PowerPoint Presentation
FRANCHISE
GROUP- 7DEFINITIONA type of license that a party (franchisee)
acquires to allow them to have access to a business's (the
franchisor) proprietary knowledge, processes and trademarks in
order to allow the party to sell a product or provide a service
under the business's name. In exchange for gaining the franchise,
the franchisee usually pays the franchisor initial start-up and
annual licensing fees.FEATURES OF FRANCHISEWell established
businessNeeds limited investmentEasy entry in new marketsHelps in
diverting business risksAllows use of brand name and trademark
CATEGORIES IN FRANCHISEAdvertisement & MediaAutomotiveBeauty
& HealthBusiness ServicesDealers &
DistributorsEducationEntertainmentFashionFood and BeverageHome
Based BusinessHotels and ResortsManufacturingRetail1. BEAUTY &
HEALTH1.A) Beauty Salons & Supplies SUB- SUB
CATEGORIESBRANDBEAUTY SALOONJAVED HABIB, CHIVAS,TONY AND
GUYCOSMETICSORIFLAME, MODI REVLONTATOOSRHAPSODY NAIL STUDIO1.B)
Health Care & FitnessSUB- SUB CATEGORIESBRANDAyurvedic, Herbals
& Organic Products Shathayu Ayurveda, PatanjaliClinics &
Nursing HomesRichfeel, Dr Batra, Noble Dental CareDiet Consultancy
Diet Clinic Health Care Pvt Ltd. , Health AstersGyms & Fitness
CentresGolds Gym, Shape Up, Talwalkars, PowerhouseHealth Care
ProductsJohnson Healthcare Pvt.Ltd, Gleam MedicareHospitalsRestro,
ApolloMassage & Spa CentresKerala Aruyveda Center, Four
FountainPathological LabsDR. Lal Pathlabs, SRL
DiagnosticsPharmaciesApollo,2. FASHION2.A) ACCESSORIESSUB- SUB
CATEGORIESBRANDFashion AccessoriesClaires, Esbeda, TitanLuggage
& HandbagsSamsonite, Travelon, EmmiOpticians/Eye WearGKB
Opticals, Sunglass Hut, Titan Eye Plus2.B) CLOTHINGSUB- SUB
CATEGORIESBRANDDepartmental/UnisexSpykar Jeans, Monte CarloEthnic
StoresFabindia, Study by JanakKids WearMothercare, Me n Mom, Nauti
NatiLingerie & InnerwearsJockey, LovableMens & Womens
WearsCotton County, Ritu KumarTextilesBombay Dyeing,
SiyaramWoollensMonte Carlo2.C) FOOTWEARSUB- SUB
CATEGORIESBRANDCasualsLotto, CrocsDesignersTresmode, Franco
LeoneFormalsWoodland, Red TapeKidsWilly WinkiesSportsReebok,
Liberty2.D) JEWELLERYSUB- SUB CATEGORIESBRANDGems & StonesIVY
Jewellery, Amor JewelleryImitation, Art/Junk JewelleryDiagold,
Shweta CreationsPrecious JewelleryGitanjali Jewels, Senco gold3.
RETAIL3.A) BOOKS, Toys & GiftsSUB- SUB CATEGORIESBRANDBooks
StoresOm Book Shop, Humming Bird EducationFloristsFerns &
Petals, FloralisGift Shop, Card GalleriesRed Moments, Hallmark,
ArchiesKids/Candy StoresPidilite Industries( Feviryl), Amar Chitra
KathaOffice Supplies & Stationery StoresOm Publishers, SoloToy
ShopsRhythm Toys, Hamleys3.B) Consumer Durables & ITSUB- SUB
CATEGORIESBRANDComputers & PeripheralsTechnocure Solutions Pvt.
Ltd.Consumer electronicsChroma Electronics, PhilipsMobile &
Communication/Internet ConnectionsThe Mobile Store, AirtelMusic
Equipment & Music StoresMusic Shoppe, Music world Retail
Ltd.PhotographyFotoage, Kodak IndiaWeb design and
Applications1Pixel Design, Virgo Computer Consultancy3.C) Home and
OfficeSUB- SUB CATEGORIESBRANDArt, Craft, AntiqueThe Bombay Store,
ArtuBathroom & CeramicsGrescasa, Furniture/Home Dcor &
FurnishingPure, Opal, Concept LivingGarden StoresGarden Glory
India, Herni StudioHandicraftsKhadi, Daffodils BoutiqueHardware
StoresCsj Enterprise, ZotalicHome SecurityLivfutureKitchenLighting,
Electrical & Plumbing- Dreamlite3.D) Sports Goods & Fitness
StoresSUB- SUB CATEGORIESBRANDFitness EquipmentStores- Cardio
Fitness, Prime FitnessSports Equipment StoresTriumph sportsGolf
StoresGolf Usa Inc.3.E)Super Markets and MartsDairy/ F&V
StoresGujrat Co-operative Milk Marketing, Natures Feast Food and
Grocery Department and Convenience StoreHome store India Ltd.Food
MartsSahara Q Shop , Sabji on WheelsGrocery StoresGodrej Natures
BasketKiosksKoncept RetailMeat and Chiken ShopsSuguna Poultry
Ltd.Organic ProductsThen Natural StorePet StoreAquariumworld, Pet
SpotSuperstoresEveryday Retails, Home plus -Housing Super storeWine
ShopsThe high SpiritDEFINITIONSJOINT VENTUREAjoint venture(JV) is a
business agreement in which the parties agree to develop, for a
finite time, a new entity and new assets by contributing equity.
They exercise control over the enterprise and consequently share
revenues, expenses and assets.EXAMPLE: STARBUCKS AND TATA
DISTRIBUTIONDistributionis the process of making a product or
service available for use or consumption by a consumer or business
user, using direct means, or using indirect means with
intermediaries.EXAMPLE: Pepsi, bisleri, arvind mills.
LICENSINGThe verblicenseorgrant licensemeans to give permission.
The nounlicense refers to that permission as well as to the
document recording that permission.EXAMPLE: Microsoft office
FRANCHISINGFranchisingis the practice of the right to use a
firm's business model and brand for a prescribed period of time.
EXAMPLE: Mc Donalds, Subway
MERGER & ACQUISITIONMergers and acquisitions(M&A) are
both aspects of strategic management, corporate finance and
management dealing with the buying, selling, dividing and combining
of different companies and similar entities that can help an
enterprise grow rapidly in its sector or location of origin, or a
new field or new location.EXAMPLE: ICICI bank acquires The bank of
rajasthan.Reliance power and Reliance natural resources
mergerDIFFERENTIATIONDistributionLicensingFranchisingJoint
VenturesMerger and acquisitionsDistributor sells the goods to
dealer and distributor gets it from the manufacturer.
1. Licensor owns patent or secret of technology (Technology
license)2. License to manufacture and sell according to licensor
specifications(Trademark/ collateral product licensing)
1. Gives the franchise to work under pre packaged business
format , provides initial training and assistance in
establishment(packaged franchising)
2. Product franchising merely an outlet of the goods.
Entities associate to earn profit and share.
Merger is legal consolidation of two companies .
Acquisition one company takes over other.
.DistributionLicensingFranchisingJoint VenturesMerger and
acquisitionsLower capital employment Income without significant
investment or effortLower capital expense then company owned
outletsFlexibility in structuring and growing in business
-Distributor / dealer assumes the loss on the product purchased
from the manufacturerLicensor toReceive income without financial
riskMost of capital Risk is absorbed by franchisee (he becomes a
responsible employee )Capital risk is shared IncreaseIn Assets and
resources.To gain competitive advantage or edging technology
27DistributionLicensingFranchisingJoint VenturesMerger and
acquisitionsDealers pay taxesLicensee pays taxesFranchisee pays
taxesEntity pays the taxesAssets and liabilities manage by a single
enityAdvertising expense are incurred by dealer or shared by the
companyAll expenses incurred by the licenseeMore interested in
business expansionAll expenses are incurred by the Entity formedAll
expenses are incurred by the Acquiring companyLoss of control over
sales for the companyLimited or no control for licensor and no
goodwill of the licensee business activities.Franchisor control
over the operations to check the marketing of the product.Greater
control then dealer and distributorshipThe company which acquires
has all the controls.Distributor may sell competitors
product--Partnership disputes-THANKYOU
