The document discusses expanding a restaurant business through a franchise model. It explores owning units versus franchising, and outlines that franchising provides expansion capital while avoiding employee problems. The roadmap for franchising includes training, products/services, and documentation support from the company, and capital requirements and fees from franchisees. A cost-benefit analysis shows franchising avoids financial leverage and micromanaging risks. Potential franchise locations will be selected in metro areas, and interested franchisees will be screened.

1. Expansion of Restaurant
business through Franchisee
Model
Presenters:
Samik Gupta
Bishnu Panda
Group - 3

2. Agenda
Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

3. Exploring the Options
Management Control
Advantage  Standardization
 Flexibility
Own Units
 Heavy capital outlay
Disadvantag  Negative covenants
e  Human capital management
 Direct loss effect
 Tough micro management

4. Exploring the Options contd..
 Provides expansion capital
 Avoids employee related
problems
Advantage  Accelerate expansion over
wide area
 Motivated owner
 Lesser cost of manoeuvering
& micro managing
Franchising
 Sharing profit
Disadvantag  Loss of absolute control
e  Franchisee disclosure law

5. Implications
• Heavy capital outlay
1
• Human capital management
2
• Direct loss effect
3
Hence to go for Franchising

6. Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

7. Roadmap for the Franchisee
Model
Training Products & Services
*Pre set up training process *Sourcing Key Ingredients
* Categorical training process *Decoration support for
for staffs matching to the ambience
* Rights for utilizing our
* Monthly training & signages
reinforcements for first year & brands
Our
Support
Standardization
Marketing Assistance
Support
*Advertisement support
* Quality control
*Awareness drive for existing
* Inventory support
customers
*Product pricing
* Advisory support

8. Roadmap for the Franchisee Model
contd.Capital &
Infrastructure Franchisee Fee &
Royalty
* Capital requirement for
* One time payable fee
franchisee set up at the beginning
*Infrastructure requirement
* Royalty on revenue
for matching to the
* include fee for Marketing
ambience
and advisory support
Their
Deliverables
Proper
Documentation Brand Maintenance
* For operational processes * Matching to brand image
* For Sales and footfall * No indulgement with
recording others

9. Implications
Their requirements:
 Investments :30-40 Lakhs
 Space : 1500-2500 sq.ft.
Our Support :
 10 % of royalty as marketing support
 5% for advisory support

10. Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

11. Cost Benefit Analysis
BetterPL.xlsTraining support
•
• Marketing Support
Costs • Standardisation
• Avoiding the risk of
financial leverage
Benefits • Avoiding the cost of
Micromanaging

12. Exploring the options
o Own- units
o Franchisees
Roadmap for the Franchisee model
o Our support
o Their deliverables
Cost-Benefit Analysis
 The Way Forward

13. The Way Forward
Metro • Bangalore
Selection • Mumbai
• Delhi
Location • Good catchment of
Selection Bengalis’

14. The Way Forward contd.
Zooming down to a Specific location for selection
site criteria.xlsx

15. The Way Forward contd.
• Advertisement
Inviting through local print
Potential media
Franchisee • Advertisement
through web
portals
Screening • Financial stability
of • Integrity
Franchisees • Active operators

16. The Way Forward contd.
Agreement Agreement to be
& finalized &
Offer to be rolled
Operational out
Part
The Journey begins…

17. Thank You