FRANCHISE AND FRANCHISE MODELS IN INDIA

FRANCHISE INTRODUCTION:-

          Franchise Is A Business Taking Ownership Of The Shop And Legal Partnership With The Brand, Which Is Giving By The Company Its Define A Franchise Is A Type Of License That A Party (Franchisee) Acquires To Allow Them To Have Access To A Business's (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. Also Franchising Is Based On A Marketing Concept Which Can Be Adopted By An Organization As A Strategy For Business Expansion. Where Implemented, A Franchisor Licenses Its Know-How, Procedures, Intellectual Property, Use Of Its Business Model, Brand, And Rights To Sell Its Branded Products And Services To A Franchisee. 

FRANCHISE BUSINESS MODELS:-

FRANCHISE MODELS

          A Business Model Describes The Rationale Of How An Organization Creates, Delivers, And Captures Value, In Economic, Social, Cultural Or Other Contexts. The Process Of Business Model Construction And Modification Is Also Called Business Model Innovation And Forms A Part Of Business Strategy. 

Another Common Terminology Quite Prevalent In The Franchise Industry Is Around Various Franchise Models Involved While Starting A Franchise Business In India. You Must Have Come Across Terms Like FOCO, FOFO, COFO And FICO. So, What Are These And How Do They Affect Your Plan Of Starting Your Dream Franchise In India?

Well, They Don’t! Yes, You Read That Right.

Franchise Models Are Nothing But A Certain Way In Which A Business Is Operated In The Industry. It Is Away For Brand Owners To Define The Stakeholders And Their Involvement In Operating The Business. Let’s Get To Know Them A Little Better :

FOCO:- Franchise Owned Company Operated, Where You Invest In The Business While The Company Takes Care Of The Operations While Giving You A Fixed Percentage/Share Of Return. The ROI From This Model Could Be As Good As Keeping Your Money In The Bank With Higher Returns.

BENEFITS OF FOCO

FOFO:- Franchise Owned Franchise Operated. This Is The Go To Franchise Business Model For Brand Owners Who Are Taking The Franchise Route For Their Expansion. FOFO Is Where You Own And Operate The Franchise Business As Per The Directions Set By The Franchisor And The Returns Are Slightly Higher.

COFO:- Company Owned, Franchise Operated. This Is Where The Company Invests In The Franchise Business But You Operate It As Per The Directions Set By The Brand. The Returns For This Can Lie Somewhere Between The FOCO And FOFO Model. This Is Rare And Not Very Prevalent In The Industry Because Most Companies Investing In The Expansion Of Their Business Operations Would Prefer To Run It On Their Own.

FICO Model:- Franchise Invested Company Operated, This Model Is Similar To FOCO But The Difference Here Is Unlike FOCO The Franchise Doe's Not Involve Themselves In Business Operations at All. Only An Agreed Fixed Amount Is Paid To The Franchisee By The Company For The Investment Done By Franchisee In The Business. In This Model There Can Be Multiple Franchise Investors For A Single Business Unit And The Company Runs The Business Operations With End To End Control Of The Supply Chain.

THE BEST MODEL IN FRANCHISE:-

          Now A Day Comparing To FOFO,COCO And COFO With FOCO Model It’s A Best Model Will Reduce Risk Factors Of Shop Advance, Rental, Stock Or Raw Materials Expenses, Maintenance Charges, Manpower And Staff Salary Also Including Sales For Franchisee. Yes, Its Fully Operated By The Company Or Brand In More Over That 95% Of Companies Operates FOFO Model Remaining Rest Of 5% Companies Only Stands Front In FOCO Model And Also In This Model You Need To Invest More Than 25,00,000/- To Get Franchise Because The Company Or Brand Need To Give The Minimum Guaranteed Amount To The Franchisee Either Business In Profit Or Lose, Also Franchisee No Need to Pay Any Royalty to Brand. So The Franchisee Will Not Face Any Lose On His Business Even The Business Is Lose Company Or Brand Will Take Care Of It.