Mantra to grow your stores from 10 to 100

There are franchisors’ success stories you must refer to. Here are the experts' views say to kick-start your business and its successful rollout.

RAJEEV, 35, who is willing to take a franchise of Dominos Pizza is clouded with many thoughts regarding his success and failure. With a plan to start a single unit outlet he wishes to become a multiunit franchise or a regional franchise in future. But is somewhere doubtful whether he would achieve his goals and profits in due span of time. He is not the only one to be sceptical about the business situation of ups and downs as there are many aspiring entrepreneurs who would think of taking up business opportunity and expand it to the core. Well, this piece would suggest and guide those puzzled investors to figure out the right edge in their business strategies and bring their total store count to 100 and more.

Franchising, the ladder of success

Franchising is the practice wherein different owners share a single name of the brand and it is the most preferred business model that ensures maximum profits and expansion. Franchise mantra has made many brands grow their stores from one to hundred. Let's take a look at the brands that have made a mark in their own industry via franchising.

Ferns N Petals (FNP) is a quintessential example amongst those leading brands that may have started from the scratch but have witnessed humongous growth only after adopting the franchise model. Today no other florist brand is as popular as FNP.

Its journey from first outlet to 100 has been very challenging and full of learning. In the past 20 years of its operations FNP has achieved a plethora of successful franchise outlets pan India and the brand's expansion every week. FNP currently has 185 stores across the country. “So, our business strategy to strengthen our business network from very beginning was on training, handsome bouquet of products and services and customer delight. Today, we have a strong network of 185 outlets across 74 cities in India,” says Anil Sharma, Vice-President, Retail & Franchise, Ferns N Petals.

Meanwhile, FirstCry.com is also following the same footprints of success and reaching the total of franchise stores to 100 in future very soon. Supam Maheshwari, CEO and Founder, FirstCry.com quips that the journey from the first outlet to the 70th has been quick, rich in experience, rewarding and has helped increase the confidence of the entire team in many fold. “We follow a pure franchise model of business and each of our 70 stores are franchisee-run. We believe completely in the franchise model for retail. The franchisee's local knowledge/experience, coupled with FirstCry's expertise in products and retail in general, creates a fantastic combination,” adds Maheshwari.

Multiple formats for fast biz growth

Never make an attempt to grow your brand too soon, wait until your business model works. Every brand works on a different business format. Many brands opt for multiple business formats for gradual, 'organic', growth as that has proved to be more manageable and involves less risk.

Dell India, a leading player in the Indian PC market operates via multiple business formats and has plans to take its store count from current 250 to 400 by March 2015. Phil Bryant, Vice President- Consumer and Small Business Sales, Dell Inc recently inaugurated Dell's 250th store in Bengaluru. Dell has tied up with big store formats, franchise model and formed partnership with retailers to expand its retail presence. The combination of a new GTM strategy, attractive pricing, variety of products, and rapid retail expansion across multiple formats with a focus on tier-II and III markets has resulted in the strengthening presence of Dell in India.

Strategies for growth

FNP select works as merchandise support wherein it's KRA is to provide everything required by a flower shop under one roof at below wholesale prices. The brand makes every kind of merchandise available to the consumers at their doorstep through its strong logistic support system. The brand imports 80 per cent of their merchandise from various part of the world and envision to simultaneously work on building up e-commerce and franchise platforms to compliment both the franchisor and the franchisees.

The only strategy FirstCry follows is that of an organic expansion. The brand doesn't only like to expand just for the heck of doing but follow a pure franchise model to reach the utmost profit and success for one and all. “We believe in empowering the franchisee by offering complete support, guidance and training in all aspects of business operations,” asserts Maheshwari.

Road blocks to success

No business is complete without hurdles and challenges during the initial stages. Having started in the year 2002, FNP did not get demoralised by the unsuccessful instances. Rather it learnt a lot of things and it certainly helped the brand to make its franchise model robust and more franchise friendly. Manpower training, ideal retail locations and merchandise were some of the initial hiccups of FNP, but was slowly and steadily overcome. The brand has also roped in a few international professionals to set up FNP training academy wherein franchisees are trained.

For Dell reaching out to a widening customer base through large format stores was an initial challenge. Dell also has an onsite service footprint of over 20,000 pin codes across India and is known for its pioneering service and support offerings such as default on-site warranty, 24x7 Premium Phone support (PPS) and Accidental Damage service, for its consumer range. The brand has endured decades of changes in the dynamic Indian market and has been able to create a space for itself due to products that are based on genuine consumer insights and research.

However, FirstCry view all challenges as opportunities. The baby and kid's industry is massive and is estimated to be at nearly Rs. 50,000 crore. It is largely unorganised. As far as offline retail expansion is concerned, choosing the right partners and the right location is something that is of paramount importance.

Franchise brands that have 100+ stores across India.

Amul : 7428+

Thomas Cook : 206

The Body Shop : 117

Naturals : 350+

Mahindra First Choice

Wheels Ltd : 350+

Lenovo : 1400

Archies : 240+

Fastrack : 142+

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