1. What is franchising?
A. It’s granting various rights between franchisor and franchisee to develop and operate and exercise those rights to run its business, under the guidance of the franchise Contractual relationship to make a profit.
2. How can franchising be used to develop or re-engineer a business?
A. Franchisee can be used in creation of a new business, development or conversion of a new business, PAN India or International expansion.
3. What are the advantages and disadvantages of franchising?
A. Advantages: Owner of his own business owns the tangible asset but does not own the good will, new business, gains entire business concept, training, assistance but not the risk and failure of the business, which are likely alone. Franchise Advantages:
All level of players under one roof
Results – Flow assured business
Expertise sharing – to sail on rough waters
Franchisee is not entirely entrepreneur, must adopt business system, and follow instructions, how to operate business for a renewal when it ultimately expires, can be lean on staff.
4. How can a business be franchised?
A. Franchisee to stand a chance of succeeding basic concept must be understood, Idea can’t be franchised, Concept proven to work into a business to be successful.
5. Are Franchisees generally allowed to sell their business?
A. No, they have an option for sub franchisee and cannot have the right to sell their business.
6. How can a franchise contract be terminated?
A. The Franchisor can terminate the contract if he violates the business norms that is he cannot do business other than ours ,After the mandatory Period or before expiry of the term you are most welcome to terminate the contract get your refundable amount within 30 days. If he does not wish to renew the yearly fee for keeping the franchisee alive, he may wish to do so by doing it in writing for us to release his deposit.
7. What Information should a Franchisor give to a prospective franchisee?
A. The types of information franchisee may have to disclose type of business, its corporate structure,whether it is a part of a group or one company. Business experiences of the franchisor its directors and its officials.
8. What Information should a franchisor request from the franchisee?
A. Career and employment history
Details of the type of business previously operated,
Financial records any charges on them.
Amount of non borrowed capital and the ability to outlay for franchisee operation.
Access to skilled or unskilled workforce
Ability to expand the business.
9. Are any performance guarantees given to a unit franchisee?
10. What is the anticipated percentage of returns on investment?
A. Its is minimum Rs 30 Lakhs per annum provided he spends sufficient time and works smartly.
11. What is the likely payback period of capital of franchisee?
A. Recovery within the first year of Operations
12. What type of property is required for this franchisee opportunity?
A. Any type of Real Estate. Buying, selling or on Lease.
13. Can a small player from GOA take this franchisee?
A. Yes it’s possible to take a franchisee without having experience, to take franchisee root, provided the client meets important critical factors of franchising.
14. How did you hear about us?
A. Online Marketing, Referral, Email Newsletter/Others
15. What is the AREA required for an Franchisee outlet?
A. 300 to 400 Sqft In a clean/good locality owned or leased premises, Ground/Upper floor, within a radius of 3 kms in the area preferred for the franchisee.Addidtional Rs 5 Lakh for furnishing the office as per our office norms, with basic equipments and a landline , with a work force of two sales people and Reception.