Monday, May 3, 2010

Challenges Of Health Care Service Franchise In India: The Apollo Clinics

I came across a piece co-authored by my former colleague Ratan Jalan in ‘Marketing Health Services’ (Eye on The Indian Market, Spring 2009 edition)of the prestigious journal of the American Marketing Association. I have known Mr. Jalan since he hired me to work for him at Apollo Health and Lifestyle Ltd., many years ago and hugely respect his scholarship and knowledge about the business of healthcare in India. However, I must confess that I do not quite agree with Mr. Jalan’s portrayal of the opportunities in franchising healthcare services in India and his conclusions about Apollo Health and Lifestyle’s successful franchising of the Apollo Clinics.

Apollo Hospitals is one of the largest chain of hospitals in India. It has in its network more than 41 hospitals and manages over 8000 beds mostly in the secondary and the tertiary healthcare space. I met Ratan in the year 2001, when he was setting up Apollo Health and Lifestyle, which was to get into franchising of the Ápollo Clinics, the primary healthcare services chain, which were supposed to complement Apollo’s large secondary and tertiary care network. These clinics were envisaged as a franchised operations, supported by the Apollo Hospitals group. They were to leverage Apollo’s excellent brand equity and knowledge about the healthcare in India and help franchisees run a profitable enterprise.

The Apollo Clinics were well conceived. The service mix was essentially OPD consultations, a collection centre for pathology samples, radiology services (X-Ray, Ultrasound) and basic cardiology diagnostics (ECG, TMT and Echo). The clinics also had a 24 hour pharmacy and basic preventive health packages were also offered. We worked hard on the look and feel of the clinic (Ratan had Alfaz Miller design the clinic interiors), Ravi Bajaj was to do the staff uniforms, and the clinics were to hire smart and well-trained youngsters to be the face of the clinics. The consultants were to from the local areas and it was thought that Apollo Hospital’s senior consultants will also run their OPD’s from these clinics.

On the business side of things a franchisee needed to invest close to Rs. 20 MN upfront. The business plan included a fixed percentage payout by the franchisee of the revenue that he made. Apollo was to handhold the franchisee through the setting up of the clinic, purchase of medical equipment, development of the software to run the clinic, recruitment of the employees both medical and non medical, and selection of doctors. Apollo was also to provide an exhaustive set of instructions and guidelines on the management of the clinic to the franchisees and it was responsible for monitoring the quality of the services delivered at these clinics.

While on paper the model looks perfect, it has some serious infirmities.

A franchised operation by definition has to be a replication of an existing successful model. In Apollo’s case, they had nothing to show in the area of Primary Healthcare. They used to run a clinic in Mumbai, which they owned. Just about the time Apollo decided to go the franchise route, their own clinic shut shop. It was losing money hand over fist and the management decided to shut it down.

In the franchised model that was now envisaged Apollo had no financial stake. The money was to be put up by the franchisee, he was to bear all the costs including a revenue share with Apollo and it was not clear how Apollo will contribute to bringing in new patients to the clinic. It was expected that Apollo’s name itself will pull in patients. Thus the franchisee was to fend for himself as far as developing the business was concerned. Apollo could have contributed by investing in the brand ‘Ápollo Clinics’ and by forcing some of its leading doctors to run the OPD’s from the franchised clinics. Apollo made lofty promises of investing millions in the brand but just didn’t. As far as doctors were concerned, some feeble attempts were made to get Apollo doctors to attend these clinics but hardly anything materialised. The problem really was that in Apollo system the senior doctors are not paid firm salaries and they work on a revenue share model. Thus, Apollo’s control over these doctors is minimal. The senior doctors with a busy practice had no reason to sit in the newly opened Apollo Clinics, which in any case did not have any patients of their own.

The selection of the franchisees too threw up issues. The franchisees were largely businessmen with hardly any experience of healthcare. Neither did they have any particular love or passion for the healthcare business. I remember meeting and offering franchises to computer hardware merchants, aluminium dealers, a golf ball manufacturer, a real estate player and the like. All of them were driven purely by a profit motive. Some also saw healthcare as a more respectable business for their children. We sold the franchises indiscriminately, (at least in the beginning) to anyone willing to put up the money. A network was thus born that had no glue except the brand name that each franchise shared with the other.

The biggest casualty in all this was of course the quality of healthcare services that each clinic rendered. There was no uniformity as each franchisee left to fend for himself became increasingly desperate for revenue. He hired doctors on his own many of dubious quality, started offering cuts for referrals, set his own prices and started indulging in all kinds of practices that would help him get the extra money that he needed to stay afloat. As most of these franchises were not businessmen with deep pockets, they were willing to cut corners as their very survival was at stake. In-spite of all this many had to close down operations.

Apollo gradually lost control over these franchises. Since, it did not add any value to the franchise’s life he decided not to pay the monthly royalty. Many refused access to Apollo personnel on their premises and are now pretty much operating as stand-alone entities. They continue to use the Apollo name, as that is the only thing, which adds value to their operations.

Creating a franchised healthcare network is fraught with danger. Apollo failed by not first establishing a successful chain of primary healthcare centres of its own. It had no proven learnings in that space and it undertook to make money at its franchisee’s cost. It lost the trust of not only its franchisees, but also of many of its patients who certainly expected a lot better from Apollo.

Tags:Apollo Franchise, Healthcare franchise, franchising healthcare, successful franchising, Apollo Clinics, franchised operations, Ratan Jalan, alfaz miller,ravi bajaj,franchised model,franchised clinics,

Source: Ana's Weblog: The Apollo Clinics-The Perils of Franchising Healthcare Services in India.

Are You Seeking A Pie In The Growth Of Franchise Industry In India.

Though franchise companies represent a small portion of all US business, the franchise industry is big. In the United States, there are over 2,500 franchise systems, with more than 534,000 franchise units, which represent slightly more than three percent of US businesses. Yet that small percentage generates 35 percent of the retail and service revenue in the U.S. economy.

With franchise-related products and services estimated at $800 US billion annually, international demand for franchise brand name products and services is creating huge opportunities for American companies to expand overseas.

India, which has a growing middle-class of over one billion people, is now positioned as a major force in the global economy and fertile ground for investment in retail and business development. The franchising industry in India is expected to grow at an annual rate of 30 percent, and to drive the country’s current $330 retail sector even higher. In 2007, more than 750 national and international franchisors were operating in India, employing millions of people, and generating revenues in excess of $3 US million.

The industries cited as the top prospects for successful franchise opportunities in India include:

* Food and beverage

* Education

* Apparel

* Entertainment

* Courier Services

* Stationery and gift shops

* Health and beauty

* Fitness and nutrition

Many of the world’s largest and well-known franchise companies, such as UPS India, McDonald’s, Yum Brands, Baskin Robbins and Subway already have a visible presence in India. Other US companies, from diverse industry sectors, are now gaining a foothold too.

With India’s retail sector growing at more than eight percent a year, The Dollar Store is actively seeking franchisees. This retail chain, based in Florida, USA, sells low-priced general merchandise products and services. India is just one of the geographical areas targeted for the company’s multi-million dollar overseas business expansion.

And there are some surprising entries to franchising in India too, which at first glance, might not seem like a logical fit with traditional Indian culture and consumers.

Contours Express launched its first Indian center in Bangalore, with a second location in Mumbai. The company has 700 fitness centres for women in the U.S and additional locations across 24 countries, and plans to have at least 1000 Contours clubs operating around the world.

Pizza Corner aims to open 36 stores in India, and is extending efforts to expand in Sri Lanka, Nepal and Singapore.

Golf USA has grown to almost 100 stores in 32 states and 6 foreign countries; and is actively seeking entrepreneurs to operate stores in India.

According to statistics from the Franchising Association of India, franchises currently account for only two percent of retail revenues in India compared to almost 50 percent in the US. However, that two percent is growing at a fast pace, and the implications point to astounding market potential. The success rate for individual franchise business owners in the US is 92 percent, and since franchise businesses are based on proven systems, the success rate for Indian franchises should be comparable.

Franchising has a great future in India due to the convergence of many factors:

* The average Indian income is steadily rising and individuals have more purchasing power.

* Telecommunications and transportation infrastructure improvements facilitate the exchange of information and goods.

* Increasing levels of consumer spending, with greater recognition of brand value.

* Internet access is opening the world to India, making its population more aware of global trends and brands. And conversely, the Internet is making it easier for international companies to gain an understanding of India’ culture, geography and politics.

Tags:Courier Services, Retail Chain, franchise companies, dollar stores, contours express, Pizza Corner, Golf USA, Franchising Association Of India, Franchise Business, franchise related, franchise units.

Veta English Speaking Franchise Looks at Expansion in Delhi and North India Aggressively.

May 03, 2010

Veta, Asia’s largest spoken English training academy and a brand owned by Amoha Education (P) Ltd, has announced plans to open 80 franchise centres across north Indian states and 20 company-owned centres in Delhi-NCR region this fiscal. The company’s franchise centres would come up in states like Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand. Each centre will be established with an investment of Rs 20-30 lakh depending on the location, city and rental advance, according to its top official.

Announcing the expansion plans, K V Rajan, executive director, Veta said, “New Delhi presumed as an administrative capital of the country is in the verge of transforming itself into a large commercial hub in Asia through new developments taking place in the existing business sector. The economy of north India as a whole is also booming through the establishment of new industries coming up in the region. These developments ensure that there is a constant need to develop and polish the spoken English skills that is so much a requirement today.”

“A total investment of Rs 22 crore has been earmarked for expansion. Amoha Education (P) Ltd will invest Rs 6 crore, while the remaining Rs 16 crore will be invested by the franchisees. We are sure this venture would be a success, since the domestic education learning market is poised for growth at a fast pace. We are also planning aggressive marketing campaigns in the next fiscal to increase the connectivity to our target group. In view of this we have tied-up with best in class marketing experts in the industry,” adds Rajan.

To strengthen its aggressive expansion plans, Veta recently roped in James Walter Thomson (JWT) for the creative services and Mind Share for the media services

Tags:VETA, English Franchise, Language Franchise, English Training Franchise,K V Rajan, Amoha Education, Education Franchise, Women Franchise, Training Franchise,
top franchise,

Saturday, May 1, 2010

Remax:The Worlds No 1 Real Estate Franchise

Global Real Estate Franchise Celebrates Success

Denver, CO – Feb. 4, 2010 – RE/MAX International, Inc., celebrated Founders Day on Jan. 30th - the day in 1973 that Dave and Gail Liniger co-founded the now international franchise real estate network - with marked appreciation for the road traveled in 2009. While the U.S. housing market struggled most of last year, RE/MAX sold 630 new franchises and launched in seven new countries, expanding its global footprint to more than 75 countries.

“We couldn?t be more proud of nearly four decades of accomplishments, and we?re just as proud of the success we saw in 2009,” said Margaret Kelly, Chief Executive Officer of RE/MAX International, who made several appearances on national television throughout the year as spokesperson for the industry. “The entire RE/MAX network went to work last year to help homeowners and homebuyers navigate some pretty difficult waters. RE/MAX agents committed themselves to education and training that gave them the expertise to deal with distressed properties, training that put them a step ahead of the competition.”

While RE/MAX agents were training in Short Sales and foreclosures, RE/MAX executives worked with policy makers in Washington to promote the extension/expansion of the Homebuyer Tax Credit and Short Sale reforms that analysts believe could fuel a stronger market rebound.

“As the most recognized name in real estate, RE/MAX is seen as an influential industry leader and consumers rely upon our agents as trusted advisors,” said Kelly.

For its success, RE/MAX International was recognized as the No. 1 real estate franchise in the 2009 Franchise Times Top 200, and was ranked in three separate categories in the Entrepreneur
magazine “Franchise 500 Survey,” which has designated RE/MAX as the top real estate franchise for nine of the past 11 years.

RE/MAX marked other major milestones and successes:

* RE/MAX leads the industry with more than 58% of all Certified Distressed Property Experts (CDPE) in the U.S., certifying 10,000 RE/MAX agents in just nine months.

* RE/MAX launched a redesigned, more comprehensive version of its popular remax.com, which remains the most visited real estate franchise Web site.

* RE/MAX LeadStreet has connected seven million online consumers to RE/MAX agents.

* RE/MAX dominated national TV advertising, with a campaign that included the popular “straight-talk” commercials, featuring CEO Margaret Kelly, and reaching more viewers than all competitor ads combined. A new “straight-talk” series debuted this month.

* RE/MAX was again recognized as a Top Military Spouse Friendly Employer by Military Spouse Magazine and was also named by G.I. Jobs magazine as a “Top 100 Military Friendly Employer” and a “Top Military Friendly Franchise.”

* RE/MAX University registered over 10,000 Associates for comprehensive educational programming offered in 2009 – an impressive „first? for the award-winning RE/MAX training and education platform.

* Despite the recession, RE/MAX continued local charitable efforts and fundraising through the company?s national sponsorship of the Susan G. Komen Race for the Cure® program and Children?s Miracle Network. RE/MAX offices and agents are closing in on the $100 million lifetime donor mark for Children?s Miracle Network, making RE/MAX one of only two organizations to ever reach such a milestone.

RE/MAX is ushering in 2010 with added momentum and will celebrate this year?s accomplishments with thousands of its agents from around the world at the 2010 RE/MAX International Convention in Orlando, Feb. 28 – March 3.

With expanded, internationally honored education, advanced technology and top-producing agents around the globe, RE/MAX is positioned for another record-setting year with much hope for a steady housing recovery.

About REMAX International, Inc.

RE/MAX was founded in 1973 by Dave and Gail Liniger. From a single office in Denver, Colorado, it has grown into a global network of nearly 100,000 Sales Associates in more than 75 countries, an international presence greater than any of its competitors. Nobody in the world sells more real estate than RE/MAX.

RE/MAX has been honored as the top real estate franchise in “The 2009 Franchise Times Top 200,” and has held the No. 1 position for 9 of the last 11 years in “The Franchise 500 Survey,” published by Entrepreneur magazine.

Today, all U.S. home listings in thousands of cities and towns can be found at www.remax.com, the most visited real estate franchise Web site. (ComScore, Jan.-Dec. 2009; Compete.com, Feb. 2008-Dec.2009; Hitwise, Jan.-Nov. 2009)

RE/MAX International is proud of its Premier Community Citizenship, which has raised over $100 million for deserving organizations such as Susan G. Komen for the Cure®, Children?s Miracle Network and The Sentinels of Freedom Foundation.

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.

Thursday, April 29, 2010

Naukri Chaupal Seeks Investor Franchisee Partner For Its Employability Skill Training Franchise

The project on offer is a higher education institution to impart UG and PG level Technology, Business and other professional courses on contemporary and sunrise sectors like fashion, lifestyle, retail, wellness, hospitality, aviation, etc.

The fundamental difference between this institution and thousands of others across the country will be its 100% goal will be to impart a very high level of professional skills through extensive hands on training and industry exposure to enhance the employability level much higher than its competitors.

Today, any institution’s success solely dependent on the success of its students which is measured by the placements and their career growth in sue course. The student community is very well aware about these and they always run for admissions in those institutions.

It takes just a year to earn 50% of such reputation when students are offered with excellent internships and only 2 years to earn 100% of it when students are being placed.

It has been just 8 years, I have moved from overseas from a global industry career to education management in India and just like my exceptionally result oriented global career of nearly 24 years, my tenure in education has been extremely successful. I have earned a national level reputation as an academician, as an academic leader and also as a outstanding profit center head.

I am looking for investor/s who are keen to get into this high profile, high profit and extremely safe as well as recession free industry. The return on investment in this industry is far more faster than most others and its most prestigious industry too.

The franchisee partner/investor should be able to invest between Rs. 5 to 10 crore based on which the project size will differ.

The uniqueness of the proposed institution is that it will offer UG and PG level technology, management and media related courses with the specializations which are not offered by the competitors and so its students will be much more employable than its competitors in the market.

There are many other areas which will make this institution unique in India such as Teaching-Learning culture, Pedagogy, Hands on and application oriented learning, longer industry internships, Technology usage, Global curriculum, larger ratio of industry professional faculty members, in-house technology and business incubation, etc. are just to name a few.

There are millions of finer details that makes this project the best of its kind in the country and like all my previous projects my Midas touch will make a great difference with guaranteed success.

The project has an expansion plan to set up 5 more campuses across the country within 4-5 years and there will be no more expansions of campuses in India to ensure continuity and quality. There could be overseas campuses in Dubai, Manila, Bangkok and Singapore in due course.

What is Naukri Chaupal:

Naukri Chaupal is a network which will provide corporate world an easy access to the latent talent pool that is dispersed all across India. Naukri Chaupal will gather this dispersed human resource capital into a single easily accessible unit and make it available to the national and multinational companies.

Is Naukri Chaupal a New Concept?

Yes. It’s an initiative of Laurent and Benon which links the latent talent pool of the urban and semi urban areas with major brands and reputed corporates. It’s an effort to reach out to the human resource in small towns and cities which remains untapped by the national and multinational corporations (including many Fortune 500 companies).

Why Naukri Chaupal?

* Based nation wide.
* Deals with front-line to corporate positions.
* Has its own corporate client base.
* Direct connection with corporate.
* It’s a dynamic link between corporate and the HR prospect pool that is scattered all across the country.
* Extensive grass root penetration.

Tags:Education Franchise, naukri chaupal,skill enhancement franchise, vocational franchise, Investment Franchise,unique franchise, new franchise.

Wednesday, April 28, 2010

US Based Toy Manufacturer Ty Inc Enters India

Ty Inc, a US-based toy manufacturer has entered India through its licensee partner Ty India Pvt. Ltd. The company aims to cash in on the increasing expenditure on toys and has plans to expand the brand presence in India through franchising, confirmed Ramchandram Dhannaram, Publicist, Ty India Pvt. Ltd.

The American toy company has entered India by launching its products in Hyderabad. The Ty Toys will be available only in specialty retail locations, hypermarkets, and departmental stores through franchising. It is all set to compete with prominent international brands such as Disney, Barbie, Funskool, and Wild Republic. The company is known for its popular brands such as Beanie Babies, Punkies, and Ty Girlz. In India the choice in the soft toys category is limited to teddy bears, whereas Ty will offer over 250 designs of animals. The company intends to fill the gap in the soft toys segment.

The company will expand its presence to southern states and selected towns in India such as Mumbai, Delhi, Kolkata, Pune and so on. The Ty Toys price range is affordable to Indian consumers and starts from Rs 189 to Rs 1200. Founded in 1986 by Ty Warner and creator of the widely popular Beanie Babies, all the product line of Ty Toys are the most sought after in India.

Tags:Ty Inc, Toy Store, Toy Franchise, Disney, Barbie, funskool, Wild Republic,Beanie Babies, Ty Toys,Ty India Pvt Ltd, Ty Girlz, children franchise, Kids Franchise,