The Best way to grow/expansion your business is franchise way
What is the franchise? Why is the franchise? Where is the franchise? Who is the franchise?
In its most simple definition, a franchise is a business opportunity that all the franchisees to start a business by legally using someone else's (the franchisor's) expertise, ideas, and processes.
The franchise is the best way to grow your business fast and with low risk. In today’s world, everyone wants to run his/her own business successfully. But due to the intense competition, it would be difficult to find niche place in local markets as existing players have already established amazing brand awareness.
Franchising is an effective and proven route to start your own business/practice.
Here are some benefits of Franchising
- Fast expansion/Growth of business
- Penetrating new markets
- Increase brand value and presence
- Reduced Capital and Operational expenditure (Low asset model)
- Higher return on investment
- Lower risk of business
There are different Franchise Business Models
1. (COCO): Company owned Company Operated
A company begins operations with Company Owned and Company Operated Model of business (COCO) but when the brand is well set, the company gets into a franchise model to reduce operational cost, capital cost and to increase the return on investment through the brand value that the company has created for itself.
2. (FOFO): Franchise Owned Franchisee Operated
Examples: Fast Food Chains like Subway, McDonalds/ Retail Healthcare wherein the business is owned and operated by the franchise butRegular audits are done by the Company to ensure standards are maintained as agreed.
The training of staffs, initial store/clinic/office setup is done by the Company and handed over to the Franchise to oversee the operations and maintain standards based on SOPs set by the Company.
3. (FOCO): Franchise Owned Company Operated
Examples: for this model are Exclusive Brand Outlets in fashion and lifestyle retail segment where the brand operates the business with its staffs as per its standards and the business is owned by a local or national franchise.
The franchise owns the business but the brand and the operations are handled by the company with regular reporting done to the franchisee on the performance of the business. The franchisee can oversee the business and question the Company in case of poor performance.
4. (COFO): Company Owned Franchise Operated
Examples: Cafeterias within Hospitals/Cinemas and Corporates that are owned by the company but operated by a franchise
This model is adopted by Companies when they want to reduce their operational expenditure.
The company leases the operations of the business to an interested franchise to take over the operations of the business with the former holding training and SOP audits to ensure standards are followed. The business ownership still lies solely with the Company
5. (FICO): Franchise Invested Company Operated
Only an agreed fixed amount is paid to the Franchisee by the company for the investment done by the franchise in the business.
This model is similar to FOCO but the difference here is unlike FOCO the franchise does not involve themselves in business operations at all.
How we can help you:
With our rich experience in different industries and segments, we can advise you the best-suited Franchise model for your business. Following are some means and ways to help you:
- Understanding and study of your existing business
- Advise on the best-fit business model for your business
- Making business plans for you and franchisee
- Digital Marketing Support
- Help in getting the Franchisee partners
- Arranging Finance
- Financial and Accounting Support
- Legal Support