SYNOPSIS

• Meaning Of Franchising
• Elements of franchising
• Features Of Franchising
• Advantages & disadvantages of franchising
• Franchising In India
• How To Open A Franchise Store
Meaning Of Franchising
• Franchising is an arrangement between two
persons / parties or business organization
where the first party grants the second
party the right to utilize its business
processes, produce and market a good or
sevice or simply use its trademark.
The first party : franchisor
Second party : franchisee
• The franchisor may collect a single payment /
royalty / share from profit etc. according to the
agreement
Meaning Of Franchising
Meaning Of Franchising
Features of Franchising
• Already Well established business
• Needs limited investment
• Easy entry in new markets
• Business has large establishments
• Allows use of brand name and trademark
• Business is based on mutual agreement
Elements Of Franchising
» Two Parties 
» Written Agreement
» Exclusive Right
» Payment
» Support 
» Restrictions
» Specified Period
How does a Franchising works?
Advantages of Franchising
From the Viewpoint of the Franchiser

• Expansion of Business
• Regular Income
• Economical Advertising
• Advantage of Market Feedback
• Increase in goodwill & brand loyalty
Advantages of Franchising
From the Viewpoint of the Franchisee

• Little Investment Needed

• Advantage of Goodwill to Franchisee
• Management & training Assistance
• Chance of failure is minimum
• Advantage of research and development
• Easy loan availability
• Loyal customers
Disadvantages of Franchising

From the Viewpoint of the Franchisor

• Danger of image tarnishing

• Problems and costs for the franchise
• ongoing costs
Disadvantages of Franchising
From the Viewpoint of the Franchisor
Disadvantages of Franchising

From the Viewpoint of the Franchisee

• Lack of freedom
• Limited range of products
• Fixed royalty payment
 Types Of Franchising
Business Format Franchises
•Some of the examples are fast-food restaurants such as McDonald’s,
Domino’s Pizza, and KFC

Product Franchises
•Some of the examples are Tommy Hilfiger, Arrow, Scullers, Cotton King
Stores, Reebok stores and Bata stores who operate under this kind of franchise
agreement.

Manufacturing Franchises
•For example, soft drink bottlers and canners often obtain franchise rights
from soft drink companies to produce, bottle, and distribute soft drinks.
Franchising in India
 The model of franchise management began in the 1990s in India, with the
start of the era of liberalisation.
 This system was initially adopted by a few educational institutions and IT
companies for business expansion and was slow to grow at first.
 As a result the franchising association of india was set up in the year 2000
 Early franchises in india (especially mumbai)are :
 Marks & spencer
 Baskin robbins etc..

 But today, the franchise industry in the country has several well-known
brands in various cities operating under this model.
 Nowadays almost every franchise business have atleast one outlet in india
Famous Franchise in India

• Patanjali • DTDC Courier

• Domino’s • Green Trends
• KFC • Baskin Robbins
• First Cry • Khadims Franchise
• Lenskart • Subway
• Lakme Business • Tea time
• Amul Scoop • Tea boy etc…
• Jockey India
Why choose Franchising ?

In today’s cut-throat competition market

everyone wants to stay ahead in the race.
One of the ways to get an advantage over
the competitors is by indulging in
franchise business.
Steps to open a Franchise store
i. Research
ii. Identify Individual Franchise companies
iii. Cross check the Franchise Qualification
Requirements
iv. Submit Request for Consideration/Application
v. Study Franchise Disclosure Document
vi. Utilize the Disclosure period
vii. Visit Existing Franchisees
viii. Visit Franchisor
ix. Finalize
Steps to open a Franchise store
Famous Indian Franchise
Famous Indian Franchise
Famous Indian Franchise
Case study of Mcdonalds
Case study of Mcdonalds
Case study of Mcdonalds

 It’s McDonald’s first made-in-India & made-

for-india burger
 It’s featured on international menus
 It’s a balanced meal in itself
 Its ingredients come from various parts of
India
8 Most Profit Making Franchise In India
THANK YOU