Habib’s sets up shop in Thimphu
The renowned Indian hairstylist Habibs opens an academy/salon
21 May, 2010 - With beauty parlours mushrooming in the capital and other parts of the country, it wasn’t long before a franchisee of popular professional hair and beauty salons made an entry into the Bhutanese market.
Yesterday, the first such franchisee of Habib’s hair and beauty opened in the capital. Run by Tenzin Lhadon, 41, one of the first to be trained under trade ministry’s entrepreneurship promotion centre in 1998, the idea to start the franchise came with the intent to start a beauty and hair training academy.
Habib’s beauty and hair academy starts sessions from June and has already received 10 applications. The academy, with a trainer from India, will provide intensive, comprehensive and part time courses on hair styling and beauty. The courses are 24 weeks, 12 weeks comprehensive and 12 weeks part time. The fees are Nu 60,000 for the comprehensive course.
Specialised courses on film make-up, hair straightening and perming, among others, will also be provided.
Tenzin, who was previously running Tashi salon at Zangdopelri complex, said she had chosen Habib, because the franchise was renowned as one of the best in India. The new salon has six experienced and trained hair stylists and beauticians, and offers membership and student discounts.
Speaking at the inaugural ceremony, labour minister Lyonpo Dorji Wangdi said that the salon and the academy were in line with what the ministry was trying to achieve in terms of entrepreneurship development. He added that Bhutan’s vision was to become a knowledge based society with skilled people.
The minister however said that the academy in its operation should try and conform with the principles of GNH.
A refresher’s seminar was also organised for hairstylists and beauticians, who had come from different parts of the country. According to a participant, who runs a salon in the capital, Habib was not a threat, especially since it was high-end compared to her salon. “The prices are high and it makes it almost exclusive to the richer segment of society,” she said. “We have our own clientele and I’m sure we’ll be able to maintain that.”
The franchise pays 15 percent royalty and a Nu 100,000 yearly fee to the Habib franchise.
Jawed Habib, CEO of the company and renowned fashion hair stylist, who also attended the inauguration, said that there were 47 academies in India. He was also looking into expanding into other neighbouring south Asian countries.
On the controversy that another franchise already operated within two kilometres of each other, Jawed Habib said that, while the other woman had approached them first, there was no franchise agreement signed between them.
By Kinley Wangmo
Source:Jawed Habib Franchise, Hair Salon Franchise, Beauty Franchise, hair training academy,best india franchise,habib franchise,franchise agreement,Unisex Salon franchise,
Showing posts with label Franchise Agreement. Show all posts
Showing posts with label Franchise Agreement. Show all posts
Friday, May 21, 2010
Sunday, April 18, 2010
Franchise Agreement And Franchise Legalities In India
Today, India is one of the biggest emerging markets for various goods and services, ranging from bare necessities to expensive luxuries. Until 1991 due to the archaic Foreign Exchange Regulation Act, 1973 (FERA), almost all sectors of goods and services relating to the consumer markets in India were secure from the grasp of foreign investors. After the repeal of FERA and the coming into force of the Foreign Exchange Management Act, 1999 (FEMA), foreign investors found their passage into India with rules for entry becoming far more favourable. Today, a convenient medium of entry by foreign companies into the Indian market is the franchising model. Franchising also exists as a successful business module for local companies in India within various sectors.
The United States of America stands at the forefront of the franchise boom. Today, the legal environment in the United States is highly conducive to the healthy growth and evolution of franchising. With more than 50% of total retail businesses in the United States, 45% in Canada and 26% in Australia choosing a franchise model for expansion the impact of franchising on retail industries across the globe is considerable. To foster the rapid and sustained growth that this channel brings it is critical that laws to regulate the franchising business exist.
However, there are no laws enacted solely for the purpose of regulating the growing business of franchising in India, even though many nations across the world have enacted such laws. The result is that when franchisors enter India they are governed by a number of different statutes and codes rather than a single comprehensive enactment.
Franchise Laws across the Globe
There are many countries which have developed comprehensive legislation to cover franchising in their respective dominions. At the federal level in the United States, the Federal Trade Commission ’s Rules on Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures (1979) regulate the information a franchisor is required to supply the prospective franchisee in order to enable the franchisee to make an informed decision on the prospects of venturing into the business. The North American Security Administration Association (NASSA) has adopted a Uniform Franchise Offering Circular (UFOC) which delineates the information required to be disclosed to a prospective franchisee. Disclosure requirements under franchising are well-defined in the USA.
In 2000, the Ontario Legislature in Canada adopted the Arthur Wishart Act which deals comprehensively with disclosure requirements as well as important aspects of the franchisee-franchisor relationship such as fair dealing by each party to a franchise agreement as regards its performance and enforcement, and the right of action for damages for breach of the duty of fair dealing.
In the United Kingdom, there exists no operative franchise-related legislation. However different aspects are governed by norms laid down by the British Franchise Association (BFA), the regulatory body of the franchise industry in the United Kingdom. These include a code of ethical conduct, disciplinary procedure, complaints procedure and appeals procedure.
The Australian government has adopted a mandatory code of conduct and has also modified the Trade Practice Act 1974 to provide for franchising. The new code imposes comprehensive disclosure requirements and provides for mandatory mediation of franchising disputes and minimum standards for franchise agreements including, inter alia, a cooling period, refrain from seeking from a franchisee a general release liability, disclosing material facts and refrain from unreasonably withholding consent to transfer of the business.
In April 2002, the Japan Fair Trade Commission (JFTC), the competition authority of Japan, published new guidelines on franchising. These guidelines contain three parts - a general description of franchising, provisions for the disclosure of necessary information (such as details of the assistance to be offered to franchisees, the nature, amount and conditions of repayment, if any, of the fee to be paid at the time of entering into a franchise agreement, etc.) at the time of the offer of a franchise and a part on vertical restraints between a franchisor and its franchisees. Under the guidelines, the failure to provide necessary information shall constitute deceptive customer inducement, which is considered an unfair trade practice.
On 31 December 2004 the Ministry of Commerce of the People’s Republic of China promulgated the Measures for the Regulation of Commercial Franchises which became the sole legal framework for franchising in China. The measures became operative on 1 February 2005 and provide detailed regulations for franchising, comprising of 42 articles over nine chapters covering a wide span of areas from the franchise agreement to disclosure requirements, special rules for foreign invested enterprises and legal liabilities.
Need for a Franchise Law in India
A healthy legal environment is of great importance for franchising and should include provisions pertaining to all areas that fall within the ambit of franchising. This includes, inter alia, commercial law relating to contracts and joint ventures and intellectual property law for protection of trade marks and know-how. Franchise arrangements are subject to an array of laws and regulations in addition to those regulating commercial contracts and intellectual property rights. There are no specific laws governing franchising in India. As a result a draft franchise agreement may be governed by different laws.
Primarily a franchise agreement is a contract between the franchisor and the franchisee. The first law which comes into the picture is the Contract Act 1872 which governs contracts in India. A franchise agreement will be governed by the Indian Contract Act, 1872 and the Specific Relief Act, 1963 which provides for both specific enforcement of covenants in a contract and remedies in the form of damages for breach of contract. If a party to the franchise agreement commits a breach of contract, the aggrieved party has the option to initiate a suit for specific performance in Indian courts and apply for relief in the form of a temporary or permanent injunction, which may be granted at the discretion of the court considering the balance of convenience and the interests of justice. An order granting or rejecting an injunction may be appealed by an aggrieved party.
Laws relating to taxation, property laws, insurance law and labour laws also apply to franchise transactions. Additionally, laws and regulations applying to specific sectors of goods and services will also apply depending on the franchised.
The following are the reasons why a comprehensive franchise law is required in India:
Application of Multiple Legislation
A well-defined legal structure is indispensable for the effective functioning of any business operation. The international business environment demands a well-defined suitable legislation that is complete in all respects. The lack of a comprehensive legislation on franchising in India leads to the applicability of multiple laws to a franchise transaction.
This poses the following problems:
Complexities: Parties to a contract normally prefer agreements with a simple approach and encompassing all the required law procedures and rules required to be complied with. However the application of different laws to one agreement makes it complex to decide various issues arising from the agreement.
Ambiguities: Due to the necessary application of multiple legislation, ambiguities are created as to certain issues. For example, a franchisor would imagine that a certain issue is the franchisee’s responsibility under one law, whereas the franchisee would think the opposite based on a different law.
Time-Consuming: Referring to multiple laws consumes a lot of time at the initial stages of a transaction as well as other points of time when the agreement is sought to be enforced. This proves to be detrimental to the smooth functioning of franchising operations in India and also makes time-bound operations involving new enterprises difficult.
Absence of Disclosure Requirements
Countries with specific franchising legislation make it imperative for parties to a franchise agreement to disclose certain factual information pertaining to the business of the parties. This ensures transparency and facilitates an informed decision. A franchisor should be required, by law, to make certain disclosure to the prospective franchisee wherein he is supposed to reveal detailed information regarding himself, his litigation and bankruptcy history, his financial position, the facilities he offers etc. In India, in the absence of effective disclosure norms, a prospective franchisee is rendered helpless as the franchisor is under no statutory obligations to make disclosures.
In the absence of a specific statute governing the franchise agreement, the franchisor refrains from providing any information that is likely to prejudice or make a franchisee reconsider the business proposition of the franchisor. The lack of proper disclosure requirements provides a golden opportunity to a franchisor to abuse his position of importance as he is virtually under no statutory obligation to make the requisite disclosure.
Applicability of Laws of other Countries
Normally, the absence of franchise laws enables foreign franchisors to make the laws of their own country applicable to the agreements entered into with the franchisees in India. The same is the case with franchisors who enter into franchising agreements with franchisees from other countries. This proves to be an additional burden on the parties, particularly the franchisee.
Lack of Proper Format for Franchising Agreements
Due to lack of a specific format, franchisors from other countries draft agreements which are in the same format as is approved or followed in their countries. Such agreements are made to suit the specific environment of their respective countries and hence are not suitable for Indian environment.
Liability of Parties Uncertain
Due to the lack of specific legislation, the liability of either party is either determined by the agreements entered into between them or on the basis of general prevailing law. The liability clause is different in different countries, and this leads to a great discrepancy among the courts which try such disputes on liabilities.
The Central Government is currently considering a franchise law aimed at fast resolution of disputes; the proposal is expected to be placed before a sub-committee of the National Development Council. The aforesaid problems surrounding franchising in India necessitate the enactment of a specific legislation pertaining to franchising in India and providing for the gamut of activities that franchising encompasses. A special franchise law would greatly accelerate dispute resolutions and fortify the Indian retail industry.
Source:Franchising Association Of India.FAI,
The United States of America stands at the forefront of the franchise boom. Today, the legal environment in the United States is highly conducive to the healthy growth and evolution of franchising. With more than 50% of total retail businesses in the United States, 45% in Canada and 26% in Australia choosing a franchise model for expansion the impact of franchising on retail industries across the globe is considerable. To foster the rapid and sustained growth that this channel brings it is critical that laws to regulate the franchising business exist.
However, there are no laws enacted solely for the purpose of regulating the growing business of franchising in India, even though many nations across the world have enacted such laws. The result is that when franchisors enter India they are governed by a number of different statutes and codes rather than a single comprehensive enactment.
Franchise Laws across the Globe
There are many countries which have developed comprehensive legislation to cover franchising in their respective dominions. At the federal level in the United States, the Federal Trade Commission ’s Rules on Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures (1979) regulate the information a franchisor is required to supply the prospective franchisee in order to enable the franchisee to make an informed decision on the prospects of venturing into the business. The North American Security Administration Association (NASSA) has adopted a Uniform Franchise Offering Circular (UFOC) which delineates the information required to be disclosed to a prospective franchisee. Disclosure requirements under franchising are well-defined in the USA.
In 2000, the Ontario Legislature in Canada adopted the Arthur Wishart Act which deals comprehensively with disclosure requirements as well as important aspects of the franchisee-franchisor relationship such as fair dealing by each party to a franchise agreement as regards its performance and enforcement, and the right of action for damages for breach of the duty of fair dealing.
In the United Kingdom, there exists no operative franchise-related legislation. However different aspects are governed by norms laid down by the British Franchise Association (BFA), the regulatory body of the franchise industry in the United Kingdom. These include a code of ethical conduct, disciplinary procedure, complaints procedure and appeals procedure.
The Australian government has adopted a mandatory code of conduct and has also modified the Trade Practice Act 1974 to provide for franchising. The new code imposes comprehensive disclosure requirements and provides for mandatory mediation of franchising disputes and minimum standards for franchise agreements including, inter alia, a cooling period, refrain from seeking from a franchisee a general release liability, disclosing material facts and refrain from unreasonably withholding consent to transfer of the business.
In April 2002, the Japan Fair Trade Commission (JFTC), the competition authority of Japan, published new guidelines on franchising. These guidelines contain three parts - a general description of franchising, provisions for the disclosure of necessary information (such as details of the assistance to be offered to franchisees, the nature, amount and conditions of repayment, if any, of the fee to be paid at the time of entering into a franchise agreement, etc.) at the time of the offer of a franchise and a part on vertical restraints between a franchisor and its franchisees. Under the guidelines, the failure to provide necessary information shall constitute deceptive customer inducement, which is considered an unfair trade practice.
On 31 December 2004 the Ministry of Commerce of the People’s Republic of China promulgated the Measures for the Regulation of Commercial Franchises which became the sole legal framework for franchising in China. The measures became operative on 1 February 2005 and provide detailed regulations for franchising, comprising of 42 articles over nine chapters covering a wide span of areas from the franchise agreement to disclosure requirements, special rules for foreign invested enterprises and legal liabilities.
Need for a Franchise Law in India
A healthy legal environment is of great importance for franchising and should include provisions pertaining to all areas that fall within the ambit of franchising. This includes, inter alia, commercial law relating to contracts and joint ventures and intellectual property law for protection of trade marks and know-how. Franchise arrangements are subject to an array of laws and regulations in addition to those regulating commercial contracts and intellectual property rights. There are no specific laws governing franchising in India. As a result a draft franchise agreement may be governed by different laws.
Primarily a franchise agreement is a contract between the franchisor and the franchisee. The first law which comes into the picture is the Contract Act 1872 which governs contracts in India. A franchise agreement will be governed by the Indian Contract Act, 1872 and the Specific Relief Act, 1963 which provides for both specific enforcement of covenants in a contract and remedies in the form of damages for breach of contract. If a party to the franchise agreement commits a breach of contract, the aggrieved party has the option to initiate a suit for specific performance in Indian courts and apply for relief in the form of a temporary or permanent injunction, which may be granted at the discretion of the court considering the balance of convenience and the interests of justice. An order granting or rejecting an injunction may be appealed by an aggrieved party.
Laws relating to taxation, property laws, insurance law and labour laws also apply to franchise transactions. Additionally, laws and regulations applying to specific sectors of goods and services will also apply depending on the franchised.
The following are the reasons why a comprehensive franchise law is required in India:
Application of Multiple Legislation
A well-defined legal structure is indispensable for the effective functioning of any business operation. The international business environment demands a well-defined suitable legislation that is complete in all respects. The lack of a comprehensive legislation on franchising in India leads to the applicability of multiple laws to a franchise transaction.
This poses the following problems:
Complexities: Parties to a contract normally prefer agreements with a simple approach and encompassing all the required law procedures and rules required to be complied with. However the application of different laws to one agreement makes it complex to decide various issues arising from the agreement.
Ambiguities: Due to the necessary application of multiple legislation, ambiguities are created as to certain issues. For example, a franchisor would imagine that a certain issue is the franchisee’s responsibility under one law, whereas the franchisee would think the opposite based on a different law.
Time-Consuming: Referring to multiple laws consumes a lot of time at the initial stages of a transaction as well as other points of time when the agreement is sought to be enforced. This proves to be detrimental to the smooth functioning of franchising operations in India and also makes time-bound operations involving new enterprises difficult.
Absence of Disclosure Requirements
Countries with specific franchising legislation make it imperative for parties to a franchise agreement to disclose certain factual information pertaining to the business of the parties. This ensures transparency and facilitates an informed decision. A franchisor should be required, by law, to make certain disclosure to the prospective franchisee wherein he is supposed to reveal detailed information regarding himself, his litigation and bankruptcy history, his financial position, the facilities he offers etc. In India, in the absence of effective disclosure norms, a prospective franchisee is rendered helpless as the franchisor is under no statutory obligations to make disclosures.
In the absence of a specific statute governing the franchise agreement, the franchisor refrains from providing any information that is likely to prejudice or make a franchisee reconsider the business proposition of the franchisor. The lack of proper disclosure requirements provides a golden opportunity to a franchisor to abuse his position of importance as he is virtually under no statutory obligation to make the requisite disclosure.
Applicability of Laws of other Countries
Normally, the absence of franchise laws enables foreign franchisors to make the laws of their own country applicable to the agreements entered into with the franchisees in India. The same is the case with franchisors who enter into franchising agreements with franchisees from other countries. This proves to be an additional burden on the parties, particularly the franchisee.
Lack of Proper Format for Franchising Agreements
Due to lack of a specific format, franchisors from other countries draft agreements which are in the same format as is approved or followed in their countries. Such agreements are made to suit the specific environment of their respective countries and hence are not suitable for Indian environment.
Liability of Parties Uncertain
Due to the lack of specific legislation, the liability of either party is either determined by the agreements entered into between them or on the basis of general prevailing law. The liability clause is different in different countries, and this leads to a great discrepancy among the courts which try such disputes on liabilities.
The Central Government is currently considering a franchise law aimed at fast resolution of disputes; the proposal is expected to be placed before a sub-committee of the National Development Council. The aforesaid problems surrounding franchising in India necessitate the enactment of a specific legislation pertaining to franchising in India and providing for the gamut of activities that franchising encompasses. A special franchise law would greatly accelerate dispute resolutions and fortify the Indian retail industry.
Source:Franchising Association Of India.FAI,
Friday, April 16, 2010
Golds Gym Signs The Biggest Master Franchise Agreement With AAHG
Al Ahli Holding Group (UAE) and Gold’s Gym International Sign Landmark International Development Deal
April 16, 2010
UAE national company signs master franchise agreement to open 26 gyms in major Arabian Peninsula markets; further expansion includes potential for additional 62 gyms.
Al Ahli Holding Group (AAHG), the holding arm of the leading multi-disciplined organization based in the United Arab Emirates with principal offices in Abu Dhabi, Dubai and Fujairah (UAE), and Gold’s Gym International, the world’s leading authority on health and fitness, announced today the signing of an aggressive master franchise agreement. And the largest of its kind ever inked by the fitness giant. A landmark moment for both companies, the development deal is potentially worth hundreds of millions of dollars, making the largest franchise agreement Gold’s Gym has signed in its storied 45 year history.
“We are importing world-class fitness into the Pan-Arabian region, the likes of which have yet to be experienced by this part of the world with experiences and amenities that have never been seen before in the art of fitness” said Mohamed Khammas, CEO of Al Ahli Holding Group. “AAHG shares the same commitment Gold’s Gym International has in helping individuals reach their potential by leading healthier, fitter lifestyles under the specialized leadership and camaraderie of the Gold’s experience. There is no other fitness brand we would rather partner with to expand the fitness options available in our part of the world than with the undisputed global leader in fitness, Gold’s Gym.”
Calling for an initial 26 gyms to be built in the UAE, Oman, Qatar and Bahrain, the agreement provides AAHG with the opportunity to expand the Gold’s Gym footprint with an additional 62 gyms in key areas spanning from South Africa to Morocco and from Cyprus to Jordan and beyond bringing their total to over 88 facilities. These key markets include 13 countries in all, making AAHG the largest potential Gold’s Gym master franchisee in the world.
The initial schedule is to develop within the UAE, with a heavy emphasis on the capital, Abu Dhabi, then to proceed onto other Emirates.
AAHG is planning enhanced facilities that range from condensed corporate clubs to full wet-clubs with swimming pools, hydro-therapy, sauna, steam and more that reflect the continuing commitment of Gold’s to expand its global presence in every region of the globe.
AAHG is one of sixteen multi-territorial Master Licensee’s and the largest in the Gold’s global family. AAHG has struck direct deals with the top equipment suppliers that will showcase never before seen fitness equipment that will transform the art of fitness into the future.
“Gold’s Gym seeks out proven operators and AAHG is an extraordinary organization in this regard. AAHG did a remarkable job with their due diligence, looking into all aspects of the business and its viability on the Arabian Peninsula. We are proud to be working with them to grow the Gold’s Gym brand,” said Joel Tallman, Senior Vice President of Franchising & Global Operations for Gold’s Gym International. “This is another indication of the trust that investors and our members have in Gold’s Gym to deliver the best fitness experience in the world.”
The agreement with AHHG marks a momentous occasion in the growth of Gold’s Gym from a single fitness facility in Venice Beach, California more than 45 years ago to an international brand with more than 700 locations across the globe. AAHG is introducing the famed brand’s tradition of commitment, passion and dedication for health, fitness and rehabilitation to a new audience in this important and growing region of the world.
Reinforcing Gold’s Gym’s position as the preferred investment for gym owners and operators around the world, the deal struck with AAHG is the third major Gold’s Gym master franchise agreement signed overseas in the past 12 months. In 2009, Gold’s Gym signed a 20-year contract extension with the master franchisee covering the India, Nepal, Bangladesh, Sri Lanka and the Maldives markets, and signed a separate agreement to open 26 new gyms in the Republic of the Philippines. Additionally, Gold’s Gym has taken several steps to begin growing its brand in China, where the company sees significant opportunity for extensive expansion in the years ahead. With hundreds of gyms currently outside the United States, Gold’s Gym projects its international gym count to equal or surpass the brand’s US presence within the next two years.
April 16, 2010
UAE national company signs master franchise agreement to open 26 gyms in major Arabian Peninsula markets; further expansion includes potential for additional 62 gyms.
Al Ahli Holding Group (AAHG), the holding arm of the leading multi-disciplined organization based in the United Arab Emirates with principal offices in Abu Dhabi, Dubai and Fujairah (UAE), and Gold’s Gym International, the world’s leading authority on health and fitness, announced today the signing of an aggressive master franchise agreement. And the largest of its kind ever inked by the fitness giant. A landmark moment for both companies, the development deal is potentially worth hundreds of millions of dollars, making the largest franchise agreement Gold’s Gym has signed in its storied 45 year history.
“We are importing world-class fitness into the Pan-Arabian region, the likes of which have yet to be experienced by this part of the world with experiences and amenities that have never been seen before in the art of fitness” said Mohamed Khammas, CEO of Al Ahli Holding Group. “AAHG shares the same commitment Gold’s Gym International has in helping individuals reach their potential by leading healthier, fitter lifestyles under the specialized leadership and camaraderie of the Gold’s experience. There is no other fitness brand we would rather partner with to expand the fitness options available in our part of the world than with the undisputed global leader in fitness, Gold’s Gym.”
Calling for an initial 26 gyms to be built in the UAE, Oman, Qatar and Bahrain, the agreement provides AAHG with the opportunity to expand the Gold’s Gym footprint with an additional 62 gyms in key areas spanning from South Africa to Morocco and from Cyprus to Jordan and beyond bringing their total to over 88 facilities. These key markets include 13 countries in all, making AAHG the largest potential Gold’s Gym master franchisee in the world.
The initial schedule is to develop within the UAE, with a heavy emphasis on the capital, Abu Dhabi, then to proceed onto other Emirates.
AAHG is planning enhanced facilities that range from condensed corporate clubs to full wet-clubs with swimming pools, hydro-therapy, sauna, steam and more that reflect the continuing commitment of Gold’s to expand its global presence in every region of the globe.
AAHG is one of sixteen multi-territorial Master Licensee’s and the largest in the Gold’s global family. AAHG has struck direct deals with the top equipment suppliers that will showcase never before seen fitness equipment that will transform the art of fitness into the future.
“Gold’s Gym seeks out proven operators and AAHG is an extraordinary organization in this regard. AAHG did a remarkable job with their due diligence, looking into all aspects of the business and its viability on the Arabian Peninsula. We are proud to be working with them to grow the Gold’s Gym brand,” said Joel Tallman, Senior Vice President of Franchising & Global Operations for Gold’s Gym International. “This is another indication of the trust that investors and our members have in Gold’s Gym to deliver the best fitness experience in the world.”
The agreement with AHHG marks a momentous occasion in the growth of Gold’s Gym from a single fitness facility in Venice Beach, California more than 45 years ago to an international brand with more than 700 locations across the globe. AAHG is introducing the famed brand’s tradition of commitment, passion and dedication for health, fitness and rehabilitation to a new audience in this important and growing region of the world.
Reinforcing Gold’s Gym’s position as the preferred investment for gym owners and operators around the world, the deal struck with AAHG is the third major Gold’s Gym master franchise agreement signed overseas in the past 12 months. In 2009, Gold’s Gym signed a 20-year contract extension with the master franchisee covering the India, Nepal, Bangladesh, Sri Lanka and the Maldives markets, and signed a separate agreement to open 26 new gyms in the Republic of the Philippines. Additionally, Gold’s Gym has taken several steps to begin growing its brand in China, where the company sees significant opportunity for extensive expansion in the years ahead. With hundreds of gyms currently outside the United States, Gold’s Gym projects its international gym count to equal or surpass the brand’s US presence within the next two years.
Thursday, April 8, 2010
Hamleys, UK's Top Toy Retailer Opens To India In Mumbai Through Reliance Retail
Mumbai: Hamleys, a 250 year-old toy retailer of the UK, on Thursday opened its first store in Mumbai in a franchise agreement with Reliance Retail, a wholly owned subsidiary of the Reliance Industries. The tie-up is valid for 20 years. The company plans to invest Rs 150 crore in the next seven years to set up 20 more stores across the country, including tier-II cities.
The size of the Mumbai store is around 21,000 square feet, while the one being opened in Chennai within six months will be close to 10,000 sqft, according to Bijou Kurien, president and chief executive officer, Reliance Lifestyle division. The Indian division of Hamleys, though, is going to be headed by Sudhir Pai.
Hamleys is based in London and is one of the world’s largest toy companies. Its flagship store located at the Regent Street is a five-storey building spread over 54,000 sqft. It is considered one of London’s major tourist attractions.
The first store has seen an investment of Rs 6 crore. Kurien explains that the investment has been significant as far as setting up this store is concerned. “The hard investment for the stores in terms of occupying retail space is going to be made by Reliance Retail. As for the soft investment in terms of store design and staff training, it will be done by Hamleys.”
Reliance Retail in 2008 had said it was in talks with the UK toy retailer. So what took them so long to launch their first store? The reason for this, as Kurien reckons, is “finding the right location for the store”.
Moreover, the company is also looking at spending around Rs 50 lakh on advertisement for the first store.
The total organised toy market is India is around Rs 1500 crore. It caters to about 30 crore kids upto 15 years of age. Reliance Retail will be looking to have a “sizeable” share in it.
Apart from stocking Hamleys merchandise, Reliance Retail will stock products that are exclusively available to the UK retailer. Other global brands from companies such as Mattel and Funskool will also be available at these outlets.
Source:financial express Bureau
Posted: Friday, Apr 09, 2010 at 2358 hrs IST
Updated: Friday, Apr 09, 2010 at 2358 hrs IST
Tags:Toys Franchise, Toy Store, Hamleys, Reliance Retail,
The size of the Mumbai store is around 21,000 square feet, while the one being opened in Chennai within six months will be close to 10,000 sqft, according to Bijou Kurien, president and chief executive officer, Reliance Lifestyle division. The Indian division of Hamleys, though, is going to be headed by Sudhir Pai.
Hamleys is based in London and is one of the world’s largest toy companies. Its flagship store located at the Regent Street is a five-storey building spread over 54,000 sqft. It is considered one of London’s major tourist attractions.
The first store has seen an investment of Rs 6 crore. Kurien explains that the investment has been significant as far as setting up this store is concerned. “The hard investment for the stores in terms of occupying retail space is going to be made by Reliance Retail. As for the soft investment in terms of store design and staff training, it will be done by Hamleys.”
Reliance Retail in 2008 had said it was in talks with the UK toy retailer. So what took them so long to launch their first store? The reason for this, as Kurien reckons, is “finding the right location for the store”.
Moreover, the company is also looking at spending around Rs 50 lakh on advertisement for the first store.
The total organised toy market is India is around Rs 1500 crore. It caters to about 30 crore kids upto 15 years of age. Reliance Retail will be looking to have a “sizeable” share in it.
Apart from stocking Hamleys merchandise, Reliance Retail will stock products that are exclusively available to the UK retailer. Other global brands from companies such as Mattel and Funskool will also be available at these outlets.
Source:financial express Bureau
Posted: Friday, Apr 09, 2010 at 2358 hrs IST
Updated: Friday, Apr 09, 2010 at 2358 hrs IST
Tags:Toys Franchise, Toy Store, Hamleys, Reliance Retail,
Franchise Expansion Of Your Business In India: Whats the perfect recipe for a succesful franchise rollout:
7th April, Bangalore, India. 15.00 Hrs.
What Most Business Owners/ Franchisors Must Know before they start expanding their businesses through franchising.
Yesterday, another franchisor met us, keen to expand his business and trying to explore the various options, he had on hand. Like most business owners who are seeking to expand their business in India, the dilemmas were the same, as is the case generally from such entrepreneurs. So I thought, for the use of such franchisors, I write out this blog, to inform them, firstly, these are common hurdles that most businesses that want to expand using the franchise route in India, face. Secondly, it is very important that you learn quickly from the knowledge base available around you and look at franchising very deeply, instead of experimenting with franchising. I am going to run you through the interaction I had with this franchisor, which is in the ice cream business and has a popular brand in one of our bustling metros. For me, he is the classic example, of all business owners who have a successful business and are thinking of franchising or have already begun franchising and have a few franchisees.
He has been operating for a couple of years now and has been receiving several requests from customers to take up his franchise. After discussing the situation on hand and with guidance from a few friends and well wishers, he went ahead and signed up a couple of them. Instantly, he realized, this was much more than just teaching a franchisee how to do his business. From, thereon started, the everyday nitty gritties of how should he deal with the franchisee on ‘this issue,' and the issues were many. Infact one of them discontinued the franchise and is still continuing the business, but in a different name. There would have been the definite daily issues that most franchisors and franchisees go through whilst the reality of what they get from the marriage, comes on screen. The franchisor did tell me, that he knew it would be difficult, but then he was ready to learn from the mistakes, he would commit, amend them and move forward. I liked his willingness to adopt and the honesty to do his best. These alone would not be sufficient for me.
I was smiling from within, thinking why does one need to take the difficult path, when experts like us, can guide the franchisors with the most common mistakes that they commit. (Not that they are not going to make mistakes, alongside us, but then, they would definitely not be elementary or the basic ones, that hurt franchising the business most). There is a clear learning curve that we have gone through while working for so many clients in the same domain specifically and franchising more microscopically, that the franchisor, could quickly learn, adapt and run...instead of getting up, falling, crawling, falling and then get walking. In fact, that's the very reason, that we bring in the best practices from different business and segments, into every business that we are franchising, and that, not necessarily is what your competition is doing or other companies in your industry following.
The other thing off course being the present market dynamics. Does he have the liberties of the 80's / 90's when he would have had the time to expand and could take his own time, while the competition is limited. This is the case with most business owners in our country today. There is so much of learning available, all that they need to do is look around for specific experts and move forward professionally, instead of thinking of doing it from scratch, all by themselves. You always hire an architect and a contractor engineer, before you build your house, you don't do it all yourself. Why re-invent the wheel, when it's already done for you. India has been franchising from the late 80's and there is a lot of localized learning's that is already available across different segments.
The franchisor on the other end was continuously thinking of getting a few more franchisees, which were when, he decided to participate in a franchise exhibition and was ready to sign up a couple more. The general perception being, that you have thousands of entrepreneurs lining up for these franchise shows and you could easily get a couple of them to sign your franchise up. A franchise exhibition organizer once pitched to us that we will have in excess of 10,000 new business seekers visiting the show and all you need is 0.05% conversion out of that to have 5 franchisees. Another client of ours, then was excited and said lets take that to 0.01% and we have our franchise ready. In reality, that does not happen. All you do is end up spending a couple of lakhs on initial franchise marketing, which otherwise could have been spent more judicially on franchise development or initial franchise foundation laying, after which the franchise marketing and recruitment have to be carefully planned. Even if you are good at marketing and have been able to get a couple of franchisees to sign up, I am not sure that the business is ready to take on the franchisee from an operation, marketing, legal, training and other perspective. Hence you need to first lay a strong franchise foundation and a concrete franchise development programme and that would be the best way of getting the desired results at least costs.
The ice cream franchisor spent nearly a month chasing all the leads that said that they would get back, but to no result. We have also met a lot of clients who have just gone ahead and advertised in franchise magazines, franchise websites/portals, newspapers and other media's. The first thing when one thinks of expanding the business, is how will I get a franchisee, and what would I get from them. Let me prepare a projected P&L, a profitability sheet from my chartered accountant and an agreement from a lawyer (who in most cases is not a franchise lawyer), create a so-called franchise model, and get started. In a way, I am glad that clients come to us after such exercises, because its generally easier to explain to such franchisors, the task on hand, while they begin to understand the nuances of franchising vis-à-vis the ones who come fresh out of their business wombs.
What is the ideal Return on Investment (R.O.I), that I must explain, quizzed the franchisor. Will a particular % justify my claim? How should I guarantee a return...should I actually guarantee returns?
Entrepreneurs threw questions like, Will you get me the right property or will I get rent and % on sales, if I take up your franchise. What happens if we do not get the expected business, What are the terms of the franchise agreement and a million other things that each person wanted to be clear of, at the onset itself.
This is the typical cycle any new franchisor goes through. What we do here is, orient the client before hand on these questions and what repercussions, each answer has. The long term implication of the same is clearly measured and studied before deciding upon the path to be taken. That's what a cohesive franchise strategy does to a business, before it embarks on its expansion journey.
Another approach, a few franchisors take, is to hire franchise managers from the industry and then they assign the task of franchising their business, to these professionals. In most cases, the business then takes shape of the experience that these managers have had from their previous experience, and more often, limited to the areas in which they are strong. However, in most cases, we have been able to get the best out of these managers. We work closely with the organization, understand their strengths and help the owners/top management, align their personnel correctly on each of the defined tasks.
The franchisor then realised he needs an experienced franchise consultant, which is how he reached us. This has been the case with a lot of business owners who have been seeking franchise expansion services and do not have the direction to move forward or have been contemplating to hire the services of a expert franchise consulting company, but have also been parallely thinking, of whether they really need to take the complete plunge. The initial concerns are about the costs of franchising. What could be the amount that one needs to apportion to start franchising? What are the ongoing resources that would be required? A lot of successful business owners really do not have the time, from their existing business schedules, to really concentrate on franchise expansion. The ice cream franchisor seemed to have the resource allocations queries in his talk, and was trying to analyse what more will he have to put in, to get going, from where he was now.
At Sparkleminds, we take this question very analytically. While franchise expansion can be a self funding exercise in the medium term, it definitely requires initial investments, and that varies from business to business. In the long term, it not only pays back the costs of franchising, but also adds tremendously to the growth and profitability of the business. Hence, business owners who have a long term view in their mind, seek various time tested franchise solutions and want to give it the best try, engage us, while the rest of them, go about their own ways of expanding their business.
We do a lot of free franchise discovery sessions with franchise business owners who are seeking franchise development and get them prepared initially for franchising even before they engage us. Our initial discussions are aimed at franchise feasibility and basic assessment on readiness of the business for franchising. Only if the business owners pass these tests do we move forward to an engagement, or else, we ask them, to complete their homework, before getting started with franchising. We do this because we believe that this is very important for the franchise industry on the one end to have the right franchisors and that there are possibly, as many successful franchisors, that can be and on the other, it augers well for our reputation, of being associated with successful franchise companies and being a leading franchise consulting company in India.
Conclusion
Franchising is bustling in India. We have been getting requests from all kinds of businesses from party shops to mobile car service franchises, from laundry services franchises to fashion jewellery. The list is exciting and we are even more excited to serve the needs of different kinds of businesses that want to franchise. This blog highlights the typical path that these businesses take and the solutions they seek. The typical shortcuts that are taken, to save initial costs, and the long-term repercussions. The knowledge base that exists and how one can harness the franchising experience that the country already has, and what it has been learning from the finest franchise practices followed world over. When we put all of this together, we have the recipe to franchise success and that's what we want to prescribe to franchisors in India.
You only get one chance in franchising. Give it your best.
What Most Business Owners/ Franchisors Must Know before they start expanding their businesses through franchising.
Yesterday, another franchisor met us, keen to expand his business and trying to explore the various options, he had on hand. Like most business owners who are seeking to expand their business in India, the dilemmas were the same, as is the case generally from such entrepreneurs. So I thought, for the use of such franchisors, I write out this blog, to inform them, firstly, these are common hurdles that most businesses that want to expand using the franchise route in India, face. Secondly, it is very important that you learn quickly from the knowledge base available around you and look at franchising very deeply, instead of experimenting with franchising. I am going to run you through the interaction I had with this franchisor, which is in the ice cream business and has a popular brand in one of our bustling metros. For me, he is the classic example, of all business owners who have a successful business and are thinking of franchising or have already begun franchising and have a few franchisees.
He has been operating for a couple of years now and has been receiving several requests from customers to take up his franchise. After discussing the situation on hand and with guidance from a few friends and well wishers, he went ahead and signed up a couple of them. Instantly, he realized, this was much more than just teaching a franchisee how to do his business. From, thereon started, the everyday nitty gritties of how should he deal with the franchisee on ‘this issue,' and the issues were many. Infact one of them discontinued the franchise and is still continuing the business, but in a different name. There would have been the definite daily issues that most franchisors and franchisees go through whilst the reality of what they get from the marriage, comes on screen. The franchisor did tell me, that he knew it would be difficult, but then he was ready to learn from the mistakes, he would commit, amend them and move forward. I liked his willingness to adopt and the honesty to do his best. These alone would not be sufficient for me.
I was smiling from within, thinking why does one need to take the difficult path, when experts like us, can guide the franchisors with the most common mistakes that they commit. (Not that they are not going to make mistakes, alongside us, but then, they would definitely not be elementary or the basic ones, that hurt franchising the business most). There is a clear learning curve that we have gone through while working for so many clients in the same domain specifically and franchising more microscopically, that the franchisor, could quickly learn, adapt and run...instead of getting up, falling, crawling, falling and then get walking. In fact, that's the very reason, that we bring in the best practices from different business and segments, into every business that we are franchising, and that, not necessarily is what your competition is doing or other companies in your industry following.
The other thing off course being the present market dynamics. Does he have the liberties of the 80's / 90's when he would have had the time to expand and could take his own time, while the competition is limited. This is the case with most business owners in our country today. There is so much of learning available, all that they need to do is look around for specific experts and move forward professionally, instead of thinking of doing it from scratch, all by themselves. You always hire an architect and a contractor engineer, before you build your house, you don't do it all yourself. Why re-invent the wheel, when it's already done for you. India has been franchising from the late 80's and there is a lot of localized learning's that is already available across different segments.
The franchisor on the other end was continuously thinking of getting a few more franchisees, which were when, he decided to participate in a franchise exhibition and was ready to sign up a couple more. The general perception being, that you have thousands of entrepreneurs lining up for these franchise shows and you could easily get a couple of them to sign your franchise up. A franchise exhibition organizer once pitched to us that we will have in excess of 10,000 new business seekers visiting the show and all you need is 0.05% conversion out of that to have 5 franchisees. Another client of ours, then was excited and said lets take that to 0.01% and we have our franchise ready. In reality, that does not happen. All you do is end up spending a couple of lakhs on initial franchise marketing, which otherwise could have been spent more judicially on franchise development or initial franchise foundation laying, after which the franchise marketing and recruitment have to be carefully planned. Even if you are good at marketing and have been able to get a couple of franchisees to sign up, I am not sure that the business is ready to take on the franchisee from an operation, marketing, legal, training and other perspective. Hence you need to first lay a strong franchise foundation and a concrete franchise development programme and that would be the best way of getting the desired results at least costs.
The ice cream franchisor spent nearly a month chasing all the leads that said that they would get back, but to no result. We have also met a lot of clients who have just gone ahead and advertised in franchise magazines, franchise websites/portals, newspapers and other media's. The first thing when one thinks of expanding the business, is how will I get a franchisee, and what would I get from them. Let me prepare a projected P&L, a profitability sheet from my chartered accountant and an agreement from a lawyer (who in most cases is not a franchise lawyer), create a so-called franchise model, and get started. In a way, I am glad that clients come to us after such exercises, because its generally easier to explain to such franchisors, the task on hand, while they begin to understand the nuances of franchising vis-à-vis the ones who come fresh out of their business wombs.
What is the ideal Return on Investment (R.O.I), that I must explain, quizzed the franchisor. Will a particular % justify my claim? How should I guarantee a return...should I actually guarantee returns?
Entrepreneurs threw questions like, Will you get me the right property or will I get rent and % on sales, if I take up your franchise. What happens if we do not get the expected business, What are the terms of the franchise agreement and a million other things that each person wanted to be clear of, at the onset itself.
This is the typical cycle any new franchisor goes through. What we do here is, orient the client before hand on these questions and what repercussions, each answer has. The long term implication of the same is clearly measured and studied before deciding upon the path to be taken. That's what a cohesive franchise strategy does to a business, before it embarks on its expansion journey.
Another approach, a few franchisors take, is to hire franchise managers from the industry and then they assign the task of franchising their business, to these professionals. In most cases, the business then takes shape of the experience that these managers have had from their previous experience, and more often, limited to the areas in which they are strong. However, in most cases, we have been able to get the best out of these managers. We work closely with the organization, understand their strengths and help the owners/top management, align their personnel correctly on each of the defined tasks.
The franchisor then realised he needs an experienced franchise consultant, which is how he reached us. This has been the case with a lot of business owners who have been seeking franchise expansion services and do not have the direction to move forward or have been contemplating to hire the services of a expert franchise consulting company, but have also been parallely thinking, of whether they really need to take the complete plunge. The initial concerns are about the costs of franchising. What could be the amount that one needs to apportion to start franchising? What are the ongoing resources that would be required? A lot of successful business owners really do not have the time, from their existing business schedules, to really concentrate on franchise expansion. The ice cream franchisor seemed to have the resource allocations queries in his talk, and was trying to analyse what more will he have to put in, to get going, from where he was now.
At Sparkleminds, we take this question very analytically. While franchise expansion can be a self funding exercise in the medium term, it definitely requires initial investments, and that varies from business to business. In the long term, it not only pays back the costs of franchising, but also adds tremendously to the growth and profitability of the business. Hence, business owners who have a long term view in their mind, seek various time tested franchise solutions and want to give it the best try, engage us, while the rest of them, go about their own ways of expanding their business.
We do a lot of free franchise discovery sessions with franchise business owners who are seeking franchise development and get them prepared initially for franchising even before they engage us. Our initial discussions are aimed at franchise feasibility and basic assessment on readiness of the business for franchising. Only if the business owners pass these tests do we move forward to an engagement, or else, we ask them, to complete their homework, before getting started with franchising. We do this because we believe that this is very important for the franchise industry on the one end to have the right franchisors and that there are possibly, as many successful franchisors, that can be and on the other, it augers well for our reputation, of being associated with successful franchise companies and being a leading franchise consulting company in India.
Conclusion
Franchising is bustling in India. We have been getting requests from all kinds of businesses from party shops to mobile car service franchises, from laundry services franchises to fashion jewellery. The list is exciting and we are even more excited to serve the needs of different kinds of businesses that want to franchise. This blog highlights the typical path that these businesses take and the solutions they seek. The typical shortcuts that are taken, to save initial costs, and the long-term repercussions. The knowledge base that exists and how one can harness the franchising experience that the country already has, and what it has been learning from the finest franchise practices followed world over. When we put all of this together, we have the recipe to franchise success and that's what we want to prescribe to franchisors in India.
You only get one chance in franchising. Give it your best.
Wednesday, March 31, 2010
Destination Maternity Opens 2 More Motherhood Maternity Stores In India
PHILADELPHIA, March 31 /PRNewswire-FirstCall/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, announced the opening of two more Motherhood Maternity® shop-in-shops in India. Motherhood's trendy, affordable maternity fashions are now available for the first time at the Mantri Mall in Bangalore, India and the Korum Mall in Thane, India. Motherhood Maternity shop-in-shops are found in Mom & Me® stores which are owned and operated by Mahindra Retail, part of the Mahindra Group, Destination Maternity's franchisee in India. Mom & Me stores offer an extensive range of pre- and post-natal products including maternity wear, baby clothes, toys, wellness products, nursery furniture and more. Including these two new locations, there are now a total of eleven Motherhood shop-in-shops in Mom & Me stores in India.
Under a multi-year franchise agreement, Destination Maternity has granted to Mahindra Retail, the master franchise, the exclusive rights to operate branded retail locations and market merchandise under the Company's Motherhood Maternity, Destination Maternity®, and A Pea in the Pod® brands in India. Mahindra Retail is part of the Mahindra Group. The Mahindra Group is one of India's leading federation of companies with operations in several key sectors of the Indian economy.
About Destination Maternity Corporation
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. In the United States and Canada, as of February 28, 2010, Destination Maternity operates 1,689 retail locations, including 711 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites. Destination Maternity also distributes its Oh Baby by Motherhood® collection through a licensed arrangement at Kohl's® stores throughout the United States and on Kohls.com. In addition, Destination Maternity is expanding internationally and has entered into exclusive store franchise and product supply relationships in India and the Middle East.
About Mahindra Retail
Mahindra Retail is an extension of the Mahindra Group's trading foray in the domestic India market. Apart from distributing toys, games and wellness products under licenses from various international brands like Mattel® and NUK®, it has now entered into a unique venture with the launch of Mom & Me stores, which specialize in infant and maternity care.
Mom & Me stores are built around the unique needs of mothers to be, young mothers, infants and children up to the age of nine. The absence of a single retail outlet addressing mother and child product and non-medical advisory needs is the most critical need gap that Mom & Me seeks to address with a one-stop store for moms and kids across the country. Mom & Me stores carry a range of the best international brands and private labels to give Indian mothers unparalleled choice. Mom & Me now has stores in Ahmadabad, Bangalore, Delhi, Ludhiana, Mumbai, Pune and Vadodara.
About Mahindra Group
Mahindra is a US $6.3 billion Indian multinational company. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and integrity.
Mahindra is one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09. For more information, please visit www.mahindra.com
Destination Maternity Corporation (the "Company") cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding international expansion, results of operations, financial condition, and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: the impact of the current global economic slowdown on the retail industry in general and on apparel purchases in particular, our ability to successfully manage our various business initiatives, our ability to successfully implement our merchandise brand and retail nameplate restructuring, the success of our international expansion, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base, unusual weather patterns, changes in consumer spending patterns, raw material price increases, overall economic conditions and other factors affecting consumer confidence, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel, expense savings initiatives, our ability to anticipate and respond to fashion trends and consumer preferences, anticipated fluctuations in our operating results, the impact of competition and fluctuations in the price, availability and quality of raw materials and contracted products, availability of suitable store locations, continued availability of capital and financing, goodwill impairment charges, our ability to hire and develop senior management and sales associates, our ability to develop and source merchandise, our ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, changes in market interest rates, war or acts of terrorism and other factors set forth in the Company's periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference.
SOURCE Destination Maternity Corporation
Tags:A Pea In The Pod, Baby Franchise, Baby Products Franchise, Baby Stores, Destination Maternity, Franchise Agreement, Kids Franchise, Kids Stores, Master Franchise, Maternity Fashion, Mom and Me
Under a multi-year franchise agreement, Destination Maternity has granted to Mahindra Retail, the master franchise, the exclusive rights to operate branded retail locations and market merchandise under the Company's Motherhood Maternity, Destination Maternity®, and A Pea in the Pod® brands in India. Mahindra Retail is part of the Mahindra Group. The Mahindra Group is one of India's leading federation of companies with operations in several key sectors of the Indian economy.
About Destination Maternity Corporation
Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. In the United States and Canada, as of February 28, 2010, Destination Maternity operates 1,689 retail locations, including 711 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites. Destination Maternity also distributes its Oh Baby by Motherhood® collection through a licensed arrangement at Kohl's® stores throughout the United States and on Kohls.com. In addition, Destination Maternity is expanding internationally and has entered into exclusive store franchise and product supply relationships in India and the Middle East.
About Mahindra Retail
Mahindra Retail is an extension of the Mahindra Group's trading foray in the domestic India market. Apart from distributing toys, games and wellness products under licenses from various international brands like Mattel® and NUK®, it has now entered into a unique venture with the launch of Mom & Me stores, which specialize in infant and maternity care.
Mom & Me stores are built around the unique needs of mothers to be, young mothers, infants and children up to the age of nine. The absence of a single retail outlet addressing mother and child product and non-medical advisory needs is the most critical need gap that Mom & Me seeks to address with a one-stop store for moms and kids across the country. Mom & Me stores carry a range of the best international brands and private labels to give Indian mothers unparalleled choice. Mom & Me now has stores in Ahmadabad, Bangalore, Delhi, Ludhiana, Mumbai, Pune and Vadodara.
About Mahindra Group
Mahindra is a US $6.3 billion Indian multinational company. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and integrity.
Mahindra is one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09. For more information, please visit www.mahindra.com
Destination Maternity Corporation (the "Company") cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding international expansion, results of operations, financial condition, and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: the impact of the current global economic slowdown on the retail industry in general and on apparel purchases in particular, our ability to successfully manage our various business initiatives, our ability to successfully implement our merchandise brand and retail nameplate restructuring, the success of our international expansion, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base, unusual weather patterns, changes in consumer spending patterns, raw material price increases, overall economic conditions and other factors affecting consumer confidence, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel, expense savings initiatives, our ability to anticipate and respond to fashion trends and consumer preferences, anticipated fluctuations in our operating results, the impact of competition and fluctuations in the price, availability and quality of raw materials and contracted products, availability of suitable store locations, continued availability of capital and financing, goodwill impairment charges, our ability to hire and develop senior management and sales associates, our ability to develop and source merchandise, our ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, changes in market interest rates, war or acts of terrorism and other factors set forth in the Company's periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference.
SOURCE Destination Maternity Corporation
Tags:A Pea In The Pod, Baby Franchise, Baby Products Franchise, Baby Stores, Destination Maternity, Franchise Agreement, Kids Franchise, Kids Stores, Master Franchise, Maternity Fashion, Mom and Me
Friday, March 26, 2010
Start A New Franchise Business In India: Franchise Opportunities pave way for the wannabe entrepreneurs
Creating New Business Opportunities Through Franchise
The franchise in India is emerging out as a new business option for many first timers to small scale entrepreneurs in India. That’s why a franchisor is usually seen searching for good franchise opportunities that would enable him/her to implement on a new business idea or ensure growth to the existing business.
Franchise in India serves as a good alternative & provides business owners excellent franchise opportunities that can be handles on a trial & test basis. It is the franchisor of a reputed brand who would be responsible for laying out most of the rules upon which franchise opportunities seekers are needed to act on for bringing out instant visibility.
However, one needs to carefully consider certain factors before settling for a particular franchise in India business from so many:
Set your goal – Find out the possible causes for venturing into this business. How profitable it would be for you & what amount of ROI do you think this business can fetch you? One of the most important thing, are you committed to keep up with it? For increased business prospective, you need to generate business for the franchisor thereby highlighting it. Many franchise opportunities are of traditional types & don’t offer much in terms of monetary support & skill set. If you think you can run the business on your own without the necessity of all the franchise costs then it would be better to invest in it alone.
Don’t initiate unless you have requisite funds – Some of the popular franchise opportunities come for a heavy price. In such cases you have to pay for hundreds of thousands of rupees annually as the annual franchise fee which may again vary from one place to another. What strategies the franchisors follow are not all same & differ a lot from franchisor to another.Read the franchise document properly and in particular the franchise agreement. One good example is the leading garment franchise Arvind who would sale goods on consignment orders & decided a commission for franchisees based on its value. Another one is the CADD, the training & education franchise company who fixes up a territory wise flat franchise fee irrespective of quantity.
In the earlier negotiation stage, the franchisor will try to make the offer look like attractive & their ROI calculations are most likely to be centered around the setup cost, initial franchise fee & royalty payments if any. Don’t forget that the business is not likely to keep growing from the first day itself & you will have to pay for the necessary requirements for a while. So avoid opting for the franchise in India franchise offers if you don’t have sufficient resources to continue with it for initial years. If you still have faith in your planning but facing fund crunch, forge partnership with some one who can provide you with necessary back up. In any case, don’t take the risk of staring it unless you have necessary fund.
The franchise in India is emerging out as a new business option for many first timers to small scale entrepreneurs in India. That’s why a franchisor is usually seen searching for good franchise opportunities that would enable him/her to implement on a new business idea or ensure growth to the existing business.
Franchise in India serves as a good alternative & provides business owners excellent franchise opportunities that can be handles on a trial & test basis. It is the franchisor of a reputed brand who would be responsible for laying out most of the rules upon which franchise opportunities seekers are needed to act on for bringing out instant visibility.
However, one needs to carefully consider certain factors before settling for a particular franchise in India business from so many:
Set your goal – Find out the possible causes for venturing into this business. How profitable it would be for you & what amount of ROI do you think this business can fetch you? One of the most important thing, are you committed to keep up with it? For increased business prospective, you need to generate business for the franchisor thereby highlighting it. Many franchise opportunities are of traditional types & don’t offer much in terms of monetary support & skill set. If you think you can run the business on your own without the necessity of all the franchise costs then it would be better to invest in it alone.
Don’t initiate unless you have requisite funds – Some of the popular franchise opportunities come for a heavy price. In such cases you have to pay for hundreds of thousands of rupees annually as the annual franchise fee which may again vary from one place to another. What strategies the franchisors follow are not all same & differ a lot from franchisor to another.Read the franchise document properly and in particular the franchise agreement. One good example is the leading garment franchise Arvind who would sale goods on consignment orders & decided a commission for franchisees based on its value. Another one is the CADD, the training & education franchise company who fixes up a territory wise flat franchise fee irrespective of quantity.
In the earlier negotiation stage, the franchisor will try to make the offer look like attractive & their ROI calculations are most likely to be centered around the setup cost, initial franchise fee & royalty payments if any. Don’t forget that the business is not likely to keep growing from the first day itself & you will have to pay for the necessary requirements for a while. So avoid opting for the franchise in India franchise offers if you don’t have sufficient resources to continue with it for initial years. If you still have faith in your planning but facing fund crunch, forge partnership with some one who can provide you with necessary back up. In any case, don’t take the risk of staring it unless you have necessary fund.
Monday, February 22, 2010
Grow Your Business: Get The Right Franchise Consultants
Overview:
With more than 1500 organized franchisers in India and an estimated 3000 getting organized in the next couple of years, it becomes very important for every business to analyse, what's the best way forward. Will franchising serve my organizations growth objectives? If yes, how do I 'Franchise My Business' or 'How To Franchise.' How can I quickly build a robust business system that works efficiently with a variety of franchisees, all of which work independently and yet at the same time together? What are the challenges I need to address? Franchising can give you great results. Every business is unique and has to be dealt differently. You can mould your business strategically around franchising and set the foundation for scalability and growth. The first step is to look for a franchise consultant expert who will run this marathon along with you.
Introduction:
Expanding a business always has a lot of planning, resource allocation, risk analysis, adaptability and timely growth that one has to engage with.
The first question that you ask yourself is what course of expansion must I follow?
Should I have more of my own company units in different locations?
Do I have the resources to do it?
If yes, how much time will it take me to do the desired number of units?
If no, how would I fund the expansion?
Will I knock on the venture capitalists door or will I go to banks and other financial institutions?
Are market conditions favourable, how fast is competition catching up, will tomorrows markets be as potential as today’s or will they improve?
By doing so will I be able to serve my customers efficiently through my employees, what are the kind of team members I must have?
What is my exit strategy? What is the reason for which I am into this business and how will I optimise my time and investments?
Most entrepreneurs have the above doubts when they are thinking of expanding their business, which is when they also explore franchising.
Is franchising right for your business?
Franchise as a business development strategy has been around for some centuries now. Different businesses have used franchise development for their growth and over the years grown into successful franchise brands. I will not speak of the numerous franchise success stories that repeat themselves as a standard template in such business blogs or franchise articles.
“Most businesses that have a replicable prototype which works without a specific individual, and is able to generate profit for the franchisee and the franchisor, and at the end of the distribution chain offers value to the final consumer at price and service levels, satisfactory to a clients consumption, generally take the franchise route.”
It is very essential for business owners to realise the potential of what franchising could do to their businesses. They must make sure that they are ready to expand, because they cannot reverse this decision and more often than not, there is only one chance that they get to, ‘get the act’ right. Once they decide to expand the earlier they reach out to professional help, the better it is. There are a few experienced franchise consultants in India, who could help you grow stage by stage and ensure that you do not commit the typical mistakes, most businesses commit whilst they expand. You could very quickly learn from the experts and create a franchise expansion strategy that is suited to your organization not your industry.
Choosing the right franchise consultants in India:
Also be very careful in selecting your franchise consulting company. You could come across a few consulting companies, who have the reputation of making the Franchisers/ Business owners invest so heavily at the onset on Initial Documentation, Franchise Marketing, Franchise Advertising, Franchise Agreements, Franchise Exhibitions and other related activities that the client does not have anything left for the actual business development or support to the franchisees or capital to take their business from this stage to the next. On the other hand, it’s never prudent to release an advertisement or participate in a franchise exhibition and then plan your franchise responses based on the calls you get. It’s the surest way to fail. I have seen several clients who ‘cut and paste’ their competitors franchise plans or accumulate various offerings and speak to several franchisors just to figure out what could suit their businesses. They then go back and announce a ‘mixed concoction’ of what they call as a ‘franchise offering’ trying hard to please the initial set of entrepreneurs whom they reach out using their own ingenious ways. I remember seeing, one such company/franchisor, distributing leaflets of their offerings outside a franchise exhibition venue and trying to talk to all visitors about the same. Will they ever succeed in getting the right franchisee? Is that the right way of projecting your business?
Well all of us know the answer to this while most people then go about asking as to why does a franchise fail.
I often answer, “Franchising doesn’t fail, its how you franchise your business that has failed.”
You’d rather go with a franchise consultant who works closely with your business like a coach and is interested in the long term success of your franchise, works closely with your organization on the entire systems, understands your brand and its ethos and engages the prospects interested in your business, chooses them carefully for you, does the entire expansion fieldwork on your behalf while you are constantly strengthening your business and making it ready for franchise growth. Franchise Training, Creation Of Franchise Manuals, Standard Operating Procedures (S.O.P’s) are also very essential components of franchising and you must check if your consultant is competent to help you with these at the speed and costs that are feasible for your business. It is very important for you to assess the team that would work on your project and the actual people and their backgrounds along with previous track record of the work that they have already done. Doing a reference check with clients who have already experienced the services could help you understand if the franchise consultant will be able to deliver what you seek. You must assess the size of your organization, the growth that you want to achieve and then choose a long-term franchise guide, whom you could speak to at any point in time and get valuable guidance along the way for years to come.
While larger organizations might have people changing at the top and at different levels, its important that the consulting team is able to put in systems and processes that new people can instantly adapt with a appropriate franchise training programme and a standard set of internal documentation in place. The focus on the right training at all levels of franchising is very important. I remember putting down specific internal employee do’s and don’ts for a client, who was very concerned of change in people at different levels and that affecting the business franchising. That was something that we put in place from the word go.
Hence, while most businesses can be franchised and with franchising gaining momentum in the Indian subcontinent, it is very important that the business community and the franchise entrepreneurs understand the availability of such experienced resources to their disposal, which if used properly could ensure franchise success for their businesses. We must learn to learn quickly from others mistakes and go ahead with franchising your businesses with utmost care, proper research, on ground market realities and the franchisees expectations.
At the end of the day it’s about creating a happy customer, a happy franchisee, and a franchise business that delivers what it promises.
With more than 1500 organized franchisers in India and an estimated 3000 getting organized in the next couple of years, it becomes very important for every business to analyse, what's the best way forward. Will franchising serve my organizations growth objectives? If yes, how do I 'Franchise My Business' or 'How To Franchise.' How can I quickly build a robust business system that works efficiently with a variety of franchisees, all of which work independently and yet at the same time together? What are the challenges I need to address? Franchising can give you great results. Every business is unique and has to be dealt differently. You can mould your business strategically around franchising and set the foundation for scalability and growth. The first step is to look for a franchise consultant expert who will run this marathon along with you.
Introduction:
Expanding a business always has a lot of planning, resource allocation, risk analysis, adaptability and timely growth that one has to engage with.
The first question that you ask yourself is what course of expansion must I follow?
Should I have more of my own company units in different locations?
Do I have the resources to do it?
If yes, how much time will it take me to do the desired number of units?
If no, how would I fund the expansion?
Will I knock on the venture capitalists door or will I go to banks and other financial institutions?
Are market conditions favourable, how fast is competition catching up, will tomorrows markets be as potential as today’s or will they improve?
By doing so will I be able to serve my customers efficiently through my employees, what are the kind of team members I must have?
What is my exit strategy? What is the reason for which I am into this business and how will I optimise my time and investments?
Most entrepreneurs have the above doubts when they are thinking of expanding their business, which is when they also explore franchising.
Is franchising right for your business?
Franchise as a business development strategy has been around for some centuries now. Different businesses have used franchise development for their growth and over the years grown into successful franchise brands. I will not speak of the numerous franchise success stories that repeat themselves as a standard template in such business blogs or franchise articles.
“Most businesses that have a replicable prototype which works without a specific individual, and is able to generate profit for the franchisee and the franchisor, and at the end of the distribution chain offers value to the final consumer at price and service levels, satisfactory to a clients consumption, generally take the franchise route.”
It is very essential for business owners to realise the potential of what franchising could do to their businesses. They must make sure that they are ready to expand, because they cannot reverse this decision and more often than not, there is only one chance that they get to, ‘get the act’ right. Once they decide to expand the earlier they reach out to professional help, the better it is. There are a few experienced franchise consultants in India, who could help you grow stage by stage and ensure that you do not commit the typical mistakes, most businesses commit whilst they expand. You could very quickly learn from the experts and create a franchise expansion strategy that is suited to your organization not your industry.
Choosing the right franchise consultants in India:
Also be very careful in selecting your franchise consulting company. You could come across a few consulting companies, who have the reputation of making the Franchisers/ Business owners invest so heavily at the onset on Initial Documentation, Franchise Marketing, Franchise Advertising, Franchise Agreements, Franchise Exhibitions and other related activities that the client does not have anything left for the actual business development or support to the franchisees or capital to take their business from this stage to the next. On the other hand, it’s never prudent to release an advertisement or participate in a franchise exhibition and then plan your franchise responses based on the calls you get. It’s the surest way to fail. I have seen several clients who ‘cut and paste’ their competitors franchise plans or accumulate various offerings and speak to several franchisors just to figure out what could suit their businesses. They then go back and announce a ‘mixed concoction’ of what they call as a ‘franchise offering’ trying hard to please the initial set of entrepreneurs whom they reach out using their own ingenious ways. I remember seeing, one such company/franchisor, distributing leaflets of their offerings outside a franchise exhibition venue and trying to talk to all visitors about the same. Will they ever succeed in getting the right franchisee? Is that the right way of projecting your business?
Well all of us know the answer to this while most people then go about asking as to why does a franchise fail.
I often answer, “Franchising doesn’t fail, its how you franchise your business that has failed.”
You’d rather go with a franchise consultant who works closely with your business like a coach and is interested in the long term success of your franchise, works closely with your organization on the entire systems, understands your brand and its ethos and engages the prospects interested in your business, chooses them carefully for you, does the entire expansion fieldwork on your behalf while you are constantly strengthening your business and making it ready for franchise growth. Franchise Training, Creation Of Franchise Manuals, Standard Operating Procedures (S.O.P’s) are also very essential components of franchising and you must check if your consultant is competent to help you with these at the speed and costs that are feasible for your business. It is very important for you to assess the team that would work on your project and the actual people and their backgrounds along with previous track record of the work that they have already done. Doing a reference check with clients who have already experienced the services could help you understand if the franchise consultant will be able to deliver what you seek. You must assess the size of your organization, the growth that you want to achieve and then choose a long-term franchise guide, whom you could speak to at any point in time and get valuable guidance along the way for years to come.
While larger organizations might have people changing at the top and at different levels, its important that the consulting team is able to put in systems and processes that new people can instantly adapt with a appropriate franchise training programme and a standard set of internal documentation in place. The focus on the right training at all levels of franchising is very important. I remember putting down specific internal employee do’s and don’ts for a client, who was very concerned of change in people at different levels and that affecting the business franchising. That was something that we put in place from the word go.
Hence, while most businesses can be franchised and with franchising gaining momentum in the Indian subcontinent, it is very important that the business community and the franchise entrepreneurs understand the availability of such experienced resources to their disposal, which if used properly could ensure franchise success for their businesses. We must learn to learn quickly from others mistakes and go ahead with franchising your businesses with utmost care, proper research, on ground market realities and the franchisees expectations.
At the end of the day it’s about creating a happy customer, a happy franchisee, and a franchise business that delivers what it promises.
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