Franchise Consultant Services
The Best way to grow/expand your business is a 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 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 a 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
Usually, the company starts operations with Company Owned and Company Operated business Model (COCO). Once the brand is well established, SOPs are well set, the company gets into a franchise model to expand its business and footprint in the national and international market. Also, this is the best way 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 Franchise Operated
In this model, the company allows using their copyright or brand to the franchise for a particular period of time and for a non-refundable sum. The company does the national level marketing and the franchise is supposed to do local level marketing. The operational costs have to be borne by the franchise. The franchise has to provide an assured minimum guarantee or percentage share of revenue to the company.
Examples: Fast Food Chains like Subway, McDonald's/ Retail Healthcare wherein the business is owned and operated by the franchise but regular audits are done by the Company to ensure standards are maintained as agreed.
The training of staff, 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
In the FOCO model, the franchise puts the initial business set-up cost. Business running cost is being invested by the company providing brand and SOPs. In return of investment, the franchisee gets a minimum guarantee or percentage of revenue earned. The company will be responsible for the operations of the business and hence will provide such as Marketing, Advertising, Logistics, Electricity, Staff wages, rent, etc.
Examples: for this model are Exclusive Brand Outlets in the fashion and lifestyle retail segment where the brand operates the business with its staff 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 interesting 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 on the best-suited Franchise model for your business. Following are some means and ways to help you:
Complete business set up end to end solution
Understanding and study of your existing business
Advise on the best-fit business model for your business
Making business plans for you and the franchisee
Digital Marketing Support
Help in getting the Franchisee partners
Financial and Accounting Support
For further discussion, we will be pleased to have a personal meeting with you. Write to us firstname.lastname@example.org
or contact us at https://www.philosophersstone.in/contact.php