The Do’s and Don’ts of Buying a Franchise

Published in ENTREPRENEUR Magazine, Feb edition, Page 68-69

Entrepreneur + February 2010

Due diligence is important when buying any business. A franchise is certainly no different.

By Rajiv Singh

 

One of the first things to consider before buying a franchise is what you are passionate about. That accomplishes two things: it drives the business, and the love for what one is doing drives the owner. When the business and the owner are operating as one, it is a powerful combination.

The next step is to meet with more than one of the franchi-sees currently operating in the franchise. Look at the location and determine if you like its look and feel. Ask the franchisee if their startup and ongoing training has been sufficient, whether the franchisor aides in advertising and marketing efforts, and how much freedom the franchisee has in selecting advertising, the product line, etc. Also ask how many hours the franchisee spends on their business. Confirm with them what their startup costs were, and how long it took to see returns on their investment.

Another important requirement is to carry out a good amount of research before you start up your business.

Make sure you research the following:

• The market

• The system

• The company

• The competition

• The franchisees

 

What to look for?

 

If you are thinking about investing in a franchise and want to know if the brand you are looking at has a trademark worth paying for, then look at their marketing and growth. Has its recent marketing been effective or ineffective? Is the brand growing or has it reached a plateau? Is it consistently coming out with new products and / or services? Researching your potential brand's history can give you an idea of where it is most likely heading.

 

Key questions to ask before buying a franchise

 

1. Do you know the franchisor?

Carry out all kinds of background research on the franchisor. Going for established brands is always good. Opting for an emerging franchise business for sale is also good, provided you have done sufficient research on the business and the sector it is in.

2. What is the brand recall / equity of the franchise?

Franchises work well when there is brand recall / equity of the franchise. Everyone knows about Subway, McDonald's, etc. If a franchise has little or no name recognition, launching it will almost be identical to launching a brand new business.

3. What is the success rate of the franchisees?

Many franchisors have ways to make the success rates of franchisees look better than they actually are.

4. What will it do to help you market your business? Ask what the brand is going to do to promote the name of the franchise in your area or target market. If you are paying marketing fees as part of ongoing payments, how will this fees benefit you?

5. What exactly are you buying?

What do you actually get from spending money to buy the franchise—name recognition, intellectual property, marketing support, lead generation? Is the concept of the franchise mature enough, so you don't have to constantly innovate the product or service on your own?

6. Are you a good fit?

Know your strengths and weaknesses. A franchisee is often restricted by what's there in the franchise agreement. If you take up a concept in which you have no interest just because it is profitable, it may soon turn into a burden for you—you just might lose all your interest!

7. Do you know the market?

Knowing the present market trends is very important for finding success as a franchisee. Most franchise agreements are for 10 years, so you must choose franchise opportunities that belong to categories that have a promising future. It's always better to go for products / services that will be needed in every kind of market.

 

Do's and Don'ts

 

DO:

1. Investigate franchise opportunities. Be careful: there are thousands of franchise offerings, and not all of them are good opportunities. If possible, work for someone else in the business first.

2. Talk to the present owners of the franchise. Ask them how pleased they are with their decision, how good their business is doing, and whether they met their projections. Inquire if the franchisor is responsive to their needs and whether the training was adequate.

3. Consult any and all the advisors you feel can help you. This includes having your accountant and lawyer review the audited financial statements and legal documents.

4. No question is too trivial. Confirm and challenge the information that is provided to you.

5. Compare other franchise systems in the same field. Look for franchises that are solidly managed, well financed, and are positioned in a growth industry. Investigate any regional franchises that are doing well but have not yet gone national in their distribution.

6. Evaluate yourself. See if franchising is really for you. Appraise your experience, skills and likes to determine if the business you are considering is a good fit. Evaluate yourself in comparison to other franchisees that you meet and talk to.

7. Check the history and experience of the franchisor's officers and managers.

8. Research, research, research. The more you know, the better your decision is likely to be. Only you can determine if owning a particular franchise is right for you. Most likely, your decision will be based on two factors: your investment and risk capabilities.

9. Decide whether you want to be in business full time. Or would you prefer to be in it part time, or perhaps with your family?

10. Look to the seller as the best source of financing when purchasing a business.

11. Consider the economics of the business more than how well or poorly it has been run.

12. Verify receivables (through written verification) from people who owe the business money.

13. Deal only with established franchisors who are well-financed and widely successful.

15. Plan for more expenses and slower profitability than you think you need.

 

DON'TS

1. Don't permit any expert to decide for you whether or not you should buy a business.

2. Don't buy a business or franchise without your lawyer approving all documents.

3. Don't buy a business or franchise without your accountant reviewing the franchisor's records.

4. Don't rely on information or advice from the franchisor or other selling agents.

5. Don't rely on pro-forma financial statements (future predictions).

6. Don't be in a rush. Wait patiently for the big opportunity by looking at lots of them.

7. Don't rely on the seller's evaluation of inventory and other assets.

8. Don't deal with startups or poorly financed / inexperienced franchisors.

9. Don't hesitate to walk away from a deal that isn't a potential home run.

10. Don't overlook comparing what you can do as an individual verses as a franchisee.

11. Don't hurry. Cutting corners on your research can increase your likelihood of failure.

12. Don't overextend yourself or be overly optimistic about your personal finances. Be realistic, and if anything, be conservative.

 

"A franchisee is often restricted by what's there in the franchise agreement."

 

Rajiv Singh is the President & CEO of Team India Managers Limited. He is also the Honorary Vice President of the Franchising Association of India (Member–National Executive Council).

Brand Calculus set to launch Kiwi Kiss yogurt in India

Kiwi Kiss, the Canadian frozen yogurt chain owned by AW Holdings -- known for the fresh juice and smoothie brand Jus Booster Juice -- will soon enter India. Brand Calculus, the master franchisee of Jus Booster Juice in India, is bringing the yogurt brand too.

India will be the first overseas market for the brand to enter. AW Holdings had launched Kiwi Kiss in November 2008 in Canada.

With Jus Booster Juice, last year Brand Calculus had entered a highly disorganised market for fruit juices in India. But, frozen yogurt is comparatively newer product as far as the country is concerned. According to Fazle Naqvi, MD of Brand Calculus, there is growing demand for fresh juices and yogurt brands among the health and hygiene-conscious customers in India.

"The unorganised market for fresh juices operates at low prices. We are not competing with them on prices, but on quality, variety and hygiene," Naqvi added.

The company has opened 11 Jus Booster Juice outlets in Bangalore, Delhi and Chennai. By the end of this year, Brand Calculus plans to have a total of 100 outlets, of which around 30 will be operated by franchisees.

"We receive the technology, product and storage-related support from the brand. But we are also free at innovating and localising products," said Naqvi. 

Source: www.franchise-plus.com

Swensen's to open first outlet in India in April

Swensen's (Thai), operator of Swensen's ice-cream restaurants and a unit of Minor Food Group, is planning to open its first Indian outlet in Bangalore this April. Meanwhile, the Thailand-based company has already signed agreements with master franchisees to expand the restaurants to India, Laos, and Vietnam, according to its top official. 

“The overseas expansion is in line with the strategy set by the parent company to grow internationally and to be a global food company. The first franchised outlet of Swensen's would be opened in Bangalore in India in April. The first franchised store in Vietnam will be opened in Ho Chi Min City in May, and the first franchised store in Laos will open in Vientiane in March,” said Peter King, general manager of Swensen's (Thai). 

"We have set our five-year plan to open 80 Swensen's restaurants in India, 30 stores in Vietnam, and about three stores in Laos. We plan to open franchised stores in at least two new markets every year by focusing on Southeast Asia first," King added. 

At present, the company had 20 Swensen's restaurants in Saudi Arabia, the UAE and Cambodia altogether. Besides, it also operates over 220 outlets in Thailand, of which about 100 are franchised. 

"We have very strong sales growth last year despite the recession," said King, who joined Swensen's in July 2008. He previously worked for Starbucks for seven years in London and Hong Kong. His latest position at Starbucks was operations director for Southeast Asia and Korea. 

According to earlier reports, the company, which owns the ‘Swensen’s’ brand of ice-cream chain along with fast food brand ‘The Pizza Company’ and coffee chain ‘The Coffee Club’, has plans to roll out a number of franchise stores in India over a period of 5-6 years.

Source: Inside Franchising

Shoprite calls off franchise deal with Nirmal Lifestyle

Shoprite Holdings, the South Africa-based retail heavyweight has called off its franchisee deal in India with real estate developer, Nirmal Lifestyle Group.

Kishore Biyani led Future Group is now buying out Shoprite’s single hypermarket in Mumbai with its existing employees to set up a food store which will be rebranded as Food Republic, the Economic Times has reported, citing top officials close to the development. 

According to the report, Shoprite, which also has a cash and carry operation in India, may consider the option of tying up with an existing Indian retailer to scale up operations in the country. Shoprite is also concerned over opening more stores in India given the lack of clarity by the Indian government on opening up foreign investment in retail, a company official has said. 

The retailer had signed a franchisee deal with the Nirmal group in 2004 and set up its first hyper market in Mumbai. The existing hypermarket in Mumbai is understood to be quite profitable but the retailer has not been able to expand beyond the first store in Mumbai. Suppliers to the store confirmed that Shoprite has announced its decision to call off its hypermarket operations and send a notice that the Shoprite store would cease to exist by January 2010, the report added. 

Senior officials from Shoprite global is understood to have held meetings with Nirmal group management late last year but later sent a notice terminating the agreement, an official privy to the JV was quoted as saying. 

A recent Shoprite annual report said, “The Group’s franchised Shoprite Hyper in Mumbai showed turnover growth of close to 20 per cent despite the slowdown in the Indian economy and the further pressure imposed on consumers by bond and interest rate increases. In expectation of the government legalising foreign ownership of retail businesses following its success in the recent national elections, several international retailers have moved into India during the reporting period. Three major new stores have opened in the Shoprite store’s catchment area.Until the government frees up retail in India and the Group is able to open outlets in Mumbai and elsewhere to achieve economies of scale, its business in India cannot achieve break-even results”. 

The Shoprite Group of Companies, Africa’s largest food retailer, operates 1079 corporate and 270 franchise outlets in 17 countries across Africa, the Indian Ocean Islands and southern Asia, and reported turnover of R59,319 billion for the year ended 30 June 2009. 

Source: www.franchise-plus.com

Lite Bite intends to become Rs 500 crore brand by 2015

Lite Bite Foods, promoted by Amit Burman, vice chairman of FMCG major Dabur India, in his individual capacity, is aiming to become a Rs 500-crore food company by 2015. The company operates a bunch of eatery brands including Subway, Fresco, Asia 7, Punjab Grill, Baker Street and Pino's Pasta Pizza.

"The company is in the process of investing Rs 120 crore in next five years and is planning to open 250 eateries that would include its quick service restaurant (QSR) brands and casual dining restaurants over the next five years," Burman said while announcing the launch of Gautemala-based QSR brand, Pollo Campero, known for its fried chicken menu. 

Pollo Campero will be the latest addition to the list. 

"Being a Latin fried chicken restaurant chain, Pollo Campero would be directly competing with KFC. Having said that, we are not looking at opening as many restaurants as KFC has in India. Today, we have just opened our first trial outlet in Ambience Mall in Gurgaon. We are planning to open 50 Pollo Campero outlets in the next 5 years. Most of these restaurants would be in the metros of Delhi, Mumbai, Hyderabad and Chennai," Burman added. 

Pollo Campero has 350 restaurants in 13 countries, including 50 in the US.

Restaurant Franchises in Growth Mode

By Sasha M Pardy

February 3, 2010

 

SunTrust Robinson Humphrey Inc., an Atlanta-based investment banking firm, recently surveyed multi-unit quick service and casual restaurant franchisees, representing nearly 5,000 restaurants, about their expectations for 2010. In general, survey respondents were more optimistic than SunTrust expected.

Specifically, 49% of quick service franchisees are projecting to add net new units during 2010, while 39% of casual dining respondents plan to add net new units during the year. The expectation to add new units lines up fairly consistently with respondents' sales projections -- 52% of QSR respondents and 39% of casual dining respondents are expecting a rise in same restaurant sales during 2010.

SunTrust's survey revealed that QSR franchisees have greater growth plans than traditional restaurants. Survey respondents representing specific brands projecting net growth included Sonic, Red Robin and Taco Bell.

Following are spotlights on just a few growing restaurant concepts:

Pizza Fusion

Pizza Fusion, a pizza concept that specializes in organic ingredients and sustainable building and business practices, has caught on quickly with franchisees. The company currently has 22 restaurants in 11 states and has franchise units in the works for 80+ new restaurants to open over the next five years. Pizza Fusion's ideal site is a 1,500 to 1,800-square-foot end-cap or outparcel at a grocery-anchored neighborhood center or lifestyle center with high daytime traffic and residential density.

Larry Feldman, a master franchisor of more than 1,000 Subway units, has been helping Pizza Fusion with their franchise development efforts and also serves as a Development Agent of South Florida for the company. Feldman recently told the Miami Herald that landlords have been "willing to do deals that haven't been done before," such as dividing spaces, providing construction services, etc.

For landlord representation brokers that would like to see a Pizza Fusion opened in a center they represent, don't expect to deal with a tenant representation broker or the franchisee directly. In September 2009, Pizza Fusion launched a Development Agent program under which entrepreneurs purchase the exclusive rights to secure franchisees to open new restaurants in certain areas. Retail real estate brokers work with these development agents in their consideration of a prospective Pizza Fusion site.

In one lease example from CoStar Tenant, Pizza Fusion signed a five-year, 2,100-square-foot lease with Divaris Real Estate at Short Pump Town Center in Glen Allen, VA for an estimated $38 per square foot. The restaurant opened last spring.

Feldman said that Pizza Fusion has been working with landlords to select and pre-negotiate terms on ideal retail spaces before a franchisee has even agreed to own the franchise. "It's easier for us to help to sell the franchise because we already have the location in place,'' Feldman recently told the Miami Herald.

Tasti D-Lite

Tasti D-Lite has been in business for about 20 years, but only started franchising in 2008. Today, Tasti D-Lite has 50+ units in the chain, recently opening 10 new units in AZ, FL, NJ, NY, TN and TX. It has at least 14 opening soon in CA, CT, FL, IL, NY, NJ and TX and says that it has already secured commitments to open 300 new Tasti D-Lites over the next several years.

The typical Tasti D-Lite restaurant is 600 to 1,200 square feet. The company refers its franchisees to preferred tenant representation brokers to help select the best location for a new Tasti D-Lite. In one lease example provided by CoStar Tenant, Jeffrey Roseman of Newmark Knight Frank represented Tasti D-Lite in its lease of a 750-square-foot space at the base of the Hotel Newton in New York City's upper west side. The tenant paid an estimated $240 per square foot in rent and signed a ten-year lease. The restaurant opened in July 2009.

A new Tasti D-Lite franchisee that is opening a store in Boynton Beach this month said she was able to not only get a prime location in a highly-trafficked shopping center that has suffered from some vacancy, but she was also able to negotiate savings on construction costs for her space. "They've given me main street access on a main road for what some plazas will charge me to be in the back," she told the Miami Herald.

Pita Pit

Last year, pita sandwich chain, The Pita Pit, saw 19 new units open to have 173 restaurants across the country. The typical Pita Pit is 1,000 to 1,500 square feet and located in an area with very high daytime population. In one lease example, Nick Stanton of Portland, OR-based Commercial Realty Advisors represented Pita Pit in an 1,100-square-foot lease for a new restaurant at Hazel Dell Square in Vancouver, WA. The tenant signed a five-year lease for an estimated $25 per square foot, according to CoStar Tenant. The location opened in March 2009.

To fuel franchise growth, Pita Pit has taken measures that many other franchisors have adopted during this recession -- reducing the cost of opening for new franchisees. Pita Pit lowered its franchise fee by $5000 and its royalty rates by 200 basis points. Additionally, it provides partial franchise fee rebates for franchisees opening new stores in ideal locations. Pita Pit has also gained recognition for making strides in having its franchises become Certified Green Restaurants.

Huddle House
Huddle House, a full service family diner concept, is another franchisor that has temporarily reduced its franchise fees in efforts to spur growth of its chain. The company recently reduced its franchise fee by 80% and is waiving the first five months of royalty payments. In a recent interview with Reuters, Huddle House's new Chief Development Officer, Thomas Flaherty, said that interest is up, particularly from those leaving corporate jobs.

Huddle House opened 20 new restaurants in 2009, bringing the chain to 420 units in 17 states. It already has commitments for 30 more restaurants to open through the end of 2010. "Part of our growth plan is to get out there while the timing is good. There's probably not been in modern history a better time to get [sites] than now, with so many vacant spaces across the country," said Flaherty. According to CoStar Tenant, the typical Huddle House is 2,500 square feet.

Source: http://www.costar.com/news/Article.aspx?id=63C622B615E3299AFC383D82343E2EF9

Franchise Unit Growth Statistics

Pricewaterhouse Coopers (PwC) is forecasting 2.6% net growth in the number of new retail franchise establishments this year. If realized, such growth would far exceed the small 0.6% growth in retail franchise establishments recorded 2009; but would still pale in comparison to the 4.6% rise in establishments recorded in 2008.

The following list details PwC's 2010 forecast by retail franchise business line:

• Quick Service Restaurants: PwC forecasts the net opening of 5,759 new franchise units during 2010, representing a 3.1% increase over 2009.
• Retail Food: (Includes food and beverage stores, convenience stores and retail bakeries) PwC forecasts the net opening of 1,692 franchise establishments during 2010, representing a 2.4% increase.
• Retail Products & Services: (includes furniture and home furnishings stores, electronics and appliance stores, building material and garden equipment and supplies dealers, health and personal care stores, clothing and general merchandise stores, florists and gift stores, consumer goods rentals, photographic services, and book and music stores) PwC forecasts a 2.3% net increase, or nearly 2,000 net new stores to open in 2010.
• Table / Full Service Restaurants: PwC forecasts the addition of 1,017 net new franchised restaurants during 2010, representing a 2.1% increase.
• Automotive: (includes auto parts and supply stores, rental and leasing stores, and repair stores) PwC is forecasting a 1.8% increase in 2010, representing the net addition of 694 units.

The addition of this many new franchise units to the retail landscape in 2010 could have a significant impact on the economy. PwC estimates that if this 2010 forecast is realized, new retail franchise establishments would generate $11.1 billion in net new economic output and add 43,000 net new jobs.

A Franchise Business Leader Survey recently conducted by the IFA, which surveyed franchise executives representing all types of franchise business lines, supports PwC's findings, indicating optimism for growth amongst franchisees. Specifically, 78% of respondents said they plan to add new franchise units in 2010, while 72.5% are counting on a rise in same store sales.

In its 2010 forecast, industry research service, FRANdata said that in part, forecasted growth in new franchise units opening is in part driven by the unemployment rate. The rise in unemployment during 2009 has translated into a significant increase in the pool of potential quality franchisees. FRANdata added that franchisees are also finding a larger pool of attractive new unit site opportunities in today's market.

While the opening of thousands of new franchised stores is likely in the cards for 2010, FRANdata, quells some excitement. In its 2010 forecast, FRANdata said that while more franchisees are planning to add new units in 2010 than are not, bringing these plans to fruition may be problematic, as access to capital will continue to be restricting throughout the coming year.

Source: http://www.costar.com/News/Article.aspx?id=1726B177064F196D497179C4BE19131B

Mr. PM helps retail sector grow

Prime minister Manmohan Singh has favoured opening up of the retail trade stating the market requires greater competition for a check on prices.

"We need greater competition and therefore need to take a firm view on opening up the retail trade," Singh told chief m,inisters at a meeting convened to deal with the spiralling food prices.

Singh said there was a huge difference between the wholesale and retail prices. "Food and agriculture minister Sharad Pawar has on many occasions drawn attention to the wide differences between the retail and farm gate prices and there is evidence that retail prices have shot up more than the wholesale prices."

Under the present dispensation, only domestic business houses are allowed to enter the organised retail sector for multi-brand businesses.

Source: Inside franchising

INTEX to open 100 retail stores

Intex Technologies has announced the opening of its first store (300 sq ft) in small format retail chain, Intex Square in Amritsar, Punjab. Meanwhile, the company aims to open more than 100 Intex Square outlets by March 2011 with an investment of over Rs100 crore. 

Ramesh A Vaswani, executive vice chairman, Intex Technologies said, “We have had a good exposure of the retail segment through our shop-in-shop endeavour started about two years ago. We took this to the next level in Sep 2009 by opening our first Intex Square (Meerut, UP). Today, in a span of just four months, we have 11 Intex Square outlets in operation. The rate of growth has been quite satisfying.”  

“Catering to the technology and utility needs of the masses, Intex retail vertical offers a wide range of end-user products comprising more than 350 items. The success, so far, has been achieved through the good support of partners, a dedicated team to look after the operations, strategic presence and a strong after sales service back-up comprising of more than 300 service points. This is a modest beginning. We aim to leverage the brand equity and replicate the same success which we have achieved in the traditional channel over the last 14 years,” Vaswani further added.  

Intex Square is already present in cities such as Meerut, Muzzafarnagar, Saharanpur, Rampur, Hapur, Sitapur, Bijnore, Roorkee, Gwalior and Dehradun.  

Jubilant Foodworks opens 16 new stores in Q3

Jubilant FoodWorks Ltd (JFL), a leading food service company and master franchisee of Domino's International, has opened 16 new stores in Q3 FY2010. The company opened 55 new stores in nine Months for FY2010. 

The number of cities covered as on 31 December 2009 at 65 as compared to 43 as on 31 December 2008. Jubilant Foodworks expects FY 2010 profit at Rs 32 crore. 

JFL is confident of delivering such strong growth-oriented performance on a sustainable basis going forward. In the current year and moving to the next quarter the company believes that it will maintain its growth momentum thus reporting an outstanding performance in its year of listing. For FY2010 the company expects revenues to range between Rs 4,150-4,200 million resulting in an increase of 48 to 50 per cent compared to the previous year, EBITDA is expected to be Rs 650 million implying an upside of 87 per cent and PAT at Rs 320 million, translating to a growth of about 375 per cent.

Meanwhile, JFL plans to continue its network expansion by not only opening new stores but also by penetrating further into existing cities. In FY2010, the company plans to open 65-70 new stores, out of which it has successfully opened 55 stores as of 31 December 2009. JFL continues to seek new opportunities for growth; placement of stores in corporate campuses, food courts and shopping malls also provide potential for expansion for JFL. 

With strong potential in quick service restaurant (QSR) industry and given JFL's foothold in the pizza market, the company has in place an ideal formula for sustained growth going forward.

Source:  Inside Franchising

Monginis plans expansion;seeks franchisees

Mumbai - based leading bakery chain, Monginis now plans to open 50 more outlets across the country by end of the year 2010. The company also plans to double its retail distribution from the current retail network of 15,000 stores across the country.
"After Indore, the cities where we are planning to roll out our exclusive cake shops are Kanpur, Lucknow, Raipur, Chennai and Bangalore. We are currently looking out for suitable franchising partners for these locations and it will take some time for us to decide on Monginis' manufacturing franchisee." Said by the officials.
For opening new stores, on an average, Monginis is looking at the locations with the minimum carpet area of 200 sq ft. Apart from opening more stores, our strategic business unit is setting ambitious plans for the retail distribution expansion. Today, our packaged products are being retailed in the retail outlets of limited number of cities and we wish to increase our distribution in the retail network of all the metro cities and other developing towns. The retail expansion plan involves appointing more number of distributors and retailers, further added by the officials.

In addition to traditional and modern trade channels, the company is also active on on-line trade. Recently, it has launched an e-commerce site, www.monginis.net, where customers can easily place their orders.
 
Source: http://www.franchisemart.in/news-87.html

Vaidyaratnam to expand through franchising

The leading Ayurvedic player, Vaidyaratnam Oushadhasala is planning to expand through franchising route and with the investment of Rupees 25 crore in next four years.


As per the senior official of the company, the target of the company was ambitious and achievable considering the pace with which the market for Ayurveda was expanding both within the country and abroad. The company had invested Rs six core at its new production facility at Pollachi in Tamil Nadu apart from two factories in Kerala. It has also invested Rs three crore for the treatment centres in Bangalore and Mumbai, and was planning to set up in-patient treatment facilities in Bangalore, Mumbai and Delhi through strategic alliances.


In the next three years, Vaidyaratnam would have 1,000 more franchisees in major cities in the country and abroad.


Source: http://www.franchisemart.in/news-89.html

Cox and Kings Franchise opened in Thiruvananthapuram

Team Tours and Travels is the first franchisee of popular tour and travel operator Cox and Kings in the capital city of Kerala and will promote the state as part of its 'Bharat Dekho' campaign.

The popular Malayalam film star Dileep inaugurated the franchise, said by the officials.

As part of their expansion plans, Team is to open their operations in Kozhikode also shortly.

Source: http://www.franchisemart.in/news-85.html

CERTIFIED FRANCHISE EXECUTIVES™ PROGRAM EXPANDS TO INDIA

The Institute of Certified Franchise Executives (ICFE)™ and the Franchising Association of India (FAI) will cooperate to launch the Certified Franchise Executive (CFE)™ program in India starting in October. The formal announcement was made during FAI’s Convention & Expo 08-09, October 2-3, at the Bombay Exhibition Center, Goregoan, Mumbai.
“With the rapid growth of the franchising industry in India, at the rate of 40 percent per year, we want to insure that we bring the highest standards of professional education to our members.  The Certified Franchise Executive (CFE)™ program is an important part of these plans,” said Cy Pal, president of the Franchising Association of India (FAI).
“The ICFE is excited to be working with FAI’s leadership to introduce the Certified Franchise Executive™ program in India.  Our mission is to enhance the professionalism of franchising by certifying the highest standards of quality training and education,” said Melanie Bergeron, CFE, chair of the ICFE Board of Governors and CEO, Two Men and A Truck Intl., Lansing, MI.   “The CFE program offers franchise executives an established curriculum taught by recognized experts in the field.  It provides individuals with the opportunity for expanded knowledge, industry recognition, and peer-level networking,” she added.
“The franchising industry has grown impressively in India in recent years. It is estimated that there are more than 600 franchisors and 40,000 franchisees in sectors ranging from education and  retailing to  hospitality and health care.   FAI and ICFE will cooperate to bring education and training to these professionals,” said Cy Pal.
Under the agreement, FAI members will be able to enroll in the ICFE program at special rates and receive reduced fees for ICFE-approved programs.  FAI and ICFE will cooperate to develop educational programs to be offered throughout the year, including web-based programs.  FAI members will also have access to the ifa-university.com website for additional courses and resources.  As FAI members complete the course of study and meet other requirements of the ICFE program, they will be awarded their Certified Franchise Executive™ credentials.  FAI members will be recognized in graduation ceremonies for Certified Franchise Executives (CFEs)  at the Franchising Association of India’s annual conference and the International Franchise Association’s annual convention.
The Institute of Certified Franchise Executives™ is the only professional development program for franchise executives designed by franchise executives.  It is governed by a peer-led board of directors, who themselves have completed the CFE program and also includes representatives from academia.   To be awarded the CFE designation, individuals must complete an extensive course of study, and meet experience, participation and ethics requirements as established by the ICFE Board of Governors.
In the United States, more than 1,100 franchise executives are participating in the CFE program, and of these, over 40 percent are c-level executives.   This is the second time the ICFE has partnered with a franchise association outside the U.S.  The first cooperative program was launched in 2002 with the Philippines Franchise Association.

Source: http://www.franchise.org/Franchise-News-Detail.aspx?id=42468

Healthcare, Beauty and Wellness segment to grow 20-25%

A report on Healthcare, Beauty and Wellness that was released by Franchise India has pegged this segment to grown by 20 per cent to 25 per cent in the coming years. 

The report, titled Healthcare and Beauty White Paper touches upon franchising in India, the business of health care, beauty and wellness and fitness. 

According to the report, franchise companies represent a very small market in India with 1,200 franchisors and 125,000 franchise units. Together they form a little more than3 per cent of the market. Yet, this market generates around 30 per cent of revenue in India’s retail and service sector. It also states that the franchising industry in India is currently growing at an annul rate of 30 to 35 per cent and that national and international franchisors employ a million people in India. 

“Our Healthcare, Wellness & Beauty franchising report encompasses every aspect involved with the opportunity, from what is the latest in healthcare and wellness franchising to broader issues and important developments needed to be installed in the business when using franchise route for businesses growth. This report would serve as a reference guide for all healthcare companies looking at the potential of franchising,” said Gaurav Marya, President, Franchise India Holdings Limited, after the release of the report. 

The turnover of this industry is pegged at $7.2 billion in India with an opportunity for Indian franchisors to grow globally. Here are some sector-wise figures that the report threw up:

Health Sector 

Globally, the health sector is worth $8 trillion and is on a high growth trajectory, with strong emphasis on the Asian and the Middle East markets. 

Health care is one of India largest sector in terms of revenue and employment and is expanding rapidly. 

The Indian health care Industry is estimated to be about Rs 200,000 crore and is projected to reach Rs 300,000 crore by 2012. 

Today India spends 4.8 per cent of it GPD on healthcare. Around 78 per cent of this funding is done through private funding. 

Government spends around 1.2 per cent of it GPD on health care, which is lower than other developing countries. 

Beauty and Wellness

The Beauty service industry is largely unorganised and pegged at over Rs 15,000 crore. 

According to industry estimates, the unorganised and semi-organised industry consists of Rs 1,500 crore to Rs 1,600 crore even as the organised grows at 20 per cent to 30 per cent per annum. 

The spa and Wellness industry is estimated at Rs 11,000 crore with a growth rate of 25 per cent to 35 per cent according to an audit by consulting firm Ernst & Young for FICCI. 

It is also expected that the business of spas in hotels would rise by 20 per cent and day spa business would rise by 30 per cent within two years. 

Health and fitness

The health and fitness market in India is estimated at around Rs 2,500 crore and is growing at 40 per cent year on year.

Source: Audience Matters

Lonely Planet comes to India

It is one of the most loved travel guides around the world and now it is India’s turn to get its very own Lonely Planet guide in the form of a monthly magazine. That’s what the Times Group and BBC joint venture, Worldwide Media, promises with the launch of Lonely Planet as a monthly magazine in India, titled Lonely Planet Magazine India.

Keeping the crisp format of the guide in mind, the monthly, which would cost Rs 100, will feature a mix of international and Indian travel destinations and give a refreshing take on all things related to travelling.

“With experience in travel of over 35 years and access to 365 travel writers across the world, no other magazine can offer the kind of advice that Lonely Planet can,” said Tarun Rai, CEO, Worldwide Media at the launch of Lonely Planet Magazine India in Mumbai.

The magazine, which is a modified format of Lonely Planet guide, was founded in 1972 by Tony and Maureen Miller and publishes 500 titles, is being aimed at affluent, urban couples in the age group of 30 to 50 years. Over 6.5 million copies of Lonely Planet guides are sold around the world every year apart from 49 million page impressions and five million unique visitors on its website every month.

“The Lonely Planet Magazine India is truly expansive in its content. It helps one dream and plan their future travel. It’s really a stunning showcase of the why of travel,” said Debolin Sen, Brand Publisher, Lonely Planet Magazine India.

The magazine would consist of sections such as postcards where readers share stories of where they have been, 5 easy trips that give inspiring trip ideas, which are easy on the pocket and hassle free, writing home – opinion pieces that put the spotlight on interesting destinations, travel features, knowledge and expert advice from resident writers and mini holiday guides. Its content would feature not only well-researched and thought through travel features replete with maps, guides and information, but will also provide trusted, independent information and advice that’s being gathered without fear or favour, covering a range of budgets to readers who can either follow the magazine’s advice or use it as a starting point to research on their travel destination.

Source: Audience Matters