Webinar Presentation by Rakesh Sidana. Talk about why startups fail, why franchises are success and types of franchises. This webinar was organized by GoMechanic and MobilIndia. How India is evolving from unorganized to organized markets with 2 lac franchise outlets and behavior changes from NO BRANCH to MANY BRANCHES. This will give you an idea of what kind of franchise businesses are successful.

1. All About Franchise
Speaker:
Rakesh Sidana
Founder, MeriCAR.com
AVP, GoMechanic
Author, Startup Never Fails

2. Product
Technology
Supply
Concept
Design
BRAND
“Franchising is Leveraging
someone’s success”
- The Proven Idea
- The Trusted Brand
- The High Quality Product/Service
- The Strength
“It is giving license to someone
to use their brand to sell their product and
services”
All About Franchise
What is Franchise?

3. We Don’t have Any Branch
All About Franchise
India Now & Then

4. INDIA - We have many branches “everywhere”
All About Franchise
India Now & Then

5. All About Franchise
INDIA : Unorganized to “Organized” Market
2nd Largest
Franchise Market
in the world
4600
Active
Franchisors
2,00,000
Franchise
Outlets
US$50.4
billion
(*source: FAI)
50% Regional Brands
34% National Brands
16% Global Brands
INDIA FRANCHISE
INDUSTRY

6. Why Franchise?
CONSUMER FRANCHISEE BUSINESS FRANCHISOR COMPANY
Best Quality, Genuine
Affordable
Trust
Quality, Genuine Products
Proven Concept/Idea
Support from Franchisor
High Profit
Fast Expansion
Low Capital Investment
All About Franchise

7. Startup vs Franchise
All About Franchise
Startup/Business Franchise
Business Mode Building From Scratch Already Proven Model
Risk of Failure High Low
Knowledgebase/Industry
Standards
Self Research Experts & Industry
Standard Knowledge
Available
Marketing Unclear, Waste of
Resources, Self-Analysis
Provided by Franchisor
Brand Unpopular, Huge
Investment on Brand
Building
Already Trusted Brand
Investment High Low
90% of Indian
Startups fail
within 5 years
Whereas…
the success rate
in franchising is about
85%.
More entrepreneurs are
associating with brands
that assure a relatively
higher rate of success.

8. • Categorized according to different factors, like investment level, franchisor’s strategy, operations, marketing
and relationship models, etc. Main Types of franchises are:
• Job Franchise
• Product Franchise
• Business Format Franchise
• Investment franchise
Types Of Franchise
All About Franchise

9. • Home-based
• Very low investment franchise
• Purchase minimal equipment, limited
stock and sometimes a vehicle.
• Examples : travel agency, coffee van,
domestic lawn care service, plumbing,
drain cleaning, commercial and domestic
cleaning, cell phone accessories and
repair, real estate service, shipping
service, pool mainatanance, corporate
event planning, children’s services, etc.
Types : Job Franchise
All About Franchise

10. • Supplier-dealer relationships
• Franchisee distributes the franchisor’s products.
• Examples: cars and car repair parts, vending machines, computers, bicycles, appliances.
• Product distribution franchising represents the highest percentage of total retail sales. Some well-known
product distribution franchises are Exxon, Texaco, GoodYear Tires, Ford, Chrysler, John Deere and other
automobile producers. Sometimes franchisor licenses not only distribution, but also part of the
manufacturing process, like in the cases of soft drink manufacturers Coca-Cola and Pepsi.
Types : Product Franchise
All About Franchise

11. • Franchisee gets the entire system to
operate the business and market the
product and/or service.
• The franchisor offers a detailed plan and
procedures on almost every aspect of the
business, provides initial and ongoing
training and support.
• Business format franchising is the most
popular type of franchise system and the
one generally referred to when talking
franchising.
• Businesses from more than 70 industries
can be franchised, and the most popular
are fast food, retail, restaurant, business
services, fitness and other.
Types : Business Format Franchise
All About Franchise

12. • A large capital
investment, such as
hotels, Warehouses.
• Invest money and
engage either their
own management
team or franchisor to
operate the business
and produce a return
on their investment
and capital gain on
exit.
Types : Investment Franchise
All About Franchise

13. Auto Component Market Size
• Market Size
• The industry can be broadly classified into organised and unorganised
sectors. The organised sector caters to original equipment
manufacturers (OEMs) and consist of high-value precision
instruments while the unorganised sector comprises low-valued
products and caters mostly to the aftermarket category.
• Automobile component industry’s revenue stood at US$ 49.3 billion
in FY19,

14. Auto Spare Parts: Organizing The Unorganized
All About Franchise

15. GoMechanic Retail Outlet
All About Franchise

16. Auto Component : Government Initiatives
• Government has come out with Automotive Mission Plan (AMP)
2016–26 which will help the automotive industry to grow and will
benefit Indian economy in the following ways: -
• Contribution of auto industry in the country’s GDP will rise to over 12
per cent.
• Around 65 million incremental number of direct and indirect jobs will
be created.
• End of life Policy will be implemented for old vehicles.