FRA EWS An IFA Newsletter

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From the Chairman's Desk Entrepreneurs Raising Funds : Points to Check on02 03

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In this issue, you will find:

1.Hot Opportunity of the Month: Fran Recruit 07Fran Buzz

Exclusive Interview Hot Opportunity of the Month: IFA Membership 11

OCT & NOV2012

ISSUE

ENTREPRENEURS RAISING FUNDS

POINTS TO CHECK ON!

06Fran Events

08Case Study

FROM THE CHAIRMAN'S DESK

Gaurav Marya

Since last one year IFA's Newsletter- Fra(n)ews is trying to

serve you at its best by bringing out new and updated

insights of the franchising industry. With Fra(n)ews, we aim

to bring forth the latest developments taking place in the

franchise sector, thereby increasing awareness in the

franchise community. This newsletter would also act as a

platform for all the start-ups as well as established brands,

to showcase the business potential and seek potential

franchisee's attention.

It would be the great pleasure of Fra(n)ews in successfully

disseminating franchise knowledge to the entire franchise

fraternity. In addition, I strongly believe that it would assist

franchisors in reaching out to their potential investors, and

in turn aid the aspiring entrepreneurs to get their desired

brands.

Gaurav Marya | Chairman

Indian Franchise Association (IFA)

02

Dear Friends

ENTREPRENEURS RAISING FUNDSPOINTS TO CHECK ON!

03

It is not about the biggest armies but

the best shots that made wheel of

fortune turn to ones favour. Likewise,

in the arena of entrepreneurship, its

not the money a company raises that

helps them succeed. It is but the

perfect shot, created out of a blend of

some extremely essential elements

which ushers the growth path of a

company. Along with money, the

other essentials are the opportunity,

team and the mysterious alchemy

between those two called "fit". There

are five ways for entrepreneurs to

prepare for the brutal and usually

humbling process of raising

institutional money.

Of course reality is dif ferent from plans; but plan you

must. The business plan must define the problem

you are trying to solve, the solution that you have

identified; your target consumers. The resources

you need in terms of people and capital. You will not

get a second chance to make a first impression, so

work on the plan.

THE PLAN Write and re-write it!

Five-point checklist

for entrepreneurs on the

road to raising funds

The need for growth gaining importance over

refining the business model can lead to poor

decisions. But if you raise too little, you risk being

constantly in the market for funds and not being able

to pursue opportunities. The optimal amount will get

you through finding out who are your consumers,

where will you find them, how much they will pay,

and what your costs will be.

No amount of money can make a bad business

model good. The clock on returns starts ticking the

moment you raise funds. So even if the business

model is good, raising more money than needed

increases the pressure to grow fast because only

growth provides returns.

MONEY, MONEY Strike The Right Amount

04

Most entrepreneurs, even the successful ones, say the fundraising process is exasperating and humiliating. Don't take rejection personally.

Fundraising is simultaneously exasperating (when investors don't seem to get your idea), humbling (when investors don't buy into your passion), exhilarating (when an investor does buy into your idea) and enriching (when an investor gives you the money to build your idea). The most interesting entrepreneurs recognise that fundraising is part art and part science. They target the right investors, strike a careful balance between business plan ambition and realism and focus on execution rather than valuation. Finally, they also realise that they were lucky to be at the right place at the right time.

DON'T TAKE IT PERSONALLY

Valuation is important but should not be the only criteria for closing or choosing one investor over another. If you raise money at a high valuation at an early stage, then the pressure amplifies to provide greater returns. In seed or early rounds, when the business model is still being refined, the colour of money is more important than the quantum.

funding

VALUATION Don't Chase it too hard

Make a short list of investors based on their track

record, investee companies, investment thesis and

fund size. There is no point in pitching a $10-million

funding round to an investor whose fund size is $50

million. Do your homework; study their websites and

ar ticles, talk to entrepreneurs and investee

companies. Look for chemistry. The investor-

company relationship is like a marriage: look for

how the investor deals with you during your

interactions with them. Does he spend time

understanding your business? Does it sound like he

will be fair? Will he bat with you or against you? Does

he understand the roller-coaster ride of an

entrepreneurial journey?

DON'T SPRAY AND PRAY

05

French Furniture major plans expansion in India via Franchise route

Its pan India expansion plan on the anvil for Lulu Forex Pvt. Ltd.

FRAN BUZZ

Ebony Gautier, the five year old franchisee of French furniture giant, Gautier, which has already spread six stores across Noida, Gurgaon, Bangalore, Chennai, Hyderabad and Faridabad are now looking into opening 8-9 more stores before the end financial year, 2012.

Abhijeet Mitra, chief executive officer of Ebony Gautier said, “We are looking at eight to nine stores before this financial year is over and at another four to five during the next year, subject to availability of the right place at the right rental.” Mr. Mitra further added that they would look into the profitability and viability of the store and a core market which they can service and support.

The company is likely to open stores in Mumbai and Amritsar; it is also evaluating locations in Pune, Lucknow, Jaipur and Kolkata. These could spread across 7,000 to 11,000 sq f t. The company's entire collection is imported from Gautier in France. The Gautier group needs to sell furniture worth Rs 7 crore a day to its partner shops. They have a frame of 80 shops worldwide, based on the franchise system.

Lulu Forex Pvt. Ltd., the foreign currency exchange business arm of Dubai-based Lulu Group, will open three more branches within December 2012, said Shibu Mohammed, head of its Kerala operations.

"The next branch will be in Bangalore and is due for opening in early November,2012. By mid-November, we will launch our Goa branch, followed by one at Kanhangad," Mohammed said. The company, with fourteen licenses, will also open one at Edappally Lulu Mall in Kochi.

CarTrade.com Launches Store in Western IndiaCarTrade.com is a leading auto e-commerce portal and helps consumers to buy and sell new and used cars. CarTade.com announced the launch of its first CarTrade.com Franchisee of used car Store in Thane. The franchisee partner is Globus Motors.

Commenting on the company's latest initiative, Mr. Vinay Sanghi, Founder & CEO, CarTrade.com said, “The CarTrade.com Franchise Store is an innovative offering which now allows our customers to not only get the information and help they need on our web-site, but also an opportunity to interact with well-trained staff, to get the best choice of cars and deals in the market. We are confident that this initiative will further enhance our customer's car buying and selling experience. This is a significant milestone for us. We have aggressive expansion plans to launch 100 stores across India in the next 10 to 12 months”.

CarTrade.com helps customers who are looking to buy or sell new or used cars and want to remain up-to-date with the latest automobile news, expert reviews and car prices. All this information, along with a host of research tools, price information and a growing dealer network, is available just a click away with CarTrade.com. It also offers a wide variety of good quality used cars backed in many cases by a Condition Check Report. Also, the benefit of car warranty can be availed on selected cars at the CarTrade.com Franchisee Stores.

Mr. Pradeep Kourani, Partner in CarTrade.com Franchisee, Thane said, “I am glad and honoured to be associated with the CarTrade.com brand. The innovative products and services which CarTrade.com offers to its customers are truly delightful and exciting. This will help bring in many new customers to our store”.

EVENTS

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Franchise India 2012, the 10th edition of Asia's Biggest Franchise, Retail & Small Business show commenced at Pragati Maidan, New Delhi on November 3rd with a lamp lighting ceremony by Mr. Gaurav Marya - President, Franchise India. The event was presented by Naturals, Burg Watches, Greentrends, Aura, Club City, Safexpress, Mahur Thalis and Chabbra 555 with the support of Indian Franchise Association. Whether one is looking to grow their franchise network in the Indian market, collaborate with International business concepts, take their concept internationally or supply to the franchise, retail and small business community, the first day of the show of fered enormous opportunity encompassing all facets of Franchising, Retailing and Licensing.

Alongside the presence of leading franchise companies at the exhibition, the platform also featured 4 conferences on both days of the show, bringing together over 100 speakers with about 30 plus international speakers. These were namely the Entrepreneurship Summit, Franchise Knowledge Series, Brand Licensing 2012 and Retail Knowledge Series. The first day witnessed an inaugural session on creating an entrepreneurial scene in India by Mr.Vikram Bakshi (McDonalds), Mr.Charles Riotto (LIMA), Mr. C K Kumaravel (Naturals), and Mr. Momir Popovic (Rainbow Worldwide). Dr. Rashid Al Leem (Sharjah Department of Seaports and Customs and Sharjah Free Zones Authorities (Hamriyah Free Zone Authority), Mr. Vikaas Gutgutia (Ferns n Petals) and Mr. P. Krishnan (Mom & Me (Mahindra Retail) held forth on the New Age Franchise Entrepreneur Balancing Skills & Entrepreneurship as a franchise

and its challenges. They elaborated on creating an omni channel, the move to form a franchise and marketing game plan.

Mr. Akshay Bector (Cremica), Mr. Naveed Dowlatshahi, Mr. Gaurav Ahuja (Red Ginger Hospitality), Mr. Marco Schärf (Schärf Coffeeshop GmbH, Austria), Mr. Vikram Kamat (Kamat Hotels), Mr. Hitesh Patel (Primifoods) and Mr. Vijay Abhimanyu (Born South) discussed building a food empire via franchising.

Business Opportunities in Education were explored by Mr. Amit Guota (S Chand Harcour), Mr. Maurice Bryne (Jymka, Ireland) and Mr. Jayant Hari Har Lal (Sri Ram Schools). Mompreneurs in Business and addressing the possible growth of successful women entrepreneurs were prime areas that were looked at by Dr Rajnee Aggarwal (FIWE), Ms Rashmi Singh (NCRW, Ministry of Women and Child Development), Mr C K Kumaravel (Naturals) and Mr Alokendra Banerjee (NTC). The scope of specialty business was covered by Mr. Suresh Bhatia (5 aces), Mr Hitesh Kshatriya (Magic Holidays) and Mr Devendra Jain (Atishya Group). Technology Reducing cost and complexity in business was examined by Mr Siju Narayan (IBM) and Mr. Ambarish Gupta (Knowlarity).

Mr. Gaurav Marya, President, Franchise India commented, “The sessions amalgamated opportunity and expertise packed in an all exclusive conference program on varied subject matters of Small Business Franchise, Retail and Real estate, and licensing in a well rounded manner. The presence of multiple CEO Forums with franchise tycoons elucidating their views on the challenges faced in the global franchise industry led credibility to the whole initiative. The event has over the years successfully produced fantastic results for exhibitors, potential franchisees, visitors, speakers and the entire franchising industry – and that's what makes it so valuable.”

The sessions saw participation from both Indian and global brands to offer a pool of out-of-box business ideas and practices delivering India's biggest business exchange. Focused at the visiting investors, this was an open knowledge workshop for no charge, for visitors to understand the nitty-gritty of franchising, as a model.

Franchise India 2012 expounds on unexplored possibilities of Business Engagement

07

HOT OPPORTUNITY OF THE MONTH

Fran - FranRecruit Training

Salary structure after completion of 3 months courseRs.25000+Incentives on sales achieved (Minimum total of approx. Rs. 30,000)

Fee Structure:One time fee of Rs. 25,000

Venue:IFA campus, GK-1 , South Delhi

Course Duration:2 classes per week i.e. 24 classes in 3 months

Sagarika Buragohain

Contact No: 09654860991, 011-40665500/26

Email: bsagarika@franchiseindia.org

www.franchiseindia.org

BENEFITSæ Opportunity for Educated and unemployed individuals

æ Opportunity to first learn and then earn

æ Lifetime opportunity to join an Indian MNC

æ Direct Entry into the Management Cadre

æ 100% Job Guarantee after the completion of the course

Professional Certificate Course In Franchise Management

CASE STUDY

08

IBERIS INC Business Advisory

IBERIS INC was founded in 2005 by a group of industry experts with an aim to provide training, recruitment & Consulting to various companies and individuals. Capacity to serve all levels of Management through a team of Professional trainers / facilitators Contribution has been their forte and this has been recognized by campus and corporate giants. Their credibility lies in their pool of professionals who bring in enormous talents and experience to serve better.

IBERIS INC models customer's own commitment to development by sharing their development objectives and provides with proven solutions to help build the bench strength. IBERIS INC delivers the training programs which are dynamic, inspirational and cutting-edge that focuses on the Organization's business objectives. Evaluate organizational practices and individual skills to iden t i f y oppor tun i t i es fo r con t inuous improvement. The training specializes in the areas of management and staf f development, adjustment services and career planning. They also develop and deliver total upgrade packages for individuals and customized training modules to improve business performance facilitating change by creating environments that promote communication, risk-taking and collaboration.

Since its inception, IBERIS INC has focused on enhancing the productivity and profitability of its clients. They have served as an extension of each c l ient 's management group, prov id ing opportunities to recognize trends and set direction that will lead to the attainment of each firm's respective goals and the on-going achievement of targeted results. They work closely with each firm's principal(s) and key employees to learn about their respective internal operating systems and through this process develop a customized approach, develop innovative so lut ions, make recommendat ions for improvement and offer assistance with, or take full responsibility for the implementation of each activity.

As a complete one stop solution, their experienced / specialized consultants lend expertise in all HR related domains to help design and implement selection/assessment processes.

HR Due DiligenceHuman Resource Information SystemsHR Operational ImprovementHuman Resource OutsourcingPerformance & Rewards ManagementTax Help DeskPayroll OutsourcingLitigation Support

Their emphasis lies on working closely with clients to build innovative solutions by combining both the board-level and operational perspectives. “Quality in everything we do” approach help them achieve excellence all the above mentioned services they offer. For more information about their services, you can reach them at :

IMA HOUSE, F / F - 6, Diwaliba Apartment, Navarang Six Road, NR. Vimal House Road, Naranpura, Ahmedabad-380013, Phone : +91 079-40242526 Mobile : +91-9898796868, +91-9879207968E-mail : neetusingh@iberisinc.com ,

jobs@iberisinc.com Website : http://www.iberisinc.com

Staffing solutions comprise of four distinct components:• •• ••

HR Consulting comprise of services which are:Human Resource Strategy

••••••••

IBERIS INC

Permanent Staffing Executive SearchContract Staffing TrainingAssessments

SERVICES OFFERED

EXCLUSIVE INTERVIEW

09

1.First of all, I want to

appreciate your endeavour.

What are the most pivotal

moments in your career

when you decided to come

up with "Cute Island"?

Answer: Robert L Ehrlich

says and I quote “Experts tell us that 90% of all

brain development occurs by the age of five. If we

don't begin thinking about education in the early

years, our children are at risk of falling behind by

the time they start Kindergarten.” I had seen my

kids going to various pre-schools and how

commercial those schools were. I was unhappy

with the quality of the education standards. I

always felt that education should be treated as

“service” and not as a business deal. Then it

occurred, why we can't setup school by providing

quality with no commercial aspects. I believe in

quality education, quality infrastructure with

affordable price and education should not be

treated as commercial earning tool. That is the

only reason we established Cute Island.

2. When and why did you opt for franchise

business model?

Answer: I do not want to compromise with the

quality of education at Cute Island. All the

branches of Cute Island Pre-schools ought to

have consistent quality of education. That can be

ensured only by opting for a franchise model. We

have also seen lot of franchise models, which they

just don't properly support but expect huge

amount of Royalty. Also our pre-school concept

would penetrate into the tier 2 and tier 3 cities

because even though parents of 2nd and 3rd

cities are aware of pre-school and early childhood

education, they don't have opportunity to send

their kids in good pre-schools. That is why I feel

franchise model is the best way of expansion.

3. What kind of training and support do you

offer to a franchisee?

Answer: Anyone who is passionate about

education and treat as “Service” can run this

school. We provide them with training aid to

faculties, center head as well as nannys. We also

provide them with operational plan: daily plans,

weekly plans. They just need to make sure

everything are as per the plan and what we asked

to deliver. We also provide day to day support on

how to take care and handle the kids and

understanding the psychological aspects of the

kids. We have success stories of taking care of 3

months and above kids. WE also train the

franchisee to make sure they well care of all the

kids. WE believe in WIN – WIN situation.

4. What are the attributes that you look forward

to in your franchisees?

Answer: Self Motivated, enthusiastic to service

the education field, passionate about kids and

hardworking.

An exclusive interview with the CEO

of Cute Island International Pre-School,

Mr. P. Vara Prasad

10

5. What is your company's expansion plan in

this fiscal year?

Answer: We have very concrete plan and we are

striving hard to achieve it. We are targeting to

create more than 20 franchisee units and also

plans to establish school upto 5th standard this

fiscal year.

6. What are the core competencies of your

brand that you feel will offer tough competition

to your competitors?

Answer: 1. Innovative curriculum which promotes

inquisitiveness besides the desire for learning.

2. Excellent support. We take care of complete

establishment of the unit and we feel that its our

as our own money invested and make sure they

get right profits.

3. Novel Style of teaching: Besides the traditional

books, discussions, novel methods like Audio –

video presentation, Television, activity based

etc.

4. Extra emphasis on co-curricular activities:

Craft, Dance and other activities will be given

special emphasis under the supervision of

expert teachers.

5. WE ensure that our students grow beyond mere

academics as the spotlight is on the over-all

development of our students. It is all about

enthusiasm and energy and we believe in

inculcating that lifestyle for a better outlook.

7. What is your mantra for success?Answer: We understand that values play a key

role in imparting education, and so we adhere to a

strict code of conduct and we believe leading from

the front, by setting an example.

Every success story has a starting point and

responsible parents know the importance of

quality education at the basic level. Indeed

tomorrow's future needs great care today, and at

Cuteisland, we not only focus on the

fundamentals, but also, we believe in extending

the line. Each day we endeavour to concentrate on

honing precious qualities like self -reliance,

curiosity, creativity and leadership in our students

therefore making them confident and responsible

individuals.

At Cuteisland, education is joy, learning is fun, and

the teaching innovative, thanks to our good panel

of teachers, we understand children's psychology

better. Emphasis is laid on conditioning the young

minds therefore nurturing talent and interest which

will help them cultivate focus and skills. We simply

love to take up the responsibility to ensure that

your children get conditioned with the right

thoughts and mental make-up, therefore laying a

springboard for the rest of their lives.

8. What is your contribution towards

“Corporate Social Responsibility”.

Answer: Our responsibility is make sure the

children recognize the value of education at their

early stage and that will make them part of the

responsible persons in the society when the

grown up.

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ABOUT US

Membership form

Please contact: Sagarika Buragohain Contact No: 09654860991, 011-40665500/26Email: bsagarika@franchiseindia.org