MODULE 6 GROUP:

JANNA LANE FAUNILLAN

YVONNE KATE GAPO

1. Evaluate the franchising strategy of VLCC?

As VLCC chooses a franchising route, it fuels into geographic expansion that

makes them known to the other foreign countries. It is really evident that franchising
strategy of VLCC is really effective because as we can see after they apply franchising
in their business, VLCC becomes widely recognized. Furthermore, VLCC have a well-
established and well-reputed brand that makes it their advantage to compete with other
wellness brands. Their goal are aligned with the result to scale up operation to 300
centres.

2. VLCC choose the franchising route to expand after establishing 100 centres in
the country. Do you think this is the right strategic approach for the service
provider such as VLCC?

Yes. Franchising is the right strategic approach for the service provider such as
VLCC because it gives an advantage that allows the company to achieve the multi-unit
expansion. When VLCC chooses franchising route it fuels into geographic expansion.
Thus, VLCC continuously expanding their business that even managed to step into
foreign territories, successfully operating in more than 330 locations that include more
than 150 cities and 14 countries. Today, VLCC has successfully managed to maintain
its brand’s reputation while competing with numerous wellness brands catering to the
same audience.

3. Discuss some of the essential characteristics of VLCC business model that

makes franchising more attractive option.

VLCC is among the widely recognized organization for its comprehensive

portfolio of wellness and beauty products. VLCC brand reputation is their advantage
that makes franchising more attractive option as it can compete with numerous wellness
brands catering to the same audience. As their brand has successfully managed to
stand upon the people’s expectation, maintaining and taking care of the trust and faith
they have towards the brand.

VLCC franchise model is based on the hub and spoke concept. They treat their
franchisee centers as their business partners, who are the front faces of the VLCC,
therefore, they have maintained standard parameters of service delivery at all outlets,
be it company operated or otherwise. Thus, it helps them to control and standardize
service delivery.

They have a well-define franchise models which is extremely flexible which

includes different investment options, and business format options which vary from
investor, businessman, their potential, to the city or town they would be operating in.
VLCC quality benchmarks at both ends are very strict and must be adhered to as well,
and to ensure that, they also conduct regular audits and trainings as well.

4. How does VLCC attempts to nurture mutual trust and faith amongst the
franchisees?

VLCC gives importance that their brand was being handled by the right kind of
people, by people who understood what should be involved in a franchisor – franchisee
relationship, and most importantly creating the right expectations on part of both parties.
So, VLCC team prefer to interact personally with the applicants thus franchisees are
selected and appointed in an extremely meticulous manner. After the franchisee is
appointed, they also help them with literally everything to set up the business, buying
equipment, or hiring of professionals to training, and even close monitoring to ensure
efficient delivery of services, they stand by their partners. VLCC has a team of experts
such as pool of dieticians, beauticians other technical staffs who help franchisees meet
customer expectations by paying regular visits to the centers. However, they expect that
their franchisees take initiatives on their own to maintain the success of the venture,
while keeping the VLCC’s core values in mind.

As VLCC strongly believes in the power of interpersonal communication and

implements it in all communications with the clients and franchisee. With an open
communication, it nurtures mutual trust and faith that can ultimately help franchisee’s
performance.