120+
Retail
Franchise Consulting
We provide solutions. All our work is focused around the client's needs.
Franchise Consulting
Our vast and extensive experience of franchising has instilled profound trust in our clients. Whether it is to support an entrepreneur to replicate his successful venture in many places or to make someone’s safe and lucrative investment in remarkable franchisees, we ensure that your inlay keeps on piling up with the passage of time with our round the clock support.
Khariddari is a vast and flexible platform that fulfills the demand of every type of investor. One can get easy solution at every ticket size of business.
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In addition GST as applicable and levied by the Govt. of India will have to be paid extra.
Types of Business Models
COCO (Company Owned Company Operated)
In this model store is looked after by company staff. Every staff is asset or liability of the company. Company need to take care of capex (say renovation cost, interior, layout, hardware, IT infrastructure, furniture and fixture, ceiling and flooring, glass door) plus operations cost (salary, electricity, store maintenance, telephone expenses, pilferage etc). Advantage of this model is that every process is followed closely. No false commitment is done. Customer gets first hand experience of the services or the product.
FOFO (Franchise Owned Franchise Operated)
In this model company rent out brand to franchise and for this a particular non refundable sum for a pre agreed time period is charged. Prices and merchandising is decided by company. Marketing in national media say print and electronic is taken care by brand. Both capex cost and operational cost is born by franchise. Franchise is assured of minimum guarantee or percentage share of revenue.
COFO (Company Owned Franchise Operated)
In this model, companies participate in investment. Profits generated in a company-owned store are the franchisor’s to keep. Returns from franchised units are limited to a small percentage of sales. This prompts some franchisors to operate several units for their own account e.g. Health industry .
FOCO (Franchise Owned Company Operated)
In this model initial setup cost is born by franchise. Thus company save capex in return franchise is entitled for a minimum guarantee or percentage of revenue earned. Here the management works on the basis of integration and expertise of the business e.g. Hotel Industry.
Working of Development Models
Master franchise
Control of franchising activities given to an entity in a specified territory
Sub-franchisor assumes the role of the franchisor
Allows instant penetration of a brand
Assigned to experienced franchised professionals
Area developer
Open a pre-determined number of units in a certain geographic territory
Area developer oversees all the units at a higher level
Other franchisees may not operate in the assigned territory
Assigned to experienced franchising professionals
Multi unit franchise
Ownership of two or more outlets by the same franchisee
Not limited by geography; however within a certain timeframe
Can club poorly performing stores with high-performing stores
Investor led model
Unit franchise
Control of a single unit by the franchisee
Typically has a particular territory that is covered by the unit
Lower investment costs and franchisee extremely involved with daily business operations
Entrepreneur or investor led model
Category of Franchising
Product based
1. A brand grants the authority to a franchisee to sell its product/s specifically using the brand name and trademark.
2. Most of the marketing is done for the franchisee at national, regional and local level.
3. The franchisee’s role is to keep the doors open and allow the franchisor to drive the customers in.
Service based
1. It’s a business format franchise where in company provides a franchisee with a proven method of operating using the name and trademark.
2. Company will provide significant amount of assistance in starting and managing the franchisee.
3. Marketing and administrative support provided by franchisor still one on one salesmanship and local marketing is crucial.
Some Interesting Findings ...
- More than 50% of the international brands take up master franchise route to enter India
- In India, approximately 26% of the franchise buyers are women
- Over 150 international brands have entered India through master franchising.
- Most preferred franchise business model (in %) is FOFO 60%
- India has recently been declared as the 2nd most attractive destination for franchisors among 30 emerging markets
- Some most common sectors into franchising
- Apparel Retail
- Food and Beverage
- Health & Beauty
- Wellness
- Healthcare
Services Offered
Select Clients in India
70+
Health & Beauty
35+
Fashion & Jewellery
100+
Food & Beverage
40+
Education
