Hotline: 1800 102 2007
Hotline: 1800 102 2007
Search Business Opportunities
franchising aspects 2010-10-01

Maximise Profits With Pilot Franchise

Most aspirants venture into franchising as it is a tried and tested business model. However it is also true that businesses take time to get established. Being the first or the pilot franchisee of a new franchising business can offer lucrative benefits. R

By Sub Editor
Maximise Profits With Pilot Franchise

Over the years, franchising has emerged as the most successful mode of business expansion. If franchisor is not sure of success, but is willing to try franchising, pilot franchising is the way forward.

Pilot franchising

The term ‘pilot franchise’ stands for the first franchisee appointed by the franchisor to estimate the success rate of his franchise business model. During the initial phase of expansion via franchise route, the franchisor himself is not sure of his business model and thus appoints his first franchisee. Being the first in the expansion channel, the franchisee enjoys lot of first hand advantages like personal care and guidance. However, the risk factor attached to the first franchisee is also a point of concern. As the franchisor is testing his franchise business model there are equal chances of success and failure. Pilot franchisees also have to sign an agreement with the franchisor regarding their franchise duration, rights, outlet location and so on.

Benefits for pilot franchisees

Being a pilot franchisee may have lot of alluring profits for them. Let us have a look at some of these:

  • Low franchise cost: The price of a pilot franchise is considerably less as compared to the post pilot franchises. As the franchisor himself is new, and the brand is also new, the initial cost of the franchise is considerably less.
  • Dedicated and efficient handholding: It being the franchisor’s initial unit, the franchisor provides his best to make it successful. He gives his best training and support to his pilot franchisee. Moreover, the pilot franchisee can get individual attention in his business.
  • Personal attention: Being the first franchisee, franchisor renders personal attention to the franchisee. The success of the franchise depends only on the performance of the initial franchisee.
  • Becoming a master franchisee: In many franchise concepts cases, the pilot franchisee later on takes the role of master franchisee. He can carry out all the rights and duties of a master franchisor.
  • Experiencing lot of leverages: The pilot franchisee enjoys a lot of leverages, which may not be offered to regular franchisees. He enjoys more freedom in selecting his territorial rights as compared to others. In few cases the pilot franchisee after being successful in his venture can take up a partnership with the franchise owner.  
  • Strong relationship with franchisor: Pilot franchisee can have better relationship and communication with the franchisor. He can display his pleasure and grievances openly to the franchisor.
  • Reselling to get higher profits: In case if the pilot franchisee wants to sell his business due to personal reasons then he can earn profits on its re-sale. However, it should always be checked with the franchisor if he allows re-selling or not.

Along with all these lucrative benefits offered in the pilot franchisees platter, there are few hurdles also.

Word of caution

If you aspire to become a pilot franchisee, then have a look at some of the shortcomings before taking a decision:

  • Risk involved: As said in the beginning, franchising is a preferred business as it is based on a tried and tested model. However, this tested model is not available in the concept of pilot franchise.
  • Lack of experience: The aspirant may have less knowledge about the franchisor and his company. The business owner in some cases may not have the qualities of becoming a successful franchisor.
  • Non-franchise able business: There are few business concepts, which may not be successful if they are franchised. Therefore being a pilot franchisee, an aspirant may taste failure.

To conclude, pilot franchising offers a great hint about the success of a franchising business. It is through pilot franchisee, a franchisor being new to the business can attain maximum profits in less time.

Comment
image
image
mobile
address
star franchise india
D.Das : 24, Jun 2010 at 05:27 AM
The article is an appropriate guide for a new and existing franchisor.Thanks
Haresh Advani : 05, Jul 2010 at 04:31 AM
The article is informative to an existing & inspiring to a new franchisor.
Related opportunities
  • Quick Service Restaurants
    About Us: Grill Masters started its first outlet in August, 2015..
    Locations looking for expansion Haryana
    Establishment year 2015
    Franchising Launch Date 2016
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Yamuna Nagar Haryana
  • Quick Service Restaurants
    About Us: While Wada Pavs have been on a high, Samosas..
    Locations looking for expansion Maharashtra
    Establishment year 2018
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater pune Maharashtra
  • Juices / Smoothies / Dairy Parlors
    About Us: Gargi's Milkshakes, The one of newly introduced brand in..
    Locations looking for expansion Maharashtra
    Establishment year 2018
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Men's Footwear
    About: Wayne Wright Shoes are a perfect combination of comfort and..
    Locations looking for expansion Delhi
    Establishment year 2011
    Franchising Launch Date 2017
    Investment size Rs. 30lac - 50lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
Insta-Subscribe to
The Franchising World
Magazine
tfw-80x109
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
email
mobile
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

pincode
ads ads ads ads