International brands are keen to expand their presence in India. While many new brands are seeking Master Franchisees for establishing the brand in India; existing ones are robust on growing their base. We take you through 5 steps on how you can associate
Many international brands have recently forayed into India via Master Franchise route. Each brand seeks different traits in a franchisee. Clarks, a UK based shoe brand that has 19 franchise stores is expecting to add another 30 franchise stores over the next two years in India. In the same way, Coffee-Bike, a German F&B brand that has 100 franchisees worldwide is close to signing the final agreements for master partnerships in Asia and in 2016 the first Coffee-Bike will be seen at the Indian high streets as well as on events and caterings. Domestic cleaning brand, Maid2Clean is seeking area developer investors in all tier I and II cities in India in the next few years.
Entrepreneurial qualities required
The first thing that every international brand looks at while selecting master partner in Indian is whether the franchisee is suited for the business. The franchisee should be able to utilise the company knowledge to create strong margins with repeat customers. He/she must possess the financial capability and resources to recruit and support local franchisees.
Depending on the franchisor; the skills, knowledge and competencies required to run a successful business can differ. Therefore it is important to understand the criteria set by the franchisor for selection of master franchisee. Speaking on the qualities the brand is looking at, Mike Hanrahan, Managing Director, Maid2Clean said, “Successful background in business, strong ethics and a good communicator (English) in verbal and written form is what we are seeking in franchisees.”
Every international brand requires customisation according to local requirements. And in a vast country like India, demand varies across regions and territories. Mark Darmanin, Vice President, Retail Development Asia Pacific, Clarks suggested, “There needs to be a balance between what any global brand would expect and what the local needs are telling you. The franchisee should be able to adjust the range and assortment based on local customs, trends, festivals and weather.”
Every business is targeted at consumer or the corporate world. The potential franchise partner should have experience and the right skills in catering to the required realm of operation. He ought to have a proven track record.
Too many potential franchise partners believe that once they are a franchisee it will be easy because they have the support of a major brand. The brand gives the franchisee the vehicle, the franchisee needs to drive the vehicle to succeed. Operational support is given but they will need to manage the business for which commitment and zeal is needed.