Franchising helps small businesses reach out to new and bigger markets and improve their visibility and profitability

1. How Franchising May Help
Businesses Overcome the COVID
Slowdown
1
Your Retail Coach

2. INDEX
2
Your Retail Coach
1. INTRODUCTION
2. TYPES OF FRANCHISING
3. SHARED CAPITAL BURDEN
4. USING THE BRAND POWER
5. AVAILING EXPERTISE AND EXPERIENCE OF THE
FRANCHISOR
6. RE-ENGAGE MANPOWER
7. RISK OPTIMIZATION
8. A GOOD TIME FOR DIGITAL COMMERCE
9. SUMMARY

3. 1. INTRODUCTION
3
Your Retail Coach
INDEX
Bigger firms use this model
to reduce their operational
costs, focus on their core
competencies, and
penetrate existing and new
markets
Franchising helps small
businesses reach out to new
and bigger markets and
improve their visibility and
profitability
In franchising, there’s a
franchisor that grants
license or rights to a
franchisee to carry out
business on behalf of the
former based on an agreed
framework and bound by a
contract

4. 2. TYPES OF FRANCHISING
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Your Retail Coach
INDEX
01
02
03
04
COFO (Company Owned Franchise Operated)
FOFO (Franchise Owned Franchise Operated)
FOCO (Franchise Owned Company Operated)
FICO (Franchise Invested Company Operated)
 The franchisee is required to maintain the overall business and operational standards
laid down by the franchisor company for its franchisee stores

5. 3. SHARED CAPITAL BURDEN
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 An economy runs on consumption and people are not
able to spend because of the lockdown
 For any business to grow or expand, lack of capital serves
as the most common barrier which now stands
accentuated due to the pandemic crisis
 A lot of businesses are suffering due to lost demand and
sales and cash inflow has hit zero for almost all businesses
 Franchising emerges as a ray of hope for businesses and
entrepreneurs to work on business growth and
development under the COFO model
Your Retail Coach
INDEX

6. 4. USING THE BRAND POWER
6
 In the post lockdown era, big brands might remain
advantageous over brands with lesser visibility or
customer awareness or the necessary resourcefulness
 Given the capabilities of the big companies in terms of
their supply chain, logistics and infrastructure, financial
prowess, and their brand value, these companies can
serve as an umbrella organization for smaller, local
businesses
 Small businesses can associate with big brands via suitable
franchising arrangements and keep their business running
 The associated brand and reputation of the franchisor
company will also help the smaller businesses in catering
to their local markets
Your Retail Coach
INDEX

7. 5. AVAILING EXPERTISE AND EXPERIENCE OF THE FRANCHISOR
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 With the expertise of the franchisor in handling
similar businesses and its experience of operating
in the same industry, franchisees will have an upper
hand in quickly setting up the business framework
 Franchisees will also save time and effort otherwise
involved in building a new supply chain network
 Franchise business development plans also give the
desirable entrepreneurs a platform of opportunity
to start their business
Your Retail Coach
INDEX

8. 6. RE-ENGAGE MANPOWER
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 In the post lockdown era, unemployment will be a big
economic concern
 With lesser business activity, there will be lesser
manpower requirements
 The franchising route may provide an opportunity for
businesses in getting back their lost momentum
 The increased business activity shall reinstate the need for
human resources
Your Retail Coach
INDEX

9. 7. RISK OPTIMIZATION
9
Your Retail Coach
INDEX
 With reduced demand for consumption, the
risks of running an existing business or
expanding during or after the COVID crisis
has increased drastically
 When existing businesses are fighting to
survive, franchising models can give them a
helping hand in recovering and getting back
on their feet
 A well-defined retail franchise business plan
will help ensure that the existing supply chain
network of the franchisor is accessible to the
franchisee businesses
 The risk of losing out on sales and market
share reduces with a franchise model
business plan

10. 8. A GOOD TIME FOR DIGITAL COMMERCE
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 Small businesses for whom going digital and being tech-
driven was not conceived as a necessity is slowly turning
out to be a strong possibility in the near future
 Technology is not just an enabler but is a necessity for
improved effectiveness and efficiency for business
 With franchising and a well-defined franchise business
development plan, the franchisor’s existing digital and
technological network and infrastructure can be used by
the franchisee businesses
Your Retail Coach
INDEX

11. 9. SUMMARY
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Your Retail Coach
INDEX
From sharing capital burden to risk optimization, franchising
opportunities may emerge as a winning formula in the post
lockdown period
01
But that will also call for robust planning and a well-defined
roadmap in consideration of all the relevant factors for
franchise business development
02

12. 12
Thank You
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slowdown/
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