BA_Business Opportunity Presentation a - Copy

8/14/2019 BA_Business Opportunity Presentation a - Copy

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Business Opportunity withFranchise India

January 6 2012



Roadmap

• Franchising – A tool to growth

• Global Scenario

• Franchising in India• About Franchise India

• Channel Development

• Brief Business Associate Profile

• FIBL Roll-out plan

• Business Associate

• Revenue Model

• Revenue Lines & Payout

• FIBL Support

• Brand & Marketing support

• 360 degrees Training support



Franchising – A tool to growth

• About Franchising

• Global Franchising Scenario

• Franchising in India



About Franchising

Franchising is the practice of using another firm's successful business model. The word 'franchise' is

of anglo -French derivation - from franc- meaning free.

Technically, franchising means - the rights of privilege granted.

For the franchisor, the franchise is an alternative to building chain stores to distribute goods and

avoid investment and liability over a chain. The franchisor's success is the success of the franchisees.

The franchisee is said to have a greater incentive than a direct employee because he or she has a

direct stake in the business.

Things that makes Franchising fantastic:

• Capital Raising

• Human Resource mobilization

• Brand Equity

• Training



Franchising as a tool to Growth

Key elements of franchising• Rights to a Name, System and Know-How

• Owner / Operation of outlets by franchisees• Duplicating a Proven Business System

• Network Growth

• Ongoing Development of Brand

What is required ?• Invest in Systems

• Invest in Brand• Maintain Standards

• Be sophisticated in business practices

- Good record keeping

- Good reporting and IT systems

- Good compliance systems

-Professional’ in dealings

Customer

Strategy People

Market Focus

Enabler

Business model + Distribution

strategy

Employee

Agency

Broker

Dealer

Partnerships

Cooperative

Licenses

Franchise

Joint Venture



Franchising as a tool to growth

Franchising• A way of carrying on business

• Independent business owners to be part of

a network

• Defined way to supply the goods or services

Structure• Single unit franchise

• Master franchise• Area developer franchise

• Multi unit franchise

Competitive Advantage of Franchising• Independent business owner/operators

• A greater level of commitmentand accountability than employees.

• Simplest way to raising funds

(w/o parting ways with equity)



Franchising the Ultimate network

Franchising created the worlds biggest brands by:

Sharing vision, ideas, knowledge and process

Creating systems for franchisees to develop profitable businesses

In Australia 1000 franchisors and 65,000 franchisees together generating over $128 Billion in

revenues

500,000 jobs

25% growth since 2000

In the United States

Over 3,500 franchisors and 850,000 franchisees together generating over One Trillion

Dollars in revenues

11 Million jobs

20% growth since 2000

What do Coca Cola, Pepsi, Shell, BP, Mobile, Ford, General Motors, Toyota, McDonald’s

and KFC have in common?



Franchising in India: Emerging trends

Snapshot: Industry growth

Franchising industry growing at the rate of 40%

200 Home Grown Franchisors & 2,50,000 Franchisees (growing entrepreneurship)

85% Success rate vis a vis 90% failure in self start up

Industry of over US$ 4 Billion Highest retail outlet density in the world (Approx 12 million)

Remains the best entry & expansion strategy

Small format businesses are key economy drivers

Employs over 10 Million employees directly / indirectly

Grown from a questionable and not so acceptable format to a readily admissible way of

business expansion in the country

The pioneering companies have shown franchising can work in any country

Brought a graphic change in over all working of the country’s business

Technology & internet are helping at both ends:

to create the awareness about new product & services, and

helping to serve the consumer better leading to fast proliferation of worthy concepts & products.



Franchising in India: Emerging trends

Education - Size of India’s private education

sector, including the coaching classes

segment, is estimated US $ 40 billion

Retail -Expected to grow up to US $ 785

billion by 2015

F&B - Growing at 25 percent to 35 percent

every year. Young spenders with hecticschedules and rising incomes are creating

new appetites

Travel – The growing Indian travel & tour

industry likely to spawn US $ 128 billion by

2016

Luxury Goods - Market to touch US $ 14.72

billion by 2015

Franchising: Sectoral break up



Features of Indian Franchising Industry

Over 150,000 franchisees currently

Only 10% of the businesses are franchised as compared to 70% in U.S.

Over 1,500 franchisors at present

Current annual turnover estimated approx. US$ 16 billion

Total annual turnover by 2013 – approx. US $ 20 billion

Over 950,000people directly & indirectly employed by franchised business



Trends fostering in the new decade

1. Organized approach of

franchising

2. Implementation of

best practices

3. Policy & Regulations

Grown from a

questionable and not so

acceptable format to a

readily admissible way of

business expansion in the

country

Until now limited to the

larger companies realizingthe potential through the

franchising way!

However, the new decade

would encourage smaller

companies to follow the

organized/technical way

of opting franchising as atool to growth

Realizing franchise as the

best entry & expansion

strategy

Small to medium format

businesses will adopt thebest practice/

international proven

concepts to their business

to achieve growth faster

Currently, the industry is

non regulated and

doesn’t bind the

franchisors in any legal

ways

However, the scenario is

expected to change soon

with control & measure

regulations binding the

franchisor and the

franchisee are likely to beannounced

Expected key trends in the franchise; Primarily recognition as an industry would be the key !



About Franchise India



About Franchise India Group

Franchise India

Consulting

Licensing

Business Brokerage

Events &

Exhibitions

Media

Property &

Capital Services

• Group revenue of over 10 Mn USD

• Completely debt free company

• Privately held company with complete equity ownership with promoters

• One of the top 10 Management Consulting companies in India

• Largest B2B Exhibitor in India with shows being held over 50 cities in India

• Largest Indian B2B Advertiser in leading English dailies.

• Largest network in service industry in India

• 95% of the total franchise fraternity refers to Franchise India before making a decision.



Franchise India

Franchise India (FI) is Asia’s largest integrated franchise solution company since 1999, and an

absolute authority on franchising and licensing.

Consulting

1 3

2Marketing

Transaction

Platform



Franchise India Platform

single window

for all

FranchisingSolutions

MarketingServices

Franchise India Holdings Limited

Media - The Franchising World, The RetailerEvents & Exhibitions – 65+ Franchising shows in a year

Franchiseindia.com – Most goggled website

Knowledge

Platform1

Transactional

Platform

2

3

Francorp - Oldest & most experienced franchise managementconsulting firm

Bradford Licensing LLC - First 360 degrees license solution

provider

Fran Legal - Pioneers in providing franchise legal services

Franchise India Brands Limited

Consulting

Business Brokerage

Capital Services & Property Services



Franchise India Ecosystem

Francorp

Franchise IndiaInternational

Franchise IndiaPublications

www.franchiseindia.com

Franchise IndiaExhibitions

Franchise IndiaProperty

Franchise IndiaBrands

Bradford License

Fran Legal

Franchise IndiaEcosystem



Franchise India Progression

Expanding portfolio

2002 2006 2008 2011



Franchise India – Knowledge Based Platform

• Francorp

• Bradford License

• FranLegal



Francorp



License India



FranLegal



Franchise India Holdings Limited

• Media

• Events & Exhibitions

• www.franchiseindia.com



Franchise India Publications

The Franchising World - India’s

No. 1 Business Opportunity Magazine

with circulation of 1,00,000 copies

The Retailer - India’s highest Selling

Retail Opportunity Magazine with

60,000copies



Franchise India Publications



Franchise India Exhibitions



Franchise India Website (www.franchiseindia.com)



Franchise India Brands Limited



Franchise India Brands

Franchise India Brands Limited (FIBL), is the leading

business brokerage group anchored in India. It

provides the structure to develop, grow and expand arange of business models for a profitable and

sustainable growth through partnering.

With a Pan India network, strong and best of breed

deal makers and over 600 valued partners, FIBL enjoys

a governing presence in the Indian business brokerage

space.

FIBL is an absolute authority and Asia’s largest

franchising solutions company that provides a single

window in channel development to all product/service

brands to expand their distribution strengths across

geographies. And hence we are proud to articulatethat ‘No-One Sells More Businesses Than Us’

We have expertise in the

following areas of business:



Franchise India International



Franchise India Property



Franchise India –

• Sector and Specialty Approach

• Service Lines



Business Associate

• Pan India Roll-out plan

• Business Associate Profile

Franchise India



Franchise India

India’s Largest Business Broking house

• Presence in 231+ cities across India

• 1.5 lakh+ Registered Investors

• 8 Zonal Offices

• Serviced 1100+ brands till date

• Break even in first year of operations

Effective, anytime-anywhere integrated business transaction capability

ll l



Business Associate Roll-out Plan

North

1. Amritsar

2. Ludhiana3. Jalandhar

4. Jaipur

5. Lucknow

6. Nepal

East

1. Patna

2. Bhubneshwar

West1. Nasik

2. Nagpur

3. Raipur

4. Indore

5. Bhopal

6. Surat

7. Baroda

8. Rajkot

South

1. Vizag

2. Vijaywada

3. Coimbatore

4. Calicut

5. Kochi

6. Sri Lanka

Channel Partner Locations

(marked in red)

North

1. Chandigarh2. Delhi

East

1. Kolkata

West

1. Mumbai

2. Pune

South

1. Bangalore

2. Chennai

3. Hyderabad

FI Zonal Offices

(marked in blue)

i i fil



Business Associate Profile

Attributes

AnalyticalThinking

NetworkingSkills

Marketing

Skills

All the three

combinations in any

franchise owner is

expected and given

first preference to bea franchisee.

P fil 5 P i S l



Profile on 5 Point Scale

0

1

2

3

4

5Financial Strength

Business Analysis Skills

Professional Experience

Ability to manage manpower

Space and Location

Networking Skills

Educational Qualifications

Marketing Skills

Comfort level with Brand Owner

Passion for business(Sector)

Benchmark

B i A i P fil



Business Associate Profile

• Chartered Accountants

• Business Consultants

• Management Consultants

• Law Firm owners

• Advertising Agencies

• Insurance /IFA Agents with strong networking

• Sub brokers of leading financial companies

• Leading Real Estate firms



Business Associate

• Value Proposition

• What you get as a Partner

V l P iti f B i A i t



Value Proposition for Business Associates

•Business Associate

•Channel Partner

•Direct Sales Team

•Cutting edge technology

•Centralized Back office

•Centralized Business Associatehelpdesk

•Exclusive Key Account Manager's tosupport on ground

•Strong & experienced franchisingresearch and robust training

• Different products fordifferent needs

• Leverage Franchise Indiaeco system

• Transaction/Consulting andMedia

• Identify right set of investors

• Identify the business needsand provide them needbased business solutions

• Investor relationshipmanagement

Right InvestorAcquisition

MultipleProduct Sales

BusinessModel

DifferentiatedServices

Strategies

S t t B i A i t



Support to Business Associates

A. Technology

Associate Portal: Our comprehensive CRM provides access to client’s investment details, Area

availability, industry reports and more in just a few clicks.

Cutting-edge technology: Our superior software’s and an excellent technological platform

assures a seamless transaction experience geared to meet all the business buying needs of the

investors.

B. Industry/ Category Research

Our teams closely monitor the market trends and hence release number of research

reports on the growth of a particular industry and how your investors can benefit from it.

S pport to B siness Associates




C. Ongoing support

Centralised Back office

A dedicated team at our centralised back office in Head office provides seamless back office

support.

Training and Development

We offer extensive training facilities for all our Associates, which cover aspects like product

information, systems acquaintance, operations and sales and compliance etc.

Exclusive Business Associate Helpdesk

An exclusive Business Associate desk assists you in acquainting you with our processes, coordinate

with various operational departments’ and solve all queries.

Network

With presence across 231+ cities and a network of 8 own branches; we are India’s 1st BusinessBrokerage house.

360 Degrees Support



360 Degrees Support

START-UPTRAINING

• 3 days residentialtraining on

• Franchise Overview

• Franchise SalesStrategy & LifecycleManagement

• Franchise DevelopmentProcess

• Certified Business

Broker Training

LAUNCHPLAN

• City specific launchplan

• Business Associate

Launch event

• Visibility support roundthe year

• PR support

• Dedicated FI team towork closely with you

SOFTWARESUPPORT

• Access tointegrated CRN

• Robust online MIStracking

• Reports at a click

360 Degrees Support



360 Degrees Support

LISTEDBRANDS

• Access to all FIlisted brands fromDay 1

• National• International

• Reward structureson new brandacquisitions

MARKETINGSUPPORT

• Leads support forbusiness generation

• Access to Franchise

Retail Opportunityshows

• Access to BusinessOpportunity Shows*

• Reward &Recognition Platform

VALUE ADDEDSERVICES

• Access to• Property Services

• Capital Services

• Referral Fees

• ProfessionalConsultancy on

• Business Finalization

• Project Planning

• Project Execution





• Brand mileage – Franchise India is one of most identified and trusted brands in India in

the field of franchising

• One stop shop for all business solution to the Investor’s needs.

• Hand-holding to identify business potential and to develop the business in your local markets

• Exclusive Relationship manager to support on ground.

• Basic induction and training to Business Associates for operational knowledge.

• Special training programs on the industry & franchising and on evolving trends

• Technology that guarantees seamless connectivity at all times.

• Unique back office support.

• Appropriate presence in print and electronic media.

• Marketing support- Local area programs, All product brochures and Franchise India branding.



Business Associate

• Set-up Cost

• Revenue Model

• Revenue Lines, Sharing & Basic Contract terms

• Payment Collections & Reconciliations

• Payouts

Set up Cost & Revenue Structure Citywise



Set-up Cost & Revenue Structure - Citywise

Revenue Structure

ELEMENTS City A

Signup Fees 105000

Service Tax (12.36%) 12,978

Total Signup Fees 117,978

Revenue Lines Sharing & Basic Contract Terms

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Revenue Lines, Sharing & Basic Contract Terms

• Registration fee• Success fee (On deal closure)

• Third Party Product (TPP) fee – Phase II

• Consultancy fee on Taxation services – Phase II

• The initial contract will be for 3 years, renewal every year there on

Profit sharing Pattern:

• On Investor Acquisition – 30%

• On Investor Servicing: 20%

Payment Collections & Reconciliations



Payment Collections & Reconciliations

• All collections against Registration, Investor Service fee or any other fee to be collected in either

cheque, Draft or Pay-order favoring: ‘Franchise India Brands Limited’

• No other mode of payment allowed

• All payments to be deposited locally in informed FIBL bank account number

• Reconciliations to be done by HO with data from CRM

BA Payout



BA Payout

• For revenue against Registration done to be released by 7th of next month for all payment

collections reported by Finance for the period 1st of the month till month-end

• For revenue against Deal Closures in the same calendar period, payment to be released by 7th

of next month

• No payment would be made on accrual basis

Key Legal Points



Key Legal Points

• The Channel Partner will not be allowed to function with any other business from designated

model

• Data secrecy has to be maintained through CRM and at all levels

• Payments are only supposed to be collected in form of Cheque, Draft or Pay-order or Internet

transfer. No other mode would be allowed

• Legal rights of property to be clear

• Contract binding tenure initial for 3 years & every year there on



Thank You

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