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Our Teaching
Our commitment
Our students

Beyond
Comparision

MASTER FRANCHISE(MF)
OR
AREA DEVELOPMENT PARTNER(ADP)
AND
UNIT FRANCHISE PRESENTATION

MF & UF MANUAL
Strong Backbone Support
Most Profitable Business
Never Dying and ever growing Demand

Strong Technical Support
Years of Experience
Research and Development
Fastest Growing Franchise

“Be a Part of Tomorrow’s GIANT”
About us:

Mr. Pradeep Sharma

Mr. Gopal Sharma

(Cheaf Executive Officer)

(Business Head)

“Creative Ink Animation & Gaming Academy is providing the advanced level of 3D Animation Education.
It is a joint venture of Animation & IT professionals. Our major focus is on the quality & develop a high
caliber candidate for an organization by providing the best industry level education
Looking forward for your positive response.
with regards,
Gopal Sharma
Chief Execcutive Officer(CEO)
Creative Ink Animation & Gaming Academy
Mobile: 9702453535 / 9224433833

OUR OTHER EDUCATIONAL & HOSPITALITY BRANDS

”
AUTHORITY CHAIN

FRANCHISE

Hierarchy

FRANCHISOR
SUPER FRANCHISE
MASTER FRANCHISE
UNIT FRANCHISE
ROI

Return on Investment

Part of a Glamor Industry
Covers Cream and HNI Class
Bigger and Growing Market
Less Competitors
PERFORMER

AWARDS 2014
Coming Soon

High Performer Awards with Cash Prize
Encouragement to every Franchise to
Perform Well and Grow as mush as they can.

AW
AR
DS

BUSINESS

BU
SI
NE
20 S
14 S

Awards & Recognitions

S
S
BURDINES
A S 2014
AW
What Makes Us Different?
We are CRA ZY For our Passion
Quality Training
Professional Quality Trainers
Knowledge & Career
Course & Technology Upgradation
Discounts
Fake Commitments and Guarantees

Many Other Institutes
Quality Training
Professional Quality Trainers
Knowledge & Career
Course & Technology Upgradation
Discounts
Fake Commitments and Guarantees

“
”
COURSES & PRODUCTS

QUALITY DRIVEN DIPLOMA & DEGREE COURSES
Our Courses

Sharing of Learning Resources

WE OFFER COURSES LIKE:

Degree Courses from University
Short term, Long term,
Diploma courses
DEADEND
Product lifecycle

Entertainment Industry Biggest and Never ending Industry
Thousands of Channels, Movies & Continues Production
Every Company requires Designers or Visualizers
Thousands of Companies
NO Special Education Required for Admission
Huge Salary Structure
Our Courses

Sharing of Learning Resources

Courses

Duration Placement

Fees

BSC
Animation(Degree)

3 years

2.8 - 3.5 Lac*

BAFX(Degree)

3 years

2.8 - 3.5 Lac*

BA
Media(Degree)

3 years

2.5 - 3.0 Lac*

4 years

3.2 Lac *

2 years

2.2 Lac *

2 years

1.3 Lac *

2.5 years

2.9 Lac *

ADFX

1 years

90 K

Graphix

5 months

20 K

PRE-POST

Advanced Pre-Post Animation Diploma

FILM MAKING

Animation Film Making Diploma

UPGRADE

Advanced Animation Diploma
ANI-GAMER

Advanced Animation Gamer Diploma

Advanced Diploma in FX
SUPPORT

Full Backbone Support

Corporate BusinessTraining
Train the Trainer Programs
Enquiry Manger CRM
Business Manager CRM
Finance Manager CRM
Course Manager CRM
Student Management CRM
Bulk eMail | SMS Support
Online Marketing Support

Sit Back and Enjoy Full Strong IT System
Support for Ease in Handling of Business
PUBLICITY

Strong Marketing Support
OPPORTUNITY
Franchise Opportunity
Welcome to the Recession Free Sector. Creative Ink invites franchise for opening business ventures across India. Introducing a wonderful
business opportunity – We provides franchisees the opportunity to start an animation school anywhere in India. Get associated with one of
the most popular brand of schools in India
By combining a solid business plan and an outstanding support team with a quality instructional program, we offer a uniquely
International solution to animation and digital education which makes student highly competitive in the international market. Over the
years we have earned real benefits and helped earn those who come in touch with our Creative Ink Family.

What We Require
We're seeking highly motivated, success-oriented individuals who share our high standards and a commitment to excellence. If this
sounded like you, and you want personal independence, superior earning potential, and the opportunity to provide a valuable and
respected service to the community, then operating an Motion Makers Franchise may be right for you.
MASTER FRANCHISE

Investment Projection
FRANCHISE
OPTION

Master Franchise
MASTER FRANCHISE INVESTMENT (Projection)

Centre Investment

New Setup Expenses

Particulars

Investment

Franchise Fees

1 Time

10,00,000

Every Year

3,00,000 *

Furniture and Interior Cost

1 Time

5,00,000 *

Other XYZ Beautification Charges
Centre Launch Advertising & Marketing

1 Time
1 Time

2,00,000 *
2,00,000 *

Assembled AMD Processor PC Set = 25,000* 10 PCs Initially

1 Time

2,50,000 *

Franchise Fees Consist of Brand, Appointment of staff, Training, Smooth functioning
of Day to day activities, Manual Kit, Presentation, Designing of Marketing Kit,
Business Help, CRM Support, Technological Training, Business Training, Upgradation
on Technology and Courses, Advertising, Marketing, Media Support, Branding Support,
Student Course Tracking, Maintaining Smooth Working Flow, Events & Fairs
Know How Support.

Yearly Operational Cost from Head office:
Staff Recruitment for Smooth functioning, University Degree Support, Traveling
of Management staff for Monitoring the operations, Business Support through leads from
online and offline methods,Placement support to students, Placement cell,
Examination and Certificate

(Practical Room and Counseling Room PC Set)

,

Printer DVD writer, Scanner, Network Switch
2.1 & 5.1 Channel Stereo Sound Speakers
Operations & Administration Kit

Total Launch Investment

3 qty

12,000 *

1 qty

5000 *
40,000 *
approx
25,00,000 *

Expenses marked with * are not fixed expense they may increase or decrease according to market change in purchasing capacity.
Fixed Monthly Expenses (Projection)

Working Expenses
Fixed Expenses to run the Centre

Particulars

Qty

Investment

Infrastructure
Rent if place is not owned

+ ??

Salaries
Trainer 1
Trainer 2
Trainer 3 (Entry Level)

10,000*
15,000 *
6,000 *

Centre Manager

10,000 *
+ ??

(Not Required If The Centre Owner is Giving Full Time)

OfficeBoy

(Not Required)

3000

Business Operation & Management Expenses
Advertising & Marketing
Electricity
Phone & Internet Bill
Miscellaneous
Stationery

TOTAL MONTHLY EXPENSES

Please add the missing information according to availability.
Expenses are Considered Maximum Side.

15,000*
15,000*
2,000*
5,000*
2,000*

83,000*
MASTER FRANCHISE
5 year Earning Projection
5 Year Plan
Revenue Projection
5 Year Plan
Revenue Projection

Year One

Total Working Days in year 310

= 1 enquiry Per Day
= 310
Considering Conversion Ratio= 20%(Admission Taken out of 310)
= 1,00,000
Total Enrollment
= 62 Admission Done yearly
Total Gross Revenue Earned = 62,00,000
Less: Royalty
= - 20% (12,40,000)
Gross Revenue after Royalty = 49,60,000
can be less if place
Less: Initial Setup Expenses = 10,00,000 (It owned by franchise)
is
Net Revenue Earned
= 39,60,000
5 Year Plan
Revenue Projection

Year Two

Total Working Days in year 310

Considering Conversion Ratio
Total Enrollment
Total Gross Revenue Earned
Less: Royalty
Gross Revenue after Royalty
If Regular Fixed Exp
Net Income Earned

= 1.5 enquiry Per Day
= 465
= 25%(Admission Taken out of 465)
= 1,00,000
= 116 Admission Done yearly
= 1,16,00,000
= - 20% (23,20,000)
= 92,80,000
= 20,00,000
= 72,80,000
5 Year Plan
Revenue Projection

Year Three, Four & Five

As The
Centre Grows
You can Expect 15% to 20% Revenue
Increase Year by year in The Business
REVENUE EARNED THROUGH UNIT FRANCHISE BY MF

Revenue earned on making and maintaining business of Creativeink

Minimum Yearly Target OF UNIT FRANCHISE TO MF
yearly 5+ centers will be assisted by MF
Target to MF:Minimum 5 centers Yearly

Branches

UF 2

UF 3

UF 4

UF 5

5 Branch Total

1,00,000

1,00,000

1,00,000

1,00,000

1,00,000

5,00,000

300

350

250

400

600

1900

20%

15%

30%

20%

30%

60

53

75

80

180

448

60,00,000

53,00,000

75,00,000

80,00,000

1,80,00,000

4,48,00,000

Royalty Fees to MF 10%

6,00,000

5,30,000

7,50,000

8,00,000

18,00,000

44,80,000

Franchise Fees to MF 50%

2,50,000

2,50,000

2,50,000

2,50,000

2,50,000

12,50,000

Average Student Fees
Average Enquiry yearly
Conversation Ratio
Total No of Admissions
Total yearly turnover

UF 1

FIRST YEAR TOTAL REVENUE EARNED ON UNIT FRANCHISE

57,30,000

Please Note: Year after year Creativeink branches grow their business by 15% to 30% yearly.
UNIT FRANCHISE
5 year Earning Projection
5 Year Plan
Revenue Projection

Year One

Total Working Days in year 310

= 1 enquiry Per Day
= 310
Considering Conversion Ratio= 20%(Admission Taken out of 310)
= 1,00,000
Total Enrollment
= 62 Admission Done yearly
Total Gross Revenue Earned = 62,00,000
Less: Royalty
= - 20% (12,40,000)
Gross Revenue after Royalty = 49,60,000
can be less if place
Less: Initial Setup Expenses = 10,00,000 (It owned by franchise)
is
Net Revenue Earned
= 39,60,000
5 Year Plan
Revenue Projection

Year Two

Total Working Days in year 310

Considering Conversion Ratio
Total Enrollment
Total Gross Revenue Earned
Less: Royalty
Gross Revenue after Royalty
If Regular Fixed Exp
Net Income Earned

= 1.5 enquiry Per Day
= 465
= 25%(Admission Taken out of 465)
= 1,00,000
= 116 Admission Done yearly
= 1,16,00,000
= - 20% (23,20,000)
= 92,80,000
= 20,00,000
= 72,80,000
5 Year Plan
Revenue Projection

Year Three, Four & Five

As The
Centre Grows
You can Expect 15% to 20% Revenue
Increase Year by year in The Business
UNDERSTANDING THE FRANCHISE
What is a Franchise Agreement?
•A franchise agreement is a written document between two parties in which one party, the franchiser, licenses out his business
or a service to another party, the franchisee, who uses the intellectual property, trade mark or logo of the franchiser and
pays to him a specific amount as fee.

What is a Master Franchise Agreement?
•Master Franchising agreement, franchiser grants the franchise rights to an entire country or territory and the franchisee is
permitted to open franchise outlets and grant sub-franchises to others. Two agreements are generally involved — one that
is entered into between the franchiser and master franchisee and the other between the master franchisee and sub-franchisees.
•For example, your master franchise agreement with the franchisor may state that you will receive 50% of the franchise fee
and 50% of the royalty fees for each unit sold within your territory. You will be responsible for recruiting and training other
franchisees. You will also need to be available for ongoing support.

DIFFERENCES….
•After signing of a MFA, a master franchisee can be kept on his toes it is usual to provide minimum performance targets which
is not so in case of Franchise agreement.
•Also another difference from a franchise agreement is that, there should be both annual and cumulative targets. There will
be provisions for termination or loss of exclusivity if the minimum performance is not reached.
•In a master franchise agreement, one has to show huge capital, as it requires huge investments.

Differences in Franchises…
*The master franchisee is like a mini franchisor; its main aim is to sell the areas under it to prospective single, multi and area
developer franchisees. A single location is often developed as a training facility and income source. Master franchisees get a
percentage of the franchise fee and royalty fee that people who buy a franchise pay to the franchisor.
*Single unit franchises are very common among new franchise owners who have just started in the business or are yet to start
and do not have enough experience in this line of business. A single unit franchise enables the owner to concentrate on managing
only one unit at a time. Also, such franchise units are good low cost start-up opportunities.
DEFINITION OF TERMS
*Franchisor / Franchiser
the person or company that grants the franchisee the right to do business under their trademark or tradename

*Franchisee
the person or company that gets the right from the franchisor to do business under the franchisor’s trademark or tradename and
benefits from it.

*Franchise Agreement
the legal, written contract between the franchisor and franchisee which tells each party what each is supposed to do

*Single-Unit Franchise Agreement
an agreement where the franchisor grants the franchisee the rights to open and operate ONE franchise unit

*Multi-Unit Franchise Agreement
an agreement where the franchisor grants a franchisee the rights to operate MORE THAN ONE unit

*Area Development Franchise Agreement
an agreement where the franchisee has the right to open more than one unit during a specific time, within a specific area

*Franchise Fee
the payment given to the franchiser for joining the network. It can be seen as an entry fee paid for the “secrets of the business”.

*Royalty Fee
represents the amount the franchisee pays the franchiser every month (or whenever agreed) for commission of its sales. In return,
the franchiser provides continuous training, market studies and release of new products.

*Advertising / Marketing Fund
the monthly fee paid by the franchisee for a common fund, managed by the franchiser for promoting the brand

*Copyright & Registered Trademark
the usage of the brands & products / special services / methods of production, etc. patented by the franchiser are authorized to the
franchisees and will be protected from abusive usage by potential customers.
We are on
Social Media

“

Become an
EDUPRENEUR

“Be a Part of Tomorrow’s

”

GIANT”

MUMBAI . THANE . BHIWANDI . DOMBIVLI . KALYAN . BADLAPUR and many more counting...
website: www.creativeink.in | email us: gopal@creativeink.in | phone: 9702453535 | 9022303475

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Creativeink Master and Unit franchise Opportunity

  • 1. Our Teaching Our commitment Our students Beyond Comparision MASTER FRANCHISE(MF) OR AREA DEVELOPMENT PARTNER(ADP) AND UNIT FRANCHISE PRESENTATION MF & UF MANUAL
  • 2. Strong Backbone Support Most Profitable Business Never Dying and ever growing Demand Strong Technical Support Years of Experience Research and Development Fastest Growing Franchise “Be a Part of Tomorrow’s GIANT”
  • 3.
  • 4. About us: Mr. Pradeep Sharma Mr. Gopal Sharma (Cheaf Executive Officer) (Business Head) “Creative Ink Animation & Gaming Academy is providing the advanced level of 3D Animation Education. It is a joint venture of Animation & IT professionals. Our major focus is on the quality & develop a high caliber candidate for an organization by providing the best industry level education
  • 5. Looking forward for your positive response. with regards, Gopal Sharma Chief Execcutive Officer(CEO) Creative Ink Animation & Gaming Academy Mobile: 9702453535 / 9224433833 OUR OTHER EDUCATIONAL & HOSPITALITY BRANDS ”
  • 7. ROI Return on Investment Part of a Glamor Industry Covers Cream and HNI Class Bigger and Growing Market Less Competitors
  • 8. PERFORMER AWARDS 2014 Coming Soon High Performer Awards with Cash Prize Encouragement to every Franchise to Perform Well and Grow as mush as they can. AW AR DS BUSINESS BU SI NE 20 S 14 S Awards & Recognitions S S BURDINES A S 2014 AW
  • 9. What Makes Us Different? We are CRA ZY For our Passion Quality Training Professional Quality Trainers Knowledge & Career Course & Technology Upgradation Discounts Fake Commitments and Guarantees Many Other Institutes Quality Training Professional Quality Trainers Knowledge & Career Course & Technology Upgradation Discounts Fake Commitments and Guarantees “ ”
  • 10. COURSES & PRODUCTS QUALITY DRIVEN DIPLOMA & DEGREE COURSES
  • 11. Our Courses Sharing of Learning Resources WE OFFER COURSES LIKE: Degree Courses from University Short term, Long term, Diploma courses
  • 12. DEADEND Product lifecycle Entertainment Industry Biggest and Never ending Industry Thousands of Channels, Movies & Continues Production Every Company requires Designers or Visualizers Thousands of Companies NO Special Education Required for Admission Huge Salary Structure
  • 13. Our Courses Sharing of Learning Resources Courses Duration Placement Fees BSC Animation(Degree) 3 years 2.8 - 3.5 Lac* BAFX(Degree) 3 years 2.8 - 3.5 Lac* BA Media(Degree) 3 years 2.5 - 3.0 Lac* 4 years 3.2 Lac * 2 years 2.2 Lac * 2 years 1.3 Lac * 2.5 years 2.9 Lac * ADFX 1 years 90 K Graphix 5 months 20 K PRE-POST Advanced Pre-Post Animation Diploma FILM MAKING Animation Film Making Diploma UPGRADE Advanced Animation Diploma ANI-GAMER Advanced Animation Gamer Diploma Advanced Diploma in FX
  • 14. SUPPORT Full Backbone Support Corporate BusinessTraining Train the Trainer Programs Enquiry Manger CRM Business Manager CRM Finance Manager CRM Course Manager CRM Student Management CRM Bulk eMail | SMS Support Online Marketing Support Sit Back and Enjoy Full Strong IT System Support for Ease in Handling of Business
  • 16. OPPORTUNITY Franchise Opportunity Welcome to the Recession Free Sector. Creative Ink invites franchise for opening business ventures across India. Introducing a wonderful business opportunity – We provides franchisees the opportunity to start an animation school anywhere in India. Get associated with one of the most popular brand of schools in India By combining a solid business plan and an outstanding support team with a quality instructional program, we offer a uniquely International solution to animation and digital education which makes student highly competitive in the international market. Over the years we have earned real benefits and helped earn those who come in touch with our Creative Ink Family. What We Require We're seeking highly motivated, success-oriented individuals who share our high standards and a commitment to excellence. If this sounded like you, and you want personal independence, superior earning potential, and the opportunity to provide a valuable and respected service to the community, then operating an Motion Makers Franchise may be right for you.
  • 19.
  • 20. MASTER FRANCHISE INVESTMENT (Projection) Centre Investment New Setup Expenses Particulars Investment Franchise Fees 1 Time 10,00,000 Every Year 3,00,000 * Furniture and Interior Cost 1 Time 5,00,000 * Other XYZ Beautification Charges Centre Launch Advertising & Marketing 1 Time 1 Time 2,00,000 * 2,00,000 * Assembled AMD Processor PC Set = 25,000* 10 PCs Initially 1 Time 2,50,000 * Franchise Fees Consist of Brand, Appointment of staff, Training, Smooth functioning of Day to day activities, Manual Kit, Presentation, Designing of Marketing Kit, Business Help, CRM Support, Technological Training, Business Training, Upgradation on Technology and Courses, Advertising, Marketing, Media Support, Branding Support, Student Course Tracking, Maintaining Smooth Working Flow, Events & Fairs Know How Support. Yearly Operational Cost from Head office: Staff Recruitment for Smooth functioning, University Degree Support, Traveling of Management staff for Monitoring the operations, Business Support through leads from online and offline methods,Placement support to students, Placement cell, Examination and Certificate (Practical Room and Counseling Room PC Set) , Printer DVD writer, Scanner, Network Switch 2.1 & 5.1 Channel Stereo Sound Speakers Operations & Administration Kit Total Launch Investment 3 qty 12,000 * 1 qty 5000 * 40,000 * approx 25,00,000 * Expenses marked with * are not fixed expense they may increase or decrease according to market change in purchasing capacity.
  • 21. Fixed Monthly Expenses (Projection) Working Expenses Fixed Expenses to run the Centre Particulars Qty Investment Infrastructure Rent if place is not owned + ?? Salaries Trainer 1 Trainer 2 Trainer 3 (Entry Level) 10,000* 15,000 * 6,000 * Centre Manager 10,000 * + ?? (Not Required If The Centre Owner is Giving Full Time) OfficeBoy (Not Required) 3000 Business Operation & Management Expenses Advertising & Marketing Electricity Phone & Internet Bill Miscellaneous Stationery TOTAL MONTHLY EXPENSES Please add the missing information according to availability. Expenses are Considered Maximum Side. 15,000* 15,000* 2,000* 5,000* 2,000* 83,000*
  • 22. MASTER FRANCHISE 5 year Earning Projection
  • 23. 5 Year Plan Revenue Projection
  • 24. 5 Year Plan Revenue Projection Year One Total Working Days in year 310 = 1 enquiry Per Day = 310 Considering Conversion Ratio= 20%(Admission Taken out of 310) = 1,00,000 Total Enrollment = 62 Admission Done yearly Total Gross Revenue Earned = 62,00,000 Less: Royalty = - 20% (12,40,000) Gross Revenue after Royalty = 49,60,000 can be less if place Less: Initial Setup Expenses = 10,00,000 (It owned by franchise) is Net Revenue Earned = 39,60,000
  • 25. 5 Year Plan Revenue Projection Year Two Total Working Days in year 310 Considering Conversion Ratio Total Enrollment Total Gross Revenue Earned Less: Royalty Gross Revenue after Royalty If Regular Fixed Exp Net Income Earned = 1.5 enquiry Per Day = 465 = 25%(Admission Taken out of 465) = 1,00,000 = 116 Admission Done yearly = 1,16,00,000 = - 20% (23,20,000) = 92,80,000 = 20,00,000 = 72,80,000
  • 26. 5 Year Plan Revenue Projection Year Three, Four & Five As The Centre Grows You can Expect 15% to 20% Revenue Increase Year by year in The Business
  • 27. REVENUE EARNED THROUGH UNIT FRANCHISE BY MF Revenue earned on making and maintaining business of Creativeink Minimum Yearly Target OF UNIT FRANCHISE TO MF yearly 5+ centers will be assisted by MF Target to MF:Minimum 5 centers Yearly Branches UF 2 UF 3 UF 4 UF 5 5 Branch Total 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000 5,00,000 300 350 250 400 600 1900 20% 15% 30% 20% 30% 60 53 75 80 180 448 60,00,000 53,00,000 75,00,000 80,00,000 1,80,00,000 4,48,00,000 Royalty Fees to MF 10% 6,00,000 5,30,000 7,50,000 8,00,000 18,00,000 44,80,000 Franchise Fees to MF 50% 2,50,000 2,50,000 2,50,000 2,50,000 2,50,000 12,50,000 Average Student Fees Average Enquiry yearly Conversation Ratio Total No of Admissions Total yearly turnover UF 1 FIRST YEAR TOTAL REVENUE EARNED ON UNIT FRANCHISE 57,30,000 Please Note: Year after year Creativeink branches grow their business by 15% to 30% yearly.
  • 28. UNIT FRANCHISE 5 year Earning Projection
  • 29.
  • 30.
  • 31. 5 Year Plan Revenue Projection Year One Total Working Days in year 310 = 1 enquiry Per Day = 310 Considering Conversion Ratio= 20%(Admission Taken out of 310) = 1,00,000 Total Enrollment = 62 Admission Done yearly Total Gross Revenue Earned = 62,00,000 Less: Royalty = - 20% (12,40,000) Gross Revenue after Royalty = 49,60,000 can be less if place Less: Initial Setup Expenses = 10,00,000 (It owned by franchise) is Net Revenue Earned = 39,60,000
  • 32. 5 Year Plan Revenue Projection Year Two Total Working Days in year 310 Considering Conversion Ratio Total Enrollment Total Gross Revenue Earned Less: Royalty Gross Revenue after Royalty If Regular Fixed Exp Net Income Earned = 1.5 enquiry Per Day = 465 = 25%(Admission Taken out of 465) = 1,00,000 = 116 Admission Done yearly = 1,16,00,000 = - 20% (23,20,000) = 92,80,000 = 20,00,000 = 72,80,000
  • 33. 5 Year Plan Revenue Projection Year Three, Four & Five As The Centre Grows You can Expect 15% to 20% Revenue Increase Year by year in The Business
  • 34. UNDERSTANDING THE FRANCHISE What is a Franchise Agreement? •A franchise agreement is a written document between two parties in which one party, the franchiser, licenses out his business or a service to another party, the franchisee, who uses the intellectual property, trade mark or logo of the franchiser and pays to him a specific amount as fee. What is a Master Franchise Agreement? •Master Franchising agreement, franchiser grants the franchise rights to an entire country or territory and the franchisee is permitted to open franchise outlets and grant sub-franchises to others. Two agreements are generally involved — one that is entered into between the franchiser and master franchisee and the other between the master franchisee and sub-franchisees. •For example, your master franchise agreement with the franchisor may state that you will receive 50% of the franchise fee and 50% of the royalty fees for each unit sold within your territory. You will be responsible for recruiting and training other franchisees. You will also need to be available for ongoing support. DIFFERENCES…. •After signing of a MFA, a master franchisee can be kept on his toes it is usual to provide minimum performance targets which is not so in case of Franchise agreement. •Also another difference from a franchise agreement is that, there should be both annual and cumulative targets. There will be provisions for termination or loss of exclusivity if the minimum performance is not reached. •In a master franchise agreement, one has to show huge capital, as it requires huge investments. Differences in Franchises… *The master franchisee is like a mini franchisor; its main aim is to sell the areas under it to prospective single, multi and area developer franchisees. A single location is often developed as a training facility and income source. Master franchisees get a percentage of the franchise fee and royalty fee that people who buy a franchise pay to the franchisor. *Single unit franchises are very common among new franchise owners who have just started in the business or are yet to start and do not have enough experience in this line of business. A single unit franchise enables the owner to concentrate on managing only one unit at a time. Also, such franchise units are good low cost start-up opportunities.
  • 35. DEFINITION OF TERMS *Franchisor / Franchiser the person or company that grants the franchisee the right to do business under their trademark or tradename *Franchisee the person or company that gets the right from the franchisor to do business under the franchisor’s trademark or tradename and benefits from it. *Franchise Agreement the legal, written contract between the franchisor and franchisee which tells each party what each is supposed to do *Single-Unit Franchise Agreement an agreement where the franchisor grants the franchisee the rights to open and operate ONE franchise unit *Multi-Unit Franchise Agreement an agreement where the franchisor grants a franchisee the rights to operate MORE THAN ONE unit *Area Development Franchise Agreement an agreement where the franchisee has the right to open more than one unit during a specific time, within a specific area *Franchise Fee the payment given to the franchiser for joining the network. It can be seen as an entry fee paid for the “secrets of the business”. *Royalty Fee represents the amount the franchisee pays the franchiser every month (or whenever agreed) for commission of its sales. In return, the franchiser provides continuous training, market studies and release of new products. *Advertising / Marketing Fund the monthly fee paid by the franchisee for a common fund, managed by the franchiser for promoting the brand *Copyright & Registered Trademark the usage of the brands & products / special services / methods of production, etc. patented by the franchiser are authorized to the franchisees and will be protected from abusive usage by potential customers.
  • 36. We are on Social Media “ Become an EDUPRENEUR “Be a Part of Tomorrow’s ” GIANT” MUMBAI . THANE . BHIWANDI . DOMBIVLI . KALYAN . BADLAPUR and many more counting... website: www.creativeink.in | email us: gopal@creativeink.in | phone: 9702453535 | 9022303475