The Science of Reproducing Success
The dawn of the third millennium has provided challenges unprecedented in history. But with these opportunities also come risks, pitfalls and dangers. Truly, in a knowledge society, the biggest capital is a good education where information is power. Application without knowledge and information is futile, and attempting to build and run an enterprise from scratch has its share of trials and tribulations. But franchising has changed all that. It provides a greenhorn business wannabe with years of skills, knowledge and best practices in management from people who have run a successful business. However, the nascent field of franchising has few collected and compiled form of knowledge. Not only in India, but in Asia too, consulting and management knowledge in franchising is the preserve of only those practicing this field.
To fill in this gap, Gaurav Marya, entrepreneur, author and speaker and Founder President of Asia’s largest franchising and retail solutions company, Franchise India Holdings Ltd, took a step in filling this gap in the field of franchising. The result is a truly remarkable book definitely having a first to its credit. Franchising-The Science of Reproducing Success is no ordinary book. It’s the first book written by a Indian author on the nascent field of franchising. The book explains in lucid terms why the model of franchising has become successful and the precautions that need to be taken by the franchisee and the franchisor.
The book is divided into four chapters.
Part 1 ‘The Foundation of Franchising’ traces the historical evolution, gives definitions, talks about the types of franchising, modes of franchising, terms and traces the success factors and the present scenario-both Indian and global.
Part 2 ‘What Franchisors Need to Know’ has chapters on advantages and reasons for going into franchising, survival strategies, feasibility plan, feasibility study, market research, image building, the business planning phase and the documentation phase.
Part 3 ‘What Franchisees Need to Know’ has topics on suitability, steps to succeed as a franchisee, cost, demand, location, and managing a franchise.
Part 4 talks about the Indian and international laws in franchising.
Mr Marya is forthcoming in his writings and speaks to the reader with candor. For instance in the chapter ‘Evaluating Your Business for Franchising’, Mr Marya says that Franchising is more than selling a business or a service, it requires a particular mindset and interpersonal skills to deal not only with the customers but also with members of their own and the franchisor’s team. In the chapter ‘Developing the Franchise’ Mr Marya advises that develop a very strong training program for training franchisees. This training information should be imparted to franchisees at the unit level. In the chapter ‘What Franchisees Need to Know’ Mr Marya says, “Analysis will help you investigate the state of your intended market and determine the demand for your franchise.
So, if you are planning to franchise and want a quick authoritative reference guide before you decide to take the plunge, or while you are a existing franchisor or franchisee, reading this book will give you in a fortnight’s time what the author has distilled from 13 years of his professional practice. Truly, this is a book which is well timed and relevant.
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THE FOUNDATION OF FRANCHISING - ( 20 )
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FRANCHISING DOWN THE AGES - ( 22 )
The Nascent Stage of Franchising
The Father of Franchising
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DEFINING FRANCHISING - ( 26 )
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BASIC TYPES OF FRANCHISING - ( 37 )
Product or Trade Name Franchising
Manufacturing Franchising
Business Opportunity Ventures
Business Format Franchising
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MODES OF FRANCHISING - ( 28 )
Direct Franchising
Broadband Franchising
Area Development Agreements
Factional and Multiple Franchising
Cross Franchising
Subsidiary or Branch offices
Master Franchise Agreement
Joint Venture
Miscellaneous forms
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FRANCHISING TERMS AND DEFINITIONS - ( 31 )
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THE KEY TO SUCCESS - ( 33 )
Selling Ideas
The 'OPM' Principle
Earning More for Doing Less
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THE PRESENT SCENARIO - ( 34 )
The Global Perspective
The Indian Perspective
Some Major Franchisors
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ATTRACTIONS IN INDIA - ( 42 )
PART 2
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WHAT FRANCHISORS NEED TO KNOW ? - ( 44 )
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THE VISION - ( 45 )
Reasons for Franchising
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FRANCHISING ADVANTAGES - ( 46 )
Company-Owned versus Franchising
Advantages of Franchising
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FRANCHISING DISADVANTAGES - ( 51 )
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SURVIVAL OF NEW FRANCHISORS - ( 53 )
Sound New Franchisors Survive
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EVALUATING YOUR BUSINESS FOR FRANCHISING - ( 55 )
Are You a Potential Franchisor ?
Is Your Business Franchisable ?
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THE FRANCHISOR FEASIBILITY PLAN - ( 58 )
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THE FRANCHISOR FEASIBILITY STUDY - ( 58 )
Executive Summary
Marketing
Management
Financing and Accounting
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MARKETING FRANCHISE - ( 65 )
Ascertaining the Demand for Your Product/Service
Market Research Key to Successful Franchising
Image Building
Reviewing the Final Decision and Preparation for Franchising
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THE FRANCHISOR'S PERSPECTIVE - ( 67 )
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THE PLANNING PHASE - ( 68 )
Business Planning
Strategic Planning
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THE DOCUMENTATION PHASE - ( 71 )
The Franchisee Prospectus
The Franchisee Brochure
Recruitment Flow Chart
The Franchisee Application
The UFOC and the Franchise Contract
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MANAGEMENT AND OPERATIONS - ( 77 )
Nature of Managerial Work
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DEVELOPING THE FRANCHISE - ( 81 )
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SETTING UP FRANCHISING IN INDIA - ( 82 )
Permission of the Central Bank In India
PART - 3
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WHAT FRANCHISEES (INVESTORS) NEED TO KNOW ? - ( 84 )
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FACTORS FOR OPTING FOR A FRANCHISE - ( 85 )
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FRANCHISEE SUITABILITY - ( 86 )
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FRANCHISEE CONSTRAINTS - ( 88 )
The Four R's of Franchising
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THREE STEPS TO SUCCEED AS A FRANCHISEE - ( 90 )
Step 1: Examine your Opportunities
Step 2: Examine the Franchisee and the Franchisor
Step 3: Analyze and evaluate your options
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THE COST OF BEING A FRANCHISEE - ( 100 )
Franchisee-Franchisor Agreements
Working Out the Earnings
Laying the Franchise Foundation
Benefits of buying an Existing Franchise
Affording Franchise
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DEMAND FOR FRANCHISE AND ITS PRODUCTS - ( 104 )
Market research
The Four Ps of marketing
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THE IDEAL LOCATION - ( 106 )
Evaluate your Location
Finance your Location
Construct your Location
Licences and Permits
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SELECTING A BUSINESS ENTITY - ( 108 )
Partnerships
Maintaining Business Equity
Transferring a Franchise Agreement to an Entity
Registration of Name
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FINANCING A FRANCHISE - ( 111 )
Debt versus Equity Financing
Lender's Perspective
Capital Requirement
Applying for Loan
Financial Information from the Franchisor
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THE FRANCHISE BUSINESS PLAN - ( 114 )
The Executive Summary
Section One: The Business
Section Two: Financial Data
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MANAGING FRANCHISE - ( 122 )
Find Good Employees
Managing and Motivating Employees
Finding and Developing Customers
Advertising
Promotional Strategies
Franchise Relations
Communicate your Problem Tactfully
Benefit from Regional Director's Experience
Assist your Franchisor
Be Nice to Office Staff, Vendors and Consultants
Franchisee Initiative
PART - 4
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LAW AND FRANCHISING - ( 130 )
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IMPORTANT INTERNATIONAL LAW - ( 131 )
Competition Law or Anti Trust Themes
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IMPORTANT INDIAN LAWS - ( 132 )
Indian Competition Law
Indian Consumer Protection Laws
Indian Intellectual Property Law
Labour Laws relating to Franchising
Insolvency Laws
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FRANCHISE DOCUMENTATION - ( 136 )
The Manual
The Franchise Agreement
Negotiating a Franchise Agreement
Negotiating a Lease
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FUTURE TRENDS IN FRANCHISING - ( 145 )
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APPENDICES - ( 147 )
Appendix A
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FRANCHISING CATEGORIES - ( 147 )
Appendix B
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OUTLINE OF FRANCHISE BUSINESS PLAN - ( 150 )
Appendix C
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A SAMPLE INCOME STATEMENT FORMAT - ( 152 )
Appendix D
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DRAFT FRANCHISING AGREEMENT - ( 154 )

