Italian premium leather upholstery player Natuzzi Spa said on Friday it will enter the Indian market by June-July with plans to emerge as a leading player in the estimated $9.4 billion furnishing industry in the country.
The company said it will open its first two flagship outlets in Delhi and Mumbai, and has set a target of opening 70 points of sale across the country by end of 2012.
“We will introduce both our brands -- Natuzzi and Italsofa -- in the country and our aim is to have 70 points of sales across India of the two brands together by 2012. We will explore multiple formats like flagship stores, mono-brand smaller outlets and galleries in form of shop-in-shops,” Natuzzi country manager India Nitin Bahl told PTI.
He said the company will enter the Indian market through the franchise route and investments will be made primarily by individual franchise operators.
“Our target is the 12-lakh Indian households with an annual income of over Rs10 lakh. While the Natuzzi brand will be for the major metros, Italsofa will also target Tier I cities like Pune and Chandigarh,” Bahl said.
He said the company is looking to clock a revenue of at least 25 million Euro (around Rs162 crore) from the Indian operations by 2012.
The USD one billion firm is one of the few furnishing companies listed on the New York Stock Exchange. It currently has over 350 galleries and flagship stores in 123 countries.
Friday, February 5, 2010
Wednesday, February 3, 2010
Franchising World Over and Franchise In India
World Over, franchise contracts are typically governed by the laws of the land. In the United States, franchising falls under the jurisdiction of a number of state and federal laws. Franchisors are required by the Federal Trade Commission to provide a uniform Franchise Offering Circular (UFOC), to disclose essential information to potential franchisees about their purchase. States may require the UFOC to contain specific requirements but the requirements in the state disclosure documents must be in compliance with the federal rule that governs federal regulatory policy. There is no private right of action under the FTC Rule for Franchisor violation of the rule, but fifteen or more of the states have passed statutes that provide a private right of action to franchisees when fraud can be proved under these special statutes.
In the United Kingdom, on the other hand, there are no franchise specific laws, franchises are subject to the same laws that govern other businesses. Some self regulation exists through the British Franchise Association (BFA).
Over the last 15 years, franchising as a format of retail expansion, has gradually matured international franchising is also in an interesting phase in India as global organizations like Pizza Hut, Marks and Spencer, McDonald’s, Subway, HP, Holiday Inn, Medicine shoppe, Domino’s, Gold’s gym and Kentucky Fried Chicken have set up franchises in India.
Industry sources claim that, franchising in India has been clocking a 60 % year on year growth which is likely to accelerate to 100 per cent over the next five year period. In India three are close to over 40,000 franchisees with an annual turnover anywhere between Rs 8000-Rs 10,000 crores from franchising. It is estimated that the total investments made by franchisees is over Rs 5000 crores and over 300,000 people are directly employed by franchised businesses.
The Franchise showrooms of various readymade garment manufacturers like Arvind, Madura Garments,Levis, and others like Titan, Tanishq, Gitanjali perhaps the most visible successes of franchising in India. One of the pioneers in this field, in the area of beauty and personal care products has been Shahnaz Hussain. Today, the chain of Shahnaz Hussain parlors has more than 200 franchisers in India. As the economies evolves, retail as sector continues to grow, various new avenues in franchising are emerging on the Indian franchise scenario. Education is a key area in India, where there have been significant developments in franchising. The IT education sector is fairly substantial at 40%. Franchising in the IT enabled services sector stands at 14%. The portfolio in the education sector is diverse – from children education in computer basics to expertise in languages and competitive exams including foreign universities admission exams. In the education category, NIIT,Aptech,Euro Kids and ZILS are performing well. Instead of large pool of IT talent, NIIT is aiming to nurture rightly skilled manpower which is industry ready and high on the employability index.
Franchising is also gaining acceptance among online companies as a means to expand their network and other personalized services. Shaadi.com is one such dot.com which is considered a success in franchising in India, with 153 Shaadi.com centers across 87 Indian cities. Shaadi.com saw an opportunity to further its offerings through the franchise model, and hence, launched Shaadi Point which is an example of an online business doing very well in the brick and mortar space through franchising in India.
Franchising is useful as it is characterized by quick reach, but a franchiser network has to be managed, and a franchise needs to make money, so it does have its challenges like maintaining consistency of brand, brand equity and quality of service.
Many international retailers are also tapping the Indian market through franchising. Britain’s coffee chain Costa Coffee, is one such example, who is eyeing massive expansion across the country. The international chain, which entered India in September 2005 through a master franchise, has long term plans top open 300 outlets in the next three to four years. It would be looking at an investment of over Rs 150 crore. Besides opening new stores, the coffee chain is also introducing the concept of cart and kiosk in corporate offices. While the kiosk model is a full fledged structure that serves the entire menu of Costa F&B, the cart model is a smaller version, a hot counter that serves only coffee.
Franchising is growing world over and as the new developing economies are embracing quicker responsible growth they are looking at franchising as a suitable option for growth.We will see the next big franchise stories emerging from these developing markets.
In the United Kingdom, on the other hand, there are no franchise specific laws, franchises are subject to the same laws that govern other businesses. Some self regulation exists through the British Franchise Association (BFA).
Over the last 15 years, franchising as a format of retail expansion, has gradually matured international franchising is also in an interesting phase in India as global organizations like Pizza Hut, Marks and Spencer, McDonald’s, Subway, HP, Holiday Inn, Medicine shoppe, Domino’s, Gold’s gym and Kentucky Fried Chicken have set up franchises in India.
Industry sources claim that, franchising in India has been clocking a 60 % year on year growth which is likely to accelerate to 100 per cent over the next five year period. In India three are close to over 40,000 franchisees with an annual turnover anywhere between Rs 8000-Rs 10,000 crores from franchising. It is estimated that the total investments made by franchisees is over Rs 5000 crores and over 300,000 people are directly employed by franchised businesses.
The Franchise showrooms of various readymade garment manufacturers like Arvind, Madura Garments,Levis, and others like Titan, Tanishq, Gitanjali perhaps the most visible successes of franchising in India. One of the pioneers in this field, in the area of beauty and personal care products has been Shahnaz Hussain. Today, the chain of Shahnaz Hussain parlors has more than 200 franchisers in India. As the economies evolves, retail as sector continues to grow, various new avenues in franchising are emerging on the Indian franchise scenario. Education is a key area in India, where there have been significant developments in franchising. The IT education sector is fairly substantial at 40%. Franchising in the IT enabled services sector stands at 14%. The portfolio in the education sector is diverse – from children education in computer basics to expertise in languages and competitive exams including foreign universities admission exams. In the education category, NIIT,Aptech,Euro Kids and ZILS are performing well. Instead of large pool of IT talent, NIIT is aiming to nurture rightly skilled manpower which is industry ready and high on the employability index.
Franchising is also gaining acceptance among online companies as a means to expand their network and other personalized services. Shaadi.com is one such dot.com which is considered a success in franchising in India, with 153 Shaadi.com centers across 87 Indian cities. Shaadi.com saw an opportunity to further its offerings through the franchise model, and hence, launched Shaadi Point which is an example of an online business doing very well in the brick and mortar space through franchising in India.
Franchising is useful as it is characterized by quick reach, but a franchiser network has to be managed, and a franchise needs to make money, so it does have its challenges like maintaining consistency of brand, brand equity and quality of service.
Many international retailers are also tapping the Indian market through franchising. Britain’s coffee chain Costa Coffee, is one such example, who is eyeing massive expansion across the country. The international chain, which entered India in September 2005 through a master franchise, has long term plans top open 300 outlets in the next three to four years. It would be looking at an investment of over Rs 150 crore. Besides opening new stores, the coffee chain is also introducing the concept of cart and kiosk in corporate offices. While the kiosk model is a full fledged structure that serves the entire menu of Costa F&B, the cart model is a smaller version, a hot counter that serves only coffee.
Franchising is growing world over and as the new developing economies are embracing quicker responsible growth they are looking at franchising as a suitable option for growth.We will see the next big franchise stories emerging from these developing markets.
Monday, February 1, 2010
Central Cottage Industries (CCIC) offers India Handicraft Franchise For New Zealand.
The New Delhi based Central Cottage Industries Corporation of India Ltd (CCIC) is keen to establish its Cottage Emporium showrooms in New Zealand on franchise basis.
The prospective franchisees could be of Indian origin, familiar with Indian handicrafts and handlooms, although this would not be a condition.
But the showrooms should be named ‘Central Cottage Industries Emporium’ and deal with goods sourced only from the CCIC.
The state-owned company operates as an independent commercial entity with showrooms in India and Denmark (Copenhagen) and believes there is ample potential for its extensive product range in New Zealand.
Its merchandise includes carpets, shawls, fabrics, sarees, artifacts in sandalwood and other woods, metals, silver jewellery and other crafted objects from diverse regions of India.
CCIC Managing Director M A Ibrahimi said the company had worldwide customers and that foreign showrooms would cater to the growing demand for its quality products.
“We propose to open showrooms in overseas markets on franchise basis. Under this arrangement, the investment and expertise of the partner in a foreign country and the strengths of CCIC in sourcing of handicraft and handloom products can be combined to meet the expansion needs of the marketing of handicrafts,” he said.
He said the company was exploring the possibilities of opening one showroom initially in New Zealand, probably in Auckland and gradually expand to other centres.
“The Franchisee may determine the price of the products and undertake marketing and other promotional activities in terms of the agreement,” Mr Ibrahimi said.
The prospective franchisees could be of Indian origin, familiar with Indian handicrafts and handlooms, although this would not be a condition.
But the showrooms should be named ‘Central Cottage Industries Emporium’ and deal with goods sourced only from the CCIC.
The state-owned company operates as an independent commercial entity with showrooms in India and Denmark (Copenhagen) and believes there is ample potential for its extensive product range in New Zealand.
Its merchandise includes carpets, shawls, fabrics, sarees, artifacts in sandalwood and other woods, metals, silver jewellery and other crafted objects from diverse regions of India.
CCIC Managing Director M A Ibrahimi said the company had worldwide customers and that foreign showrooms would cater to the growing demand for its quality products.
“We propose to open showrooms in overseas markets on franchise basis. Under this arrangement, the investment and expertise of the partner in a foreign country and the strengths of CCIC in sourcing of handicraft and handloom products can be combined to meet the expansion needs of the marketing of handicrafts,” he said.
He said the company was exploring the possibilities of opening one showroom initially in New Zealand, probably in Auckland and gradually expand to other centres.
“The Franchisee may determine the price of the products and undertake marketing and other promotional activities in terms of the agreement,” Mr Ibrahimi said.
Sunday, January 31, 2010
Mahindra First Choice To Aim 300 Franchise Outlets By 2012
Mahindra First Choice Wheels first SuperStore was inaugurated at Kochi Called Focuz Car Mart it is spread across an area of 5,000 sq. ft. with parking space of 13,000 sq. ft., and is located near Edapally Junction. It was inaugurated by Shubhabrata Saha, CEO, Mahindra First Choice Wheels Limited and Mr. Tony Raphel, Director and CEO, Focuz Car Mart.
“Encouraged by the overwhelming response to the SuperStore in Thiruvananthapuram – our first in Kerala – setting up the next in Kochi was a natural progression. Focuz Car Mart’s expertise and local know-how of the region, coupled with our value proposition of trust, transparency and wide choice will ensure that Mahindra FirstChoice is well poised to tap the vast potential of the pre-owned car market in Kerala. Our winning customer proposition coupled with an aggressive national expansion plan will help us reach our sales target of one lakh cars by 2015,” said Mr. Shubhabrata Saha, CEO, Mahindra First Choice Wheels Limited. He added, “In value terms, the company had revenues of Rs. 220 crore last fiscal and aims a turnover of Rs 400 crore.” The size of pre-owned car market in India is estimated at 1.7 million annually, he said, adding that the company would also increase its service centres in line with the proposed new sales outlets.
“We are delighted to extend our relationship with Mahindra, which is one of India’s most respected auto brands. Kochi presents large potential as a pre-owned car market and Mahindra First Choice will certainly go a long way in catering to this demand. The SuperStore will display several brands of pre-owned cars and function as a one-stop shop for all those wishing to either buy or sell a car. Customers can thus, avail of an array of services under one roof. These include purchase and sale of pre-owned cars, car finance and insurance, fitment of car accessories and assistance with paperwork and documentation,” said Mr. Tony Raphel, Director and CEO, Focuz Car Mart.
Mahindra FirstChoice is the country’s preferred pre-owned car mart and is India’s only organized multi-brand player, with 114 outlets in 74 towns across India. The company plans to expand this number to 300 outlets in the next three years. This implies that customers will soon be able to choose from a range of certified pre-owned cars throughout India, including the metros and tier-2 towns and cities. Tremendous attention to detail is required to ensure that each pre-owned car meets a high level of quality. Before purchasing the car, a trained engineer thoroughly inspects the vehicle and also sees to it that all papers are in order. After purchase, every car is refurbished and undergoes an extensive 118 point quality check by a trained engineer, as part of the company’s robust certification process.
Mahindra First Choice also has retail finance relationships with major banks and NBFCs in the country. As an industry first, Mahindra First Choice has recently partnered with Syndicate Bank to offer consumers finance rates comparable to those for new cars. In order to facilitate business growth, existing and potential franchisees will also be able to avail of inventory funding options from Syndicate Bank and IDBI Bank.
Mahindra First Choice, an arm of Mahindra and Mahindra Group (M&M) which sells second hand car, had recently said it would set up sales and service outlets in rural areas across the country to sell one lakh vehicles by 2015. This year, it expects the sales volume from its multi-brand pre-owned car company - Mahindra First Choice Wheels (MFCW) to go up to 18,000 units from 10,255 last year. MFCW operates a country-wide network, spanning 114 centres, including 6 company-owned outlets, in the superstore and smaller formats. MFCW aims to leverage its brand power in the franchising mode of business and make it more organised by professional management. ET has reported that MFCW derives 15 per cent of its sales from the 'D' or luxury car (Rs. 5.5 to Rs. 6 lakh) segment, with the B and C categories (Rs. 3.5 lakh or so) contributing around 30 per cent of the sales volume.
"In 2008-09 we sold 10,255 vehicles. This year we have aimed to sell around 18,000 vehicles. We want to take it up to one lakh cars by 2015," M&M President (After-market, HR and Corporate Services) Rajeev Dubey told reporters recently. He said 20 per cent of their business come from the "C" segment in Tier-II and III cities, while 80 per cent of the revenues come from metros and state capitals. The company aims to tap rural market through its expansion plans. For this, it would double its franchise outlets by March 2011, he added. The company has 114 outlets in the country. By March 2011 it would have 230 outlets and take it to over 300 outlets by March 2012, Dubey said.
Source:
Read more: Mahindra First Choice Wheels inaugurates its first SuperStore in Kochi - WheelsUnplugged Automobile Industry News
Under Creative Commons License: Attribution
http://www.wheelsunplugged.com/ViewNews.aspx?newsid=5540
“Encouraged by the overwhelming response to the SuperStore in Thiruvananthapuram – our first in Kerala – setting up the next in Kochi was a natural progression. Focuz Car Mart’s expertise and local know-how of the region, coupled with our value proposition of trust, transparency and wide choice will ensure that Mahindra FirstChoice is well poised to tap the vast potential of the pre-owned car market in Kerala. Our winning customer proposition coupled with an aggressive national expansion plan will help us reach our sales target of one lakh cars by 2015,” said Mr. Shubhabrata Saha, CEO, Mahindra First Choice Wheels Limited. He added, “In value terms, the company had revenues of Rs. 220 crore last fiscal and aims a turnover of Rs 400 crore.” The size of pre-owned car market in India is estimated at 1.7 million annually, he said, adding that the company would also increase its service centres in line with the proposed new sales outlets.
“We are delighted to extend our relationship with Mahindra, which is one of India’s most respected auto brands. Kochi presents large potential as a pre-owned car market and Mahindra First Choice will certainly go a long way in catering to this demand. The SuperStore will display several brands of pre-owned cars and function as a one-stop shop for all those wishing to either buy or sell a car. Customers can thus, avail of an array of services under one roof. These include purchase and sale of pre-owned cars, car finance and insurance, fitment of car accessories and assistance with paperwork and documentation,” said Mr. Tony Raphel, Director and CEO, Focuz Car Mart.
Mahindra FirstChoice is the country’s preferred pre-owned car mart and is India’s only organized multi-brand player, with 114 outlets in 74 towns across India. The company plans to expand this number to 300 outlets in the next three years. This implies that customers will soon be able to choose from a range of certified pre-owned cars throughout India, including the metros and tier-2 towns and cities. Tremendous attention to detail is required to ensure that each pre-owned car meets a high level of quality. Before purchasing the car, a trained engineer thoroughly inspects the vehicle and also sees to it that all papers are in order. After purchase, every car is refurbished and undergoes an extensive 118 point quality check by a trained engineer, as part of the company’s robust certification process.
Mahindra First Choice also has retail finance relationships with major banks and NBFCs in the country. As an industry first, Mahindra First Choice has recently partnered with Syndicate Bank to offer consumers finance rates comparable to those for new cars. In order to facilitate business growth, existing and potential franchisees will also be able to avail of inventory funding options from Syndicate Bank and IDBI Bank.
Mahindra First Choice, an arm of Mahindra and Mahindra Group (M&M) which sells second hand car, had recently said it would set up sales and service outlets in rural areas across the country to sell one lakh vehicles by 2015. This year, it expects the sales volume from its multi-brand pre-owned car company - Mahindra First Choice Wheels (MFCW) to go up to 18,000 units from 10,255 last year. MFCW operates a country-wide network, spanning 114 centres, including 6 company-owned outlets, in the superstore and smaller formats. MFCW aims to leverage its brand power in the franchising mode of business and make it more organised by professional management. ET has reported that MFCW derives 15 per cent of its sales from the 'D' or luxury car (Rs. 5.5 to Rs. 6 lakh) segment, with the B and C categories (Rs. 3.5 lakh or so) contributing around 30 per cent of the sales volume.
"In 2008-09 we sold 10,255 vehicles. This year we have aimed to sell around 18,000 vehicles. We want to take it up to one lakh cars by 2015," M&M President (After-market, HR and Corporate Services) Rajeev Dubey told reporters recently. He said 20 per cent of their business come from the "C" segment in Tier-II and III cities, while 80 per cent of the revenues come from metros and state capitals. The company aims to tap rural market through its expansion plans. For this, it would double its franchise outlets by March 2011, he added. The company has 114 outlets in the country. By March 2011 it would have 230 outlets and take it to over 300 outlets by March 2012, Dubey said.
Source:
Read more: Mahindra First Choice Wheels inaugurates its first SuperStore in Kochi - WheelsUnplugged Automobile Industry News
Under Creative Commons License: Attribution
http://www.wheelsunplugged.com/ViewNews.aspx?newsid=5540
Friday, January 29, 2010
Gloria Jeans Eyes Franchise Expansion of 100 Units By 2013
Gloria Jean’s eyes expansion
Bullish on the estimated Rs 1,200 crore market in the country, international coffee chain Gloria Jean’s Coffees (Gloria) is readying itself for expansion to make it profitable.
Having entered the Indian market in 2008 through master franchise model, it has only nine outlets in the country. The company currently has spent more than 12 months on reworking and refining its business model and is finally readying itsel for expansion. It is set to open one outlet each in Delhi and Pune in next two months besides setting itself a target of 100 operational outlets by 2013.
With 50 per cent of Rs 1,200 crore market being unorganised and Cafe Coffee Day and Barista taking big chunks of the remaining, Gloria believes there needs to be a concentrated effort in gaining momentum and popularity in the market.
Speaking to Deccan Herald Gloria Jean’s Coffees Regional General Manager Tony White said their emphasis is on training its staff adding Citymax Hospitality, its franchise here, has invested Rs 80 lakh on training alone. Its total investment as on this date is Rs 10 crore.
Coffee varisty
The company has set up ‘coffee university’ –– a mock coffee shop –– where it trains its staff to make coffee and also other essentials like treating the customers et al. Citymax Hospitality President Sundarrajan Rajagopal said besides having to go through rigrous levels of training, the staff will also be monitered by the ‘coffee university’ in Australia (Gloria’s base) and India. There are regional workshops conducted twice a year to further enhance quality of workforce. It also conducts competitions for baristas from across the markets it has presence so that there is an exhange of ideas and exposure to all its staff.
Further, the firm will pump in another Rs 50 crore into the Indian market –– out of which a significant sum will be spent on training –– as it believes that there is enough scope for all existing players and more. It said it will expand its presence to 16 cities from the current four.
With all other players like Barista,Cafe Coffee Day,Mocha,Nescafe,Coffee N U, Java City, Brewers,Cuppa eyeing expansion, Gloria Jeans is all set to have its share of the Pie of the Indian coffee market.
Bangalore: Jan 29, DHNS:
Bullish on the estimated Rs 1,200 crore market in the country, international coffee chain Gloria Jean’s Coffees (Gloria) is readying itself for expansion to make it profitable.
Having entered the Indian market in 2008 through master franchise model, it has only nine outlets in the country. The company currently has spent more than 12 months on reworking and refining its business model and is finally readying itsel for expansion. It is set to open one outlet each in Delhi and Pune in next two months besides setting itself a target of 100 operational outlets by 2013.
With 50 per cent of Rs 1,200 crore market being unorganised and Cafe Coffee Day and Barista taking big chunks of the remaining, Gloria believes there needs to be a concentrated effort in gaining momentum and popularity in the market.
Speaking to Deccan Herald Gloria Jean’s Coffees Regional General Manager Tony White said their emphasis is on training its staff adding Citymax Hospitality, its franchise here, has invested Rs 80 lakh on training alone. Its total investment as on this date is Rs 10 crore.
Coffee varisty
The company has set up ‘coffee university’ –– a mock coffee shop –– where it trains its staff to make coffee and also other essentials like treating the customers et al. Citymax Hospitality President Sundarrajan Rajagopal said besides having to go through rigrous levels of training, the staff will also be monitered by the ‘coffee university’ in Australia (Gloria’s base) and India. There are regional workshops conducted twice a year to further enhance quality of workforce. It also conducts competitions for baristas from across the markets it has presence so that there is an exhange of ideas and exposure to all its staff.
Further, the firm will pump in another Rs 50 crore into the Indian market –– out of which a significant sum will be spent on training –– as it believes that there is enough scope for all existing players and more. It said it will expand its presence to 16 cities from the current four.
With all other players like Barista,Cafe Coffee Day,Mocha,Nescafe,Coffee N U, Java City, Brewers,Cuppa eyeing expansion, Gloria Jeans is all set to have its share of the Pie of the Indian coffee market.
Bangalore: Jan 29, DHNS:
Thursday, January 28, 2010
Franchise is the best way to BE YOUR OWN BOSS
“Franchise Opportunities – Be your own Boss”
FRANCHISE: A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee. A franchise is a right granted to an individual or group to market a company's goods or services within a certain territory or location. Some examples of today's popular franchises are McDonald's, Nakshatra, Subway, Domino's Pizza, and the UPS Store. An individual who purchases and runs a franchise is called a "franchisee." The franchisee purchases a franchise from the "franchisor." The franchisee must follow certain rules and guidelines already established by the franchisor, and the franchisee has to pay an ongoing franchise royalty fee, as well as an up-front, one-time security fee to the franchisor. Franchising has become one of the most popular ways of doing business in today's marketplace.
History: Franchising began back in the 1850's when Isaac Singer invented the sewing machine. In order to distribute his machines outside of his geographical area, and also provide training to customers, Singer began selling licenses to entrepreneurs in different parts of the country. In 1955 Ray Kroc took over a small chain of food franchises and built it into today's most successful fast food franchise in the world, now known as McDonald's. McDonald's currently has the most franchise units worldwide of any franchise system. Today, franchising is helping thousands of individuals be their own boss and own and operate their own business. Franchising allows entrepreneurs to be in business for themselves, but not by themselves. There is usually a much higher likelihood of success when an individual opens a franchise as opposed to a mom and pop business, since a proven business formula is in place. The products, services, and business operations have already been established.
Advantages: Corporate image, brand name recognition, established market, set standards of operations & training, set instructed infrastructure, off course a better chance of success and immensely profitable venture.
Disadvantages: limited ownership, ongoing cost franchise fees & percentage of your franchise’s business revenue, additional charge such as cost of advertising, besides most well known franchises are too expensive.
Different types of Franchising: There are many different types of franchise ownership opportunities. You may choose to become a multi-unit franchise owner, an area developer or you may decide to buy an existing franchise. Each ownership opportunity has its own unique responsibilities. The following is a list of the many different ownership opportunities franchising offers. 1) Single Unit Franchise: It is the most likely place a brand new entrepreneur would begin, as the franchisee would be responsible only for running one unit, although he or she would extremely involved with all the daily operations of the business. 2) Multi-Unit Franchise: multiple units are sold at a reduced rate per unit by the franchisor. 3) Area Developer: area development is similar to multi-unit franchising; the only difference is that it typically involves greater number of outlets encompassing a larger geographic territory. 4) Master Franchise: allows people or corporations to purchase the rights to sub-franchise within a certain territory. A master franchisee helps the overall franchise company by recruiting franchisees to open units within a specific territory. One master franchise is for one state only. 5) Buying an Existing Franchise: many franchise owners decide to sell their franchises after they have opened.
Approach: One need not to surprise if the franchisor questions include detail information about the proposer and his spouse financial position, experience, background, and even aspirations, questions designed to help the franchisor determine whether or not the kind of person he or she feels will be able to run the business successfully and fit into the franchise model. The franchisor will continue to explore interest, commitment and suitability of the proposer. If the franchisor decides a suitable franchisee, he will be offered a franchise contract that lays out the obligations of both parties. Like any other contract, some aspects of it may be open to negotiation. And like any other contract, if there are any promises made about the franchisor/franchisee relationship that are not in the franchise contract, get them written in. One must consult an advocate before signing the contract. Buying a franchise is like buying any other kind of business. An entrepreneur has an opportunity to startup from Rs.10, 000/- in education to Rs 01 crore in jewellery as an initial investment in India. Naming few companies extending franchise opportunities; Levi's, Peter England, Belmonte, D'damas, Nakshatra, Kidzee, Eurokids,Amson, BodySpa, MovieMart, Silversand etc
Source:http://thirdeye-raghvendra.blogspot.com/2010/01/franchise-be-your-own-boss.html
Raghvendra, Jodhpur, Rajasthan
FRANCHISE: A form of business organization in which a firm which already has a successful product or service (the franchisor) enters into a continuing contractual relationship with other businesses (franchisees) operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee. A franchise is a right granted to an individual or group to market a company's goods or services within a certain territory or location. Some examples of today's popular franchises are McDonald's, Nakshatra, Subway, Domino's Pizza, and the UPS Store. An individual who purchases and runs a franchise is called a "franchisee." The franchisee purchases a franchise from the "franchisor." The franchisee must follow certain rules and guidelines already established by the franchisor, and the franchisee has to pay an ongoing franchise royalty fee, as well as an up-front, one-time security fee to the franchisor. Franchising has become one of the most popular ways of doing business in today's marketplace.
History: Franchising began back in the 1850's when Isaac Singer invented the sewing machine. In order to distribute his machines outside of his geographical area, and also provide training to customers, Singer began selling licenses to entrepreneurs in different parts of the country. In 1955 Ray Kroc took over a small chain of food franchises and built it into today's most successful fast food franchise in the world, now known as McDonald's. McDonald's currently has the most franchise units worldwide of any franchise system. Today, franchising is helping thousands of individuals be their own boss and own and operate their own business. Franchising allows entrepreneurs to be in business for themselves, but not by themselves. There is usually a much higher likelihood of success when an individual opens a franchise as opposed to a mom and pop business, since a proven business formula is in place. The products, services, and business operations have already been established.
Advantages: Corporate image, brand name recognition, established market, set standards of operations & training, set instructed infrastructure, off course a better chance of success and immensely profitable venture.
Disadvantages: limited ownership, ongoing cost franchise fees & percentage of your franchise’s business revenue, additional charge such as cost of advertising, besides most well known franchises are too expensive.
Different types of Franchising: There are many different types of franchise ownership opportunities. You may choose to become a multi-unit franchise owner, an area developer or you may decide to buy an existing franchise. Each ownership opportunity has its own unique responsibilities. The following is a list of the many different ownership opportunities franchising offers. 1) Single Unit Franchise: It is the most likely place a brand new entrepreneur would begin, as the franchisee would be responsible only for running one unit, although he or she would extremely involved with all the daily operations of the business. 2) Multi-Unit Franchise: multiple units are sold at a reduced rate per unit by the franchisor. 3) Area Developer: area development is similar to multi-unit franchising; the only difference is that it typically involves greater number of outlets encompassing a larger geographic territory. 4) Master Franchise: allows people or corporations to purchase the rights to sub-franchise within a certain territory. A master franchisee helps the overall franchise company by recruiting franchisees to open units within a specific territory. One master franchise is for one state only. 5) Buying an Existing Franchise: many franchise owners decide to sell their franchises after they have opened.
Approach: One need not to surprise if the franchisor questions include detail information about the proposer and his spouse financial position, experience, background, and even aspirations, questions designed to help the franchisor determine whether or not the kind of person he or she feels will be able to run the business successfully and fit into the franchise model. The franchisor will continue to explore interest, commitment and suitability of the proposer. If the franchisor decides a suitable franchisee, he will be offered a franchise contract that lays out the obligations of both parties. Like any other contract, some aspects of it may be open to negotiation. And like any other contract, if there are any promises made about the franchisor/franchisee relationship that are not in the franchise contract, get them written in. One must consult an advocate before signing the contract. Buying a franchise is like buying any other kind of business. An entrepreneur has an opportunity to startup from Rs.10, 000/- in education to Rs 01 crore in jewellery as an initial investment in India. Naming few companies extending franchise opportunities; Levi's, Peter England, Belmonte, D'damas, Nakshatra, Kidzee, Eurokids,Amson, BodySpa, MovieMart, Silversand etc
Source:http://thirdeye-raghvendra.blogspot.com/2010/01/franchise-be-your-own-boss.html
Raghvendra, Jodhpur, Rajasthan
INDIA land of opportunities for SMB's.
The setting presented a mix of opportunity and obstacles.
I headed to New Delhi's central district from my home in East Delhi across the Yamuna river to attend a Jan. 7 seminar on Indo-Canadian partnerships for small and medium-sized businesses (SMBs). The nine-kilometre drive took more than an hour because the roads were jammed and police stretched to the limit on a foggy morning.
The jams were mainly caused by Auto Expo 2010, an industry show that symbolizes the opportunities India presents as a fast-growing economy. While everybody from BMW to small Chinese auto-parts makers were showing their wares inside a vast exhibition ground, the roads outside could not cope.
Prime Minister Stephen Harper arrived in New Delhi last November to set in motion a Comprehensive Economic Partnership Agreement (CEPA) with India. The CEPA will pave the way for Indian and Canadian SMBs to enter into joint ventures, franchising arrangements and sub-contracting.
Canada is a skill-oriented economy with businesses in advanced areas such as automotive, aerospace and nuclear energy that could seek a market in India. India, a nation of more than one billion people, 65 per cent of whom are below the age of 35, is teeming with would-be customers. India's middle class is two-thirds the size of the European Union.
However, there are twists and turns to navigate.
“You have a very complex economy,” Canadian diplomat Mario Ste-Marie says. “In Canada you can create a company in 24 hours on the Net. In India it could take months.”
Things are improving with e-governance taking off in India, and entrepreneurs also speak of a decline in corruption, once considered a major obstacle.
“If you really ask me, the only problem I see is in infrastructure,” says Asha Luthra, president of the Indo-Canada Chamber of Commerce.
That may not be the only problem for an SMB from Canada.
Satya Poddar, a partner at accounting firm Ernst & Young, and a former tax expert in Canada's Ministry of Finance, says “Canada is a small country well-served by the bureaucracy. The Indian tiger is caged by bureaucracy and regulation.”
What, you might ask, are the obstacles in an economy that unleashed economic reforms and liberalization 19 years ago?
Consider these, from Mr. Poddar's check list:
• Tax levels in India may be more than what they appear due to a maze of lesser-known duties and charges.
• SMBs in India are a powerful lobby against overseas competitors.
• India practises positive initiatives –something like affirmative action – to aid its own small businesses in a manner that could hurt big firms or rivals from overseas.
But make no mistake: the economy is growing up, with de-regulation as well as potential.
Ruby Dhalla, MP from Brampton Springdale, says she knows many success stories of people who have done well in sectors such as retail, real estate, infrastructure and green technologies.
But, like many, she thinks small businesses can get lost in a big maze.
“I want to create a mentorship program -- telling the stories, sharing the experiences,” she says.
I do hope to track down such businesses in the coming days to see how some cracked the puzzles of India's elephant economy—somewhat slow, but strong and sturdy. Like in Delhi, if you get past the foggy traffic jams, the destinations can be alluring.
SOURCE:http://www.theglobeandmail.com/report-on-business/your-business/grow/expanding-the-business/india-land-of-opportunity-for-smbs/article1428170/
BY:Narayan Madhavan
I headed to New Delhi's central district from my home in East Delhi across the Yamuna river to attend a Jan. 7 seminar on Indo-Canadian partnerships for small and medium-sized businesses (SMBs). The nine-kilometre drive took more than an hour because the roads were jammed and police stretched to the limit on a foggy morning.
The jams were mainly caused by Auto Expo 2010, an industry show that symbolizes the opportunities India presents as a fast-growing economy. While everybody from BMW to small Chinese auto-parts makers were showing their wares inside a vast exhibition ground, the roads outside could not cope.
Prime Minister Stephen Harper arrived in New Delhi last November to set in motion a Comprehensive Economic Partnership Agreement (CEPA) with India. The CEPA will pave the way for Indian and Canadian SMBs to enter into joint ventures, franchising arrangements and sub-contracting.
Canada is a skill-oriented economy with businesses in advanced areas such as automotive, aerospace and nuclear energy that could seek a market in India. India, a nation of more than one billion people, 65 per cent of whom are below the age of 35, is teeming with would-be customers. India's middle class is two-thirds the size of the European Union.
However, there are twists and turns to navigate.
“You have a very complex economy,” Canadian diplomat Mario Ste-Marie says. “In Canada you can create a company in 24 hours on the Net. In India it could take months.”
Things are improving with e-governance taking off in India, and entrepreneurs also speak of a decline in corruption, once considered a major obstacle.
“If you really ask me, the only problem I see is in infrastructure,” says Asha Luthra, president of the Indo-Canada Chamber of Commerce.
That may not be the only problem for an SMB from Canada.
Satya Poddar, a partner at accounting firm Ernst & Young, and a former tax expert in Canada's Ministry of Finance, says “Canada is a small country well-served by the bureaucracy. The Indian tiger is caged by bureaucracy and regulation.”
What, you might ask, are the obstacles in an economy that unleashed economic reforms and liberalization 19 years ago?
Consider these, from Mr. Poddar's check list:
• Tax levels in India may be more than what they appear due to a maze of lesser-known duties and charges.
• SMBs in India are a powerful lobby against overseas competitors.
• India practises positive initiatives –something like affirmative action – to aid its own small businesses in a manner that could hurt big firms or rivals from overseas.
But make no mistake: the economy is growing up, with de-regulation as well as potential.
Ruby Dhalla, MP from Brampton Springdale, says she knows many success stories of people who have done well in sectors such as retail, real estate, infrastructure and green technologies.
But, like many, she thinks small businesses can get lost in a big maze.
“I want to create a mentorship program -- telling the stories, sharing the experiences,” she says.
I do hope to track down such businesses in the coming days to see how some cracked the puzzles of India's elephant economy—somewhat slow, but strong and sturdy. Like in Delhi, if you get past the foggy traffic jams, the destinations can be alluring.
SOURCE:http://www.theglobeandmail.com/report-on-business/your-business/grow/expanding-the-business/india-land-of-opportunity-for-smbs/article1428170/
BY:Narayan Madhavan
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