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franchise 2015-10-27

When is a brand ready to franchise?

It’s not that a brand is popular and it should franchise, when the brand has set systems and the procedures and at the same time it can train the people well, is where it can think about taking the short cut route to expansion.

By Deputy Features Editor
When is a brand ready to franchise?

Franchising is always considered as the biggest medium to grow the brand when it is ready to cross the geographical boundaries. But how one plans to take the franchising route is a bit confusing in today’s time when we see a brand opening with a big ban, closing its operation within few months or years of its inception.

Many a times when a brand fails to cater to the right kind of customer, mistaken to open at a low traffic location and has systems which is still confusing, that’s where a brand fails, shuts its operation. Hence, the right time to enter into the franchising model is when one is sure that his systems and processes are in place to expand the brand and take it to the next level of development.

Adding his view on the same, H. Jason Araghi, Green Beans Coffee, shared “You have all the systems, processes, the recipes, the people to develop and operate a business partner. Also your brand can be replicated into a smaller format. That’s the right time when a brand should start developing franchising.”

Copper Chimney which was started way back in 1972, took the franchise route in 1994 with Chennai which is still very successful restaurant. Even at that time the brand didn’t change the essence of the concept, but developed an entire set of standards and cuisines which could be replicated as it was replicating their success with the franchised outlet. So the system which they develop in the brand is taken to the franchise segment and the franchisee can then have a successful format.

“We are ready to franchise so that we ensure that the franchisee is successful. It is not all about franchising and building a brand, but it’s about building the brand with the success of the franchisee,” pointed Shikha Nath, Director, Copper Chimney.

Adding to the same lines, Sam Chopra, Chairman, CybizCorp shared, “Brand already has a passion to drive the business but it is the responsibility of the master franchisee and the franchisor. Master franchisee has profitability in the mind rather than the passion. Therefore, the brand should not allow the master franchisee to sub franchisee as this may dilute the business.”

It’s not that a brand is popular and it should franchise, when the brand has set systems and the procedures and at the same time it can train the people well is where it can think about taking the short cut route to expansion because as it is believed that entering into a franchising deal is all about a marrying a brand.

Commenting on the same, Karan Tanna, CEO, Kutchi King said, “It is very important to know what your strength is. One need to understand is the product right for franchising, the acceptability of the product for franchising model and making it extremely easy for the franchisees to operate the model from starting the outlet, recruiting the staff to successfully running the business.”

However, sharing his view on the same, Uday Mathur, Co-Founder, Tea trail shared, “It depends on model, there are model which can be franchised and which can’t be. It is also about matter of understanding the model and then starts franchising.”

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