Franchising process


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Franchising Process For Telenor Pakistan
Franching Process For Attock Petrolium Pakistan
Franchising Process For Riverstone Pakistan

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Franchising process

  1. 1. “TELENOR INTRODUCTION” Norwegian telecommunication Company It introduced telegraph in the years of 1850, the telephone around 1880 and wireless telegraphy. In 1994, Norwegian Telecom was established as a public corporation. changed its name to Telenor in 1995. Listed in Stock Exchange in Dec 2000. Now operating in 12 markets around the world
  2. 2. “TELENOR IN PAKISTAN” Telenor acquired the license for providing GSM services in Pakistan in April 2004. Launched its services commercially in Islamabad, Rawalpindi and Karachi on March 15, 2005. On March 23, 2005 Telenor started its services in Lahore, Faisalabad and Hyderabad. Fastest growing cellular network of Pakistan.
  3. 3. “TELENOR IN PAKISTAN con’t” Telenor Pakistan is 100% owned by Telenor Group and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh. The market share of Telenor is quite near to that of the Ufone. The total number of subscribers according to the 1st quarter of 2008 is 16.7 million which stood at 3rd in ranking.
  4. 4. Checklist of Basic Franchise Agreement Terms  Franchise agreements vary from franchise to franchise. It would be impossible to identify every term and issue that should be considered in every situation.  In any event, while you can use the checklist to understand and review a franchise agreement, you shouldn’t sign it until you’ve discussed your options with your attorney.
  5. 5. Issues Relating to the Franchise Cost Terms • What does the initial franchise fee purchase? • Does it include an ``opening'' inventory of products and supplies? • What are the payment terms: amount, time of payment, lump sum or installment, financing arrangements, etc.? • Does the franchisor offer any financing, or offer help in finding financing? • Is any part or all of the initial fee refundable? • Must premises be purchased or rented, and are there further conditions on either of these (from franchisor, selected site, etc.)? • Are accounting/bookkeeping services included or available? • Does the franchisee have to make a down payment for construction and/or equipment?
  6. 6. Issues Relating to the Franchise Location Terms, Equipment and Supplies Terms • Does the franchise apply to a specific geographical area? If so, are the boundaries clearly defined? • Who has the right to select the site? • Will other franchisees be permitted to compete in the same area, now or later? • Is the territory an exclusive one, and is it permanent? • Will the franchisee have the right to use his own property and/or buildings? • When the franchisee must buy from the franchisor, Or will they be financed and, if so, under what terms? • Does the franchise agreement bind the franchisee to a minimum purchase quota?
  7. 7. Issues Pertaining to Termination and Renewal Terms • Is any weight given to good will or franchisee equity in the business? • Does the franchisor have an option or duty to buy any or all of the franchisee's equipment, furnishings, inventory, or other assets in the event the franchise is terminated for good cause, by either party? • Does the franchisor have absolute privilege of terminating the franchise agreement if certain conditions have not been met, either during the term or at the end? • Can the franchisee sell the franchised business and assign the franchise agreement to the buyer?
  8. 8. 0345-0346-0343-0344  Jon Fredrik Baksaas is the CEO of Telenor.  He joined Norwegian Telecom what is now Telenor in 1989 and was appointed CEO in April 2002 after serving as deputy CEO since 2001.  Tore Johnsen is CEO Telenor Pakistan .
  9. 9. Eligibility  Candidate must be a graduate from a recognized institute of Pakistan.  Financially he should be a sound body ( the very most important) so to make considerable investment in developing a franchise.  Preferred that applicant hold previous experience in distribution business or alike.  Engaged with other mobile operator franchise or telenor are not eligible .  Should not be convicted by court in any kind of illegal activity such as fraud, forgery etc.
  10. 10. Procedure  First the candidate should submit a form with a non refundable DD(demand draft) of Rs. 10,000 to the “Telenor Pakistan”. The owner can be an individual, partners or Pvt/Public company. In case of company they should specify the name of the directors. They must specify a one person who is an active partner whom Telenor can deal with.  After submitting form the candidate will be called for interview. In the region of Punjab most often arranged in PC Hotel, LAHORE.  Criteria in the Interview:  His way of speaking (how to deal with other people)  Education  Experienced  Bank Statement (Financial Background very important to promote the telenor strategies in an affective way).
  11. 11. Procedure Continued…..  In case the Telenor company is not satisfied it will not select anyone. They will again issue the application forms and take an another interview. The previous candidates can also submit the form but less priority is given to them.  If passed then Telenor Pakistan will sign a contract  The signing amount varies place to place. In Urban areas its 7 to 8 million in prime location it can also exceed. In Rural areas its 3 to 5 million.  The security will be included in this amount.
  12. 12. Procedure Continued…..  With this amount the Telenor will construct the building on the location selected by franchisee. In this building electronics items will be from the Telenor.  Approximately 2 to 3 million will be commenced on the building.  In the amount given first stock will be given from it.  For future money should be given in advance.  After that all steps franchise can start dealing.
  13. 13. Cancellation of agreement Telenor Pakistan can cancel its agreement with the Franchisee in the following conditions: Not meeting the minimum Targets set by Telenor consistently and the repute of company is affected. Dispute b/w the partners or companies directors. If not resolved. Engaged in illegal activities or financial background not more meeting the requirement.
  14. 14.  Pakistan Mobile Market Share Q1 2008 - Data From PTA(Pakistan Telecommunication Authority) Warid, 17% Telenor, 20% Paktel, 3% Mobilink, 38% Ufone, 21%
  15. 15. Pakistan Mobile Market Share Q3 2008 - Data From PTA(Pakistan Telecommunication Authority)
  16. 16. ATTOCK PETROLIUM LTD PAKISTAN INTRODUCTION: APL is the 4th largest oil marketing company of pakistan. The company start its operation in Feb 1998. Jointly sponsored by the Pharon Investment Group Limited Holding (PIGL) and Attock Oil Group of Companies (AOC).
  17. 17. LICENSING PROCESS FOR THE FRANCHISE:  Application Form  Feasibility Analysis  No Objection Certificate (NOC)  License for Explosive  Construction Phase  Grant of License
  18. 18. FRENCHISE FEE:  Joining Fee and Security Fee  Franchise Fee  Franchise Margin
  19. 19. OPERATING PROCEDURE:  Proposed Capacity  Land  Suitable Location  Office Equipment's  Human Resource Requirements  Duties of the Labor  Infrastructure Requirement  Land and Building Requirement
  20. 20. RiverStone 1. To open franchise, Company see location, customer trends etc.. 2. Registration/ Securtity fee: 17 to 18 Lac (2 lac non refundable) 3. Profit 25% on all sale and 75% goes to company 4. Online Audit and sale system. Connected to company network. 5. Stock and inventory provided by Company 6. Violate if you use any other brand in your franchise 7. Franchisee want to increase his profit to 50 %