Hotline: 1800 102 2007
X
Loading
Search Business Opportunities
Advisory 2014-05-08

Why choose multi-unit franchise model

Are you running a franchise business and wish to add more brands or outlets to your kitty? multi-unit franchising is an apt business model to adopt. multi-unit franchising & Area Development is gaining immense popularity in the country these days. Read on

By Yamini S Verma, TFW Bureau Sr. Sub-editor

These days, franchisors are optimistic in offering multi-unit franchises to potential investors as this business model brings in great returns to both, the franchisee and the franchisor. The model of multi-unit franchising demands for more time and investment along with the responsibilities for the smooth operations of the business.

Multi-unit franchising has proved to be a boon for most of the people who have opted for it. It is just because it brings along great returns while strengthening strong business network pan India or the areas allotted. This franchising model somehow also promotes cluster network, increasing the brands presence in particular areas and regions.

Sharing his views on cluster franchising, Vasanth Kumar, Executive Director, Max Retail India says: "We strongly follow cluster franchise network strategy for brand strengthening. For future expansion also we are looking at multi-unit franchisees pan-India. We believe that a franchisee developing an assigned area can do a better job than a single unit franchisee. In Kerala, we have two master franchisees that are responsible for developing all the franchise network outlets across Kerala and we are satisfied with their performance."

Vinod Kapoor, a brand loyalist of Titan Company Ltd, has partnered with them from more than three decades for operating multi-unit franchise stores of World of Titan, Tanishq, Helios and Titan Eye Plus in Chandigarh and Panchkula.

Discusing in detail about his experiences as a multi-unit franchisee, he says: “I always wanted to do a retail business by associating with some renowned brand. In 1979, Titan took out an advertisement calling for partners and as it was a desired retail brand, I grabbed the opportunity and took their franchise. Since then, there is no looking back,” says Kapoor.

 “The journey has been wonderful with Titan Company Limited. Though there have been ups and downs. I also took franchise of Arrow, Samsaara, Satya paul and Hunt- an accessories brand but could not sustain them due to various reasons,” he adds.

Advantages and disadvantages

Operating a multi-unit franchise is easier to run as the franchisee is familiar with the system's operations, policies and procedures of the brand. A single store brings in the 100 per cent risk factor but with opening multiple units, would divide the risk factors as well as the returns among all the outlets. This way, if one outlet is not doing well, the deficit can be covered up by the other stores.

Apart from multi-unit franchising, there are brands that are growing great via area developers and master franchisees yielding rich dividends. JumboKing, an Indian vada pav brand believes that every city with a population of over 10 lakh must have one city Master Franchisee for its brand. Dheeraj Gupta, MD, JumboKing says: “Our master franchisees will have to submit a business plan to demonstrate that the city he/ she besides in and the adjoining areas can support a minimum of 10 and up to 30 Jumboking stores. If population is less than Rs 30 lakh, then the master franchisee can club in the adjoining districts and develop a total of 30 stores. Of these 30 stores, the city master franchisee has to retain three stores as directly owned and operated by him. The sub-franchisees opened under a city master franchisee will be fully supported by him.”

Franchising is a time-tested business model and when done for the right reasons and with a truly co-operative spirit, it creates value for all its partners. “Our biggest successes in the recent past have been attributable to the city master franchisees and hence, we are expanding aggressively with that model,” adds Gupta.

FoodJockeys LLP brought the American Coffee brand; Classic Rock Coffee Co in India via Master franchise route. The brand recently started franchising in India. Avinash Agarwal, CEO of FoodJockeys, the Master franchisee for Cocoberry for parts of western and southern India says: “It’s a proud moment for us. This year we plan to open at least 8-10 more outlets of Cocoberry in our territory. Cocoberry is one of the fastest growing Health and Wellness food brands in the world.”

Conclusion

Meanwhile, if the experiences of all the above franchise professionals have stirred up your spirit and your inner voice provokes an affirmative ideas to take up this business model of multi-unit franchising, then you must take a step further. Your entrepreneurial spirit will lead the way for you. Happy Franchising!!!

Words of wisdom by successful franchisees

·           Do your homework well.

·          Always monitor RoI on regular basis.

·           Give 100% to your work as a franchisee.

·           If you want to be successful you have to make the brand your priority and have to dedicate 365 days a year to your work.

·           Study the industry growth and the potential for the particular brand.

Comment
DVVSMURTHY 30, Dec 2014 at 12:40 PM
Sir, I am a Content Writer and willing to start my own content writing business in the form of a Freelancer or starting a franchisee of content writing projects. Please do guide me how to become a freelancer so that I can earn enough to support me and my family without working full time for any company or organization.
Related opportunities
  • About Logistiks :-Logistiks is a patent pending next generation logistics platform..
    Locations looking for expansion Telangana
    Establishment year 2015
    Franchising Launch Date 2016
    Investment size Rs. 5lac - 10lac
    Space required 300 - 500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Telangana
  • About:Kunal Rawal, a venture of Dstress Retail Pvt Ltd, is..
    Locations looking for expansion Maharashtra
    Establishment year 2006
    Franchising Launch Date 2017
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 1000 - 4000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Automobile maintanance related
    Greaves Autocare :-GREAVES AUTOCARE’ is single point service solution to..
    Locations looking for expansion New Delhi
    Establishment year 2014
    Franchising Launch Date 2016
    Investment size Rs. 5lac - 10lac
    Space required 1500 - 3500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New Delhi New Delhi
  • Multi Cuisine Restaurant
    Thadiwala™ the name which reflects the meaning of Dream, Passion,..
    Locations looking for expansion Rajasthan
    Establishment year 2012
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 300 - 500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Jaipur Rajasthan
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories