Franchise Manager Jobs in India
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Franchising is based on a marketing concept which can be adopted by an organisation as a strategy for business expansion. Where implemented, a franchiser licenses its know-how, procedures, intellectual property, use of its business modelbrand; and rights to sell its branded products and services to a franchisee.
In return the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a Franchise Agreement. The word "franchise" is of Anglo-French derivation—from francmeaning free—and is used both as a noun and as a transitive verb.
Adopting a franchise system business growth pro trading india pvt ltd franchise for the sale and distribution of goods and services minimizes the franchiser's capital investment and liability risk. As with any business venture, franchising is not immune to risk. But if undertaken in the right way, franchising can be a vehicle of success for both the franchisor and franchisee. Thirty-three countries have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect effect on franchising.
The boom in franchising did not take place until after World War II. Nevertheless, the rudiments of modern franchising date back to the Middle Ages when landowners made franchise-like agreements with tax collectors, who retained a percentage of the money they collected and turned the rest over. There was little growth in franchising, though, until the midth century, when it appeared in the United States for the first time.
One of the first successful American franchising operations was started by an enterprising druggist named John S. Inhe concocted a beverage comprising sugar, molasses, spices, and cocaine which is no longer an ingredient.
Pemberton licensed selected people to bottle and sell the drink, which is now known as Coca-Cola. His was one of the earliest—and most successful—franchising operations in the United States.
The Singer Company implemented a franchising plan in the s to distribute its sewing machines. The operation failed, though, pro trading india pvt ltd franchise the company did not earn much money even though the machines sold well. The dealers, who had exclusive rights to their territories, absorbed most of the profits because of deep discounts.
Some failed to push Singer products, so competitors were able to outsell the company. Under the existing contract, Singer could neither withdraw rights granted to franchisees nor send in its own salaried representatives. So, the company started repurchasing the rights it had sold. The experiment proved to be a failure. That may have been one of the first times a franchisor failed, but it was by no means the last.
Still, the Singer venture did not put an end to franchising. Other companies tried franchising in one form or another after the Singer experience. For example, several decades later, General Motors Corporation established a somewhat successful franchising operation in order to raise capital.
Perhaps the father of modern franchising, though, is Louis Kroh Liggett. InLiggett invited a group of druggists to join a "drug cooperative. His idea was to market private label products. The chain's success set a pattern for other pro trading india pvt ltd franchise to follow. Although many business owners did affiliate with cooperative ventures of one type or another, there was little growth in franchising until the early 20th century, and what franchising there was did not take the pro trading india pvt ltd franchise form as it does today.
As the United States shifted from an agricultural to an industrial economy, manufacturers licensed individuals to sell automobiles, trucks, gasoline, beverages, and a variety of other products. The franchisees did little more than sell the products, though. The sharing of responsibility associated with contemporary franchising arrangement did not exist to any great extent. Consequently, franchising was not a growth industry in the United States. It was not until the s and s that people began to take a close look at the attractiveness of franchising.
The concept intrigued people with entrepreneurial spirit. However, there were serious pitfalls for investors, which almost ended the practice before it became truly popular. This amounts to 11 million jobs, and 4. Mid-sized franchises like restaurants, gasoline stations and trucking stations involve substantial investment and require all the attention of a pro trading india pvt ltd franchise. There are also large franchises like hotels, spas and hospitals, which are discussed further under technological alliances.
Three important payments are made to a franchisor: These three fees may be combined in a single 'management' fee. A fee for "disclosure" is separate and is always a "front-end fee".
A franchise usually lasts for a fixed time period broken down into shorter periods, which each require renewaland serves a specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Agreements typically last from five to thirty years, with pro trading india pvt ltd franchise cancellations or terminations of most contracts bearing serious consequences for franchisees.
A franchise is merely a temporary business investment involving renting or leasing an opportunity, not the purchase of a business for the purpose of ownership. Pro trading india pvt ltd franchise is classified as a wasting asset due to the finite term of the license.
Franchise fees are on average 6. Although franchisor revenues and profit may be listed in a franchise disclosure document FDDno laws require an estimate of franchisee profitability, which depends on how intensively the franchisee "works" the franchise. Therefore, franchisor fees are typically based on "gross revenue from sales" and not on profits realized.
Various tangibles and intangibles such as national or international advertisingtraining pro trading india pvt ltd franchise other support services are commonly made available by the franchisor. Franchise brokers help franchisors find appropriate franchisees. Franchising is one of the few means available to access venture capital without the need to give up control of the operation of the chain and build a distribution system for servicing it.
After the brand and formula are carefully designed and properly executed, franchisors are able to sell franchises and expand rapidly across countries and continents using the capital and resources of their franchisees while reducing their own risk. There is also risk for the people buying the franchises. However, failure rates are much lower for franchise businesses than independent business startups.
Franchisor rules imposed by the franchising authority are becoming increasingly strict. Some franchisors are using minor rule violations to terminate contracts and seize the franchise without any reimbursement. Franchising brings with it several advantages and disadvantages for firms looking to expand into new areas and foreign markets.
The primary advantage is that the firm does not have to bear the development cost and risks of opening a foreign market on its own, as the Franchisee is typically responsible for those costs and risks, putting the onus on the Franchisee to build a profitable operation as quickly as possible. A primary disadvantage to franchising is quality control, as the franchisor wants the firm's brand name to convey a message to consumers about the quality and consistency of the firm's product.
Distance can make it difficult for firms to detect whether or not the franchises are of poor quality. This creates a smaller number of franchisees to oversee, which will reduce the quality control challenges. Each party to a franchise has several interests to protect.
The franchisor pro trading india pvt ltd franchise involved in securing protection for the trademark, controlling the business concept and securing know-how. The franchisee is obligated to carry out the services for which the trademark has been made prominent or famous. There is a great deal of standardization required.
The place of service has to bear the franchisor's signs, logos and trademark in a prominent place. The uniforms worn by the staff of the franchisee have to be of a particular design and color. The service has to be in accordance with the pattern followed by the franchisor in the successful franchise operations.
Thus, franchisees are not in full control of the business, as they would be in retailing. A service can be successful if equipment and supplies are purchased at a fair price from the franchisor or sources recommended by the franchisor. A coffee brew, for example, pro trading india pvt ltd franchise be readily identified by the trademark if pro trading india pvt ltd franchise raw materials come from a particular supplier.
If the franchisor requires purchase from her stores, it may come pro trading india pvt ltd franchise anti-trust legislation or equivalent laws of other countries. The franchisee must carefully negotiate the license and must develop a marketing or business plan with the franchisor. The fees must be fully disclosed and there should not be any hidden fees.
Pro trading india pvt ltd franchise start-up costs and working capital must be known before the license is granted. There must be assurance that additional licensees will not crowd the "territory" if the franchise is worked according to plan.
The franchisee must be seen as an independent merchant. It must be protected by the franchisor from any trademark infringement by third parties. A franchise attorney is required to assist the franchisee during negotiations. Often the training period — the costs of which are in great part covered by the initial fee — is too short in cases where it is necessary to operate complicated equipment, and the franchisee has to learn on their own from instruction manuals.
The training period must be adequate, but in low-cost franchises it may be considered expensive. Many franchisors have set up corporate universities to train staff online. This is in addition to providing literature, sales documents and email access.
Also, franchise agreements carry no guarantees or warranties and pro trading india pvt ltd franchise franchisee has little or no recourse to legal intervention in the event of a dispute. Contracts are renewable at the sole option of the franchisor.
Most franchisors require franchisees to sign agreements that mandate where and under what law any dispute would be litigated. In Australia, franchising is regulated by the Franchising Code of Conduct, a mandatory code of conduct concluded under the Trade Practices Act The code also regulates the content of franchise agreements, for example in relation to marketing funds, a cooling-off periodtermination, and the resolution of disputes by mediation.
The new Code applies to conduct on or after 1 January These are significant changes and it is important that franchisors, franchisees and potential franchises understand their rights and responsibilities under the Code. For further information about the changes to the Code, please see the updated Franchisor Compliance Manual and the Franchisee Manual. Pro trading india pvt ltd franchise Code explanatory materials are available from the ComLaw website link is external.
Pro trading india pvt ltd franchise Zealand is pro trading india pvt ltd franchise by around franchise systems operating brands, giving it the highest proportion of franchises per capita in the world. Despite or because of the recession [ which? This functions very well in New Zealand and includes law as it applies to contracts, restrictive trade practices, intellectual property and the law of misleading or deceptive conduct.