This document discusses franchising and outlines the key aspects of a food franchise business model. It defines franchising and lists the main types. The benefits of franchising are then described, including using an established brand and reducing risk. The purpose of exploring a food franchise business is then stated. Key actors in the business like franchisees, investors and suppliers are identified. The relations between different uses cases and an overview of the business from macro to micro levels is provided.

1. Food
Franchise

2. What is Franchising
 “A franchise operation is a contractual relationship
between the franchisor and franchisee in which the
franchisor offers or is obliged to maintain a
continuing interest in the business of the franchisee
in such areas as know-how and training; wherein the
franchisee operates under a common trade name,
format and/or procedure owned or controlled by the
franchisor, and in which the franchisee has or will
make a substantial capital investment in his
business from his own resources.”
- Definition by International Franchise
Association

3. Types Of Franchise
 Product distribution franchise
 Business format franchise
 Management franchise

4. Benefits and Advantages of a
franchise:
 Get an association with an already known
trade mark or service mark.
 Lesser investment and degree of risk
 Shorter learning curve
 Economies of scale
 Business System and operation support
 Advertising and promotional support
 Recruitment and training (of the employee)
support, etc.

5. Purpose of our project:
 Explore the business domain of a Food
Franchisee Business.
 McDonalds, Subway, Chatkaaz
 How business is carried out & standards are
maintained
 Same taste, same ambience

6. OUTSIDER’S VIEW
1. Business Actors
 Established business men who wish to
expand their business
 Budding entrepreneurs and venture
capitalist
 Investors
 Supplier of the food
 Supplier of the furniture

7. 2. Macro level

9. 3. Relations amongst usecases
 Authentication & Verification

10. Discussion of the Franchise agreement

11. Finalizing a franchise
Proposed

12. 4. Micro Level Description
 Usecase: Information gathering

14. Main usecase : Verifying
Authentication

15. Verifying Authenticating the
Customer

17. Inspection of the site

18. Main Usecase : Signing
of Franchise Agreement

19. Proposed

20. Provision of Legal
documents

22. Informing of the basic food
equipments and its
maintenance

24. Deciding of the orders of the
food supply
 Actor : Proposed Franchisee
 Goal : To decide the frequency of the
orders of food supply to the franchise
outlet

25. Deciding the schemes and
service line for the franchise

27. Setting up of Standard and uniform Prices
(FOOD COST)
 Actors : Proposed Franchise
 Goal : Making Standard and uniform
Prices globally across all outlets.

28. Billing Procedures & Systems
 Actor-Proposed Franchisee
 Goal- Deciding on Billing Procedures &
Systems

29. Inspection of the outlets

31. Handling of Customer
Complaints/Suggestion

33. Finalizing the Franchisee
Proposed

34. Payment of security deposit

35. Depositing equipment fees

36. Deciding on interiors and
design

38. Non Critical usecases
-Taking Security Measures
 Putting up the cameras to keep a watch over the
store
 Using computerized money locker
 Fire Alarms & Fire Extinguishers
 Well equipped main door with hard lock
 Use authorized & standardized machines to avoid
any accidents

39. Installing Interiors
 The interiors, identity items as decided by the franchisee
and the franchisor should be installed. Posters &
banners inside should be visible
 New posters about new offers should be a major
attraction
 Interiors & Decorations should change when any major
festival comes as suitable with the festival mood

40. Training of Employees
 All the employees of the store including the
manager would be trained at company’s location
or a special person of the company would be
sent at the store
 Training for cooking or preparing food, storing &
handling of the store would be given accordingly
 If employees are found not appropriate, the
owner of the store would have to change them

41. Insiders View:
Roles of Workers:
• Franchisor
• Finance Director
• Human Recourse Manager
• Operations Manager (equipment and franchising)
• Marketing Manager (sales marketing)
• Development Manager (property and construction)

42. International level

43. National Level :

44. Organizational Structure
Local Level

45. Business Entities
 Franchisee Disclosure Document
 Qualification questionnaire
 Complaint/Suggestion Brochure
 Identity Proof Document
 Furniture
 Interiors
 Identity Items
 Payment Cheque/DD/Cash or Fee-Slip
 Hoarding Ads

46.  Cameras
 Electronic Money Lockers
 Fire Extinguishers
 Posters and Banners
 Festive Interiors and Decorations
 Leaflets
 Inspection Report
 Quality check report
 Identity Proof Document

47. Exceptions and Variations in Franchise
Business
 3 levels of Franchise Business-
International,National,local
 Site owned by Franchisor or given on
lease/rent to franchisee
 Fees paid-initial security,franchisee
fees,royalty

48. Franchise Business Terminology
 Advertising Fee
 Company-owned Outlet
 Copyright
 Designated Supplier
 Disclosure Document
 Estimated Initial Investment
 Franchise
 Franchisee

49. Franchise Business Terminology
 Franchise Fee
 Franchising
 Franchise Contract
 Franchisor
 Initial Investment
 Qualification Questionnaire
 Royalty
 Total Investment
 Trademark
 Venture Capitalist

50. Approach
 Information through Social Media
 Conducting a Survey

51. Hurdles and issues faced
 Different companies have different functions
and procedures
 No fixed laws at national & local levels as
compared to international
 Store managers refused to give more
information
 More time spend in understanding usecases
and activity diagram