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FRANCHISING MODEL IN
AUTOMOBILE INDUSTRY
TYPES OF FRANCHISE MODELS
• Manufacturer Franchise
• Product Franchise
• Business Format Franchise
• Single-Unit Franchise
• Multi-Unit & Area Development Franchise
• Manufacturer Franchise Structure
– One of the lesser-known franchise structures is called a manufacturer franchise. The focus of this type of franchise, as the name
suggests, is on the manufacturing phase of a product's lifecycle. Owners of a manufacturer franchise have the right to
manufacture a franchisor's product. In some cases, he also may have the right to sell and distribute the products as well.
• Product Franchise Structure
– Those who buy into a business structured as a product franchise are purchasing the right to sell and/or distribute a particular
product from a manufacturer. For example, an auto repair shop owner may decide that he wants to sell tires in order to add a
revenue stream for the business. In order to have inventory on hand, selected tire manufacturers may require that the auto
shop become a product franchisee before it allows the shop to carry its tires.
• Business Format Franchise Structure
– The most common type of franchise structure is the business format franchise. In this type of franchise, the franchisee is buying
the right to more than just producing and distributing a franchisor's product as in the manufacturer type of franchise, and more
than simply selling a franchisor's product as in the product type of franchise. Instead, entrepreneurs who choose the franchise
business format are really purchasing the franchisor's strategic business operation model, which has proven to be effective; and
the right to produce, distribute and/or sell the franchisor's goods and/or services comes along with that purchase.
• Single-Unit Franchise Ownership
– As stated earlier, types of franchises are categorized not only by the structure but also by ownership. The most common type of
franchise ownership is one that is offered as a single-unit franchise. This type of franchisee purchases the right to own and
operate one franchise location. Most entrepreneurs who invest in a franchise---whether as a business format franchisee, a
product franchisee or a manufacturer franchisee---buy into the franchise as this type of franchise owner.
• Multi-Unit & Area Development Franchise Ownership
– Aggressive or experienced franchisees may opt for a more involved type of franchise ownership such as multi-unit franchise
ownership or area development franchise ownership. The two types of franchise ownership types are similar in that the
franchise owner has more to manage than a single-unit franchise owner and they differ only in how and what is managed. The
multi-unit franchise owner manages multiple franchise locations while the area development franchise owner typically owns a
single franchise that has the right to do business across a vast area---multiple cities or states, for instance.
INTRODUCTION
• Royal Enfield motorcycles made in England were being sold
in India from 1949
• In 1955, the Indian government looked for a suitable
motorcycle for its police and army, for patrolling the country's
border.
• The Bullet was chosen as the most suitable bike for the job.
Stores World wide
• Dealing with 45 countries across the world.
• 1145 Showrooms across the country.
• 285 stores of royal enfield across the India.
• In mumbai it has more than 19 stores.
• Grant Road, Nerul, Bhandup, Bandra, Kandivali, Malad,
Thane, Byculla, Panvel, Mira-Road etc..
Franchise Facts:
Area Required: 4000 sq. ft.
Investment: Rs. 50lac - Rs. 1 Cr.
Franchise/Brand Fee: Rs.100,000
Royalty/Commission: 5% of vehicle sale
Franchisor Support:
• Marketing support & advertisement assistance
• Site selection assistance is provided to the franchisee
• Detailed operating manuals will be provided to franchisee
• Field assistance is also available for the franchisee
• Franchisee training done at Chennai & Chandigarh
Advantages of Franchise:
• Established brand name & logo
• Present IT system will be included in franchise
• Great returns on investment
• Proven business model for success
• Join the finest and brightest of teams in the country as a
franchisee now
INTRODUCTION
• Speed Car Wash a concept developed by LIV INDIA to
organize the Car Cleaning segment to give the community a
new definition of car care and detailing services which are not
professionally followed in India.
• Today mechanized car cleaning system is already a $5.97
billion business in US with more than 14,414 Successful
Outlets and In India it is just at the threshold of picking up.
PROJECT COST
• To start a Speed Car Wash franchise, an estimated
below sum of INR 12- 15 Lacs will be required. This
sum will cover expenses for: License Fee, Equipment
and Accessories, Infrastructure (External and Internal
Fabrication), I.T. system (Hardware and Software),
Promotional material and Startup kits.
• MONTHLY INCOME: 1Lac P.M.(Approx.): 10 to 12
CARS EVERYDAY 1.25 Lac P.M.(Approx.): 12 to
15 CARS EVERYDAY
REQUIREMENTS
• Total of 1000 to 1200 Sq.
Ft. of bare space (The space
can either be open or
covered) Location is an
important aspect of the
business. prefer location
where we can be more
visible to Technical Aspects
of the Site Business Aspects
of the Site covered) Three
phase power point
connection with a connected
load of 15 KW as maximum
• Total of 3 to 5K liters of
water availability per day
Drainage facilities to
dispose of the waste water
where we can be more
visible to people. Sites near
to residential blocks,
markets, shopping complex
can be considered Site near
to petrol pump or on
highways can also be
considered Sites at the
parking of the malls can be
a strategic business

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Franchising models in automobile industry

  • 2. TYPES OF FRANCHISE MODELS • Manufacturer Franchise • Product Franchise • Business Format Franchise • Single-Unit Franchise • Multi-Unit & Area Development Franchise
  • 3. • Manufacturer Franchise Structure – One of the lesser-known franchise structures is called a manufacturer franchise. The focus of this type of franchise, as the name suggests, is on the manufacturing phase of a product's lifecycle. Owners of a manufacturer franchise have the right to manufacture a franchisor's product. In some cases, he also may have the right to sell and distribute the products as well. • Product Franchise Structure – Those who buy into a business structured as a product franchise are purchasing the right to sell and/or distribute a particular product from a manufacturer. For example, an auto repair shop owner may decide that he wants to sell tires in order to add a revenue stream for the business. In order to have inventory on hand, selected tire manufacturers may require that the auto shop become a product franchisee before it allows the shop to carry its tires. • Business Format Franchise Structure – The most common type of franchise structure is the business format franchise. In this type of franchise, the franchisee is buying the right to more than just producing and distributing a franchisor's product as in the manufacturer type of franchise, and more than simply selling a franchisor's product as in the product type of franchise. Instead, entrepreneurs who choose the franchise business format are really purchasing the franchisor's strategic business operation model, which has proven to be effective; and the right to produce, distribute and/or sell the franchisor's goods and/or services comes along with that purchase. • Single-Unit Franchise Ownership – As stated earlier, types of franchises are categorized not only by the structure but also by ownership. The most common type of franchise ownership is one that is offered as a single-unit franchise. This type of franchisee purchases the right to own and operate one franchise location. Most entrepreneurs who invest in a franchise---whether as a business format franchisee, a product franchisee or a manufacturer franchisee---buy into the franchise as this type of franchise owner. • Multi-Unit & Area Development Franchise Ownership – Aggressive or experienced franchisees may opt for a more involved type of franchise ownership such as multi-unit franchise ownership or area development franchise ownership. The two types of franchise ownership types are similar in that the franchise owner has more to manage than a single-unit franchise owner and they differ only in how and what is managed. The multi-unit franchise owner manages multiple franchise locations while the area development franchise owner typically owns a single franchise that has the right to do business across a vast area---multiple cities or states, for instance.
  • 4.
  • 5. INTRODUCTION • Royal Enfield motorcycles made in England were being sold in India from 1949 • In 1955, the Indian government looked for a suitable motorcycle for its police and army, for patrolling the country's border. • The Bullet was chosen as the most suitable bike for the job.
  • 6. Stores World wide • Dealing with 45 countries across the world. • 1145 Showrooms across the country. • 285 stores of royal enfield across the India. • In mumbai it has more than 19 stores. • Grant Road, Nerul, Bhandup, Bandra, Kandivali, Malad, Thane, Byculla, Panvel, Mira-Road etc..
  • 7. Franchise Facts: Area Required: 4000 sq. ft. Investment: Rs. 50lac - Rs. 1 Cr. Franchise/Brand Fee: Rs.100,000 Royalty/Commission: 5% of vehicle sale Franchisor Support: • Marketing support & advertisement assistance • Site selection assistance is provided to the franchisee • Detailed operating manuals will be provided to franchisee • Field assistance is also available for the franchisee • Franchisee training done at Chennai & Chandigarh
  • 8. Advantages of Franchise: • Established brand name & logo • Present IT system will be included in franchise • Great returns on investment • Proven business model for success • Join the finest and brightest of teams in the country as a franchisee now
  • 9.
  • 10. INTRODUCTION • Speed Car Wash a concept developed by LIV INDIA to organize the Car Cleaning segment to give the community a new definition of car care and detailing services which are not professionally followed in India. • Today mechanized car cleaning system is already a $5.97 billion business in US with more than 14,414 Successful Outlets and In India it is just at the threshold of picking up.
  • 11. PROJECT COST • To start a Speed Car Wash franchise, an estimated below sum of INR 12- 15 Lacs will be required. This sum will cover expenses for: License Fee, Equipment and Accessories, Infrastructure (External and Internal Fabrication), I.T. system (Hardware and Software), Promotional material and Startup kits. • MONTHLY INCOME: 1Lac P.M.(Approx.): 10 to 12 CARS EVERYDAY 1.25 Lac P.M.(Approx.): 12 to 15 CARS EVERYDAY
  • 12. REQUIREMENTS • Total of 1000 to 1200 Sq. Ft. of bare space (The space can either be open or covered) Location is an important aspect of the business. prefer location where we can be more visible to Technical Aspects of the Site Business Aspects of the Site covered) Three phase power point connection with a connected load of 15 KW as maximum • Total of 3 to 5K liters of water availability per day Drainage facilities to dispose of the waste water where we can be more visible to people. Sites near to residential blocks, markets, shopping complex can be considered Site near to petrol pump or on highways can also be considered Sites at the parking of the malls can be a strategic business