World's largest ice-cream chain, Baskin Robbins, is planning to enter tier II and tier III cities in India [ Images ] as a part of its expansion plans.
Graviss Foods, the master franchisee for Baskin Robbins ice creams in India, said that the company plans to launch new products, such as sticks and cones, targeting middle-class customers.
Speaking to rediff.com, Subroto Mukherjee, COO, Baskin Robbins - South Asia said, "We plans to add 80-90 stores year-on year and in line with our aggressive penetration plan. However, we will also re-focus our resources and energies in penetrating newer markets."
The company plans to add more parlour operations this year in South Asian countries also. A lounge concept in the cities is also on track and the company plans to introduce more of dessert-based ice-creams, added Mukherjee.
Baskin Robbins was launched in India in 1993. Since then it has posted a growth of 25 and 30 per cent in the Rs 800-crore (Rs 8 billion) organised ice-cream segment. Today, it has 400 stores across 93 cities across the globe.
"As we operate through a sub franchisee format, we have the franchisee invest into the business. Currently, our factory has the capacity to take care of the business needs for another two years without any significant capex requirements," he said.
Baskin Robbins will introduce new and possibly cheaper formats in small towns, to make the brand more affordable. The premium ice cream brand now sells a scoop between Rs 45 and Rs 50.
The company plans to introduce low fat and a low sugar variety in the menu to cater the taste buds of health conscious customers.
The company is also planning to launch a TV campaign to highlight its new product range and intends to bring in one new flavour as 'flavour of the month"
Source:Deepa Menon/Mumbai/Rediff.com
This Blog has been posted by Sparkleminds, A Franchise Consulting Company Based At Bangalore, India, Offering Complete Franchise Solutions Nationally and Internationally for more than a decade now.Visit www.sparkleminds.com for more details.
Showing posts with label Master Franchise. Show all posts
Showing posts with label Master Franchise. Show all posts
Saturday, July 24, 2010
Wednesday, June 16, 2010
Reliance BIGFlix Looks at 150 Stores By Mar 2011 Via Franchise Route.
BIGFlix Movie Rentals, India’s largest online and offline movie rental service (a division of Reliance BIG Entertainment), announced today, its retail expansion plans via the franchise route with a total of 150 stores by March 2011. BIGFlix.com will deliver movies at home to the people residing in Tier II cities which will include Jaipur, Vadodara, Surat, Lucknow, Nasik, Jamshedpur, Kochi, Patna, Nagpur, Kanpur and many more.
BIGFlix currently delivers movies to 9 cities with a total retail presence of 60 stores and an access to a wide range of 21000 titles across 13 Indian languages. BIGFlix.com will engage local logistic partners best suited to the respective cities’ dynamics to deliver movies at home to the masses. The BIGFlix franchise business will have two models, namely, Store franchise and Master franchise. Store franchise, is where the interested party can become the franchise of a single store in any specific city and Master franchise, is where the interested party can opt for the franchise of a set number of stores for a specific geographic location.
Speaking on the announcement of the franchise plans, Mr. Puneet Sachdeva, Chief Lead- Franchise Operations, BIGFlix.com, said, “We are all geared up with the launch of our new expansion plans with the franchise route. While we will focus on the brand building and content acquisition aspects meeting with the specific requirements of the denizens residing in these cities, our franchisees will handle all the logistics and operations of the business. Considering that even today we see 75 – 80 % of our registrations come from the offline route, and constant tremendous response in terms of enquiries / registrations on our website from these cities for our movie service, we are confident that franchise model will be the most feasible path at this stage. Currently we have a customer base of 80,000 customers and with the franchise foray we aim to reach a target of 1, 50, 000 customers by March 2011.
Also, commenting on the launch, Mr. Pankaj Chandra, Chief Lead- Online Movie Rentals, said, “With the franchise route we aim to focus on the core aspects of our business and also reach as many people as possible and satisfy their overall movie entertainment needs. We have done intense research with regards to the movie watching habits of the population in these cities and have fine tuned basic requirements like content, pricing etc so as to cater to their requirements at best. Also, coupled with our constant urge to provide seamless experience of watching movies at home and aggressive marketing strategies planned for these cities, we will for sure meet their entertainment needs capturing the minds of the common man.”
BIGFlix Movie Rentals by now has 10 franchise stores in cities like Mumbai, Pune, Delhi, Chandigarh, Faridabad and Panipat and will start operations once they have their respective logistics partners finalized for these cities.
Notes to Editor
About BIGFlix Movie Rentals
BIGFlix.com, a part of Reliance BIG Entertainment, is India’s largest online and offline movie rental service, offering access to more than 21,000 titles. BIGFlix offers the biggest range of premium quality home video content spanning across 13 Indian as well as International languages. BIGFlix.com currently has a vast membership base of around 1,00,000 customers in the country. The service offers the biggest, widest library of films and other alternate content through multiple interfaces i.e. retail stores, online home delivery service and call centre. The service is available at affordable prices and offers option to view unlimited movies on subscription basis. With the aim to reach out to Indians of all age groups the world over, as the one entertainment hub to provide cutting-edge, world class digital content from the world of movies, TV serials, music and other short form content.
BIGFlix currently has a retail presence of 60 stores in 9 cities namely, Mumbai, Delhi, Pune, Chandigarh, Hyderabad, Ahmedabad, Bangalore, Chennai and Kolkata.
Tags:BIGFlix Franchise, Movie Rental Franchise, Video library franchise, Store Franchise, Master Franchise, Franchise Plans, Franchise Operations, franchise model, reliance franchise,new franchise.
BIGFlix currently delivers movies to 9 cities with a total retail presence of 60 stores and an access to a wide range of 21000 titles across 13 Indian languages. BIGFlix.com will engage local logistic partners best suited to the respective cities’ dynamics to deliver movies at home to the masses. The BIGFlix franchise business will have two models, namely, Store franchise and Master franchise. Store franchise, is where the interested party can become the franchise of a single store in any specific city and Master franchise, is where the interested party can opt for the franchise of a set number of stores for a specific geographic location.
Speaking on the announcement of the franchise plans, Mr. Puneet Sachdeva, Chief Lead- Franchise Operations, BIGFlix.com, said, “We are all geared up with the launch of our new expansion plans with the franchise route. While we will focus on the brand building and content acquisition aspects meeting with the specific requirements of the denizens residing in these cities, our franchisees will handle all the logistics and operations of the business. Considering that even today we see 75 – 80 % of our registrations come from the offline route, and constant tremendous response in terms of enquiries / registrations on our website from these cities for our movie service, we are confident that franchise model will be the most feasible path at this stage. Currently we have a customer base of 80,000 customers and with the franchise foray we aim to reach a target of 1, 50, 000 customers by March 2011.
Also, commenting on the launch, Mr. Pankaj Chandra, Chief Lead- Online Movie Rentals, said, “With the franchise route we aim to focus on the core aspects of our business and also reach as many people as possible and satisfy their overall movie entertainment needs. We have done intense research with regards to the movie watching habits of the population in these cities and have fine tuned basic requirements like content, pricing etc so as to cater to their requirements at best. Also, coupled with our constant urge to provide seamless experience of watching movies at home and aggressive marketing strategies planned for these cities, we will for sure meet their entertainment needs capturing the minds of the common man.”
BIGFlix Movie Rentals by now has 10 franchise stores in cities like Mumbai, Pune, Delhi, Chandigarh, Faridabad and Panipat and will start operations once they have their respective logistics partners finalized for these cities.
Notes to Editor
About BIGFlix Movie Rentals
BIGFlix.com, a part of Reliance BIG Entertainment, is India’s largest online and offline movie rental service, offering access to more than 21,000 titles. BIGFlix offers the biggest range of premium quality home video content spanning across 13 Indian as well as International languages. BIGFlix.com currently has a vast membership base of around 1,00,000 customers in the country. The service offers the biggest, widest library of films and other alternate content through multiple interfaces i.e. retail stores, online home delivery service and call centre. The service is available at affordable prices and offers option to view unlimited movies on subscription basis. With the aim to reach out to Indians of all age groups the world over, as the one entertainment hub to provide cutting-edge, world class digital content from the world of movies, TV serials, music and other short form content.
BIGFlix currently has a retail presence of 60 stores in 9 cities namely, Mumbai, Delhi, Pune, Chandigarh, Hyderabad, Ahmedabad, Bangalore, Chennai and Kolkata.
Tags:BIGFlix Franchise, Movie Rental Franchise, Video library franchise, Store Franchise, Master Franchise, Franchise Plans, Franchise Operations, franchise model, reliance franchise,new franchise.
Friday, June 4, 2010
Planet Hollywoods India Master Franchise Plans First Hotel In Mumbai.
Five years after making an announcement of its venture into India, Planet Hollywood, the American theme restaurant and hotel chain, is finally set to open here.
Arch Millennium Corp, a Florida-based company, which has acquired the master franchise rights for the Planet Hollywood brand across India, is opening a five-star Planet Hollywood Hotel on the site of the former Shelley’s Hotel in Colaba. Scheduled to open in 2012, this will be the company’s second hotel in the world.
The first Planet Hollywood Resort and Casino opened in Las Vegas in 2007. Arch Millennium also plans to open Planet Hollywood floating restaurant in Colaba, on a pleasure yacht, which has already been imported from the US. Named Oceanis, it is a four-level boat, anchored in Mumbai, containing a variety of multi-cuisine restaurants, bars, lounges and coffee shops, seating 400 patrons. The northern suburbs are being considered for Mumbai’s first Planet Hollywood-themed restaurant.
Numbering 14 worldwide, the restaurants are typically decorated with movie memorabilia, including props from films, and serve American cuisine. Planet Hollywood is a privately-held US company. Sylvester Stallone, Bruce Willis and Demi Moore have stake in the brand.
While the Las Vegas gigantic resort has 2,600 rooms dedicated to specific movies, a three-acre casino, and a 7,000-seater theatre, the Mumbai hotel will be more of a five-star luxury business hotel, says Sunit Sharma, group executive chef, Planet Hollywood India. The rooms won’t have movie memorabilia. He promises, “Guests will be treated like celebrities.”
Arch Millennium has already submitted plans to the Mumbai Heritage Conservation Committee (MHCC) to raze down Shelley’s Hotel, which remains closed and rebuild the Planet Hollywood Hotel on the plot, which falls in a heritage precinct. “It is not possible to renovate such a small hotel in the way we want,” Sharma says. “It won’t have a casino, but will be a five-star hotel, drawing from the celebrity status of Planet Hollywood.”
As for the five-year delay, he explains that plans to enter India were postponed due to the recession, the terror attacks and other factors, but are on the roll again. Sharma says, “We are bringing Hollywood stars down to all the launches. Everyone in India likes VIP treatment.”
Dinesh Afzalpurkar, chairman of the MHCC, says, “We have received their plans and the matter will be placed before the committee next week.” Shelley’s Hotel was a place where foreign scholars used to stay,” reminisces conservation architect Abha Narain Lambah. “I’ve got nothing against Planet Hollywood coming in, just as long as they don’t put any ghastly signage on the front.”
Source:Naomi Canton, Hindustan Times
Mumbai, June 04, 2010
First Published: 11:53 IST(4/6/2010)
Tags:Planet Hollywood, Theme Restaurant, Hotel Chain, Arch Millenium Corp, Master Franchise, floating restaurant, pleasure yacht, oceanis, multicuisine restaurants,international franchises,
Arch Millennium Corp, a Florida-based company, which has acquired the master franchise rights for the Planet Hollywood brand across India, is opening a five-star Planet Hollywood Hotel on the site of the former Shelley’s Hotel in Colaba. Scheduled to open in 2012, this will be the company’s second hotel in the world.
The first Planet Hollywood Resort and Casino opened in Las Vegas in 2007. Arch Millennium also plans to open Planet Hollywood floating restaurant in Colaba, on a pleasure yacht, which has already been imported from the US. Named Oceanis, it is a four-level boat, anchored in Mumbai, containing a variety of multi-cuisine restaurants, bars, lounges and coffee shops, seating 400 patrons. The northern suburbs are being considered for Mumbai’s first Planet Hollywood-themed restaurant.
Numbering 14 worldwide, the restaurants are typically decorated with movie memorabilia, including props from films, and serve American cuisine. Planet Hollywood is a privately-held US company. Sylvester Stallone, Bruce Willis and Demi Moore have stake in the brand.
While the Las Vegas gigantic resort has 2,600 rooms dedicated to specific movies, a three-acre casino, and a 7,000-seater theatre, the Mumbai hotel will be more of a five-star luxury business hotel, says Sunit Sharma, group executive chef, Planet Hollywood India. The rooms won’t have movie memorabilia. He promises, “Guests will be treated like celebrities.”
Arch Millennium has already submitted plans to the Mumbai Heritage Conservation Committee (MHCC) to raze down Shelley’s Hotel, which remains closed and rebuild the Planet Hollywood Hotel on the plot, which falls in a heritage precinct. “It is not possible to renovate such a small hotel in the way we want,” Sharma says. “It won’t have a casino, but will be a five-star hotel, drawing from the celebrity status of Planet Hollywood.”
As for the five-year delay, he explains that plans to enter India were postponed due to the recession, the terror attacks and other factors, but are on the roll again. Sharma says, “We are bringing Hollywood stars down to all the launches. Everyone in India likes VIP treatment.”
Dinesh Afzalpurkar, chairman of the MHCC, says, “We have received their plans and the matter will be placed before the committee next week.” Shelley’s Hotel was a place where foreign scholars used to stay,” reminisces conservation architect Abha Narain Lambah. “I’ve got nothing against Planet Hollywood coming in, just as long as they don’t put any ghastly signage on the front.”
Source:Naomi Canton, Hindustan Times
Mumbai, June 04, 2010
First Published: 11:53 IST(4/6/2010)
Tags:Planet Hollywood, Theme Restaurant, Hotel Chain, Arch Millenium Corp, Master Franchise, floating restaurant, pleasure yacht, oceanis, multicuisine restaurants,international franchises,
Monday, May 10, 2010
India Domino's Fastest Growing Franchise Market.Celebrates 9000 Franchisees Worldwide.
New Delhi store part of Domino’s 9K celebration
ANN ARBOR, Mich. – Domino’s Pizza celebrated opening its 9,000 store with two symbolic openings earlier this year: one in New Delhi, India and the other in New Orleans.
Founded in 1960 and marking its 50th year in business, Domino's Pizza is the second largest pizza chain in the world and the company marked the opening of its 8,000th store in 2006 in similar fashion, with symbolic openings in Chicago, Ill., and in Panama City, Panama.
“For half a century, Domino’s Pizza has been able to grow and thrive thanks to the dedication and efforts of franchisees and team members the world over, as demonstrated by our franchisees in India and Louisiana,” said Domino’s Chief Executive Officer J. Patrick Doyle. “These are two of the largest and best franchise organizations in our system, and it’s appropriate that they are sharing in this distinction.
“Opening our 9,000th store is a great milestone,” Doyle added. “And we’re looking toward one of the goals we set some time ago: we want to clip the ribbon on our 10,000th store within the first half of this decade. We are looking forward to making that happen.”
Jubilant FoodWorks Ltd, the master franchisee for Domino’s Pizza in India, marked a milestone of its own with the opening of its store: it is the company’s 300th in that country. Doyle, along with Executive Vice President of Domino's Pizza International Michael Lawton and Executive Vice President of Communication & Investor Relations Lynn Liddle, joined master franchisee Hari Bhartia and Jubilant FoodWorks President Ajay Kaul and others at a ribbon-cutting ceremony, followed by a press conference and the donation of products to feed 4,500 underprivileged children in the local community of Pitampura, a residential neighborhood in north New Delhi.
Jubilant FoodWorks Ltd. is Domino's fastest-growing franchise, having opened approximately 65 stores in the last year.
“Today is a historical moment for Domino's Pizza India,” said Hari Bhartia, co-chairman of Jubilant FoodWorks. “We started our journey in India in 1996 with the opening of our first store in Delhi. With the opening of 300th store, we have come a long way in this fulfilling journey creating new milestones and benchmarks for ourselves and for the rest of QSR industry to follow. We have pioneered organized QSR and pizza retail in India. We also introduced and built the concept of home delivery in India. But we believe this is still the beginning as the Indian market has a very large potential.”
The New Orleans store was opened by RPM Pizza LLC, the company is Domino’s largest U.S. franchisee with 135 locations. The store was opened on Chef Menteur Highway, one of the areas decimated by Hurricane Katrina in 2005. The new free-standing store will be “hurricane ready” with generators, an extra-large cooler and the ability to reopen quickly to serve citizens of the community.
“Our franchise is closing in on its 30th anniversary and we have remained committed to being there when our communities need it most,” said Glenn Mueller, president of RPM Pizza. “We’ve always sought to have ours be the last restaurants to close and the first to open in times of great need. Opening a new store in this neighborhood is one more step toward rebuilding this great city. Domino's Pizza was the first chain to offer pizza delivery service and now Domino's is the first to service all areas of metro New Orleans.”
Mueller noted that RPM Pizza plans to hire nearly 100 additional employees throughout the New Orleans area.
Founded in 1960 and headquartered in Ann Arbor, Mich., Domino’s Pizza operates a network of 9,000 franchised and company-owned stores in the United States and over 60 international markets. The Domino's Pizza had global retail sales of over $5.6 billion in 2009, comprised of nearly $3.1 billion domestically and over $2.5 billion internationally.
Source:Indus News Wire
Tags:Domino's, Dominos, Pizza Franchise, Fast Food Franchise, Mexican Restaurant Franchise, best franchise, Master Franchise, franchise chain, franchise expansion, franchise recruitment.
ANN ARBOR, Mich. – Domino’s Pizza celebrated opening its 9,000 store with two symbolic openings earlier this year: one in New Delhi, India and the other in New Orleans.
Founded in 1960 and marking its 50th year in business, Domino's Pizza is the second largest pizza chain in the world and the company marked the opening of its 8,000th store in 2006 in similar fashion, with symbolic openings in Chicago, Ill., and in Panama City, Panama.
“For half a century, Domino’s Pizza has been able to grow and thrive thanks to the dedication and efforts of franchisees and team members the world over, as demonstrated by our franchisees in India and Louisiana,” said Domino’s Chief Executive Officer J. Patrick Doyle. “These are two of the largest and best franchise organizations in our system, and it’s appropriate that they are sharing in this distinction.
“Opening our 9,000th store is a great milestone,” Doyle added. “And we’re looking toward one of the goals we set some time ago: we want to clip the ribbon on our 10,000th store within the first half of this decade. We are looking forward to making that happen.”
Jubilant FoodWorks Ltd, the master franchisee for Domino’s Pizza in India, marked a milestone of its own with the opening of its store: it is the company’s 300th in that country. Doyle, along with Executive Vice President of Domino's Pizza International Michael Lawton and Executive Vice President of Communication & Investor Relations Lynn Liddle, joined master franchisee Hari Bhartia and Jubilant FoodWorks President Ajay Kaul and others at a ribbon-cutting ceremony, followed by a press conference and the donation of products to feed 4,500 underprivileged children in the local community of Pitampura, a residential neighborhood in north New Delhi.
Jubilant FoodWorks Ltd. is Domino's fastest-growing franchise, having opened approximately 65 stores in the last year.
“Today is a historical moment for Domino's Pizza India,” said Hari Bhartia, co-chairman of Jubilant FoodWorks. “We started our journey in India in 1996 with the opening of our first store in Delhi. With the opening of 300th store, we have come a long way in this fulfilling journey creating new milestones and benchmarks for ourselves and for the rest of QSR industry to follow. We have pioneered organized QSR and pizza retail in India. We also introduced and built the concept of home delivery in India. But we believe this is still the beginning as the Indian market has a very large potential.”
The New Orleans store was opened by RPM Pizza LLC, the company is Domino’s largest U.S. franchisee with 135 locations. The store was opened on Chef Menteur Highway, one of the areas decimated by Hurricane Katrina in 2005. The new free-standing store will be “hurricane ready” with generators, an extra-large cooler and the ability to reopen quickly to serve citizens of the community.
“Our franchise is closing in on its 30th anniversary and we have remained committed to being there when our communities need it most,” said Glenn Mueller, president of RPM Pizza. “We’ve always sought to have ours be the last restaurants to close and the first to open in times of great need. Opening a new store in this neighborhood is one more step toward rebuilding this great city. Domino's Pizza was the first chain to offer pizza delivery service and now Domino's is the first to service all areas of metro New Orleans.”
Mueller noted that RPM Pizza plans to hire nearly 100 additional employees throughout the New Orleans area.
Founded in 1960 and headquartered in Ann Arbor, Mich., Domino’s Pizza operates a network of 9,000 franchised and company-owned stores in the United States and over 60 international markets. The Domino's Pizza had global retail sales of over $5.6 billion in 2009, comprised of nearly $3.1 billion domestically and over $2.5 billion internationally.
Source:Indus News Wire
Tags:Domino's, Dominos, Pizza Franchise, Fast Food Franchise, Mexican Restaurant Franchise, best franchise, Master Franchise, franchise chain, franchise expansion, franchise recruitment.
Friday, April 30, 2010
Taco Fresco Asia Master Franchise Opens First Mexican Restaurant In Mumbai, India
An American chain of Mexican restaurants will open its first branch outside the USA in Khar on Monday. Taco Fresco, which has 16 outlets in the USA, and specialises in authentic Mexican cuisine, opens up on 14th Road, Khar,Mumbai, where Bamboo Shoot used to be.
The casual dining restaurant is run by Sayeeda Kurlawala, who holds the franchise for all Taco Frescos in Asia. She plans to open more restaurants and Taco Fresco quick eateries in Mumbai, and across Asia. She has just returned from the USA, where she lived for 20 years, to start the venture.
“There is very little Mexican food on offer in Mumbai. People don’t use the right ingredients and don’t know how to make it. A lot of it is too sweet and they used tamarind, which is not Mexican at all.”
Indian touch
The restaurant, which seats 42 spread across an indoor and outdoor area, serves Burritos, Tacos, Nachos, Tortillas, Quesadillas and Fajitas with either chicken, fish, shrimps, or vegetables, and options of sour cream, refried beans, pico de gallo (tomato, onion and chilli), melted cheese, and guacamole.
A few dishes have Indian flavours such as Paneer Tacos and Chicken Tikka Burritos. They also serve authentic Maragaritas, Sangria and Mexican beers.Most items are made with locally sourced ingredients. This includes the tortilla chips, tortillas, sour cream and salsa “The only problem we are facing is in finding good avocadoes in Mumbai, “ says CEO and founder of Taco Fresco, Anthony Gambino, who is training the local chefs.
“Indian food is quite similar to Mexican food. Both have breads, sauces and meat and use tomatoes, onions, and chillies. But Indian food is spicier.”
Tags:Mexican Restaurant Franchise,Taco Fresco, Anthony Gambino, Master Franchise, Franchise Mumbai,American Chain, Fast Food Franchise, Mumbai Franchise, Sayeeda Kurlawala, Mexican Food Franchise.
The casual dining restaurant is run by Sayeeda Kurlawala, who holds the franchise for all Taco Frescos in Asia. She plans to open more restaurants and Taco Fresco quick eateries in Mumbai, and across Asia. She has just returned from the USA, where she lived for 20 years, to start the venture.
“There is very little Mexican food on offer in Mumbai. People don’t use the right ingredients and don’t know how to make it. A lot of it is too sweet and they used tamarind, which is not Mexican at all.”
Indian touch
The restaurant, which seats 42 spread across an indoor and outdoor area, serves Burritos, Tacos, Nachos, Tortillas, Quesadillas and Fajitas with either chicken, fish, shrimps, or vegetables, and options of sour cream, refried beans, pico de gallo (tomato, onion and chilli), melted cheese, and guacamole.
A few dishes have Indian flavours such as Paneer Tacos and Chicken Tikka Burritos. They also serve authentic Maragaritas, Sangria and Mexican beers.Most items are made with locally sourced ingredients. This includes the tortilla chips, tortillas, sour cream and salsa “The only problem we are facing is in finding good avocadoes in Mumbai, “ says CEO and founder of Taco Fresco, Anthony Gambino, who is training the local chefs.
“Indian food is quite similar to Mexican food. Both have breads, sauces and meat and use tomatoes, onions, and chillies. But Indian food is spicier.”
Tags:Mexican Restaurant Franchise,Taco Fresco, Anthony Gambino, Master Franchise, Franchise Mumbai,American Chain, Fast Food Franchise, Mumbai Franchise, Sayeeda Kurlawala, Mexican Food Franchise.
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.
Friday, April 2, 2010
The India Franchise Business Synopsis: A Perspective To Franchising In India
Abstract:
Quoting from Nobel Laureate Professor Muhammad Yunus, it can be said that ‘every Individual is an entrepreneur’, but it is evident that the degree of one being an entrepreneur varies. This is because people thinks, interprets and practices ‘entrepreneurship’ differently and that is why it is rightly said that there are many ‘models’ for Entrepreneurship. Even in today’s modern business place, the idea of getting associated with entrepreneurial activity as a part time business (read finding side income source) is also catching. With these background, when people explored ‘options’ for entrepreneurship, franchising as a route towards entrepreneurship comes in a profound manner because this is considered as an entrepreneurial business option with lesser Investment and risk. Moreover, the events like phenomenal retail boom in India, entry of various international brands in Indian market, increasing number of people with substantial invest-able funds and importantly recognizing the idea of ‘own boss’ give further boost to the ‘Franchising route to Entrepreneurship’. Still, as study says Franchising’ in India as business contribution is still in a nascent stage, it is also true that franchising as an entrepreneurial practice still not much explored and practiced in India. This paper try to put some light on the same line and also put effort to understand associate issues with franchising system in India and how entrepreneurs can exploit Franchising as a viable business option.
***************************************************
Introduction:
The understanding of entrepreneurship seems to be very interesting because different people think, interpret and practice entrepreneurship in different manners. So the issue ‘what is entrepreneurship or who is an entrepreneur’ has become less relevant, rather ‘what makes entrepreneurs entrepreneurial’ become very purposeful to the entrepreneurship researchers. This issue is addressed by D. Sarasvathy in one of his Harvard Business Review submission as, ‘Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because they think effectively; they believe in a yet-to-be made future that can be substantially be shaped by human action’. Traditional start up’s, intrapreneurship or social entrepreneurship what ever may the route the driving mantra for an entrepreneur remain same. Today, encouraged by the same mantra – effective thinking and a yet-to-be made future, people find new routes to experience entrepreneurship. Changing mindset and positive entrepreneurial environment give birth of the new models of ‘entrepreneurial journey’, which are very much relevant and prevalent in the society.
In his article ‘The many models of entrepreneurship’, entrepreneurship thinker Mohan Babu manifested the same and came up with such relevant and prevalent models of entrepreneurship. According to him, the followings are the new ‘entrepreneurship models’ that has emerged in the society.
Consultant model: Mostly common among academicians, corporate executives, IT
Professionals – who have niche domain expertise and gain a ‘brand’ name while working. They find it convenient and lucrative to start consultations using the industry contacts and domain expertise, after retiring from their regular job.
Moonlighting model: This model is common among those who want to practice
Entrepreneurship ‘part-time’ without involving full-time. For example, doctors working for hospitals or clinics as a ‘visiting consultant’. Some professionals take the public speaking or column writing in the same fashion.
Brilliant Idea model: Professionals and other workings may have a “million dollar idea” that has altogether different perspective from the same every day idea. Many times, these people take their new/ innovative idea to the employer with a suggestion to implement it on the job. Sometimes, when the management does not take up the ideas, they adopt the entrepreneurial route if they have strong believed/ faith about it.
Existing business/Franchise model: Sometimes, individuals who do not want to continue in the corporate world decide to start their own venture in a domain they are comfortable. Such ventures may take the form of small businesses or franchises. In the franchise model, the aspiring entrepreneur approaches a corporation (franchisor) and takes on the responsibility of running his business using the brand and marketing support from the enterprise. Though Babu does not mention it, it is also seen that people with surplus capital like to invest to take a franchisee ownership along with an existing job or after retiring a full service life. Now this Franchise model as an entrepreneurial route is extremely interesting because of its certain characteristics like – flexibility of involvement (part time/ full time) as an entrepreneur, unrestricted domain choice irrespective of expertise and significant high success rate compared to start ups. As a result, ‘franchising route to entrepreneurship’ is considered as a highly attractive entrepreneurial proposition and proving its potentiality (if already not proved! at least In India) amongst the entrepreneurs. Hence from an entrepreneur point of view, it become extremely important to understand the franchising system, associate issues with it and to know how they can exploit Franchising as a viable business option.
Understanding Franchising:
Franchising happen when some enterprise develops a proven concept and then transfers the trademark and business know-how to an entrepreneur, termed franchisee. The franchisee usually gets the right for a specific time period and in a specific geographic area for a one time franchisee fee and loyalty. The enterprise, which develops the business concept, is termed as franchisor. The franchisor provides different systems and supports to the franchisee.
Hence in technical terms, franchising is neither an industry nor a business, rather franchising is a method of doing business within a given industry. It is a business partnership and like all business partnerships it involves two parties, the franchisor and the franchisee. The franchisor provides the know-how, training, system and the brand, whereas the franchisee forms the front end and is responsible for managing his business unit. Technically, the ‘Franchising contract’ binds the two parties is the system.
Figure 1: Franchising System and Support Services Model
A Win – Win Proposition:
The most interesting part of franchising system is its win – win propositions between the two parties – franchisors and franchisee. Both the parties engaged in the ‘deal’ can reap substantial benefit from the franchising system. It is said that, a franchisor gets three fold benefits from franchising. Firstly, franchising acts as a distribution model for the franchisor, which helps them to growth rapidly. Secondly, it reduces the set up risk as risk is shared by the franchisee members and thirdly, franchising ultimately.
Helps in brand building and acts as a consumer interface amongst the populace.
Franchising help franchisors to have –
o Greater access to capital
o Better utilization of operating cost
o Presence rapidly both in known and less unknown market places
On the other hand, franchisee also enjoys benefits from franchising. In most of the cases,
Entrepreneurs have limitations in terms of capital, business know-how and have to deal with certain degree of risk. But franchising helps an entrepreneur (franchisee owner) in various aspects like –
o Get an association with an already known trade mark or service mark.
o Lesser investment and degree of risk
o Shorter learning curve
o Economies of scale
o Business System and operation support
o Advertising and promotional support
o Recruitment and training (of the employee) support, etc.
Most common form of Franchising Systems:
Master Franchising System: In master franchising the franchiser grants rights for a particular area to the master franchise for a front-end master franchisee fee. The master franchiser takes the responsibility for appointing further individual franchisees within that area. McDonald's, TGIF, Pizza Hut etc. have adopted this system in India.
Area Development Franchising System: In an area development agreement, the franchiser grants development rights of a particular area to the franchisee in turn for a front-end development fee. The franchisee on his part is responsible for developing a certain number of units within a given period of time. Excel InfoTech EIIT has adopted this unique mode of franchising.
Exclusive Showrooms: In an exclusive showroom the company or the franchiser grants
Exclusive showroom rights to the franchisee with the condition that the franchisee shall stock only his brand of products. The franchisee profits by being given stocks at lesser price than other retail outlets. This system is widely followed by brands like Raymond's, Allen Solly, and ColorPlus.
Successful entrepreneurship through Franchising:
Though India is considered as a country of entrepreneurship, it hardly ever witnessed entrepreneurship at a mass level in any of the form. Franchising also is not an exception for that and the reasons are specific of its context. It was limited to the few people with better ‘information and capital’, and was never able to attract the mass level of the society. But with the course of time the scenario has changed and has accepted by mass level (specially middle, lower middle class) at a much greater extent. People, who are not from very high business background come forward, opt franchising and found it effective. Many people made their best possible future from out of that. The simple proposition of ‘franchising’ and its uniqueness of business proposition play the crucial role and made possible for a mass level of entrepreneurship, yet not complete but just the beginning, thanks to franchising!
On a macro level, the greatest benefit of a ‘franchise system’ is that a large numbers of entrepreneurs in the form of franchisee owners work together to achieve a common goal. The franchisee is a dedicated entrepreneur and not a salaried employee, thus he/she is more likely to show greater commitment dedication, interest and involvement. They are they are intelligent enough to understand as they are working with a tried tested and proven business concept; the chances of failure of the venture reduce significantly.
Reasons that boost the idea of ‘Franchising route to entrepreneurship’:
The following are the primary and major reasons that boost up the idea of ‘Franchising route to entrepreneurship’.
Lesser investment and risk factor:
In franchising the initial investment and risk associated with it is much compared to a start ups. In most of the cases, ordinary start-ups face problem of huge investment, evaluating an opportunity and lack experience about the business know how. Thus they carry a huge risk. While in case of franchising the initial investment is generally lesser, in fact, the investment can be ‘chosen’ by the entrepreneur as per his/ her financial resource is available. Not only that, risk factor also significantly come down as the entrepreneur (owner of the franchisee) get the tested business concept, marketing and sales support, staining and staffing support, other consulting support. These facts actually encourage the people to become an entrepreneur by taking a franchisee ownership.
Proven track record and less failure rate:
Study says, 90% of start-ups fail in the first year itself and those survive, 90% of them fail in the next two years. On the contrary, for a franchised business, the result is completely opposite. In franchised business over 90% ventures are successful. This high success rate usually attracts entrepreneurs, with no experience but with a surplus capital and a will to succeed, to move towards franchising.
‘Wide range of options’ in franchising business:
Franchising as an entrepreneurial option is extremely flexible in nature. Franchising, by its nature and the way it operates in the market offers a wide range of ‘alternatives’ to the Entrepreneur. The entrepreneur can decide his/ her business as per his expertise, interest and resources.
The idea of such ‘alternatives/ options’ comes from different aspects.
o Options for choosing a sector: e.g.: food, education, clothing etc.
o Options for selecting a ‘franchisor brand’ from the chosen sector
o Options for engagement in business: Full time – part time; main business – side business
o Options for ‘investment’: Ranging from thousands to Crores. \
Increase in personal / household invest-able capital:
In the new economy, Indian individuals and households have more surplus capital because of better job opportunity and multiple earning members. And interestingly, unlike earlier, people, become more open to invest their surplus capital for a better return. They look for means of investment and find investment in the form of a franchised business is a better and smarter way to utilize the surplus capital. Again, they realize that the investment in franchised business is somewhat more ‘controllable’ and return are convincing. These help individual/ households to take decision in favour of a franchised business.
Recognizing and believing the idea of ‘own boss’:
These days people became more future conscious and look for job flexibility and freedom. They are now recognizing and believing the idea of ‘own boss’ and became more open to be an entrepreneur. And in many cases, realizing their lack of entrepreneurial experience and resources they decide to have a franchisee ownership and cherish the experience of running own business. This idea is gaining popularity in a rapid way. Depending on cases, they prefer to carry the franchised business either from home or from an outside location. Even the retired individual, housewife community also found this business proposition very convenient and shown keen interest about it.
Again, there are few factors, which play indirect role in emergence of franchised business. These factors can be categorized as - recent retail boom in India, entry of various international brands in Indian market, rapid growth of Indian economy, huge and fast growing consuming class, entrepreneurship revolution etc.
Franchising take in India:
In India, the concept of franchising started around seventies but didn’t get much acceptance till nineties. Traditionally it was limited to few sectors like IT training, clothing and footwear sector etc. Today in India, the acceptability for franchising system is much stronger, which helps franchising in India to touch a new height. It has forayed into all industries from Food and Fuel to health and travel. The franchising trend in India includes – domination of service sector, growth in retail franchising, introduction of many master franchisees by international franchisors etc. Today franchising spread across the country, providing immense opportunity to the entrepreneurs.
Franchising: Facts and figures in India:
There are more than 1200 active franchising systems currently operating in the country which are spread across the different sectors.
More than 50000 franchisees (across the sectors) are involved in the system.
The annual turnover achieved by franchise business in India touches Rs. 12,000 –
13,500 Crores approximately.
The total investment (annually) made by the franchisees is over Rs. 7,000 Crores and
Rapidly growing at the rate of 25-29%.
More than 650,000 people are directly employed by franchised business.
Around 180 foreign franchisors are already existing and operational in India and many are more coming or planning to come shortly.
Variety of franchising formats (retail franchising– non retail franchising / pure
Franchising – management contract franchising – hybrid franchising) are practiced across the sectors.
But even after having these encouraging facts and figures it can be said that, Indian franchising still remains in the nascent stage if compared with the global scenario. The concept of franchising is widely accepted and practiced globally, specially in USA and Western Europe supported by well-structured law, infrastructure and strong business framework.
In US, $1 trillion is estimated as annual sales from franchised outlets where 50 % retail trade is done through franchised outlets only. US franchisors often use franchising mode as a strategy for global expansion.
Franchising across the sectors:
As proven a mode of faster growth option of the business, franchising is found in almost all major sectors. Though, depending on the nature and practice of the sector, some sectors had already started experiencing the franchising revolution while in some sectors it is yet to start. Involvement of various foreign players also plays a key role in this issue. The major sectors which consider ‘franchising’ as a strategic growth vehicle includes beauty salons and supplies, business services, clothing, education & training, food & beverage, retail, travel etc.
Franchising: Different modes:
In practice franchising is found in different modes. Across the sectors, franchise systems offer varying types of units or programs of single type or in combination of more than one. Though the majority of franchise systems come in the form of stand-alone or in-line store, several other mode are also available includes, kiosk, satellite, express etc.
Broadly the major categories are as follows:
o Standard - a stand-alone or in-line store location
o Cart/Kiosk - non-fixed units, generally in malls or other captive market locations
o Express - smaller units, typically with limited services
o Home Office - franchisees may work out their homes
o Institutional Location - based in hospitals, military bases, schools, etc.
o Satellite - unit operates as a satellite or branch office of the system
o Vehicle/Mobile - units that are based out of a vehicle
o Other - a variety of unit-types
Different modes of Franchised Business in India
Source: Annual report by Franchise Association of India
Number of outlets:
The distribution of no of franchisees having by different franchisors is also very interesting. In India, it shows that almost 7% franchisors have more than 500 franchisees (each), which is very convincing figure for a relatively nascent concept.
Analysis of Franchising System:
When franchising is recognized as a viable entrepreneurial option, it becomes extremely important for an entrepreneur to know the technical and operational know-how of it. Typically many issues are associated with any franchise business – ranging from legal contract, financial deals, support system and delivery, relation between the franchisor and franchisee and many others. In US franchise mechanism is quite structured but in India it is not very much structured. As a result, ineffective and inefficient franchise mechanism often causes undesirable consequences for both the parties.
Most of the time franchisees become the ‘sufferer’ because of unstructured franchising mechanism and lack of prior business experience. The major challenge that is faced by Franchisee is the high financial obligations in the form of initial franchise fees, different other permits and insurance, marketing – training – consulting fees, royalty etc. set by the franchisors. Sometime, even after paying all those ‘fees’, control of the conduct of the business remain reserved by the franchisors. Last but not the least, termination or renewal of a franchise contract is often become hazards for the franchisee as franchisors deliberately create many complicacies in the whole process.
Franchisors are also not in the ‘safer’ side all the time. They also face several challenges because of the unstructured franchising mechanism and lack of professional commitment from the franchisee. In most of time ‘challenges’ come in the form of irregularity of payment of advertising – expert consulting and even royalty by the committed time. Resignation of a successful franchisee or clash between two franchisees also results disruption of the franchising distribution in the distribution system laid by the franchisors. Sometime franchisees do involve in different malpractices like providing misleading or misusing information, which badly affect the franchisors in their decision-making.
CSF for a franchising system:
Like all the sectors, franchising sector also has ‘critical success factors’ of its own kind.
Sparkleminds a leading consulting firm in franchising in India conducted a research on the same line and identified such few critical success factors (CSR).
The result of the research is shown in the table below.
Ranking Critical Success Factor
1 A well-established business network
2 Constant new product development
3 Innovative products/ services
4 Quality of franchisees
5 Transparencies
6 Return on investment to franchisees
Table 1: Critical Success Factor for Franchise Business
Source: Annual survey of the Indian Franchise Sector, conducted by Sparkleminds Franchise Catalysts India
Again, in practice it is often found that there is andidea mismatch’ between the franchisor and franchisee causing dispute, conflict and ultimately termination of the contract. To find the ‘reasons behind it’ the same franchise consulting firm conducted one research and identified the most common causes of frictions between the franchisors and franchisee.
The result of the research is shown in the table below.
Ranking Causes of Friction
1 Transparency
2 Training and Support
3 Revenue Sharing
4 Product/ Service Deliveries
Table 2: Most common causes of friction between the franchisee and franchisor
Source: Annual survey of the Indian Franchise Sector, conducted by Sparkleminds Franchise Catalysts
Future of Franchising in India:
India is always considered as a hub for entrepreneurial pool and it is quite interesting to observe that the traditional business acumen among the entrepreneurs has made a shift towards understanding and adopting business in a more scientific manner. And when it comes to science and systems of business, franchised business as a sector is evolving and thriving. Indian business environment is gradually experiencing the changes and now the concept and essence of franchising is permeating into the Indian entrepreneurial mind.
In the past one-decade International franchise brands like Pizza Hut, Mc Donald's, Gold's Gym, Kodak, Subway, Holiday Inn and many others understood the potential of Indian market and enter in the Indian market. Thanks to these brands today international franchising in India is one of the most exciting areas in the franchise industry. Indian brands also do not stay much back from their international counterparts. They are also taking the franchising pathway to success and made significant growth in areas like retail, education, beauty etc. Many new age Indian entrepreneurs has realized the scope of growth in franchising and thus many entrepreneurs already adopted the franchising route to entrepreneurship and many are in different phases of adopting. For these entrepreneurs becoming a national or International franchise seems much easier, safer and profitable than struggling for brand identity while running a small enterprise of their own.
The vast geographical expanse, diverse culture, powerful and growing economy, huge and fast growing consuming class, shifting focus on services from agriculture and manufacturing and acceptance of western concepts by Indian masses, provide excellent franchised business opportunities in India. Again, introduction and penetration of new technologies has added new dimensions in franchising. All these market conditions combined with the low rate of franchise failure and significant return on investment has made a bright future for franchising. It is predicted that in the coming future franchising industry will attain very high growth records. The industry has not yet touched its zenith. Till now only major cities in India has witnessed the growth of Indian Franchising, however as the Indian economy is witnessing new dimensions, more than 30 tier I and 100 tier II cities (towns) of the Indian sub continent is expected to emerge as new markets for franchised business. Both the consumers and entrepreneurs of these small cities now feel the thriving pulse of franchising and are ready to welcome the new shift in the trade and business. Also as the major cities are now on the verge of saturation, best of the brands and corporate companies are finding these small cities as their next hot destination.
Still among all these golden aspects, there are few grey areas as per Indian franchising is concern. The major concern is lack of regularity framework for franchise business. Lack of clear and specific franchising law often results ‘confusion’ in case of any legal dispute between the franchisor and franchisee. Not only that, Indian franchising sector does not have any solid financing mechanism in practice. Even, the skewed real estate market often poses as a threat to the growth of franchising in India.
Conclusion:
The growth of franchising in India is inevitable, because of its unique style of business proposition and presence of several other factors acting as ‘positive’ role concurrently. Entrepreneurs realize this fact and look forward to gain the best from this business option. As a result, the acceptability of ‘franchising’ as a business option has increased. Now people show keen interest in ‘franchising matters’. For them, it is a much flexible business options in terms of - choice of sector, franchisors-, degree of engagement (full time / part time) and even in the amount of investment.
Franchising system has a great impact on the society also. It creates a synergy in the society and unveils a unique kind of win – win – win proposition. The Franchisor wins by having a presence, whereas the franchisee wins by owning a profitable business and the society wins at large by emergence of numerous entrepreneurs and having superior products and services.
Annexure:Franchise List/ Franchise Directory / Franchise Brands
(A) Few upcoming strong Franchisor brands in India:Top Franchises
Business Vertical
Brands (Franchisors)
Beauty Salons & Supplies
Body Spa,
Naturals,
Fitness One India Ltd.,
Shahnaz Husain Group
Business Services
Eureka Forbes Ltd
Clothing
Blackberry,
Peter England,
Raymonds,
Fashion,
Reid & Taylor,
Hakoba Lifestyle LTD,
Design Institute
JDTI
Education & Training
NIIT
APTECH
Veta
British Academy,
Cadd Center,
Career forum
IMS
Florist
Ferns N Petals,
Florista
Food & Beverages
Baskin Robbins,
Swirls
Café Coffee Day
Yo China,
Gift & Greetings
Archies
Presto
Health & Aids Services
Proline Fitness,
Golds Gym
Vaidya Sane Ayurveda Clinic,
Fortis Health World Ltd,
Guardian Pharmacy,
Retail
Asmi,
Refeel
Bally Fabs,
Cartridge World,
Castrol Bike Zone,
Crossword,
D’damas,
Featherlite,
Marshalls,
Nilgiris
School (Play / Nursery)
Eurokids
ABC Montessori,
Bachpan
Fasttrack kids
Kidzee
Travel
Travel Tours,
Prime Travels,
Travel Port,
Via,
Arzoo
Cox and Kings
Properties
Remax
Source:
Manas Garai
Quoting from Nobel Laureate Professor Muhammad Yunus, it can be said that ‘every Individual is an entrepreneur’, but it is evident that the degree of one being an entrepreneur varies. This is because people thinks, interprets and practices ‘entrepreneurship’ differently and that is why it is rightly said that there are many ‘models’ for Entrepreneurship. Even in today’s modern business place, the idea of getting associated with entrepreneurial activity as a part time business (read finding side income source) is also catching. With these background, when people explored ‘options’ for entrepreneurship, franchising as a route towards entrepreneurship comes in a profound manner because this is considered as an entrepreneurial business option with lesser Investment and risk. Moreover, the events like phenomenal retail boom in India, entry of various international brands in Indian market, increasing number of people with substantial invest-able funds and importantly recognizing the idea of ‘own boss’ give further boost to the ‘Franchising route to Entrepreneurship’. Still, as study says Franchising’ in India as business contribution is still in a nascent stage, it is also true that franchising as an entrepreneurial practice still not much explored and practiced in India. This paper try to put some light on the same line and also put effort to understand associate issues with franchising system in India and how entrepreneurs can exploit Franchising as a viable business option.
***************************************************
Introduction:
The understanding of entrepreneurship seems to be very interesting because different people think, interpret and practice entrepreneurship in different manners. So the issue ‘what is entrepreneurship or who is an entrepreneur’ has become less relevant, rather ‘what makes entrepreneurs entrepreneurial’ become very purposeful to the entrepreneurship researchers. This issue is addressed by D. Sarasvathy in one of his Harvard Business Review submission as, ‘Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because they think effectively; they believe in a yet-to-be made future that can be substantially be shaped by human action’. Traditional start up’s, intrapreneurship or social entrepreneurship what ever may the route the driving mantra for an entrepreneur remain same. Today, encouraged by the same mantra – effective thinking and a yet-to-be made future, people find new routes to experience entrepreneurship. Changing mindset and positive entrepreneurial environment give birth of the new models of ‘entrepreneurial journey’, which are very much relevant and prevalent in the society.
In his article ‘The many models of entrepreneurship’, entrepreneurship thinker Mohan Babu manifested the same and came up with such relevant and prevalent models of entrepreneurship. According to him, the followings are the new ‘entrepreneurship models’ that has emerged in the society.
Consultant model: Mostly common among academicians, corporate executives, IT
Professionals – who have niche domain expertise and gain a ‘brand’ name while working. They find it convenient and lucrative to start consultations using the industry contacts and domain expertise, after retiring from their regular job.
Moonlighting model: This model is common among those who want to practice
Entrepreneurship ‘part-time’ without involving full-time. For example, doctors working for hospitals or clinics as a ‘visiting consultant’. Some professionals take the public speaking or column writing in the same fashion.
Brilliant Idea model: Professionals and other workings may have a “million dollar idea” that has altogether different perspective from the same every day idea. Many times, these people take their new/ innovative idea to the employer with a suggestion to implement it on the job. Sometimes, when the management does not take up the ideas, they adopt the entrepreneurial route if they have strong believed/ faith about it.
Existing business/Franchise model: Sometimes, individuals who do not want to continue in the corporate world decide to start their own venture in a domain they are comfortable. Such ventures may take the form of small businesses or franchises. In the franchise model, the aspiring entrepreneur approaches a corporation (franchisor) and takes on the responsibility of running his business using the brand and marketing support from the enterprise. Though Babu does not mention it, it is also seen that people with surplus capital like to invest to take a franchisee ownership along with an existing job or after retiring a full service life. Now this Franchise model as an entrepreneurial route is extremely interesting because of its certain characteristics like – flexibility of involvement (part time/ full time) as an entrepreneur, unrestricted domain choice irrespective of expertise and significant high success rate compared to start ups. As a result, ‘franchising route to entrepreneurship’ is considered as a highly attractive entrepreneurial proposition and proving its potentiality (if already not proved! at least In India) amongst the entrepreneurs. Hence from an entrepreneur point of view, it become extremely important to understand the franchising system, associate issues with it and to know how they can exploit Franchising as a viable business option.
Understanding Franchising:
Franchising happen when some enterprise develops a proven concept and then transfers the trademark and business know-how to an entrepreneur, termed franchisee. The franchisee usually gets the right for a specific time period and in a specific geographic area for a one time franchisee fee and loyalty. The enterprise, which develops the business concept, is termed as franchisor. The franchisor provides different systems and supports to the franchisee.
Hence in technical terms, franchising is neither an industry nor a business, rather franchising is a method of doing business within a given industry. It is a business partnership and like all business partnerships it involves two parties, the franchisor and the franchisee. The franchisor provides the know-how, training, system and the brand, whereas the franchisee forms the front end and is responsible for managing his business unit. Technically, the ‘Franchising contract’ binds the two parties is the system.
Figure 1: Franchising System and Support Services Model
A Win – Win Proposition:
The most interesting part of franchising system is its win – win propositions between the two parties – franchisors and franchisee. Both the parties engaged in the ‘deal’ can reap substantial benefit from the franchising system. It is said that, a franchisor gets three fold benefits from franchising. Firstly, franchising acts as a distribution model for the franchisor, which helps them to growth rapidly. Secondly, it reduces the set up risk as risk is shared by the franchisee members and thirdly, franchising ultimately.
Helps in brand building and acts as a consumer interface amongst the populace.
Franchising help franchisors to have –
o Greater access to capital
o Better utilization of operating cost
o Presence rapidly both in known and less unknown market places
On the other hand, franchisee also enjoys benefits from franchising. In most of the cases,
Entrepreneurs have limitations in terms of capital, business know-how and have to deal with certain degree of risk. But franchising helps an entrepreneur (franchisee owner) in various aspects like –
o Get an association with an already known trade mark or service mark.
o Lesser investment and degree of risk
o Shorter learning curve
o Economies of scale
o Business System and operation support
o Advertising and promotional support
o Recruitment and training (of the employee) support, etc.
Most common form of Franchising Systems:
Master Franchising System: In master franchising the franchiser grants rights for a particular area to the master franchise for a front-end master franchisee fee. The master franchiser takes the responsibility for appointing further individual franchisees within that area. McDonald's, TGIF, Pizza Hut etc. have adopted this system in India.
Area Development Franchising System: In an area development agreement, the franchiser grants development rights of a particular area to the franchisee in turn for a front-end development fee. The franchisee on his part is responsible for developing a certain number of units within a given period of time. Excel InfoTech EIIT has adopted this unique mode of franchising.
Exclusive Showrooms: In an exclusive showroom the company or the franchiser grants
Exclusive showroom rights to the franchisee with the condition that the franchisee shall stock only his brand of products. The franchisee profits by being given stocks at lesser price than other retail outlets. This system is widely followed by brands like Raymond's, Allen Solly, and ColorPlus.
Successful entrepreneurship through Franchising:
Though India is considered as a country of entrepreneurship, it hardly ever witnessed entrepreneurship at a mass level in any of the form. Franchising also is not an exception for that and the reasons are specific of its context. It was limited to the few people with better ‘information and capital’, and was never able to attract the mass level of the society. But with the course of time the scenario has changed and has accepted by mass level (specially middle, lower middle class) at a much greater extent. People, who are not from very high business background come forward, opt franchising and found it effective. Many people made their best possible future from out of that. The simple proposition of ‘franchising’ and its uniqueness of business proposition play the crucial role and made possible for a mass level of entrepreneurship, yet not complete but just the beginning, thanks to franchising!
On a macro level, the greatest benefit of a ‘franchise system’ is that a large numbers of entrepreneurs in the form of franchisee owners work together to achieve a common goal. The franchisee is a dedicated entrepreneur and not a salaried employee, thus he/she is more likely to show greater commitment dedication, interest and involvement. They are they are intelligent enough to understand as they are working with a tried tested and proven business concept; the chances of failure of the venture reduce significantly.
Reasons that boost the idea of ‘Franchising route to entrepreneurship’:
The following are the primary and major reasons that boost up the idea of ‘Franchising route to entrepreneurship’.
Lesser investment and risk factor:
In franchising the initial investment and risk associated with it is much compared to a start ups. In most of the cases, ordinary start-ups face problem of huge investment, evaluating an opportunity and lack experience about the business know how. Thus they carry a huge risk. While in case of franchising the initial investment is generally lesser, in fact, the investment can be ‘chosen’ by the entrepreneur as per his/ her financial resource is available. Not only that, risk factor also significantly come down as the entrepreneur (owner of the franchisee) get the tested business concept, marketing and sales support, staining and staffing support, other consulting support. These facts actually encourage the people to become an entrepreneur by taking a franchisee ownership.
Proven track record and less failure rate:
Study says, 90% of start-ups fail in the first year itself and those survive, 90% of them fail in the next two years. On the contrary, for a franchised business, the result is completely opposite. In franchised business over 90% ventures are successful. This high success rate usually attracts entrepreneurs, with no experience but with a surplus capital and a will to succeed, to move towards franchising.
‘Wide range of options’ in franchising business:
Franchising as an entrepreneurial option is extremely flexible in nature. Franchising, by its nature and the way it operates in the market offers a wide range of ‘alternatives’ to the Entrepreneur. The entrepreneur can decide his/ her business as per his expertise, interest and resources.
The idea of such ‘alternatives/ options’ comes from different aspects.
o Options for choosing a sector: e.g.: food, education, clothing etc.
o Options for selecting a ‘franchisor brand’ from the chosen sector
o Options for engagement in business: Full time – part time; main business – side business
o Options for ‘investment’: Ranging from thousands to Crores. \
Increase in personal / household invest-able capital:
In the new economy, Indian individuals and households have more surplus capital because of better job opportunity and multiple earning members. And interestingly, unlike earlier, people, become more open to invest their surplus capital for a better return. They look for means of investment and find investment in the form of a franchised business is a better and smarter way to utilize the surplus capital. Again, they realize that the investment in franchised business is somewhat more ‘controllable’ and return are convincing. These help individual/ households to take decision in favour of a franchised business.
Recognizing and believing the idea of ‘own boss’:
These days people became more future conscious and look for job flexibility and freedom. They are now recognizing and believing the idea of ‘own boss’ and became more open to be an entrepreneur. And in many cases, realizing their lack of entrepreneurial experience and resources they decide to have a franchisee ownership and cherish the experience of running own business. This idea is gaining popularity in a rapid way. Depending on cases, they prefer to carry the franchised business either from home or from an outside location. Even the retired individual, housewife community also found this business proposition very convenient and shown keen interest about it.
Again, there are few factors, which play indirect role in emergence of franchised business. These factors can be categorized as - recent retail boom in India, entry of various international brands in Indian market, rapid growth of Indian economy, huge and fast growing consuming class, entrepreneurship revolution etc.
Franchising take in India:
In India, the concept of franchising started around seventies but didn’t get much acceptance till nineties. Traditionally it was limited to few sectors like IT training, clothing and footwear sector etc. Today in India, the acceptability for franchising system is much stronger, which helps franchising in India to touch a new height. It has forayed into all industries from Food and Fuel to health and travel. The franchising trend in India includes – domination of service sector, growth in retail franchising, introduction of many master franchisees by international franchisors etc. Today franchising spread across the country, providing immense opportunity to the entrepreneurs.
Franchising: Facts and figures in India:
There are more than 1200 active franchising systems currently operating in the country which are spread across the different sectors.
More than 50000 franchisees (across the sectors) are involved in the system.
The annual turnover achieved by franchise business in India touches Rs. 12,000 –
13,500 Crores approximately.
The total investment (annually) made by the franchisees is over Rs. 7,000 Crores and
Rapidly growing at the rate of 25-29%.
More than 650,000 people are directly employed by franchised business.
Around 180 foreign franchisors are already existing and operational in India and many are more coming or planning to come shortly.
Variety of franchising formats (retail franchising– non retail franchising / pure
Franchising – management contract franchising – hybrid franchising) are practiced across the sectors.
But even after having these encouraging facts and figures it can be said that, Indian franchising still remains in the nascent stage if compared with the global scenario. The concept of franchising is widely accepted and practiced globally, specially in USA and Western Europe supported by well-structured law, infrastructure and strong business framework.
In US, $1 trillion is estimated as annual sales from franchised outlets where 50 % retail trade is done through franchised outlets only. US franchisors often use franchising mode as a strategy for global expansion.
Franchising across the sectors:
As proven a mode of faster growth option of the business, franchising is found in almost all major sectors. Though, depending on the nature and practice of the sector, some sectors had already started experiencing the franchising revolution while in some sectors it is yet to start. Involvement of various foreign players also plays a key role in this issue. The major sectors which consider ‘franchising’ as a strategic growth vehicle includes beauty salons and supplies, business services, clothing, education & training, food & beverage, retail, travel etc.
Franchising: Different modes:
In practice franchising is found in different modes. Across the sectors, franchise systems offer varying types of units or programs of single type or in combination of more than one. Though the majority of franchise systems come in the form of stand-alone or in-line store, several other mode are also available includes, kiosk, satellite, express etc.
Broadly the major categories are as follows:
o Standard - a stand-alone or in-line store location
o Cart/Kiosk - non-fixed units, generally in malls or other captive market locations
o Express - smaller units, typically with limited services
o Home Office - franchisees may work out their homes
o Institutional Location - based in hospitals, military bases, schools, etc.
o Satellite - unit operates as a satellite or branch office of the system
o Vehicle/Mobile - units that are based out of a vehicle
o Other - a variety of unit-types
Different modes of Franchised Business in India
Source: Annual report by Franchise Association of India
Number of outlets:
The distribution of no of franchisees having by different franchisors is also very interesting. In India, it shows that almost 7% franchisors have more than 500 franchisees (each), which is very convincing figure for a relatively nascent concept.
Analysis of Franchising System:
When franchising is recognized as a viable entrepreneurial option, it becomes extremely important for an entrepreneur to know the technical and operational know-how of it. Typically many issues are associated with any franchise business – ranging from legal contract, financial deals, support system and delivery, relation between the franchisor and franchisee and many others. In US franchise mechanism is quite structured but in India it is not very much structured. As a result, ineffective and inefficient franchise mechanism often causes undesirable consequences for both the parties.
Most of the time franchisees become the ‘sufferer’ because of unstructured franchising mechanism and lack of prior business experience. The major challenge that is faced by Franchisee is the high financial obligations in the form of initial franchise fees, different other permits and insurance, marketing – training – consulting fees, royalty etc. set by the franchisors. Sometime, even after paying all those ‘fees’, control of the conduct of the business remain reserved by the franchisors. Last but not the least, termination or renewal of a franchise contract is often become hazards for the franchisee as franchisors deliberately create many complicacies in the whole process.
Franchisors are also not in the ‘safer’ side all the time. They also face several challenges because of the unstructured franchising mechanism and lack of professional commitment from the franchisee. In most of time ‘challenges’ come in the form of irregularity of payment of advertising – expert consulting and even royalty by the committed time. Resignation of a successful franchisee or clash between two franchisees also results disruption of the franchising distribution in the distribution system laid by the franchisors. Sometime franchisees do involve in different malpractices like providing misleading or misusing information, which badly affect the franchisors in their decision-making.
CSF for a franchising system:
Like all the sectors, franchising sector also has ‘critical success factors’ of its own kind.
Sparkleminds a leading consulting firm in franchising in India conducted a research on the same line and identified such few critical success factors (CSR).
The result of the research is shown in the table below.
Ranking Critical Success Factor
1 A well-established business network
2 Constant new product development
3 Innovative products/ services
4 Quality of franchisees
5 Transparencies
6 Return on investment to franchisees
Table 1: Critical Success Factor for Franchise Business
Source: Annual survey of the Indian Franchise Sector, conducted by Sparkleminds Franchise Catalysts India
Again, in practice it is often found that there is andidea mismatch’ between the franchisor and franchisee causing dispute, conflict and ultimately termination of the contract. To find the ‘reasons behind it’ the same franchise consulting firm conducted one research and identified the most common causes of frictions between the franchisors and franchisee.
The result of the research is shown in the table below.
Ranking Causes of Friction
1 Transparency
2 Training and Support
3 Revenue Sharing
4 Product/ Service Deliveries
Table 2: Most common causes of friction between the franchisee and franchisor
Source: Annual survey of the Indian Franchise Sector, conducted by Sparkleminds Franchise Catalysts
Future of Franchising in India:
India is always considered as a hub for entrepreneurial pool and it is quite interesting to observe that the traditional business acumen among the entrepreneurs has made a shift towards understanding and adopting business in a more scientific manner. And when it comes to science and systems of business, franchised business as a sector is evolving and thriving. Indian business environment is gradually experiencing the changes and now the concept and essence of franchising is permeating into the Indian entrepreneurial mind.
In the past one-decade International franchise brands like Pizza Hut, Mc Donald's, Gold's Gym, Kodak, Subway, Holiday Inn and many others understood the potential of Indian market and enter in the Indian market. Thanks to these brands today international franchising in India is one of the most exciting areas in the franchise industry. Indian brands also do not stay much back from their international counterparts. They are also taking the franchising pathway to success and made significant growth in areas like retail, education, beauty etc. Many new age Indian entrepreneurs has realized the scope of growth in franchising and thus many entrepreneurs already adopted the franchising route to entrepreneurship and many are in different phases of adopting. For these entrepreneurs becoming a national or International franchise seems much easier, safer and profitable than struggling for brand identity while running a small enterprise of their own.
The vast geographical expanse, diverse culture, powerful and growing economy, huge and fast growing consuming class, shifting focus on services from agriculture and manufacturing and acceptance of western concepts by Indian masses, provide excellent franchised business opportunities in India. Again, introduction and penetration of new technologies has added new dimensions in franchising. All these market conditions combined with the low rate of franchise failure and significant return on investment has made a bright future for franchising. It is predicted that in the coming future franchising industry will attain very high growth records. The industry has not yet touched its zenith. Till now only major cities in India has witnessed the growth of Indian Franchising, however as the Indian economy is witnessing new dimensions, more than 30 tier I and 100 tier II cities (towns) of the Indian sub continent is expected to emerge as new markets for franchised business. Both the consumers and entrepreneurs of these small cities now feel the thriving pulse of franchising and are ready to welcome the new shift in the trade and business. Also as the major cities are now on the verge of saturation, best of the brands and corporate companies are finding these small cities as their next hot destination.
Still among all these golden aspects, there are few grey areas as per Indian franchising is concern. The major concern is lack of regularity framework for franchise business. Lack of clear and specific franchising law often results ‘confusion’ in case of any legal dispute between the franchisor and franchisee. Not only that, Indian franchising sector does not have any solid financing mechanism in practice. Even, the skewed real estate market often poses as a threat to the growth of franchising in India.
Conclusion:
The growth of franchising in India is inevitable, because of its unique style of business proposition and presence of several other factors acting as ‘positive’ role concurrently. Entrepreneurs realize this fact and look forward to gain the best from this business option. As a result, the acceptability of ‘franchising’ as a business option has increased. Now people show keen interest in ‘franchising matters’. For them, it is a much flexible business options in terms of - choice of sector, franchisors-, degree of engagement (full time / part time) and even in the amount of investment.
Franchising system has a great impact on the society also. It creates a synergy in the society and unveils a unique kind of win – win – win proposition. The Franchisor wins by having a presence, whereas the franchisee wins by owning a profitable business and the society wins at large by emergence of numerous entrepreneurs and having superior products and services.
Annexure:Franchise List/ Franchise Directory / Franchise Brands
(A) Few upcoming strong Franchisor brands in India:Top Franchises
Business Vertical
Brands (Franchisors)
Beauty Salons & Supplies
Body Spa,
Naturals,
Fitness One India Ltd.,
Shahnaz Husain Group
Business Services
Eureka Forbes Ltd
Clothing
Blackberry,
Peter England,
Raymonds,
Fashion,
Reid & Taylor,
Hakoba Lifestyle LTD,
Design Institute
JDTI
Education & Training
NIIT
APTECH
Veta
British Academy,
Cadd Center,
Career forum
IMS
Florist
Ferns N Petals,
Florista
Food & Beverages
Baskin Robbins,
Swirls
Café Coffee Day
Yo China,
Gift & Greetings
Archies
Presto
Health & Aids Services
Proline Fitness,
Golds Gym
Vaidya Sane Ayurveda Clinic,
Fortis Health World Ltd,
Guardian Pharmacy,
Retail
Asmi,
Refeel
Bally Fabs,
Cartridge World,
Castrol Bike Zone,
Crossword,
D’damas,
Featherlite,
Marshalls,
Nilgiris
School (Play / Nursery)
Eurokids
ABC Montessori,
Bachpan
Fasttrack kids
Kidzee
Travel
Travel Tours,
Prime Travels,
Travel Port,
Via,
Arzoo
Cox and Kings
Properties
Remax
Source:
Manas Garai
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
Subscribe to:
Posts (Atom)