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HAPPY LEARNING CENTER
Approach Note
June 2013

Francorp India Advisors Pvt. Ltd.
1

About Francorp- Franchise India
Service lines offered
Relationship with Franchise India
Marketing Ecosystem

2
Francorp - a Global Franchise consulting group
Ever since its inception in 1976, Francorp has been the unsurpassed leader of the Franchise
Consulting Industry globally. It has been providing end-to-end franchise solutions to over 2,000
enterprises worldwide.

Based out of Chicago, Francorp has assisted companies in virtually every market segment with
its patented processes and unmatched expertise. With 16 offices outside the U.S. Francorp
services more than 45 countries globally.
The practice is supported by an integrated, cross-functional, international team of experienced
professionals who specialize in providing value-added multidisciplinary services to companies
that own, develop or operate through franchising. We count among our clients, 90% of the
organized companies/ fresh businesses aiming to make it big in the franchising industry in India.
and serve more companies in the entire spectrum industry than any other professional service
firm.

The Francorp team of professionals brings innovative solutions that incorporate industry best
practices and cutting edge strategies to address the particular risks, challenges and needs of
opportunity, value added and franchise offerings of the industry.

3
Strategy I Legal I Operations I Marketing I Sales I Training
Focused sector practices | Coordinated service lines | Specialty groups
Sector and specialty approach
Apparel|
Aviation training school |
Pre school|
Pharmaceuticals retail|
Retail & Consumer products |
Business school|
Online MBA programs |
Hospitality |

Media & entertainment |
Real estate & training |
Telecommunications |
Facility management|
Soft skills training |
Beauty & wellness |
Jewelry |
Home décor & furnishings |

Consumer
services |
Food &
Beverages|
Home based
businesses |
MLM
businesses |

Francorp India Accolades
Consulted over 150 clients in
India until now with knowledge
base of more than 2000 clients
world wide

Francorp India‟s service lines
Advisory
Strategic planning
Franchise feasibility
Review &
recommendation
approach
Franchise
development
model

Legal
Franchisor legal
agreement
Franchisee legal
agreement (Master/
Area/ Unit)

Marketing
Development of
Marketing
communication for
franchise sales

Operations
Operating
procedures
Sales & Training
manuals.

Delhi
Gurgaon

Ahmeda bad
Kol kat a

Mumbai
Pune

Hyderabad

Bangalo re
Chennai

4
Francorp India in relationship with Franchise India
Francorp & Franchise India Holdings Limited
FIHL with its core and in-depth industry expertise in Indian market for
over a decade brought Francorp to India in Nov. 2008
With aim to provide a strategic objective of combining FIHL‟s core
competences and experience with Francorp‟s vast knowledge and
systems
Thus, the international benchmark of providing franchising
management solutions internationally to franchisors

In India both FIHL and Francorp have combined their capacities and
leverage on local interface and international expertise which we bring
to the aspiring franchisor of India.

Franchise India
International

Franchise India.
com

Franchise India
Property

Franchise India
Publication

Franchise India
brands ltd

Franchise India
Exhibitions

Franchise India Holding Limited

5

Francorp
Marketing Ecosystem for Franchise acquisition
About 12 exhibitions & 40+
road shows across the
country every year.
Trade shows

Multiple SMS sent to
the entire database.

Leading
Business
Magazines & In
house
franchise
magazines

1. Ads in out house magazines such
as Business Today/ India today.
2) The Franchise World is 2nd highest
selling business distributed through
India today group.

Print ads in
Leading News
papers

SMS Blast

Email Blast

Business opportunity
adv. Thorough
Economic times
&Times of India or any
other leading local
news paper

Website

Generates about
5000 hits very day.

Emails sent to 125000
prospective investors.

In addition, Discovery day/ FranMatch would be organized to have a
one to one meeting with the investor and the final deal sign-up
6
2

Landscape of Franchising in India
Current Models of Franchising
Reasons for companies to franchise

7
Franchising as a tool to growth
Franchising
• Independent business owners to be part of a network
• Structured approach for executing the business. While the business
owner can focus on mapping out the larger activities. The franchisee
can control the last leg service.
• Many use it as a tool for capital investment. Big brands such as
Mahindra will prefer franchising for the local operational expertise it
brings in the format.

Structure
• Companies can look for giving larger territories. However, master/
area franchising is most prevalent in International brands.
• Unit and multi unit franchisee options are the most sought after
franchise opportunity for the domestic expansion plans.

Competitive Advantage of Franchising
• Independent business owner/operators
• A greater level of commitment and accountability than employees.
• Simplest way to raising funds (w/o parting ways with equity)

8
Franchising in India
Market Size
& Growth

The rapidly growing franchise industry in India, although at a very nascent stage, is said to be the
second largest in the world.

With the current growth pegged at nearly 30-40%, the industry is poised for an even more rapid
growth in the forthcoming years.
With an annual turnover of nearly US$3.3 billion, it consists of nearly 1000 franchisors (only 10%
being foreign owned) and about a million franchisees.

Key reasons
for growth

Franchising has been steadily gaining popularity because of the huge untapped potential in the
Indian context, emergence of tier I and II cities as the next big retail destination, the relatively
lower level of capital required to start the business, lower risk and availability of established brand
names, marketing network and sales channels
Relaxation of foreign investment rules, liberalized WTO guidelines and greater incentives from the
government have further spurted the growth
Also, the Foreign Direct Investment (FDI) policy for organized retail does not permit the direct entry
of foreign retailers. The latter, therefore, have to resort to franchised business models to enter the
Indian market.

9
Reasons for companies to get into franchising…
Companies resort to franchising
with different objectives.. However,
the same can be broadly
differentiated by the following:

Risk
mitigation

Raise Capital

Reasons:
Why companies
Franchise?

Management
focus on core
competencies

Operational
excellence

Deeper
Penetration

10
Happy Learning Center until now has followed a company owned approach

however for deeper penetration Franchising would be appropriate..
Company Owned Centers

Franchisee Centers
1. Franchise to invest - transfer the risk of
investment to a third party

1. Company owned formats are great for
learning and setting up benchmarks

2. Exponential growth with multiple outlets

2. One can handpick the staff, be very
selective on recruitment ; Incompetency can
be replaced

3. Company can Invest time on strategy
development
4. With vested interest, the franchise will be self
motivated; therefore brings in 10 -15% efficiency
in the overall store performance

3. 100% compliance on operations manual
4. Definitely, larger margins due to no
middle men in between

5. Lesser operational challenges due to local
knowledge

1. Own Investment - higher cost of capital
2. Linear Growth; limited roll out possible

1. One cannot replace incompetent franchise;
has to continue through the term of contract

3. Both the backend and front end lies on
the company; large man power requirement

3. Franchisor - Franchise relationship critical

4. The onus of entire supply chain lies on the
company

4. Performance of one outlet can hamper
image of the entire chain

5. High Operational challenges for running a
local driven business

Franchise business model combines limited risk with Profit potential, rapid growth with long term stability
Recommendation: Happy Learning Center should now focus on penetrating deeper through franchise
model to develop Maharashtra cluster network as discussed.
11
Understanding about HAPPY LEARNING CENTER
Francorp View
“ Happy Learning Center” has already initiated the business;
Companies venture into newer markets through a mix of
Done it, performed it in a streamlined manner.
company owned and franchisee units. Happy Learning Center
However, in order to capitalize the opportunity, the
has the bandwidth to exponentially penetrate the markets
through franchising only.
company should consider sustainable growth phase
through franchising”
The company has aggressive growth plans to venture into Pan
India.

Saturation

Happy Learning Center
Deeper
strategy for the next
Penetration 1 -5 yrs

• Numerous Operational challenges wherein the franchisee can be
the best person to operate the same
• It is estimated that the franchisee generally brings in the 10- 15
per cent better efficiencies in the system
• Quality man power at cheaper cost, low cost of training and
100% attention to the Happy Learning Center will bring its own set of
advantages.
• Company can focus on broader objectives and be “ON Business
roles”
rather than “IN the business roles”

Growth

Roll Out

Thus, we feel Franchising would be the best way to address the
currently faced issues
12
What would franchising address for Happy Learning Center?
1
Opportunity to raise
external capital

Franchising is the modern way to raise capital.
The cost of franchising is often a smaller investment than the cost of
establishing even one new outlet.
After paying the cost of the franchise program, the remaining costs of
expansion (as well as most of the risk) are assumed by franchisees. And
since franchisees usually pay the franchisor an up-front fee and royalties,
the right strategy for selling your franchise idea can become an immediate
high-impact low-risk revenue source.
Happy Learning Center should focus on expansion by building its’ own
franchise network rather than asking internal capital or external capital
thorough ways of equity funds.

13
What would franchising address for Happy Learning Center
2
Deeper & faster
penetration PAN
India( North/Central
/West and East)

Happy Learning Center needs to secure its expansion by scouting for opportunities
to Further roll out in newer territories and expand its reach into other tier I, and
II cities apart from metros.
Franchising is opted to target a larger audience.
It is the best mode to increase the brand equity, brand presence and brand
acceptability.
Moreover, it requires lower investments to reach out to a much larger target
consumer base.
Franchising is the only way to penetrate the new markets by partnering with
local people who have good local knowledge and are willing to become
partners by sharing the same vision and therefore works hard to achieve his
financial profitability

3
Best way to combat
operational
challenges

Franchise to invest - transfer the risk of investment to a third party
Exponential growth with multiple outlets; Franchisor to Invest time on
strategy development
With vested interest, the franchise will be self motivated

14
Franchising further, can be broadly classified into..
Product based
franchising

Service based
franchising

Ideally, the revenues are earned by way of margins
on the product

The technical know how is kept by the company

Typically, less franchisee fees are charged by the
company

Higher franchisee fees are being charged.

No Royalties are charged

Along with monthly royalty payments

Stock correction/ Debt/ EOSS offers/ Discounts are
the key challenges

Technical training, Last leg Service to the customer,
Use of equipments are critical concerns

Corporate franchisors would typically charge the
Supply chain fees, Training fees etc
Francorp in the second stage of business model development would develop the same for Happy Learning Center
15
3

Approach to Happy Learning Center business model

16
Apart from deeper penetration, a strong franchise business model
can assure successful franchisees..
Critical parameters Detailed aspects which seek concern
Standardization of
 Business model to be followed
business model

 Develop the complete business
model

 Lead generation process

Franchisee Profile & Sales funnel

behavioral aspect  Franchise due diligence

 Franchisee Efforts & Behavior towards the company
 Type of person given the franchisee
 Selection & recrutiment criteria
 Site selection support
Defined process &  Franchise Evaluation process
 Committee structure
procedures
 Operational SOP s for Franchisee
 franchise development team
 Reporting structure

Payment of product Timely invoice raising

dues/ Royalties

Local marketing

How francorp can assist
Happy Learning Center

 Timely payment of the monthly royalties
 Local marketing
 Brand marketing on a regional/ city level
 Marketing Collaterals Design support
 Marketing action plan Planning
 Marketing action plan Execution
17

 The same is covered in the
Marketing action plan, recruitment
documentations and manuals

 Shall be recommend both at the
strategy level as well as operations
manual stage

 Detail guidelines & compliance
format in the Operations Manual
 Outward marketing is Franchisor
responsibility; In store marketing is
Franchisee's. Exact terms &
conditions shall be identified and
recommended
Contd..
Critical parameters Detailed aspects which seek concern

Supply chain

Training of
franchisee

Branding
CRM

 Product & Service identification
 SKU number and mix at the franchisee store
 Product supply chain management
 Cost price & Sales price
 Pre opening support & training
 Launch planning
 Media interaction
 Press releases
 Technical training
 Business management training
 Training to the franchise manpower
 Man hour training at the company owned store
 Availability of the designated resource not available
 Refresher training
 Architecture & design support
 Signage display
 Branding
 Staff uniforms & badges
 CRM practices
 Roles & Responsibilities needs to be critically defined

18

How francorp can assist
Happy Learning Center”
 Standards & team structure
required along with KRAs shall be
defined by Francorp: However
need to implemented by the
company only

 Standard operating procedures for
franchisee management as well as
franchise training manuals shall be
created by francorp

 Best practices shall be
recommended
 Sections on CRM best practices
shall be included in the Operations
manual only
Contd..

Critical parameters Detailed aspects which seek concern

Audit process &
Guidelines

 Franchise audit
 Branding audit
 Marketing audit
 Operations audit
 Reporting audit
 Post Audit Feedback
 Timelines to be defined for Implementation

19

How francorp can assist
Happy Learning Center”?
 All Audit samples/ guidelines shall
be designed by Francorp. Later in
the implementation stage,
Francorp would oversea the
implementation process if agreed
upon
Key Operating models in franchising in Indian markets
Own Investment - higher cost
of capital ; Linear Growth

In both the models, company does invest with the
franchisee but NOT necessarily in the monetary aspect

High
time
administration
operation

Exponential growth possible by minimal amount of
investment from the company’s perspective but a
significant interest from the franchisee ends.

spent
on
of
daily

Training
and
Man
management of such stores a
big challenge
COCO kiosks/stores proves the
scalability of the business
model

COMPANY OWNED &
COMPANY OPERATED (COCO)

The company might look at investing with the franchisee
in some or the other way. It can be by way of capex/ or
some support in the financial profitability of the
franchisee business.
Good strategy for the company who wants to have the
market share as well as the complete control over all the
stores.

Full format franchising
Franchise to invest; With
vested interest, the franchise
will be self motivated and
will do everything possible to
make the store successful
Exponential growth with
multiple outlets possible at
no time
Company should Invest time
on strategy development

FRANCHISE OWNED &
FRANCHISE OPERATED
FRANCHISE OWNED &
COMPANY OWNED &
(FOFO)
COMPANY OPERATED (FOCO) FRANCHISEE OPERATED (COFO)

Various types of franchising models operating in the markets
Happy Learning Center is currently operating as a pure company owned and company operated
business model
Basis the company’s vision and the industry benchmark, Francorp would advise the best
suitable model or the multi model strategy for expansion.
This would be selective of the competition as well as the city/ neighborhood profile to accept
such formats. Also, it would be devised considering the financial profitability of the franchisee.
20
4

How Francorp can assist Happy Learning Center?
Broader deliverables of the project

21
Our Approach for “Happy Learning Center”
We have designed our approach, in line with the terms of reference. Further, our approach is based on our
expertise in executing similar assignments. Francorp proposes to undertake the assignment as per the following
steps:

Project Initialization

STEP I

Inception Meeting
Analysis of the current offerings/ Formats viz. competition

STEP II

Market Opportunity Assessment

STEP III

Project Development Plan

STEP IV
STEP V
STEP VI

Financial Feasibility Assessment
Structuring of the Business & Financial Plans
Marketing Collaterals development

STEP VII

Operational manual

STEP VIII

Legal documentation

STEP IX

Franchise Marketing & Recruitment
22
Project Initialization- Inception Meeting
Francorp would carry out meeting with the key personnel of the Happy Learning Center in order to validate their objectives and understand

their expectations. The meeting would assist in setting up a common platform for the proposed assignment for both the teams i.e.
Happy Learning Center and Francorp. The meeting (s) would aim to achieve the following:

Happy Learning Center

Discussion

Garner details of the proposed format. Evaluate the current situation

Understand the specific goals and objectives for the proposed project
Obtain information on the expected growth viz. current capabilities of the
management/ product portfolio etc
Obtain information on the envisaged investment details for the franchisee
Set a common platform of understanding and expectations for the
proposed exercise

23

Francorp
Our Methodology: Advisory
Market Opportunity Assessment
Francorp would study the respective market/ category to understand the industry dynamics and the feasibility of the proposed assignment. The
analysis would be based on:
Market data and the information from major intermediaries related in the this entire segment
Information through sample study/ market research/ and real time basis focus group programs
Information / data from databases already subscribed by Francorp
Secondary research on information available in public domain
Other desk studies

MARKET OPPORTUNITY ASSSESSMENT
Market Overview
• Market size and growth rate
• Market segmentation
• Market dynamics and trends
• Key growth drivers for the sector
• Structure across value chain
• Average revenues expected
• Profile & revenue structure
• Location and Target market preference of such formats
• Value added segments/ revenue optimizers

Competitors Analysis
• Franchise offerings of the competition
• Identify the support structure (if any)
• Comment on the business practices (franchise marketing budget payments,
insurances, vendor arrangement,, application of COCO, FOFO, COFO, FOCO
models, Minimum guarantee, manpower requirements and franchise retention
policies etc)
• Location and Target market preference of the competition
• Unique Selling Proposition
• Identify the benefits/incentives offered to potential investors (if any)
• Average franchise fees, set up cost etc
24
Our Methodology : Advisory
Critical Recommendation on the business format

Francorp would define the potential target market as per the concept of proposed project. Accordingly, a detailed assessment would be

done for the project.
SWOT analysis of the company’s offering
vs. the Competition offerings

Assessment of critical factors size, HR,
student, facility, OPEX optimization

Locking period, royalty, franchisee fees,
type of business model, Ins. policies

Support structure (both monetary and non
monetary) to be offered to the franchisee

Franchise profile (type of investors to
partner with)

Target
Market

Roll out parameters and five year roll out

Franchisor and franchisee obligations
rule sheet

Location selection criteria

Analysis of Factors affecting demand and supply dynamics

Average ticket prices per category
Average per sq ft / Efficiency per sq ft
Format revenue and cost optimization and break even analysis

25
Our Methodology : Advisory
Financial projection & model
Based on demand - supply analysis, Francorp along with the group would create the detailed financials for both the franchisor and the
franchisee. This would indicate both the parties X year financial plans.

Break-even analysis &
Proposed capital
structure
Capital budget and
additional capex in
projection period
(X year)

Area of the format

Financial modeling
Operational cost of both
Franchisor & franchisee

Type of business model

Franchise Set up cost
with industry benchmarks

26
Our Methodology : Advisory
Project Development Plan
Francorp would assist the client in preparing the complete Franchise development plan, as well as a list of key
project components in terms of various the compactness of the business model ( can vary also, as the chances
of going to different markets with different business models could be high) based on the specialized needs of
the format and the management. For each component Francorp would also recommend the best practices of
each segment. This step would address the following aspects:
 Determine the key components of the project (area classification/No required/ franchise fees)
 Basic and support infrastructure facilities (area allocation to extra curricular activities etc)
 Determine the target market for the project
 Franchise Acquisition strategy
 Franchise profile
 Roll out plan
 Franchisor HR Structure/Internal Staffing
 Franchise business plan
 Franchisor & franchisee Five Year Business Plan along with projections of revenue and cost streams.
27
Our Methodology : Advisory
Other key deliverables for franchising
The specific deliverable for this assignment would be a Franchise Development program comprising of:
Complete franchisee documentation ( Essential to growth)
Franchisee lead generation, management and recruitment

Key Deliverables

• Franchise sales
offer document
• Email blasts/ Ads

Strategy

Marketing

•Franchise Business Model/s
•Franchise Roll-out Plan
•Franchise Owner Profile
•Types of Franchisees offered
•Franchise support programs
•Internal Staffing
•Franchise Revenue Sources
•Franchise Structure Report

Clients business

• Daily operating manual
(for format operations
• Reporting structure
• Sales manual
• Training manual

Operations

Legal

28

• Franchise focused: Legal
team
• Franchise Legal agreement
as per the acquisition
strategy
• Non Disclosure agreement
• Confidential agreements
5

Project Flow Chart for Happy Learning Center?
Broader deliverables of the project

29
Key deliverables from the engagement
Market assessment for „Happy Learning Center‟ expansion plans
Proof of concept of proposed retail proposition
Franchisee Proposition with financial terms & conditions
Franchisee acquisition strategy
Brand Positioning
Financial plan for of the franchise business
Franchisee Profiling
HR structure at Franchisee & at Happy Learning Center
Potential markets & roll out strategy in 1st Year
X-yr financial plan for Happy Learning Center
X-yr Marketing plan for Happy Learning Center
30
We would follow a phased approach in order to best meet your requirements

Francorp proposes the following phases for this engagement…
Phase - 0
Diagnosis

Phase - 1
Conceptualization

Market Study &
opportunity
Assessment

Scientific
approach
to business
modeling

Phase - 3
Expansion strategy

Franchisibility
Assessment

Phase - 4
Franchisee acquisition

4

3

2

1

0

Phase - 2
Franchising

Roll-out plan
For acquiring
Franchisee

Franchisee
Acquisition

Business Advisory

We have presented our detailed approach including work steps for
Phase -0, Phase-1, Phase-2, Phase-2, Phase-4
31
Phas1: Diagnoses
Phase - 0
Diagnosis

0
Market Study &
opportunity
Assessment

Phase - 1
Conceptualization

1

Phase - 2
Implementation

Scientific
approach
to business
modeling

Franchisibility
Assessment

What we do

Phase - 4
Franchisee acquisition

3

2

Phase - 3
Expansion strategy

4
Roll-out plan
For acquiring
Franchisee

Franchisee
Acquisition

What we Achieve
Understanding on the Industry & Business

Initial information download from Happy Learning
Center

Identify the Need gap in the Business
Our Research

Consumer buy pattern to build 7Ps in the
business

• Industry assessment
•Analysis of Customer buyer behavior
• Competition activity

Best business practice to benchmark our
proposition

32
Phase2: conceptualization
Phase - 0
Diagnosis

Phase - 1
Conceptualization

0

Product
• Company’s
Products &
Service Range

Scientific
approach
to business
modeling

Place
• Ideal Location
criteria
• Pan India

Franchisibility
Assessment

Promotion

Pricing

• Brand
Positioning
• Destination &
Preferred
products &
service

• Basis the
competition
& Target
customer
group
• Competitive
pricing
strategy

33

Phase - 3
Expansion strategy

Phase - 4
Franchisee acquisition

3

2

1

Diagnoses of
current operation

Phase - 2
Implementation

4
Roll-out plan
For acquiring
Franchisee

People

Franchisee
Acquisition

Processes

• Ideal Partner
• We built a list
Profile
of processes
• HR structure
that would be
at Franchisee
required to
• HR structure
manage &
At Happy
Learning Center
expand
franchisee
network like
• Control
mechanism
• Reporting
structures
• Royalty other
fee collection
• Training
processes

Physical
Evidence
• Size of the
outlet
• Profile of the
outlet
Phase3: Implementation
Phase - 0
Diagnosis

0
Diagnoses of
current operation

Phase - 1
Conceptualization

Phase - 2
Implementation

Scientific
approach
to business
modeling

Franchisibility
Assessment

What we do

Phase - 4
Franchisee acquisition

3

2

1

Phase - 3
Expansion strategy

4
Roll-out plan
For acquiring
Franchisee

Franchisee
Acquisition

What we Achieve

Need of Franchising in the business

Phase 1 & Phase 2 are intertwined
Processed in parallel

Company’s Assessment as Franchisor
• SWOT Analysis
• 12-Pt Franchisibility assessment

Franchise Proposition with financial terms &
conditions

Investor’s view On the Opportunity
• Reasons for investor to consider Happy Learning Center
As Franchisor
•Financial Assessment of the Franchise proposition

Ideal Franchisee Profile

34
Phase4: Roll-Out Plan
Phase - 0
Diagnosis

0

Phase - 1
Conceptualization
Scientific
approach
to business
modeling

Phase - 3
Expansion strategy

Phase - 4
Franchisee acquisition

3

2

1

Diagnoses of
current operation

Phase - 2
Implementation

4

Franchisibility
Assessment

Roll-out plan
For acquiring
Franchisee

We define a detailed roll-out plan for next x-yrs which covers
• This will be basis Strategic, Financial, Operational & marketing sense of the business
• Ideal city profile
•Site selection criterion
•Number of cities to Enter

Parameters for selection of site which could be basis
• Conversion franchisee
• Last mile customer servicing center
• Target customer group approach
• Competition presence

35

Franchisee
Acquisition
Phase5: Franchisee Acquisition
Phase - 0
Diagnosis

0

Phase - 1
Conceptualization
Scientific
approach
to business
modeling

Franchisibility
Assessment

What we do

Phase - 3
Expansion strategy

Phase - 4
Franchisee acquisition

3

2

1

Diagnoses of
current operation

Phase - 2
Implementation

4
Roll-out plan
For acquiring
Franchisee

What we Achieve

In-house Marketing /Recruitment Tools
to reach out to Target franchisee
FROs & Franchise India shows:
Business Opportunity Shows:

Franchisee
Website www.franchiseindia.com
Publication:
SMS & Emailer:
Discovery Days:
36

Franchisee
Acquisition
Our Methodology: Implementation
Specific Marketing channels used for lead generation
About 12 exhibitions & 40+
road shows across the
country every year.
Trade shows

Multiple SMS sent to
the entire database.

Leading
Business
Magazines & In
house
franchise
magazines

1. Ads in out house magazines such
as Business Today/ India today.
2) The Franchise World is 2nd highest
selling business distributed through
India today group.

Print ads in
Leading News
papers

SMS Blast

Email Blast

Business opportunity
adv. Thorough
Economic times
&Times of India or any
other leading local
news paper

Website

Generates about
5000 hits very day.

Emails sent to 125000
prospective investors.

In addition, Discovery day would be organized to have a one to one
meeting with the investor and the final deal sign-up
37
Our 360* Support System
Once we agree on a strategy i.e. business model & financial structure;
we have independent teams with domain expertise to work on documentation

Strategy
Consultant

•Business Plan
Marketing

Financial
Planning

•Financial plan
Strategy
Legal

Marketing
Team

• Marketing Plan
• Marketing collaterals

Operations
Team

• Operation manual

Franlegal

• Legal agreements

Happy Learning Center

Financial
Operation

Francorp

38
Proposed timelines
The proposed consulting assignment would be of x months including all the phases. However, would be concluded in the following phases:
1) Phase I : Consulting project within a time period of x weeks from the day of commencement.
2) Phase II: Ongoing consulting for franchise marketing documentation & recruitment documentation.
Francorp would mobilize its engagement team to commence the assignment from the date of signing of the engagement letter. Throughout
the course of the engagement, Francorp shall be in close discussions with the client and keep them informed of the progress of the
assignment work.

Week Nos.

0

1

2-3

5-6

6 -7

8-9

10 -12

Stage I: Strategy Phase I

Initial Download
Feasibility Analysis

site visit

Strategy Formulation

Meeting

Stage II: Production Phase II
Franchise Business Documentation
Franchise Marketing Documentation
Franchise Recruitment Documentation
Franchise Legal Agreement

Meeting

Franchise Operation Manual

Review
set

Final Submission for Consulting Program
Audit

On going exercise

39

Final
set
Proposed fees
Based on the scope of work, the consequent time that different team members would spend on the study and the seniority of team members
involved and also keeping in mind our abiding interest to foster a long-term relationship with you, we propose the following fee structure.

Total Project Cost INR 3,00,000 + Applicable Service Taxes

Project Deliverable

Fixed fees

Payment Linked

INR 3, 00,000 + Applicable Service Tax (12.3%) at the
time of commencement of the assignment.

40
Case studies

41
OUR ROLE
 Francorp Developed the Franchise Program along with the Franchise Expansion with specific roll-out and
determination of territory. Francorp conducted Franchise Management Training course designed to educate the
franchisor’s management team on the complexities of operating and managing a growing franchise organization
along with Detailed and comprehensive manuals along with :

 Strategic Planning
 Competitive Analysis
 Business Plan
Growth Strategy & Franchise Program
 Legal & Discloser Documentation
 Site selection process
 Franchise profiling
 Franchise marketing collaterals (Franchise brochure, AD, Emailer & Flyer)

 Franchise sales support & training
 Franchise roll out & Territory
 Franchise Acquisition strategy (Master/ Area developer/ Unit)
Franchise legal agreement
 Franchise audit structure and tools
 Franchise recruitment documentation
 Franchise Disclosure document

 Additionally Francorp developed the effective marketing creative's for advertisements and promotion, franchise
kits for distribution, sales & training pitch and presentations.
 Francorp assisted the company in charting out the franchise business model as well as standardize the existing
business model for Tekno Point (Multi model approach) through a Full franchise development program .
42
Annexure-Clientele
•

We enjoy patronage of some of the most respected brand. A few of our consulting, Media and
Marketing & Recruitment clientele are listed below.

Consulting

Media

Marketing & Recruitment
Annexure of key clients
Abc Montessori
Adidas
Air Hostess Academy
Ansal Api
Apollo Health And Lifestyle
Arch
Archies
Asmi
Amity
Ayush Therapy Center

City Look
Clara International
Coffee Day Express
Coffee Republic
Cookie Man
Crestcom
CTC
Cup & Cino
Cygnus Jewellery
D’damas

Future Group
Gitanjali Gems
Gitanjali Lifestyle
GKB Opticals
Gloria Jeans Coffee
Gold Souk
Gordan max
Greggio Argento
Habibs
Hakoba Lifestyle

Bang And Olufsen
Barista
Barnie’s Coffee
Baskin Robins
Bath Concepts
Bausch And Lomb
Beningans
Bharat Students
Bikanervala
Body Spa International
BPTP
Candico
Cartridge Café
Castrol
Catridge World
Ceat
Chabra 555
Change
Chocolate Graphics
Cholayil Sanjeevanam

Debonairs Pizza
Diamond Hut
DLF
Dominos Pizza
Dosa Plaza
Dulce Café
Education One
Educomp
Emaar MGF
Era
Essar Telecom Retail
ETP
Eureka Forbes
Euro Kids
Excalibur
Feather Lite
Ferns N Petals
Fitness One
Food Factory
Forever 18

HCL
HDFC Bank
Health & Glow
HP
HSBC
Hughes Escorts
Hushes Net
ICICI Bank
IIFT
Impuls
IMS learning
Inorbit Mall
ITZ Cashcard
J K Industries
J K Tyres
JetKing
Juice Zone
Just Cavalli
Just Cuts
Kent RO Systems

KFC
Khadims
Kidzee
Killer
Koutons
Kshitij
Kwality Walls (HLL)
Kwik Kopy
Lacoste
International Business
Synergies
Lee Cooper
Levis
Live-in
LJ Hooker
LKP Shares
Lotus Herbals
Lovable
M2K
Ma Foi
Madura Garments
Magppie
Manipal U
Maples
Mariella Burani
Mary Brown
Masala country
Max
Mic & Mac
Microsoft
Mobicare
44

Morellato - Italy
Motilal Oswal
Mr. Orange
Music World
Mustang Jeans
My Dollar Store
Nerolac Paints
Nescafe
New Zealand Natural
Next

Re Feel Cartridge
Realtech Developers
Rebi
Reisswolf
Reliance
Reynolds
Rosebys
Safe Express
Sangini
Santa Barbara Polo

Tech Kidz
The Apollo Clinic
The Corner Book Store
The Home Store
The Loot
The Medicine Shoppe
The Mobile Store
The Taco Marker
Tikka Express
Timex

NIIT
Nilgiris
Nilkamal Enterprise
Nina Ricci Watches
Nirmal Lifestyle
NIS Sparta
Numero Uno
Odyseey
Omaxe
Oracle
Osim International
Pantaloons
Papa Johns Pizza
Parasvanath Developers
Pinnacle Kids
Pizza Corner
Pizza Hut
Protocol
Provogue
Quantum

SAP
Satya Paul
SBI Bank
Seashell
Shadi Point
Shanghai Post
Shoe Tree
Sia Art Jewellery
Sify i way
SONY
Spa Zieta
Spykar Jeans
Stained Glass Overlay
Sub
Subway
Suncity
Tally
Tanclean
Taraash
TATA Steel

Titan
Travel Port
TVS
Unitech
United Colors Of Benetton
US Dollar Store
Vadilal
Vapiano
Veta
Via
Videocon
VLCC
Welhome
Westwood
Woodland
Thank You!
Contact us at:
Franchise India Brands Ltd
Crystal Plaza, D Wing, 414,
New Link Road, Andheri( West )
Mumbai - 400058
Ria M Sachdeva : Sr. Manager Business Development
Number: 022 - 40685514/9022925565
Email : ria.mazumdar@franchiseindia.in

45

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Happy Learning Center: How to Improve in studies?

  • 1. HAPPY LEARNING CENTER Approach Note June 2013 Francorp India Advisors Pvt. Ltd.
  • 2. 1 About Francorp- Franchise India Service lines offered Relationship with Franchise India Marketing Ecosystem 2
  • 3. Francorp - a Global Franchise consulting group Ever since its inception in 1976, Francorp has been the unsurpassed leader of the Franchise Consulting Industry globally. It has been providing end-to-end franchise solutions to over 2,000 enterprises worldwide. Based out of Chicago, Francorp has assisted companies in virtually every market segment with its patented processes and unmatched expertise. With 16 offices outside the U.S. Francorp services more than 45 countries globally. The practice is supported by an integrated, cross-functional, international team of experienced professionals who specialize in providing value-added multidisciplinary services to companies that own, develop or operate through franchising. We count among our clients, 90% of the organized companies/ fresh businesses aiming to make it big in the franchising industry in India. and serve more companies in the entire spectrum industry than any other professional service firm. The Francorp team of professionals brings innovative solutions that incorporate industry best practices and cutting edge strategies to address the particular risks, challenges and needs of opportunity, value added and franchise offerings of the industry. 3
  • 4. Strategy I Legal I Operations I Marketing I Sales I Training Focused sector practices | Coordinated service lines | Specialty groups Sector and specialty approach Apparel| Aviation training school | Pre school| Pharmaceuticals retail| Retail & Consumer products | Business school| Online MBA programs | Hospitality | Media & entertainment | Real estate & training | Telecommunications | Facility management| Soft skills training | Beauty & wellness | Jewelry | Home décor & furnishings | Consumer services | Food & Beverages| Home based businesses | MLM businesses | Francorp India Accolades Consulted over 150 clients in India until now with knowledge base of more than 2000 clients world wide Francorp India‟s service lines Advisory Strategic planning Franchise feasibility Review & recommendation approach Franchise development model Legal Franchisor legal agreement Franchisee legal agreement (Master/ Area/ Unit) Marketing Development of Marketing communication for franchise sales Operations Operating procedures Sales & Training manuals. Delhi Gurgaon Ahmeda bad Kol kat a Mumbai Pune Hyderabad Bangalo re Chennai 4
  • 5. Francorp India in relationship with Franchise India Francorp & Franchise India Holdings Limited FIHL with its core and in-depth industry expertise in Indian market for over a decade brought Francorp to India in Nov. 2008 With aim to provide a strategic objective of combining FIHL‟s core competences and experience with Francorp‟s vast knowledge and systems Thus, the international benchmark of providing franchising management solutions internationally to franchisors In India both FIHL and Francorp have combined their capacities and leverage on local interface and international expertise which we bring to the aspiring franchisor of India. Franchise India International Franchise India. com Franchise India Property Franchise India Publication Franchise India brands ltd Franchise India Exhibitions Franchise India Holding Limited 5 Francorp
  • 6. Marketing Ecosystem for Franchise acquisition About 12 exhibitions & 40+ road shows across the country every year. Trade shows Multiple SMS sent to the entire database. Leading Business Magazines & In house franchise magazines 1. Ads in out house magazines such as Business Today/ India today. 2) The Franchise World is 2nd highest selling business distributed through India today group. Print ads in Leading News papers SMS Blast Email Blast Business opportunity adv. Thorough Economic times &Times of India or any other leading local news paper Website Generates about 5000 hits very day. Emails sent to 125000 prospective investors. In addition, Discovery day/ FranMatch would be organized to have a one to one meeting with the investor and the final deal sign-up 6
  • 7. 2 Landscape of Franchising in India Current Models of Franchising Reasons for companies to franchise 7
  • 8. Franchising as a tool to growth Franchising • Independent business owners to be part of a network • Structured approach for executing the business. While the business owner can focus on mapping out the larger activities. The franchisee can control the last leg service. • Many use it as a tool for capital investment. Big brands such as Mahindra will prefer franchising for the local operational expertise it brings in the format. Structure • Companies can look for giving larger territories. However, master/ area franchising is most prevalent in International brands. • Unit and multi unit franchisee options are the most sought after franchise opportunity for the domestic expansion plans. Competitive Advantage of Franchising • Independent business owner/operators • A greater level of commitment and accountability than employees. • Simplest way to raising funds (w/o parting ways with equity) 8
  • 9. Franchising in India Market Size & Growth The rapidly growing franchise industry in India, although at a very nascent stage, is said to be the second largest in the world. With the current growth pegged at nearly 30-40%, the industry is poised for an even more rapid growth in the forthcoming years. With an annual turnover of nearly US$3.3 billion, it consists of nearly 1000 franchisors (only 10% being foreign owned) and about a million franchisees. Key reasons for growth Franchising has been steadily gaining popularity because of the huge untapped potential in the Indian context, emergence of tier I and II cities as the next big retail destination, the relatively lower level of capital required to start the business, lower risk and availability of established brand names, marketing network and sales channels Relaxation of foreign investment rules, liberalized WTO guidelines and greater incentives from the government have further spurted the growth Also, the Foreign Direct Investment (FDI) policy for organized retail does not permit the direct entry of foreign retailers. The latter, therefore, have to resort to franchised business models to enter the Indian market. 9
  • 10. Reasons for companies to get into franchising… Companies resort to franchising with different objectives.. However, the same can be broadly differentiated by the following: Risk mitigation Raise Capital Reasons: Why companies Franchise? Management focus on core competencies Operational excellence Deeper Penetration 10
  • 11. Happy Learning Center until now has followed a company owned approach however for deeper penetration Franchising would be appropriate.. Company Owned Centers Franchisee Centers 1. Franchise to invest - transfer the risk of investment to a third party 1. Company owned formats are great for learning and setting up benchmarks 2. Exponential growth with multiple outlets 2. One can handpick the staff, be very selective on recruitment ; Incompetency can be replaced 3. Company can Invest time on strategy development 4. With vested interest, the franchise will be self motivated; therefore brings in 10 -15% efficiency in the overall store performance 3. 100% compliance on operations manual 4. Definitely, larger margins due to no middle men in between 5. Lesser operational challenges due to local knowledge 1. Own Investment - higher cost of capital 2. Linear Growth; limited roll out possible 1. One cannot replace incompetent franchise; has to continue through the term of contract 3. Both the backend and front end lies on the company; large man power requirement 3. Franchisor - Franchise relationship critical 4. The onus of entire supply chain lies on the company 4. Performance of one outlet can hamper image of the entire chain 5. High Operational challenges for running a local driven business Franchise business model combines limited risk with Profit potential, rapid growth with long term stability Recommendation: Happy Learning Center should now focus on penetrating deeper through franchise model to develop Maharashtra cluster network as discussed. 11
  • 12. Understanding about HAPPY LEARNING CENTER Francorp View “ Happy Learning Center” has already initiated the business; Companies venture into newer markets through a mix of Done it, performed it in a streamlined manner. company owned and franchisee units. Happy Learning Center However, in order to capitalize the opportunity, the has the bandwidth to exponentially penetrate the markets through franchising only. company should consider sustainable growth phase through franchising” The company has aggressive growth plans to venture into Pan India. Saturation Happy Learning Center Deeper strategy for the next Penetration 1 -5 yrs • Numerous Operational challenges wherein the franchisee can be the best person to operate the same • It is estimated that the franchisee generally brings in the 10- 15 per cent better efficiencies in the system • Quality man power at cheaper cost, low cost of training and 100% attention to the Happy Learning Center will bring its own set of advantages. • Company can focus on broader objectives and be “ON Business roles” rather than “IN the business roles” Growth Roll Out Thus, we feel Franchising would be the best way to address the currently faced issues 12
  • 13. What would franchising address for Happy Learning Center? 1 Opportunity to raise external capital Franchising is the modern way to raise capital. The cost of franchising is often a smaller investment than the cost of establishing even one new outlet. After paying the cost of the franchise program, the remaining costs of expansion (as well as most of the risk) are assumed by franchisees. And since franchisees usually pay the franchisor an up-front fee and royalties, the right strategy for selling your franchise idea can become an immediate high-impact low-risk revenue source. Happy Learning Center should focus on expansion by building its’ own franchise network rather than asking internal capital or external capital thorough ways of equity funds. 13
  • 14. What would franchising address for Happy Learning Center 2 Deeper & faster penetration PAN India( North/Central /West and East) Happy Learning Center needs to secure its expansion by scouting for opportunities to Further roll out in newer territories and expand its reach into other tier I, and II cities apart from metros. Franchising is opted to target a larger audience. It is the best mode to increase the brand equity, brand presence and brand acceptability. Moreover, it requires lower investments to reach out to a much larger target consumer base. Franchising is the only way to penetrate the new markets by partnering with local people who have good local knowledge and are willing to become partners by sharing the same vision and therefore works hard to achieve his financial profitability 3 Best way to combat operational challenges Franchise to invest - transfer the risk of investment to a third party Exponential growth with multiple outlets; Franchisor to Invest time on strategy development With vested interest, the franchise will be self motivated 14
  • 15. Franchising further, can be broadly classified into.. Product based franchising Service based franchising Ideally, the revenues are earned by way of margins on the product The technical know how is kept by the company Typically, less franchisee fees are charged by the company Higher franchisee fees are being charged. No Royalties are charged Along with monthly royalty payments Stock correction/ Debt/ EOSS offers/ Discounts are the key challenges Technical training, Last leg Service to the customer, Use of equipments are critical concerns Corporate franchisors would typically charge the Supply chain fees, Training fees etc Francorp in the second stage of business model development would develop the same for Happy Learning Center 15
  • 16. 3 Approach to Happy Learning Center business model 16
  • 17. Apart from deeper penetration, a strong franchise business model can assure successful franchisees.. Critical parameters Detailed aspects which seek concern Standardization of  Business model to be followed business model  Develop the complete business model  Lead generation process Franchisee Profile & Sales funnel  behavioral aspect  Franchise due diligence  Franchisee Efforts & Behavior towards the company  Type of person given the franchisee  Selection & recrutiment criteria  Site selection support Defined process &  Franchise Evaluation process  Committee structure procedures  Operational SOP s for Franchisee  franchise development team  Reporting structure  Payment of product Timely invoice raising dues/ Royalties Local marketing How francorp can assist Happy Learning Center  Timely payment of the monthly royalties  Local marketing  Brand marketing on a regional/ city level  Marketing Collaterals Design support  Marketing action plan Planning  Marketing action plan Execution 17  The same is covered in the Marketing action plan, recruitment documentations and manuals  Shall be recommend both at the strategy level as well as operations manual stage  Detail guidelines & compliance format in the Operations Manual  Outward marketing is Franchisor responsibility; In store marketing is Franchisee's. Exact terms & conditions shall be identified and recommended
  • 18. Contd.. Critical parameters Detailed aspects which seek concern Supply chain Training of franchisee Branding CRM  Product & Service identification  SKU number and mix at the franchisee store  Product supply chain management  Cost price & Sales price  Pre opening support & training  Launch planning  Media interaction  Press releases  Technical training  Business management training  Training to the franchise manpower  Man hour training at the company owned store  Availability of the designated resource not available  Refresher training  Architecture & design support  Signage display  Branding  Staff uniforms & badges  CRM practices  Roles & Responsibilities needs to be critically defined 18 How francorp can assist Happy Learning Center”  Standards & team structure required along with KRAs shall be defined by Francorp: However need to implemented by the company only  Standard operating procedures for franchisee management as well as franchise training manuals shall be created by francorp  Best practices shall be recommended  Sections on CRM best practices shall be included in the Operations manual only
  • 19. Contd.. Critical parameters Detailed aspects which seek concern Audit process & Guidelines  Franchise audit  Branding audit  Marketing audit  Operations audit  Reporting audit  Post Audit Feedback  Timelines to be defined for Implementation 19 How francorp can assist Happy Learning Center”?  All Audit samples/ guidelines shall be designed by Francorp. Later in the implementation stage, Francorp would oversea the implementation process if agreed upon
  • 20. Key Operating models in franchising in Indian markets Own Investment - higher cost of capital ; Linear Growth In both the models, company does invest with the franchisee but NOT necessarily in the monetary aspect High time administration operation Exponential growth possible by minimal amount of investment from the company’s perspective but a significant interest from the franchisee ends. spent on of daily Training and Man management of such stores a big challenge COCO kiosks/stores proves the scalability of the business model COMPANY OWNED & COMPANY OPERATED (COCO) The company might look at investing with the franchisee in some or the other way. It can be by way of capex/ or some support in the financial profitability of the franchisee business. Good strategy for the company who wants to have the market share as well as the complete control over all the stores. Full format franchising Franchise to invest; With vested interest, the franchise will be self motivated and will do everything possible to make the store successful Exponential growth with multiple outlets possible at no time Company should Invest time on strategy development FRANCHISE OWNED & FRANCHISE OPERATED FRANCHISE OWNED & COMPANY OWNED & (FOFO) COMPANY OPERATED (FOCO) FRANCHISEE OPERATED (COFO) Various types of franchising models operating in the markets Happy Learning Center is currently operating as a pure company owned and company operated business model Basis the company’s vision and the industry benchmark, Francorp would advise the best suitable model or the multi model strategy for expansion. This would be selective of the competition as well as the city/ neighborhood profile to accept such formats. Also, it would be devised considering the financial profitability of the franchisee. 20
  • 21. 4 How Francorp can assist Happy Learning Center? Broader deliverables of the project 21
  • 22. Our Approach for “Happy Learning Center” We have designed our approach, in line with the terms of reference. Further, our approach is based on our expertise in executing similar assignments. Francorp proposes to undertake the assignment as per the following steps: Project Initialization STEP I Inception Meeting Analysis of the current offerings/ Formats viz. competition STEP II Market Opportunity Assessment STEP III Project Development Plan STEP IV STEP V STEP VI Financial Feasibility Assessment Structuring of the Business & Financial Plans Marketing Collaterals development STEP VII Operational manual STEP VIII Legal documentation STEP IX Franchise Marketing & Recruitment 22
  • 23. Project Initialization- Inception Meeting Francorp would carry out meeting with the key personnel of the Happy Learning Center in order to validate their objectives and understand their expectations. The meeting would assist in setting up a common platform for the proposed assignment for both the teams i.e. Happy Learning Center and Francorp. The meeting (s) would aim to achieve the following: Happy Learning Center Discussion Garner details of the proposed format. Evaluate the current situation Understand the specific goals and objectives for the proposed project Obtain information on the expected growth viz. current capabilities of the management/ product portfolio etc Obtain information on the envisaged investment details for the franchisee Set a common platform of understanding and expectations for the proposed exercise 23 Francorp
  • 24. Our Methodology: Advisory Market Opportunity Assessment Francorp would study the respective market/ category to understand the industry dynamics and the feasibility of the proposed assignment. The analysis would be based on: Market data and the information from major intermediaries related in the this entire segment Information through sample study/ market research/ and real time basis focus group programs Information / data from databases already subscribed by Francorp Secondary research on information available in public domain Other desk studies MARKET OPPORTUNITY ASSSESSMENT Market Overview • Market size and growth rate • Market segmentation • Market dynamics and trends • Key growth drivers for the sector • Structure across value chain • Average revenues expected • Profile & revenue structure • Location and Target market preference of such formats • Value added segments/ revenue optimizers Competitors Analysis • Franchise offerings of the competition • Identify the support structure (if any) • Comment on the business practices (franchise marketing budget payments, insurances, vendor arrangement,, application of COCO, FOFO, COFO, FOCO models, Minimum guarantee, manpower requirements and franchise retention policies etc) • Location and Target market preference of the competition • Unique Selling Proposition • Identify the benefits/incentives offered to potential investors (if any) • Average franchise fees, set up cost etc 24
  • 25. Our Methodology : Advisory Critical Recommendation on the business format Francorp would define the potential target market as per the concept of proposed project. Accordingly, a detailed assessment would be done for the project. SWOT analysis of the company’s offering vs. the Competition offerings Assessment of critical factors size, HR, student, facility, OPEX optimization Locking period, royalty, franchisee fees, type of business model, Ins. policies Support structure (both monetary and non monetary) to be offered to the franchisee Franchise profile (type of investors to partner with) Target Market Roll out parameters and five year roll out Franchisor and franchisee obligations rule sheet Location selection criteria Analysis of Factors affecting demand and supply dynamics Average ticket prices per category Average per sq ft / Efficiency per sq ft Format revenue and cost optimization and break even analysis 25
  • 26. Our Methodology : Advisory Financial projection & model Based on demand - supply analysis, Francorp along with the group would create the detailed financials for both the franchisor and the franchisee. This would indicate both the parties X year financial plans. Break-even analysis & Proposed capital structure Capital budget and additional capex in projection period (X year) Area of the format Financial modeling Operational cost of both Franchisor & franchisee Type of business model Franchise Set up cost with industry benchmarks 26
  • 27. Our Methodology : Advisory Project Development Plan Francorp would assist the client in preparing the complete Franchise development plan, as well as a list of key project components in terms of various the compactness of the business model ( can vary also, as the chances of going to different markets with different business models could be high) based on the specialized needs of the format and the management. For each component Francorp would also recommend the best practices of each segment. This step would address the following aspects:  Determine the key components of the project (area classification/No required/ franchise fees)  Basic and support infrastructure facilities (area allocation to extra curricular activities etc)  Determine the target market for the project  Franchise Acquisition strategy  Franchise profile  Roll out plan  Franchisor HR Structure/Internal Staffing  Franchise business plan  Franchisor & franchisee Five Year Business Plan along with projections of revenue and cost streams. 27
  • 28. Our Methodology : Advisory Other key deliverables for franchising The specific deliverable for this assignment would be a Franchise Development program comprising of: Complete franchisee documentation ( Essential to growth) Franchisee lead generation, management and recruitment Key Deliverables • Franchise sales offer document • Email blasts/ Ads Strategy Marketing •Franchise Business Model/s •Franchise Roll-out Plan •Franchise Owner Profile •Types of Franchisees offered •Franchise support programs •Internal Staffing •Franchise Revenue Sources •Franchise Structure Report Clients business • Daily operating manual (for format operations • Reporting structure • Sales manual • Training manual Operations Legal 28 • Franchise focused: Legal team • Franchise Legal agreement as per the acquisition strategy • Non Disclosure agreement • Confidential agreements
  • 29. 5 Project Flow Chart for Happy Learning Center? Broader deliverables of the project 29
  • 30. Key deliverables from the engagement Market assessment for „Happy Learning Center‟ expansion plans Proof of concept of proposed retail proposition Franchisee Proposition with financial terms & conditions Franchisee acquisition strategy Brand Positioning Financial plan for of the franchise business Franchisee Profiling HR structure at Franchisee & at Happy Learning Center Potential markets & roll out strategy in 1st Year X-yr financial plan for Happy Learning Center X-yr Marketing plan for Happy Learning Center 30
  • 31. We would follow a phased approach in order to best meet your requirements Francorp proposes the following phases for this engagement… Phase - 0 Diagnosis Phase - 1 Conceptualization Market Study & opportunity Assessment Scientific approach to business modeling Phase - 3 Expansion strategy Franchisibility Assessment Phase - 4 Franchisee acquisition 4 3 2 1 0 Phase - 2 Franchising Roll-out plan For acquiring Franchisee Franchisee Acquisition Business Advisory We have presented our detailed approach including work steps for Phase -0, Phase-1, Phase-2, Phase-2, Phase-4 31
  • 32. Phas1: Diagnoses Phase - 0 Diagnosis 0 Market Study & opportunity Assessment Phase - 1 Conceptualization 1 Phase - 2 Implementation Scientific approach to business modeling Franchisibility Assessment What we do Phase - 4 Franchisee acquisition 3 2 Phase - 3 Expansion strategy 4 Roll-out plan For acquiring Franchisee Franchisee Acquisition What we Achieve Understanding on the Industry & Business Initial information download from Happy Learning Center Identify the Need gap in the Business Our Research Consumer buy pattern to build 7Ps in the business • Industry assessment •Analysis of Customer buyer behavior • Competition activity Best business practice to benchmark our proposition 32
  • 33. Phase2: conceptualization Phase - 0 Diagnosis Phase - 1 Conceptualization 0 Product • Company’s Products & Service Range Scientific approach to business modeling Place • Ideal Location criteria • Pan India Franchisibility Assessment Promotion Pricing • Brand Positioning • Destination & Preferred products & service • Basis the competition & Target customer group • Competitive pricing strategy 33 Phase - 3 Expansion strategy Phase - 4 Franchisee acquisition 3 2 1 Diagnoses of current operation Phase - 2 Implementation 4 Roll-out plan For acquiring Franchisee People Franchisee Acquisition Processes • Ideal Partner • We built a list Profile of processes • HR structure that would be at Franchisee required to • HR structure manage & At Happy Learning Center expand franchisee network like • Control mechanism • Reporting structures • Royalty other fee collection • Training processes Physical Evidence • Size of the outlet • Profile of the outlet
  • 34. Phase3: Implementation Phase - 0 Diagnosis 0 Diagnoses of current operation Phase - 1 Conceptualization Phase - 2 Implementation Scientific approach to business modeling Franchisibility Assessment What we do Phase - 4 Franchisee acquisition 3 2 1 Phase - 3 Expansion strategy 4 Roll-out plan For acquiring Franchisee Franchisee Acquisition What we Achieve Need of Franchising in the business Phase 1 & Phase 2 are intertwined Processed in parallel Company’s Assessment as Franchisor • SWOT Analysis • 12-Pt Franchisibility assessment Franchise Proposition with financial terms & conditions Investor’s view On the Opportunity • Reasons for investor to consider Happy Learning Center As Franchisor •Financial Assessment of the Franchise proposition Ideal Franchisee Profile 34
  • 35. Phase4: Roll-Out Plan Phase - 0 Diagnosis 0 Phase - 1 Conceptualization Scientific approach to business modeling Phase - 3 Expansion strategy Phase - 4 Franchisee acquisition 3 2 1 Diagnoses of current operation Phase - 2 Implementation 4 Franchisibility Assessment Roll-out plan For acquiring Franchisee We define a detailed roll-out plan for next x-yrs which covers • This will be basis Strategic, Financial, Operational & marketing sense of the business • Ideal city profile •Site selection criterion •Number of cities to Enter Parameters for selection of site which could be basis • Conversion franchisee • Last mile customer servicing center • Target customer group approach • Competition presence 35 Franchisee Acquisition
  • 36. Phase5: Franchisee Acquisition Phase - 0 Diagnosis 0 Phase - 1 Conceptualization Scientific approach to business modeling Franchisibility Assessment What we do Phase - 3 Expansion strategy Phase - 4 Franchisee acquisition 3 2 1 Diagnoses of current operation Phase - 2 Implementation 4 Roll-out plan For acquiring Franchisee What we Achieve In-house Marketing /Recruitment Tools to reach out to Target franchisee FROs & Franchise India shows: Business Opportunity Shows: Franchisee Website www.franchiseindia.com Publication: SMS & Emailer: Discovery Days: 36 Franchisee Acquisition
  • 37. Our Methodology: Implementation Specific Marketing channels used for lead generation About 12 exhibitions & 40+ road shows across the country every year. Trade shows Multiple SMS sent to the entire database. Leading Business Magazines & In house franchise magazines 1. Ads in out house magazines such as Business Today/ India today. 2) The Franchise World is 2nd highest selling business distributed through India today group. Print ads in Leading News papers SMS Blast Email Blast Business opportunity adv. Thorough Economic times &Times of India or any other leading local news paper Website Generates about 5000 hits very day. Emails sent to 125000 prospective investors. In addition, Discovery day would be organized to have a one to one meeting with the investor and the final deal sign-up 37
  • 38. Our 360* Support System Once we agree on a strategy i.e. business model & financial structure; we have independent teams with domain expertise to work on documentation Strategy Consultant •Business Plan Marketing Financial Planning •Financial plan Strategy Legal Marketing Team • Marketing Plan • Marketing collaterals Operations Team • Operation manual Franlegal • Legal agreements Happy Learning Center Financial Operation Francorp 38
  • 39. Proposed timelines The proposed consulting assignment would be of x months including all the phases. However, would be concluded in the following phases: 1) Phase I : Consulting project within a time period of x weeks from the day of commencement. 2) Phase II: Ongoing consulting for franchise marketing documentation & recruitment documentation. Francorp would mobilize its engagement team to commence the assignment from the date of signing of the engagement letter. Throughout the course of the engagement, Francorp shall be in close discussions with the client and keep them informed of the progress of the assignment work. Week Nos. 0 1 2-3 5-6 6 -7 8-9 10 -12 Stage I: Strategy Phase I Initial Download Feasibility Analysis site visit Strategy Formulation Meeting Stage II: Production Phase II Franchise Business Documentation Franchise Marketing Documentation Franchise Recruitment Documentation Franchise Legal Agreement Meeting Franchise Operation Manual Review set Final Submission for Consulting Program Audit On going exercise 39 Final set
  • 40. Proposed fees Based on the scope of work, the consequent time that different team members would spend on the study and the seniority of team members involved and also keeping in mind our abiding interest to foster a long-term relationship with you, we propose the following fee structure. Total Project Cost INR 3,00,000 + Applicable Service Taxes Project Deliverable Fixed fees Payment Linked INR 3, 00,000 + Applicable Service Tax (12.3%) at the time of commencement of the assignment. 40
  • 42. OUR ROLE  Francorp Developed the Franchise Program along with the Franchise Expansion with specific roll-out and determination of territory. Francorp conducted Franchise Management Training course designed to educate the franchisor’s management team on the complexities of operating and managing a growing franchise organization along with Detailed and comprehensive manuals along with :  Strategic Planning  Competitive Analysis  Business Plan Growth Strategy & Franchise Program  Legal & Discloser Documentation  Site selection process  Franchise profiling  Franchise marketing collaterals (Franchise brochure, AD, Emailer & Flyer)  Franchise sales support & training  Franchise roll out & Territory  Franchise Acquisition strategy (Master/ Area developer/ Unit) Franchise legal agreement  Franchise audit structure and tools  Franchise recruitment documentation  Franchise Disclosure document  Additionally Francorp developed the effective marketing creative's for advertisements and promotion, franchise kits for distribution, sales & training pitch and presentations.  Francorp assisted the company in charting out the franchise business model as well as standardize the existing business model for Tekno Point (Multi model approach) through a Full franchise development program . 42
  • 43. Annexure-Clientele • We enjoy patronage of some of the most respected brand. A few of our consulting, Media and Marketing & Recruitment clientele are listed below. Consulting Media Marketing & Recruitment
  • 44. Annexure of key clients Abc Montessori Adidas Air Hostess Academy Ansal Api Apollo Health And Lifestyle Arch Archies Asmi Amity Ayush Therapy Center City Look Clara International Coffee Day Express Coffee Republic Cookie Man Crestcom CTC Cup & Cino Cygnus Jewellery D’damas Future Group Gitanjali Gems Gitanjali Lifestyle GKB Opticals Gloria Jeans Coffee Gold Souk Gordan max Greggio Argento Habibs Hakoba Lifestyle Bang And Olufsen Barista Barnie’s Coffee Baskin Robins Bath Concepts Bausch And Lomb Beningans Bharat Students Bikanervala Body Spa International BPTP Candico Cartridge Café Castrol Catridge World Ceat Chabra 555 Change Chocolate Graphics Cholayil Sanjeevanam Debonairs Pizza Diamond Hut DLF Dominos Pizza Dosa Plaza Dulce Café Education One Educomp Emaar MGF Era Essar Telecom Retail ETP Eureka Forbes Euro Kids Excalibur Feather Lite Ferns N Petals Fitness One Food Factory Forever 18 HCL HDFC Bank Health & Glow HP HSBC Hughes Escorts Hushes Net ICICI Bank IIFT Impuls IMS learning Inorbit Mall ITZ Cashcard J K Industries J K Tyres JetKing Juice Zone Just Cavalli Just Cuts Kent RO Systems KFC Khadims Kidzee Killer Koutons Kshitij Kwality Walls (HLL) Kwik Kopy Lacoste International Business Synergies Lee Cooper Levis Live-in LJ Hooker LKP Shares Lotus Herbals Lovable M2K Ma Foi Madura Garments Magppie Manipal U Maples Mariella Burani Mary Brown Masala country Max Mic & Mac Microsoft Mobicare 44 Morellato - Italy Motilal Oswal Mr. Orange Music World Mustang Jeans My Dollar Store Nerolac Paints Nescafe New Zealand Natural Next Re Feel Cartridge Realtech Developers Rebi Reisswolf Reliance Reynolds Rosebys Safe Express Sangini Santa Barbara Polo Tech Kidz The Apollo Clinic The Corner Book Store The Home Store The Loot The Medicine Shoppe The Mobile Store The Taco Marker Tikka Express Timex NIIT Nilgiris Nilkamal Enterprise Nina Ricci Watches Nirmal Lifestyle NIS Sparta Numero Uno Odyseey Omaxe Oracle Osim International Pantaloons Papa Johns Pizza Parasvanath Developers Pinnacle Kids Pizza Corner Pizza Hut Protocol Provogue Quantum SAP Satya Paul SBI Bank Seashell Shadi Point Shanghai Post Shoe Tree Sia Art Jewellery Sify i way SONY Spa Zieta Spykar Jeans Stained Glass Overlay Sub Subway Suncity Tally Tanclean Taraash TATA Steel Titan Travel Port TVS Unitech United Colors Of Benetton US Dollar Store Vadilal Vapiano Veta Via Videocon VLCC Welhome Westwood Woodland
  • 45. Thank You! Contact us at: Franchise India Brands Ltd Crystal Plaza, D Wing, 414, New Link Road, Andheri( West ) Mumbai - 400058 Ria M Sachdeva : Sr. Manager Business Development Number: 022 - 40685514/9022925565 Email : ria.mazumdar@franchiseindia.in 45