5. INTRODUCTION
oA franchise is a license granted by a business to
anther business to make and sell good/services.
o A franchisor is the owner of the business who grants the
license.
o A franchisee is the person who purchases the business
name.
6.
7. What is a Franchise?
• Franchise is the right to sell a well-known
product Within a geographical boundary.
• Franchise is a contract in which a franchisor sells
to another business the right to use its name and
sell its product.
8.
9. What are the different types of
franchising?
1. Product franchising
2. Business format franchising
10. Product Franchising
• Also known as trade name
franchising.
•Types of franchising where in a
manufacturer grants a franchisee the
right to sell its products, but with no
method of doing business.
• Examples of this type of franchising
are car dealerships and service station.
11.
12. Business Format Franchising
• Also identified as a name and process franchise.
• The franchisee is also provide a complete plan for managing
and operating the business
•This plan often includes a full range of services, including site
selection, training, product supply, marketing plans and even
assistance in obtaining financing.
• Modern day franchising is primarily in the business format
mode, accounting for around 90 of franchise businesses
worldwide.
13. What should I consider before buying
a franchise?
1. Ask yourself why you want to own a franchise.
2. Begin the search.
3. Do your own research.
4. Concept.
5. Location.
14. TRAPS ANDTIPS
TRAP # 1 - Franchising is easy.
TIP : Do a self-assessment.
TRAP # 2 - Franchising means instant success.
TIP : Study the concept.
TRAP # 3 – I can operate my franchise anywhere.
TIP : Do a market study.
TRAP # 4 - I have to sing up right away.
TIP :Take your time and review, review, review..
16. • Restaurants: 27,000 in 85 countries.
• Employing: 1,90,000 people.
•World Wide Sales: $9 billion.
• Subway serves nearly 3,800 sandwiches and salads in the
United state every 60 seconds.
•If all the sandwiches made by subway in year were placed
end to end, they would warp around the world an
estimated 10 times.
SUBWAY
: $9
17. •Restaurants: 31,000
•Employing:The corporation trains more new workers
annually than the U.S. Army.
•World Wide Sales: $25 billion.
• Known for its signature French fries.
•Originally founded by Dick and Mac
McDonald as a BBQ drive in in the 1940’s.
McDonald’s
18. Pizza
Hut
•Restaurants: 12,500 stores in 100 countries.
•Employing: 1,80,000 people.
•U.S. Sales: $ 5.7 billion.
•Worlds largest pizza chain.
•Founded by Dan and Frank Carney in 1958.
20. History
oPizza hut prototype version restaurant atWichita state university.
oPizza hut was founded in 1958 by brother Dan and frank Carney in
Wichita Kanas.
oThey started pizza hut with only Rs 600 dollars with a partner jhon
bender, by renting a small building and purchasing secondhand
equipments for making pizza.
oTo create good image architect Richard d burke designed
distinctive mansard roof shape and standardized layout.
24. Place
Outlets are Located in highly crowded places.
34,000 Outlets in 100 countries.
It calls itself a family restaurant rather than young
generation eating point.
Nice music is played at the back.
Usually seen in airports & shopping malls.
25. Price
Pizza hut has successfully used the
high/low pricing strategy when setting
retail price of its products.
Pan pizzas start at just Rs 44/-
Pizza hut is using low price for meal and
expensive for high end.
27. Franchising in India
•India with its huge market and growing in all sectors of the
economy is extremely attractive proposition for entry of foreign
brands through franchising route.
• In the 1990 the market opened foreign franchise.
•The key attractions for this franchising is.
a) Lower capital requirement.
b) Laws
c) Language
d) Huge Market.
• As a result the Franchising Association of India was set up
Mumbai in the year 2000.
28. Advantages of Franchise
•Increase number of outlet with minimum capital.
•Name recognition.
•Running small business under Franchise name is very
beneficial.
•Big Business help in corporate marketing.
•Training & Management facilities.
29. Disadvantages of Franchise
• It has to control and co-ordinate a network of
semi independent businessmen.
•Safe guarding the interest of both the parties are
complex.
•Much time required while selecting a Franchise.
• Complex procedure.
30. •Whether we have to buy the franchise or not?
•Whether franchise business is always beneficial?
Need to understand the tool
4 A’S concept
Affordability, Acceptability, Awareness, Availability.
Conclusion
