Hlc franchise business plan (for franchisee)

  • Published on
    13-Sep-2014

  • View
    547

  • Download
    1

Embed Size (px)

DESCRIPTION

 

Transcript

  • Franchise Business Plan

    Submitted by:

  • Happy Learning Centre Franchise Business Plan

    Page 1

    Contents EXECUTIVE SUMMARY .................................................................................................................... 3

    OVERALL BUSINESS SYSTEM ........................................................................................................... 5

    Center Set-up Phase.................................................................................................................... 5

    Ongoing Revenue Generation Source......................................................................................... 5

    Operational Expenses ................................................................................................................. 5

    Marketing Expenses .................................................................................................................... 6

    IMPLICATION FOR FRANCHISEE OFFERING .................................................................................... 7

    FRANCHISEE PROFILE FOR HAPPY LEARNING CENTRE ................................................................... 8

    FRANCHISING STRATEGY FOR HAPPY LEARNING CENTRE .............................................................. 9

    FRANCHISE TERMS ...................................................................................................................... 9

    FRANCHISE AGREEMENT ............................................................................................................ 9

    REVENUE AND EXPENSES SHARING .......................................................................................... 10

    FRANCHISOR-FRANCHISEE RELATIONSHIP ................................................................................... 11

    UNIT FRANCHISEES OBLIGATIONS ........................................................................................... 11

    FRANCHISOR OBLIGATIONS ...................................................................................................... 11

    FRANCHISE SUPPORT MECHANISM .............................................................................................. 12

    PRE-OPENING FRANCHISE SUPPORT .................................................................................... 12

    POST OPENING FRANCHISE SUPPORT .................................................................................. 12

    MARKETING PROGRAMS .............................................................................................................. 13

    LOCAL ADVERTISING ............................................................................................................. 13

    COOPERATIVE ADVERTISING ................................................................................................ 13

    SUPPORT PROGRAMS ................................................................................................................... 14

    INITIAL INVESTMENT ..................................................................................................................... 15

    ESTIMATED INVESTMENT & PROJECTIONS: HOME BASED .......................................................... 16

    KEY HIGHLIGHTS ........................................................................................................................ 16

    UNIT FRANCHISEE INCOME STATEMENT ...................................................................................... 17

  • Happy Learning Centre Franchise Business Plan

    Page 2

    ESTIMATED INVESTMENT & PROJECTIONS: STAND-ALONE FRANCHISE ...................................... 18

    KEY HIGHLIGHTS ........................................................................................................................ 18

    UNIT FRANCHISEE INCOME STATEMENT ...................................................................................... 19

    DISCLAIMER................................................................................................................................... 20

  • Happy Learning Centre Franchise Business Plan

    Page 3

    EXECUTIVE SUMMARY

    The following business plan is prepared by Franchise India Consultants for the Client Business

    Entity Happy Learning Education Trust. The following are the highlights of the franchise

    business plan.

    The Company:

    Happy Learning Center is a home based K12 and higher study tutorial institute. It helps children

    to increase the mental strength by several innovative ways. It is the most highly rated tutorials

    were people come from 15 km distance to study. Every teacher can teach 4 kids per batch for 1.5 hours and 0.5 hours is for Meditation and Goal Visualization and Food break, i.e. 2 hours per batch timing.

    Happy Learning Center is now looking at expanding its operations in India and is keen on opening franchise units. The financial projections of the franchise units have been observed in the present report.

    Franchisee Profiling

    High ability means less amount of value addition required in current set of skills/facility to

    run the franchise

    Experience in Education & Training Industry

    Sound Financial Bandwidth

    Property at the Desired Location

    Supervisory Involvement in the Daily Operations

    Giving franchise to a franchisee with the investment appetite and right property is

    important with low rentals.

    Franchise Fee:

    Unit Franchise Fee for a home based format is INR 1 lakhs (Excluding Service Tax) and for standalone unit franchise fee is INR 1.5 lakhs (Excluding Service Tax).

    Franchising is also preferred individuals with experience in teaching and education training.

    Entrepreneurs meeting with the investment and space prerequisite.

    Roll-out: Major cities Pan-India starting from Maharashtra and Central India

  • Happy Learning Centre Franchise Business Plan

    Page 4

    Business required very minimum area under home based and required 500 sq. ft. for standalone unit franchise for individual to start the franchise.

    Financial Details: Unit Franchise: Home based business Initial Investment: INR 2 - 3 lakhs approximately

    Royalty of 15% of gross sales paid on a monthly basis

    Include total of 1.5% central marketing fund contribution, wherein 1.5% would be contributed towards local marketing

    Unit Franchise: Standalone franchise format Initial Investment: INR 7 - 8 lakhs approximately

    Royalty of 15% of gross sales paid on a monthly basis

    Include total of 1.5% central marketing fund contribution, wherein 1.5% would be contributed towards local marketing

  • Happy Learning Centre Franchise Business Plan

    Page 5

    OVERALL BUSINESS SYSTEM

    Center Set-up Phase

    Ongoing Revenue Generation Source

    Unit Franchise will have following ongoing revenue sources:

    Tuition fee collection through enrollment of students

    Operational Expenses

    The Unit Franchisee will bear the following operational expenses on a monthly basis:

    Employee Cost

    Referral to Faculty

    Incentives to Full time Faculty

    Commission to Part Time Faculty

    Royalty to Franchisor

    Rent

    Electricity

    Cost of refreshments/gifts

    Communication Expenses (Tel + Internet)

    Printing & Stationery

    Quality Monitoring Charges

    Misc Expenses

    Marketing Expenses

    o Local marketing Overheads

    o Contribution to central marketing fund

    Unit Franchise Franchisor Launch & Pre-Opening Marketing

    Expenses

    Software & Licensing cost

    Training (Lodging & Boarding)

  • Happy Learning Centre Franchise Business Plan

    Page 6

    Marketing Expenses

    The Franchisee will contribute to the Local and Central Marketing. The Franchisee will spend a

    3% of gross sales towards marketing on Monthly basis, out of which 1.5% will be on Local

    Marketing against which franchisee will be producing the bill and 1.5% of gross sales will be

    contributed towards central marketing.

  • Happy Learning Centre Franchise Business Plan

    Page 7

    IMPLICATION FOR FRANCHISEE OFFERING

    Higher Returns

    Higher returns in short run will be an attractive proposition against the initial investment risk.

    Longevity

    Longevity of the business is important for a franchisee to put in such investment. It is advisable

    to have the term of franchise agreement for a longer period which will bring stability in the

    business and franchisee will also focus on long term goals.

    Training Program

    The staff at franchisee Center needs to be adequately trained by a team of professionals from

    Happy Learning Centre about all the micro and macro aspects of the operations.

    Investment Disbursement

    Being a strong concept in franchising & strong regional presence, the credibility attached to

    Happy Learning Centre brand which is substantially good will attracts the investors. As per the

    market size; expected sales; a marketing strategy will be framed, which will excite the

    franchisee to outlay the investment.

  • Happy Learning Centre Franchise Business Plan

    Page 8

    FRANCHISEE PROFILE FOR HAPPY LEARNING CENTRE

    On the basis of the business concept and format and ratings on the above criteria, following

    characteristics are recommended for a franchisee of Happy Learning Centre:

    Investment capacity - Entrepreneurs meeting with the investment and space prerequisite.

    Ability to run the business - Franchisees with commitment to efficient service & long-term association.

    Experience in education and training industry - Individuals with a teaching and training

    background are ideal.

    Ability to manage faculty - Conversant with the training, daily administration and staff management

    Network strength- An expansive local network.

    Passion for education- Should be excited about imparting education.

    Although there may be a number of viable franchisee profiles, Management believes that it

    should try to attract franchisees that meet the following competency criteria:

    Believes in people and capable of motivating team.

    High personal standards: discipline, excellence, honesty, integrity, etc.

    Able to meet initial investment requirements.

    Speed of response and ready to service any time.

    Aggressive and Action oriented.

    Strives for excellence.

    Quick to learn and very quick to implement new learning.

    Process/Systems oriented.

    Knows how to manage productivity.

    Knows how to make profit and where to focus to get it.

  • Happy Learning Centre Franchise Business Plan

    Page 9

    FRANCHISING STRATEGY FOR HAPPY LEARNING CENTRE

    FRANCHISE TERMS

    Non-Exclusive area rights according to agreement

    Initial unit franchise Fee for a Stand-alone format of 500 sq. ft. is INR 1, 50,000 (Excluding

    Service Tax) and INR 1, 00,000 (Excluding Service Tax) for home based.

    Initial setting up of the franchise owned center will be coordinated and assisted by

    Franchisor.

    Franchisor will provide initial training to the respective staff.

    Franchisor will provide assistance in running the center

    Franchisee will monitor/supervise the business on regular basis by keeping a check on local

    team and smooth coordination with the Franchisor.

    Business will be run under the brand name of Happy Learning Centre

    Sourcing of manpower will be entire responsibility of the franchisee. However Franchisor

    will assist in recruitment and selection. The charges will be applicable in the entire process.

    All employees shall be on rolls of the Franchisee and their salaries shall be payable by the

    franchisee

    FRANCHISE AGREEMENT

    The franchise agreement of Happy Learning Centre will include the UNIT franchisees across

    the complete roll out plan. A property of minimum 500 sq. ft. area will be required for a

    stand-alone format.

    The agreement term is suggested to be of at least 3+3 years with an option for further

    renewal, subject to mutual agreement of both the parties.

    Royalty fee will be paid to the franchisor by franchisee on gross sale, which is 15%

  • Happy Learning Centre Franchise Business Plan

    Page 10

    REVENUE AND EXPENSES SHARING

    Unit Franchise Fee: INR 100,000, as per area required, and for rights & obligation of

    opening one home based and INR 150,000 stand-alone center (Excluding Service Tax)

    Local Marketing Expenses: Local marketing expenses will be a monthly contribution of a

    percentage of sales borne by the franchisee, which will be 1.5% of gross sales.

    Central Marketing Fund: Franchise will contribute 1.5% of gross sales towards central

    marketing fund which will be paid on a monthly basis.

    Royalty Fee: Franchisee will give 15% of gross sale to franchiser as royalty fees.

  • Happy Learning Centre Franchise Business Plan

    Page 11

    FRANCHISOR-FRANCHISEE RELATIONSHIP

    UNIT FRANCHISEES OBLIGATIONS

    Franchise set up cost investment.

    Payment of initial unit franchise Fee for a Stand-alone format of 500 sq. ft. is INR 1, 50,000

    (Excluding Service Tax) and INR 1, 00,000 (Excluding Service Tax) for home based.

    Center site selection.

    Franchisee will work as a core investor who will be providing the property at an appropriate

    location and will do the Initial Investment

    Quality Control

    Overall supervisory control including feedback, quality control, timely sales reporting

    FRANCHISOR OBLIGATIONS

    Site Approval.

    Fit-outs of the center.

    Providing the equipment needed at the center for Business Operations

    Proper maintenance of books and accounts.

    Training programs on a regular basis for Franchisee staff.

    Creation and installation of Marketing material, POS etc.

    All national level promotional activities and events.

    Providing printed material like Brochures, Pamphlets and Flex Banners on cost basis

    Franchisee will operate and manage the business to make sure that the successful business

    formulae and systems get implemented at the franchisee end to run it on profit. Franchisor will

    take care of quality of teaching to be delivered at franchisee end by property audit & training.

  • Happy Learning Centre Franchise Business Plan

    Page 12

    FRANCHISE SUPPORT MECHANISM

    Happy Learning Centre will manage the business to make sure that the successful business

    formulae and systems get implemented at the franchisee end to run it on profit.

    PRE-OPENING FRANCHISE SUPPORT

    Comprehensive turn-key assistance from set-up to start operations.

    Layout and design; architectural support.

    Pre-opening purchasing assistance.

    Assistance in organizing of launch promo.

    The process starts with the location and identification of a suitable site that meets our

    stringent criteria (the location, exposure, and access of a Happy Learning Centre center).

    The company can help in providing following assistance to its franchisees during the period:

    Locating a suitable site for the center.

    Negotiation of suitable terms and organizing for lease.

    Organizing of all necessary regulatory approvals.

    POST OPENING FRANCHISE SUPPORT

    Advertising & local promotion

    Operational Management: Daily operations and Administrative advices

    Frequent official visits, advices on local promotions programs etc.

    Marketing Ideas structured to suit a location.

    PR support: Regular PR coverage at n...