestic market.

"The Indian food market is one of the most promising and offers immense potential. We want to capitalise on it as part of our global growth strategy," Mr. Nixon said.
RFG will be introducing all its four brands like Michel's Patisserie, Donut King, Brumby's Bakery and 'bb's cafe' in the Indian market next year and plans to double its retail strength every year.

"We will open a total of 15 outlets of four of its brands within the first year and double the number every year for next few years," he said.

RFG currently operates over 1100 outlets in Australia. The company entered China market last year

Franchise Business Opportunities In India

India is one country that offers various franchise and business opportunities. In todays cut throat competitive world everyone wants to stay ahead in the race of success and for that majority people have decided to indulge themselves into business.
Seeing todays movement you can say that franchise is one business which is riding high these days and with the entrance of foreign and big players more franchise and business opportunities have popped up. According to the experts, franchise business is the safest business as it involves less investment with more revenue. Thats why more and more people are now moving towards the available franchise opportunities. The franchise business is in boom these days as many big and international food giants are looking for the people who can help them in setting up their outlet in India.
This sudden need has created a lot of franchise and business opportunities for the people and anyone cashing this opportunity now will always be on the profitable side. Indias vast geographical expanse, multilingual culture, strong and powerful economy and also growing middle class all clubbed together provide excellent franchise and business opportunities in India. Franchise business is riding high these days in India and there is a sudden boom in various sectors such as food and beverage, raw materials, power supply, fuel, tourism, services and even commercial ventures.

Recently, United Nations Conference on Trade and Development or widely known as UNCTAD reported that, currently India is comfortably positioned among the top four Asian destinations for foreign direct investment. And by this you can predict that, soon more and more foreign companies will be coming and setting up their base in India. This means more lucrative franchise and business opportunities in India. Another main reason behind this boom is that the cost of hiring an employee in India is much lower than the west, thats why, so much work is outsourced to India and many companies are setting up their operations here.

Thus, if you wish to achieve success and also the revenue then this is the time to hunt and cash on the franchise and business opportunities available in India. For more information on franchise and business opportunities, business opportunities India, franchise companies in India and franchise opportunities India please visit www.sparkleminds.com

Education Franchise Opportunities In India

India is a land of contradictions and dichotomies and this extends to the area of education as well. We have the IITs and IIMs at one of the scale, and teacher-less schools at the other. After independence, India emphasized developing centers of higher learning. India also retained English as a medium of instruction; this has contributed greatly to its economic growth.

India’s youth, comprising over 50 percent of its population, is referred to as its demographic dividend. A rough statistics in the past year estimates the presence of 367 universities, 18,000 colleges, half-a-million teachers and about 11 million students on the rolls (Source- ibef.org). These figures have since escalated but they throw light on the large Indian education market & the opportunity therein but more importantly it also throws light on the gap between educated population & employable population. Statistics reveal that less than 25% of the graduates are actually employable. It is believed that based on the current and future manpower requirements of the various sectors, there is a huge demand-supply gap in the education space.

This has attracted many players to invest in education and training institutions with the aim of building valuable franchises that can be rapidly scaled up. The core job of these players is to make a candidate employable by training them in the right courses effectively inculcating the need to be abreast of the present & future requirement & acquiring newer & multilevel skills. Coaching classes, Vocational training, IT Training institutes, English speaking classes etc. are a few examples of such entities.

The latest news that India’s education sector is forecasted to increase its IT spending from an estimated $356 million in 2008 to $704 million by 2012, reflecting in a Compounded Annual Growth Rate (CAGR) of 19 percent during 2007-2012, according to the research study by Springboard Research, an IT Market Research industry (Source - Silicon India)

The spin-off benefits that this sector has created is that, along with ensuring quality education & making candidates employable, it has created several entrepreneurs countrywide & that explains the reason as to why franchising is so successful in the education sector.

This has also led to the growth & rise of entrepreneurs who have contributed significantly. Specially, Women Entrepreneurs who have an inherent quality of being very deft in building rapport & look at things from a human angle as well thus are very good in customer service. So, it is not surprising that women tend to launch businesses that are client based or service-oriented.

Source:Surjeet Singh Padma.

Sachin Tendulkar ST all set to FRANCHISE Brand Sachin.

Sachin Ramesh Tendulkar is the God of Cricket and with a billion Indian fans and many more around the world, the ‘god’ now wants to go the FRANCHISE route to spread the gospel. Want more energy from a chocolate bar? Buy Sachin Tendulkar’s. Want more glucose from that good ol’ biscuit? Try ‘god’s own brand’.

Want better running shoes that can make you perhaps even fly? Try Adidas’ God, err ST line. Want a better cover drive? Join one of his cricket nurseries that will spring up from Ahmedabad to Adelaide. Want a better orgasm? We don’t know if he can help, but what the heck, if KamaSutra can pay a premium, the Mumbai Bomber might just oblige.

India’s greatest sporting icon is making sure that before he hangs up his boots, Brand Tendulkar is a sustainable multi-million dollar cash cow. Says Venu Nair, president (South Asia), World Sport Group: “Sachin is planning a brand overhaul. We are working with him to chalk out a strategy to make sure that the sustainability curve of his brand doesn’t dip suddenly after he stops playing. We are betting on him for at least the next 10 years.”

Here’s the plan: A mnemonic (ST) has already been designed and can be seen on Tendulkar’s bat. This will slowly be extended to cricket academies, sporting goods, apparel, chocolates, health drinks, energy bars, coaching books and manuals among others. “We are planning four zonal ST branded cricket academies in the next 12 months with one each in Australia and England,” reveals Nair. “In the next five years, we expect the ST brand to be worth $75-100 million.” But wait, the stumps are not drawn yet.

Source:ET 6 Dec 2009, 1945 hrs IST, John Sarkar & Amit Sharma, ET Bureau

Friday, December 4, 2009

Koutons to Add 100 Stores This Year

Retail apparel firm Koutons India, with an aim of expanding its presence in India, has mentioned that it will be coming up with 100 new stores across the nation. It also mentioned that it hopes that its revenue witnesses a growth of 35% during the 2009 – 2010 fiscal year.

"We are planning to open at least 100 more stores, taking our retail chain's strength to 1,500 stores’, said the Koutons Retail president Balvinder Singh while addressing the media on the margins of an event in New Delhi.

"We are on an expansion mode, and our franchise business model is doing well specially in tier II cities. This year even amid slowdown, we are expecting a growth of 30-35 percent," he added.

In 2008-09, the company had posted a turnover of Rs.1,000 crore.

Koutons is looking to consolidate its presence across the different regions of the country to have a penetrated national foot print.

International Commercial Cleaning Franchise In India

New Zealand's largest commercial cleaning franchise, Crest Commercial Cleaning, has struck up a deal in India which will see it operating in around a dozen cities and employing thousands of people in the next two years.

Since securing the country licence agreement in 2008, Crest Commercial Cleaning (India) Pvt. has employed 300 people in India. It is now on track to expand that to 3000 employees in the next two years, as a growing number of companies in India place more emphasis on hygiene and cleanliness.

"We have established ourselves in this powerhouse economy at an opportune time," says Crest co-owner and spokesperson Grant McLauchlan "As the Indian economy becomes more sophisticated, customers, particularly international corporates, are demanding better hygiene standards.

"Many people tell us that one of the big barriers to doing business in India is hygiene and so we are seeing savvy companies starting to make that a priority," Mr McLauchlan says, on his return from a business trip to India last week.

He says with a 6-9 per cent growth rate and a population of a billion people, India's growth potential is huge.

"The country has developed more of a Western feel in the big cities and there are large shopping malls and office blocks emerging all over the skyline."

"Obviously there is an opportunity for us to maintain these buildings, whether it is the provision of cleaning services or electrical and mechanical maintenance of the infrastructure."

He says cleaning, or housekeeping as it is known in India, is worth around $150 billion per annum but is currently serviced by untrained, poorly resourced contracting companies.

Competition for customers is tough as hundreds of new shopping malls try to attract people through cleaner more hygienic environments for the new middle class, which is relocating to Indian cities.

Mr McLauchlan says Crest is doing well in the Indian market because it is a quality brand, with excellent training programmes in place for staff. The training in India is based on New Zealand standards. Crest New Zealand cleaning staff in New Zealand are required to undertake an NZQA recognised qualification which leads to a National Certificate in Cleaning and Caretaking.

"Training cleaning staff to achieve nationally recognised qualifications makes more sense for commercial cleaners than hiring unskilled staff," he says "Training has a very positive effect on morale, motivation and on the person's ability to carry out cleaning to high standards.

"While New Zealand and India are our focus over the next two years we are looking at expanding into other Asia countries and the Middle East beyond that," he said.

Hence entrepreneurs in India can look forward to a host of international service franchisees lining up in India to offer their services to the indian consumer.