This document provides an overview of franchising as an emerging service business in India. It defines a franchise as a type of license that allows a party (franchisee) to sell a product or service under a business's (franchisor) name in exchange for fees and royalties. The document discusses factors like franchising agreements, types of franchising (product/trade name and business format), advantages like reduced risk and operational support, and disadvantages like fees and limited freedom. It also briefly covers related emerging service businesses - factoring, logistics, and outsourcing.

1. FRANCHISE BUSINESS

2. EMERGING SERVICE BUSINESS IN INDIA

3. Learning Objectives
• To gain knowledge on franchising business
• learn about factoring and its importance
• study the fundamentals of logistics
• be aware of the outsourcing business

4. A Franchise is a type of licence that a party
(franchisee) acquires to allow them to have
access to a business’s (franchisor) property
knowledge, processes, and trademarks in order
to allow the party to sell a product or provide a
service under the business’s name

5. • Franchising is an arrangement where
franchisor (one party) grants or licenses some
rights and authorities to franchisee (another
party).
• Franchising is a well-known marketing strategy
for business expansion

6. Definition
• According to International Franchise Association a franchise is
a “continuing relationship in which the franchisor provides a
licensed privilege to do business, plus assistance in organising
training, merchandising and management , in return for a
consideration from the franchisee.”

7. Kidzee school franchise
Committed to quality education
Minimum area of 2000-3000 sq. ft.
Minimum investment ₹ 12, 00,000

8. • Franchising agreement
• Franchisor
• Franchisee
• Characteristics of franching
• Types of franchising
i. Product/ trade name franchising
ii. Business format franchising

9. Advantages of franching
• Reduced risk
• Business expansion
• Cost of advertising
• Operational support

10. Disadvantages
• Franchising fees
• Fixed royalty payment
• Danger of image tarnishing
• Lack of freedom
• Limitation on range of products

11. Factoring
• Factoring is derived from a Latin term “facere”
which means ‘to make or do’.
• Factoring is an arrangement wherein the trade
debts of a company are sold to a financial
institution at a discount.
• The factor is an agent who buys the accounts
• receivables (Debtors and Bills Receivables) of a
firm and provides finance to a firm to meet its
working capital requirements.

12. Features of factoring
• Maintenance of book-debts
• Credit coverage
• Cash advances
• Collection service
• Advice to clients

13. Logistics
• Logistics can be viewed as a logical extension
• of transportation and related areas to achieve
• an efficient and effective goods distribution
system.

14. • The management of logistics can involve some or all
of the following business functions, including:
• Inbound transportation.
• Outbound transportation.
• Fleet management.
• Warehousing.
• Materials handling.
• Order fulfillment.
• Inventory management.
• Demand planning.

15. What is a logistics process?
According to the Council of Supply Chain
Management Professionals (previously the
Council of Logistics Management), logistics is
the process of planning, implementing and
controlling procedures for the efficient and
effective transportation and storage of goods
including services and related information
from the point .

16. outsourcing the work which is routine in nature, to an outside
agency. This practice was initiated in United States of America
in few companies. The routine work of a company if
outsources the company concentrate on critical issues without
wasting time on routing job. In later years it became popular
in other countries also.
For example designing an advertisement, after sales service,
maintance of accounts etc. can be outsourced.