FRANCHISING IN INDIA

(Formats, Success stories and legalities)

By: Prerna Pawar Shagun Singh Krish Desai

Types of franchising formats in India  Investment franchising franchise  Management  Business format franchising Franchise  Manufacturing  Product / Trademark Franchise / Dealers / Agencies  Distributorships .

Investment franchising  Franchisor invests large amounts of money into the business and finance franchises without working directly within the business  The franchisee will employ a team of managers to ensure the smooth running of the franchise and will not have to work there themselves .

Management franchise  Includes office based work  It is best for those with management experience and the ability to work with a number of staff  Requires skilled staff with experience in administration and dealing with clients  It requires some marketing skills to create interest in the services offered to potential business clients .

trade mark and most importantly the prescribed business format  Franchisees have the identity of Franchisor company-right from store design to service standards to deliveries  Examples: McDonalds. Dominos. KFC.Business format franchising  The format of franchising permits the franchisee to use the franchisor’s product/services. Barista Coffee Chain . trade name.

using the franchisor's name and trademark  Examples: .Manufacturing franchise  These types of franchises provide an organization with the right to manufacture a product and sell it to the public.

Product / Trademark franchise  Manufacturers use the product franchise to govern how a retailer distributes their product  The manufacturer grants a franchisee the authority to distribute goods by the manufacturer and allows the owner to use the name and trademark owned by the manufacturer  Example: Bata India .

Agencies and Dealers  A parent company grants the right to the franchisee to sell their products  The term is commonly used to describe wide variety of business relationships which may or may not fall into the legal definition  Examples: .Distributorships.

.Dominos franchise story • Founded in 1960 by Tom Monaghan • Goal: open three pizza delivery stores. • By franchising.350 stores in 70+ international markets. Domino’s Pizza has become the world leader in pizza delivery • Currently there are 9.

Franchisor –Franchisee relationship  Domino’s Pizza Group (DPG) is known as a ‘master franchisee’.  Franchisees are both DPG’s customers and business partners.  DPG operates service level agreements which clearly set out the high standards of service and support .

flawless execution (training and operations) and marketing .information systems. transparent and managed by skilled and experienced people who are motivated to make franchisees successful  Four week intensive Franchise Development Program: designed to equip with the knowledge and skills required .are accountable. foodservice. The DPG functions that provide the majority of regular and visible support to franchisees .

family-owned shoe company established in Zlin. Switzerland  Three business units worldwide – Bata Metro Markets. modern-day Czech Republic and currently headquartered in Lausanne.The Bata Way  It is a large. Bata Emerging Markets and Bata Branded Business  Retail presence in over 70 countries and production facilities in 27 countries  In its history the company has sold more than 14 billion pairs of shoes .

 The Company went public in 1973 when it changed its name to Bata India Limited  Large non retail distribution network through its urban wholesale division caters to customers through over 30. Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata Shoe Organization.000 dealers .

Legalities in franchising .

Protection of Intellectual Property Rights .

Why is a franchising law required?  Application of Multiple Legislation  Absence of Disclosure Requirements  Applicability of Laws of other Countries  Lack of Proper Format for Franchising Agreements  Liability of Parties Uncertain .

Thank You! .

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