FRANCHISING INNOVATIONS
India’s first integrated franchise consulting network
“Though we might not want to believe in what we imagine, we have to accept as true even the weirdest fact.�
Golden franchising in olden times The term 'franchising' has been derived from an ancient French word which means holding a particular privilege or right. During the 1840's, several German ale brewers granted rights to particular taverns to market their ale. This was the beginning of the type of franchising that became familiar to us in the 20th century.
The world of franchise Franchising is one of the most effective means to spread global awareness about the brand and the company's product offerings. Thus, it lessens the gap between the product and its potential consumers. It also offers several business operators and industrialists with global growth opportunities. Over the last two decades, the franchising business model has proved to be highly successful in the US.
The booming franchise India These days, buying a franchise in India seems to be one of the safest and the most lucrative business options for foreign investors. The advent of technology and globalization has made our country a potential market for foreign investors. With its flourishing population including a thriving class of urban consumers, India has become an exciting destination for foreign franchisers.
Some franchising facts & figures:1.
The franchise market in India has the potential to grow to $20 billion by 2020.
2.
Franchising in India is growing at an impressive rate of approximately 30% per year.
3.
Presently, there are 1,200 franchisers in India, of which 25% are of international origin, with U.S. companies the most prevalent.
4.
Approximately 1200 franchisers, 40,000 franchisees spread across the country are successfully operating in diversified industry sectors.
5.
A new franchise is 2.5 times more likely to succeed than a non-franchised business.
6.
Over 300 industries and business categories using franchising business model as a means to distribute goods & services.
7.
Around 86% of all franchises opened in 60 industries in the past 5 years are still under the same ownership.
8.
A new franchised business is opened every 8 minutes of every business day.
9.
The average length of a franchise contract is 10 years.
10.
Top franchise industry- Fast Food Franchises.
11.
One out of every 12 businesses is a franchised business.
12.
In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year.
13.
It is estimated that the total investments made by Franchisees is over US$ 2.8 billion and over 400,000 people are directly employed by franchised businesses.
14.
The Global Franchising Industry is to reach US$3.96 Trillion by 2015, as per Global Industry Analysts, Inc.
FRANCHISING INNOVATIONS GFN (Global Franchise Network) GFN (Global Franchise Network) is fast emerging as a one stop innovative integrated franchise solution company that has developed a strong network of franchisers and franchisees across the globe. Getting associated with GFN is no less than like being born with a silver spoon. Whether you want to franchise your business or be a franchisee, you just dream of minting money and give all your franchising worries to us. Get 360 degree franchise solutions only at Global Franchise Network. Just go the right way and wait for the profits to fall into your lap.
Business at its best @GFN GFN is an indestructible bridge that brings in the best franchising solutions to you, to save your time, your money and lots of painful efforts too. With this proven way of doing business, you can give your brand an instant recognition with minimum efforts. It is a unique platform that provides unlimited opportunities for the franchisers to develop and expand their network in Indian Territory and also help business seekers, investors, to own and operate right franchise and business. We combine our sky-scraping standards with a modern yet realistic approach while respecting your industrial expertise. By being in a franchising business through GFN, you save the trouble of starting a business from zero. Compare GFN franchise solutions with others, if you want to, you'll find us a step ahead only.
The GFN Crew We deliver non-stop franchising solutions to you through our network of people with wide range of experience in franchising industry. Your business will certainly benefit from our highly experienced and passionate team whose goal is to set you up and assist you to become a successful franchiser or a franchisee. For that, GFN has developed a unique model of network that helps both franchiser and franchisees in the right earnest.
Networking Fruitfully Our network helps your brand to expand faster at lower cost in lesser time. PAN India presence of this network has ready investors of each and every scale and every business opportunity which helps brand to share their business growth in association with right people.
VISION
Being at the forefront of innovation, market concepts, franchising, brand building that provides value and convenience to stakeholders and society at large.
MISSION
Cultivate brands progressively and systematically by increasing intra partnership franchising and/or association of people through joint ventures and collaboration to achieve sustained success.
CORE VALUES • To serve Innovative Ideas. • To value and respect the needs of clients and assist them through our expertise. • To care about and give back to our local communities. • To help individuals to become successful entrepreneurs. • To ensure sustainability and growth for all shareholders. • To conduct business with Honesty, Integrity and Confidentiality.
Our Upcoming Verticals GFN Publication • Portal • Magazine • Reporter • Directory • Research & Development (White Pages)
GFN Events • Conference • Awards • Investor’s Meet • CEO Conclave • Exhibition • Franchise Opportunity Show
GFN Consultancy • Franchiser Services • Franchisee Services • Global Franchise Experts • New Ideas • Foreign Tie Ups • Auditing • Project Management Consultancy
GFN Education • Academy • Corporate Training • Jobs & Careers
GFN Association • Membership Programme • Annual Fest • Business Protection Group
Other Services • JV with National & International Brands • Mergers & Aquisitions • Master Licenses
Channel We have chosen 500 districts to set up our franchise experts network. Currently, over 200 are functional and the remaining 300 we are likely to finalize soon.
GFEs
Serving the franchising way
The wide-reaching GFE Channel Out of 626 districts, we endeavor to spread our network across 500 districts. At present, our immensely active GFE (Global Franchise Experts) Channel is already functional in 200 districts and remaining 300 are likely to get finalized in a couple of months to make the franchise industry boom.
Who are GFEs? The GFEs associated with GFN are the franchise consultants that make your business ownership dream a reality. Our global franchise experts with highest standards of integrity and excellence in industry are highly efficient in assisting in selling a business in just the right way till the deal is closed.
Be a GFE If you are looking for a lucrative business opportunity and you have the right sales & marketing skills and attitude, you can also provide our existing and potential clients quality franchise opportunities and enjoy being a GFE. As a GFE, all you need to do is:• Carry out all the franchising formalities between the franchisees prospects and franchisers associated with us in your designated territory. • Increase our network by assigning franchisers and franchisees from your territory.
• • • • • • • • • •
National and International brands in our kitty Excellent and remunerative business model Great opportunity to grow exponentially Supported by 360 degree media plan Free advertising and web based support through regular emailers, social networking, web marketing and other innovative tools Constantly adding new business to be expanded through our network of Business Experts Training and support to our network of Business Experts Support through regular business meets, seminars and franchise expos in your territory Daily market and industry updates through Global Franchise Reporter Minimum investment, maximum return
Expectations from Experts • • • • • •
Search for investors in his own territory Match the investor with the franchiser brand Arrange meeting of Franchisee and Franchiser Business Development – Signing franchisers or franchisable business in your territory Help to execute the deal and implement a project in operation Revenue Generation
Advantages for Consultants • • • • •
Less investment better returns, high rate of commissions To become a part of growing market Less risk bearing Franchising rights of more than 500 National & International Brands Training & 360 degree support
Serving the franchising way
GFN benefits to GFEs
Franchisers
Serving the franchising way India
— A perfect franchise destination for global brands
As per the Global Retail Development Index (GRDI) released by global consulting firm AT Kearney, India is the most attractive retail destination worldwide. Keeping in mind India's immense growth potential, many global brands have already established themselves in India and others are eyeing India as the next destination in their global expansion plans. The change in the lifestyle of the Indians has contributed immensely to the success of international players entering Indian market. Other factors that attract international companies towards Indian market:Steady rise in the average Indian income. • Increasing levels of consumer spending • Greater recognition of brand value. • Telecom & transportation facilitating exchange of information & goods. •
Established International Brands in India F&B Brands like McDonald's, KFC, Pizza Hut, Dunkin' Donut, Domino's, Subway, Barista, Costa Cofee etc. already have a visible presence in India. Seemingly, there will be a lot of action in future in the Indian market with international brands increasing their presence in the country.
Franchise opportunities for new global brands in India Today, a large number of foreign franchisers are targeting the Indian market due to India's huge untapped market potential in franchise industry. More and more new international companies are coming to India to franchise their business. However, there are still a number of international players across the globe that are yet to explore India. It can be easily said that F&B brands find India a potential market for their brands by looking at the numerous franchisers that have entered the nation.
Turning big business into a successful franchise We all have great ideas and the challenge is in turning these great ideas into big, successful business. If you have a great business, you can surely think about franchising it. However, you should also know what it takes to be a good franchiser. We, at GFN, with expertise in Franchise Business consulting, help you consider whether your business is right for franchising or not. The market examination, the competition, the products and services of the business and GFEs will tell you if your business can be or should be franchised.
Managing franchise network rightly Managing a franchise system demands proper planning and preparation. Our Global Franchise Experts with core knowledge and necessary skills are capable of effectively managing your franchise network which also requires sufficient resources, time and budget. With GFE, you can also recruit more franchisees to get the best out of your expansion plans. Our experts ensure that you taste big and long term success in your franchise business.
Services that we offer :– i. ii. iii. iv. v. vi. vii. viii.
Industry Market Research & Competitive Analysis Strategic Planning & Business Plan Development Franchise Document Drafting Services – All Manual Support Operating Consulting and Manual Development Legal Documents & support Media Plans & Budgeting Advertising & Marketing Services To help create a network of Master, District & Unit Franchisees
Advantages for Franchisors • • • • •
Rapid expansion Allows a business to converse capital Less risk bearing Best way to manage all outlets Immediate cash flow
Serving the franchising way
Franchisees
Buying a franchise generally has much better success rate than starting a business from scratch. Franchises offer a quick return on investments whereas it may take you years to get your independent business to new heights. GFN provides one-stop franchising solutions to franchisees waiting to tie up with leading
Become
national and international brands. We provide doorstep services to prospective franchisees for
a successful franchisee owner
hassel-free business orientation. GFN ensures that you get a franchise of reliable brands.
Services for franchisees / Investors
Ø Market Research: Buyer's Analysis in order to find out the industry, category and brands
suitable for the client.
Ø Business Plan & Investment Scorecard : With the help of Investment Scorecard and based on
the investment criterion, industry preference, geographical preference, operational feasibility, we
would suggest different avenues of investment. Ø Franchise Audit: Brand audit based on the historical performance of different franchisees . Ø Risk Reward Analysis: Various reward analysis, such as return on investment, return on time and return on property based on the buyer's analysis, industry analysis, sector analysis and numerous other factors. Ø Legal & Compliance Requirement : Various legal aspects which are essential before taking any franchisee will be taken care by us. Ø Real Estate Services: Assist in finding a property at a reasonable price and at an appropriate location.
Franchisee Insight Ø An average franchise opportunity can promise an investor 20-40 per cent returns. Ø An increasing number of franchisers (53 per cent of the sample) preferred high footfall areas such as residential markets to high streets (29 per cent) and malls (18 per cent). Ø Both Franchise - Owned Company - Operated (FoCo) and Company - Owned Franchise Operated (CoFo) are popular business models among franchisers. While 38 per cent preferred FoCo, 35 per cent opt for CoFo. At the same time, 15 per cent of the survey sample preferred FoFo, 12 per cent had CoCo as their business model. Ø Model time taken to appoint first franchisee, post the franchise launch is 5-10 months. Ø Exclusive store format is the most preferred store format by majority of franchisers. Ø Around 90 per cent franchisers had to settle with minor customization with their initial proposal. Ø The thought when retail business is getting more cannibalizing, the `traditional franchising` in India is all set to broaden its horizon in terms of formats as well as concepts to take the next big leap.
Advantages for Franchisees • • • • •
Be your own boss Leverage on a known brand Follow a tried and tested business system Less risk bearing Improved success rate of the business model
Association Benefits: • • • • •
Proposal Sharing - Sharing proposals of different Franchisers Fran Meet –Meeting with the Franchisers Franchise Reporter – Insight on Franchising Web hosting – excess to different Franchise Brand Proposals Magazine
Property Owners
Thriving Real Estate Business Investing in real estate has become increasingly popular over the last few decades. Considering the growing need for serving the real estate investors, GFN has come up with its own real estate division to provide advice / consultancy to the mall owners, existing as well as prospective brands and investors—to help them grow as a real estate investor. We are there to guide you at every step. GFN helps the property owners:a) In getting brands both for franchise and
company own store. b) In giving property on lease or sale. c) In bringing investors for lease or brand
franchise.
Our services for Real Estate Owners:1) Feasibility Study & Property Survey We, at GFN, provide you a thorough analysis of the mall property for franchise or company own store. On the basis of that comprehensive study, it will be decided what brands should be or should not be proposed for property location. A feasibility study should examine four main areas: a) Market analysis b) Per capita income analysis c) Competitive analysis d) SWOT
2) Brand Identification GFN consultants help the property owners in selecting the right brand through proper survey and market analysis on brands. This extensive study is done keeping in mind the location and the demand for a particular brand. It further helps us to suggest brands that ensure long term success and profitability. In short:a) We suggest brands to the mall owners b) Then the mall owners shortlist brands
3) Marketing of Property Marketing of property is the most powerful concept to attract maximum number of investors, franchisees and franchisers. For that, the GFN team prepares a marketing plan to popularize your property and to ensure successful deal of your property. Some ideas to get the property the attention it deserves: a) Doing promotional activities b) Using social media tools c)
Sending inserts in newspapers
d) Giving press ads
4) Brand Meet Brand meet is a perfect solution to make it easy for the brands to interact with right people at the right time. Due to growing demand of real estate owners to own a brand name in malls, GFN brings franchisees, franchisers and mall owners on a common platform to make it easy for them to decide on a lucrative premise. Brand Meet includes: a) Calling everyone on single platform b) Arranging one to one meeting c) Negotiations
5) Deal Closure After all the surveys, suggestions on brands, meetings, marketing and negotiations are done, the next step is to successfully close the deal. For that, we are always there to provide our prospective clients every kind of legal assistance in signing official documents without letting them face any hassle.
Success in business requires training, ““Success discipline and hard work. But if you are frightened by these things, the opportunities are just as great today ever.” as they were ever.”
Founder Member of :
GLOBAL FRANCHISE NETWORK PVT. LTD. Head Office : Global House, 44-A, Sec-5, Rajender Nagar, Sahibabad, Ghaziabad - 201005 (U.P.) INDIA Regd Office : 812, 8th Floor, Pearls Omaxe - Tower I, Netaji Subhash Place, Pitampura, New Delhi-110034 INDIA Ph.: +91-11-49381100 Web : www.globalfranchiseexpert.com