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
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
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
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)
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
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