Reference: Retail Franchising by Manish Siphdpuria

1. Preparing for Franchising
With Ms. Carlyn Villareal
Concepts of Franchise ability

2. 4 pics
“Concepts of Franchise ability”

3. D E S F T I X R P W O
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4. P R O F I T
P R O F I T
D E S F T I X R P W O

5. 1. Profitability
Concepts of Franchise ability
Profitability is the primary goal of all business
ventures. Without it the business will not survive
in the long run.
To most franchise owners, profitability is the
single definition of success.
“The greater the profits, the greater
the success.”

6. A E F W X L C I D B E S L
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7. F L E X I B L E
F L E X I B L E
A E F W X L C I D B E S L

8. 2. Flexibility
Concepts of Franchise ability
The lack of flexibility inhibits the growth of the
franchise and eventually makes it an unviable
business proposition.
This flexibility of the franchise system should allow
the franchisors to tailor all their marketing efforts to
meet not only the legal requirement of the local
market, but also the cultural and behavioral aspects
of the local market.

9. Y R T V E N R S A S W N G
F
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10. T R A N S F E R
T R A N S F E R
Y R T V E N R S A S W N G
F

11. 3. Transferability of a Business Model
Concepts of Franchise ability
A firm that intends to implement growth strategy
through franchising route should be able to
ensure whether the business model is
transferable to the franchisee.
The transferability of a franchise model depends
on the degree of complexity of a system.

12. T Q S D I A D P R N L A V
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13. S T A N D A R D
S T A N D A R D
T Q S D I A D P R N L A V

14. 4. Standardization
Concepts of Franchise ability
The franchise manual contains all minute
details about the conduct of the business.
The standardization of the product/service
offerings and other related areas help
franchisors maintain uniformity of operation
across the system and consistency in the
quality of services being provided by the
franchisees.

15. Y N T P M P J O R K E G O
T
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16. P R O T O T Y P E
P R O T O T Y P E
Y N T P M P J O R K E G O
T

17. 5. Prototype
Concepts of Franchise ability
The firm willing to franchise out its business must
develop a successful prototype in order to train the
potential franchisees the way of carrying out its
business.

18. H S B U J R T L I T
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19. T R U S T
T R U S T
H S B U J R T L I T

20. 6. Trustworthiness
Concepts of Franchise ability
The firm must, in order to sell franchises, establish its
creditworthiness in the eyes of its prospective
franchisees.
Function of several variables such as:
• Size of the organization
• Number of years of operation
• Number of franchised units in operation
• Brand awareness
• Brand equity
• Reputation of the management of the firm
• Commitment to relationships

21. N G T M H J M A G P A K E E
N
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22. M A N A G E M E N T
M A N A G E M E N T
N G T M H J M A G P A K E E N

23. 7. Management competency
Concepts of Franchise ability
It is essential that the management should be
competent enough to identify the right
entrepreneurial talents at various places, convert
them as territory business partners (franchisees)
and establish a strong relationship with them in
order to ensure a system-wide success.
Reference:
“Retail Franchising” by Manish Sidhpuria

24. THANK YOU 