What is Franchising

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Franchising offers an excellent opportunity for you to be in business for

yourself.

When you hear the word " Franchising" you probably think of fast food restaurants. But the
truth is Franchising is so much wider than that. There are Franchises available in almost
every business area that you can think of in all price ranges. In addition, because franchising
has such a low failure rate your chances of success are extremely good.

Compared to starting your own business from scratch, franchising can provide a relatively
safer route into self-employment. The franchisor has done it all many times before and can
therefore help you to eliminate all the mistakes you most probably would make if you tried
to do it all by yourself.

Franchising can offer a successful business concept, proven marketing and operational
methods, ongoing support and an established identity.

A successful franchise relationship is like a partnership. It combines your talents with the
experience and knowledge of the franchisor. With franchising, you are in business for
yourself not by yourself. Franchisors not only have sound training programs, but also
knowledge of financial requirements, marketing, competition & buying contracts - knowledge
that might take you years to collect on your own.

First time franchisees

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>> Rate yourself as a Franchisee

>> The keys to a successful franchise relationship

>> Franchisee Terminology

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Rate yourself as a Franchisee

Franchising can be understood by all the C’s that surround it and anyone considering to
become a franchisee can quickly see if they will make a good franchisee.

“Concept”
The business which you are about to enter with the Franchisor is built around a concept and
that should be understood very well. You should then judge if the concept will stand the
following tests
1) Are there takers for the services in your business area
2) Will the concept work near your business premises
3) Have you understood the concept and do you believe in it
The franchisor will have done his homework and will expect that the franchisee when he
applies for a location has adequately considered if the concept will work in his selected
market.

Maybe an example will help understanding the importance of the Concept. If for instance
there is a franchise opportunity for opening a Childrens Creche. Working parents will leave
their children in the care of the crèche where their child receives proper day care. When the
parents return from work they take the child home. In Mumbai, Delhi and other urban
centers such centers are opening up fast. But if the market you identify is in a location where
the number of houses in having both the husband and wife work is low then the concept is
not right for you. Or imagine the disaster in case you are not a very patient person and have
difficulty in tolerating the mischief of small children. Therefore understanding the Concept
and evaluating its potential is important for a franchisee.

“Corner”
Often the Concept will require a particular location and this will be important in making
customers. For instance if you are in the Convenience business i.e. locating yourself on the
second floor will not help in making customers. Often due to commercial reasons franchisees
are willing to locate themselves at Corners that are not right for the business. Having the
right location not only reduces the cost incurred in attracting customers but also provide a
good reason to the franchisor to make a selection.

“Contract”
What is the Relationship between Franchisor and Franchisee. This will be explained in the
Prospectus of the Franchisor and the franchisee will get a better idea from reading through
the prospectus. The prospectus will provide the overall information about the relationship
between the Franchisor and Franchisee. This is the first document that will give insight to
this important information.

Often the actual contract will be discussed once the Franchisee clearly shows his intent and
suitability in running a successful operation.

“Captial”
Each business has the requirement for Investment Capital and Working Capital. Making sure
that you have the ability to sustain the demands of the business is important. Once you have
committed into the business it will be important that you carry out Marketing activities to
build the knowledge in your market. Whereas the Franchisor will have made his plans if as a
Franchisee you are unable to execute the plans it will impact your business potential.

“Customer Centric”
Lastly, are you and your staff Customer Centric? If the business that you intend taking up
has a certain profile of customers will you be able to deal with them, understand their needs
and keep them happy. Every business survives on making Customers. Assessing your
abilities here is important. Equally important is to have the right staff planned for your
business, and therefore when you are planning to start you must factor in the salaries for the
kind of staff that you may require. Most times the Franchisor will guide you on what is the
profile of the staff that you require to recruit to run the business.
The keys to a successful franchise relationship

 Does the product or service interest you and fire you with enthusiasm?
 Does the company have name awareness?
 Does it have a successful operation and marketing system?
 Is it a viable proposition?
 Do you understand the role you will play?

The above represents the initial starting point. A great deal of further research will be
required before you finally satisfy yourself that you stand a good chance of being successful
by purchasing a particular franchised business, above all else make sure you talk to
franchisees who are already operating

Franchise Terminology

Franchisor:
The parent company that grants, for a fee and other considerations, the right to use its
name and system of business operations.

Franchise Agreement:
A written contract detailing the mutual responsibilities of franchisors and franchisees. It is
usually for a several-year term, and when the term is up, the contract expires and must be
renewed. Usually a franchise agreement may not be sold, transferred, or otherwise assigned
without the franchisor's permission.

Franchise Fee:
An up-front entry fee, usually payable upon the signing of the contract (franchise
agreement) for the right to use the franchisor's name, logo, and business system. Often, the
franchise fee is also the consideration paid for initial training, site selection, operations
manuals, and other help given by the franchisor before the opening of the business.
Franchise fees are amortized over the life of the franchise agreement.

Royalty:
A continuing payment to the franchisor that is payable on a periodic basis (usually weekly,
biweekly, or monthly) throughout the term of the franchise agreement. In theory this royalty
payment is for:

 Compensation for the continuing services given by the franchisor (for training, field
services, etc.) n Payback financing of the true market value of the franchise

Royalty payments can be either fixed amounts, based on percentage of gross sales, or based
on a sliding scale, with graduated breakpoints. Many times especially where the money is
collected in the name of the Franchisor, Franchisee receives a Revenue Share from the
franchisor which is calculated on the basis of the revenue claimed by the Franchisor for those
services offered by the Franchisee.

Advertising Fund:
Another continuing periodic payment to the franchisor that, like the royalty payment, can be
a fixed amount or a percentage of gross sales.

Estimated Initial Investment:

A detailed listing of all fees and expenses you can expect to incur in starting your franchised
business. This listing represents the total amount that you would need to pay or get
financing for, including fees paid to the franchisor;

 estimates for furniture;

 fixtures and equipment; opening inventory;
 real-estate costs;
 insurance inventory; etc

This estimate should include a provision for working capital through the start-up phase.

Why Franchising

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>> Why do companies franchise?

>> Why should I consider franchising?

>> Franchising has proved to be the most successful way of starting a new
business
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Why do companies franchise?

For a company with a product or service to sell, franchising provides an excellent opportunity
for rapid expansion without an enormous outlay of capital. It is a distribution system that
allows a business to conserve capital, and at the same time achieve fast market penetration
making it a very attractive proposition to most business owners. One of the greatest
advantages to them is that they get 100% commitment from their franchisees who have a
stake in the business.

Why should I consider franchising?

There are many individuals who like yourself, want to be their own boss. They see no long
range security in working for someone else, and feel that their potential income will always
be limited as an employee. Franchising offers individuals an opportunity to break free & start
their own business whilst at the same time minimizing the risk that is inherent in opening an
entirely new business from scratch. Franchising allows you to follow a tried and tested
business system, which will greatly improve your chances of success, as the statistics prove.

Franchising has proved to be the most successful way of starting a new business

There are franchising opportunities in almost every area of business ranging from one-man
operations to large multinational enterprises employing thousands of people. It is a sad but
true fact that all of the new businesses started in the India completely from scratch, in five
years time only one in five will survive. Compare this with franchising which has a success
rate in excess of 90%. This means there are obvious advantages to franchising over starting
up on your own. Not only are you more likely to succeed, but also you have the freedoms of
self-employment as well. And when you need help, guidance is always at hand.

Benefits of franchising

Reasons to take up a Franchise

BUSINESS ENLARGEMENT: The first and foremost reason is for the purpose of expanding
an existing business. Reasons to expand can be due to the Franchise.

 Having possession of space and/or money to invest

 Wanting to expand in association with a reputed company
 Wanting a second line of business and a new venture
 Or for new opportunities and new business idea such as a new concept and to get
better business for future development.

STABLE SOURCE OF MONETARY GAINS: The second major reason for seeking to
franchise is the possibility of having stable source of earnings. Branding and good margins
with supplement source of income by the salaried class with a sense to move ahead in
money and lifestyle. Services to the company on payment basis also formed part of the
response.

RECOGNISED BRANDING: Another strong reason is that consumers are getting more and
more brand conscious and getting the chance to join hands with renowned brands for
success and share the benefits of an established service. Businessmen can be secure to work
under well-settled names and by joining hands with Leader’s enables you to build business
competency and more profit with proven business approaches. Brands also bring in a
standardization and Quality of Service that consumers are demanding.

FRANCHISING AS A PROVEN CONCEPT: Franchising is now a well established business

format. Working along with a trained and knowledgeable franchisor is also considered one of
the positive reasons to franchise. Franchised concepts are easy to implement, and wherein
the franchisee gets a ready-made brand and assistance from the franchisor with an effective
deployment of capital. Experts opine that there is more potentiality in franchise business as
it extends well-planned information and guidance to start the business and recognition in the
outside world with better product image and more goodwill. Its success rate is higher as
compared to running an independent business. Franchisor's business is already developed,
so time is saved and fear to start a new business without experience is also removed.
Besides, advertising expense is less, marketing potential of brand is better and an
opportunity to grow in the market through proven brand equity of requisite companies were
also found as reasons.

SOCIAL STANDING: One of the reasons is of Social recognition and consciously

maintaining the reputation in society and security of family and utilization of past
experience. The will to excel in life and make a contribution to society besides ambitions of
running a successful business and to grow generation after generation along with personal
satisfaction, independent, desire to grow are also strong reasons to take up a Franchisee.

LOW ON INVESTMENT: A large number of potential franchisees are attracted to concepts

requiring minimum guarantee and low investment for the business to succeed. To start
something new with my small amount of investment.

COMPARATIVELY LESS RISK: Franchisees are more stable due to less risk and high
returns quoted some, while a few may feel that they wanted a business that was doing well
in other places.

BEING YOUR OWN BOSS: The question of independently managing a successful business
is seen as a strong reason to take up a franchise. Women may feel that they want to work
independently whereas some are very motivated to be the master of their own success.
Many of those who are seeking to leave their 9 to 5 job are attracted towards franchise
operations as a way to start a business.

FRANCHISOR’S SUPPORT: Not everyone can manage success on their own and support
provided by the Franchisor in understanding the business and its various facets is a good
benefit for those who do not have previous business experience both technically and
management wise.

DIRECWAY Fusion Franchisee Program

The DIRECWAY Fusion Franchisee program is being run since the beginning of 2004 and we
currently have 60 centers operational in 53 cities across India. The DIRECWAY Fusion
franchisee is offered an opportunity to be part of a growing broadband network that provides
Education, Broadband Internet and e-commerce services to consumers. Hughes is expanding
this network and wanting to increase the number of operational centers in the current year
to 400.

A franchisee is not only provided the business format of DIRECWAY Fusion but also receives
complete support from Hughes the day he joins the network. Starting from making the
center, ordering equipment at special rates, Induction training, process documentation etc
are provided to the Franchisee. Once the center starts the franchisee received Marketing and
Sales support to implement local promotion campaigns and make the initial customers.

As a franchisee you will be required to have

1. Adequate investment for starting a center

2. Retail commercial space located in residential or commercial areas. The proposed
location should have good frontage, easily visible and 300 sq ft of carpet area. The
location should be easily accessible for customers who work or reside around the
proposed location
3. Commitment to operate and manage the business actively along with the desire to
work towards business targets defined from time to time

More information about the Franchisee program and investment can be had by ordering the
Business Prospectus. To order a prospectus please mail us at franchisee@dwfusion.com.

DIRECWAY Fusion Support

A franchisee is part of the overall network put up by Hughes and we provide support to all
our franchisee centers in the following manner

1. Technology Support: Franchisees receive technology related support in setting up

the center and a Call center for solving the problems they face on the technical side.
The technology team assists in choosing the best available technology at the best
prices for our franchisees.
2. Marketing Support: Franchisee centers receive ongoing assistance by means of
promotions, customer awareness campaigns. Marketing is also working to create
new products and alliances to be made available through the centers
3. Sales Support: A start up center requires help in making the first customers and in
carrying out local promotion activities. Sales support team works with centers
needing help to make customers. Once the center has been in the system and learnt
how to carry out the activities the Sales team provides support on request as may be
required to achieve the business targets.
4. Channel Support: Apart from the above centers from time to time require to be
trained on new services and may require to provide feedback etc. Channel support
extends this help to the franchisee and also ensures through regular Audits that the
entire network is conforming to the Service Quality that the brand is promising to the
customers.

Customers

Fusion Centers

Franchisees

Technology Channel Sales Marketing

Support Support Support Support

Services & Alliances

Application Process

If you are interested in joining the DirecWay Fusion Franchisee program then you will need
to follow the following process

1. Contact the following numbers to purchase a Prospectus.

Punjab/Ludhiana : 0161-5578012
Maharashtra/Mumbai : 022-56666672/73
Pune : 020-56290922/20
Delhi/U.P. : 011-51427640/41
Gujarat/Ahmedabad : 022-56666672/73
Rajasthan/Jaipur : 0141-5566671/72
Karnataka/Bangalore : 080-51151495/96
West Bengal/Kolkata : 033-30973608/4646
Tamil Nadu/Chennai : 044-55127433/22

or,

2. Send a Demand Draft in the name of “Hughes Escorts Communications Limited” of

Rs. 1,000/- payable at New Delhi to

Mr. Yatendra Bahuguna,

 Hughes Escorts Communications Limited,
Plot No 1, Electronic City, Sector 18,
Gurgaon - 122 015.

Send in your Name, Address, Phone number and Email id such that we can courier
the Prospectus to you
3. Prospectus contains the following
o Detailed Business Format
o Video CD on the Business Format with Existing Franchisee Referrals
o Application Forms
4. After going through the Prospectus details fill in the application forms and keep your
details ready.

5. You will be contacted by our Franchisee Selection Team for a meeting wherein you
can clarify your doubts and present your application for acceptance as a Franchisee

PRODUCT AND THERE IMPORTANCES

Broadband Internet

The Market

DiRECWAY Fusion is a consumer service initiative by Hughes Escorts Communications

Limited, the country’s leading satellite services operator. DiRECWAY Fusion centers, offering
a variety of services and shall soon be available across India.

Customers can now look forward to world-class broadband enabled services right in their
neighborhood.

Broadband Internet

This is still one of the most popular applications in the country today. And with the low level
of PC penetration, the cyber cafes are here to stay. DiRECWAY Fusion will offer true
broadband internet experience to the users, better than or equal to the services provided by
the existing players. Some statistics:

 As of March 2005, more than 50 L internet subscribers were there in India

 These 50 L subscriptions (User Ids created by ISPs) are used by more than 2 Crore
people
 As of March 2005, there are more than 40,000 cyber cafes in India. Today, most
cybercafes (70%+) use low bandwidth dial up access to provide services.

The Competition & Hughes Unique values

Today cyber cafes have mushroomed all over the place and offer services that range from
bad to average. Organized players also offer fairly mediocre services.

The DiRECWAY Fusion unique propositions for internet users are:

 Experience rich multimedia content – delivered by Hughes’ satellite broadband.

 The pricing is per minute – customers are billed for the actual amount of usage & not
in blocks of half-hour or per hour.
  The same user id & password can be used at any DiRECWAY Fusion location
nationally.

 Comfortable surfing stations have been designed keeping in mind the customer’s
specific needs of comfort, space for writing and privacy

About Broadband

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>> What is Broadband?

>> The Broadband Industry and Market

>> Broadband Applications

>> Other Multimedia Services

>> Satellite Advantages over Terrestrial Networks

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What is Broadband

High-speed and always-on. What is considered high-speed will change over time, but for now
it means downstream access rates of about 256 kbps or more. But more important is the
power that Broadband has to change the way we conduct our lives. High speed brings with it
new capabilities such as transmission of video. This allows new vistas of growth Education,
Entertainment, Health services and corporate communications. Broadband enhances the
ability to use the Internet for a multitude of applications. In India the number of broadband
consumers are a fraction of those existing in other countries worldwide. With increased
availability of broadband, services built using its strengths will bring new conveniences to all
of us.

Put simply from a 256 kbps always on connection, the key question consumers want an
answer to is: What are the benefits of broadband? The answer is: Quicker downloads for
browsing; education – interactive learning, on-line and e-learning applications and services;
e-commerce, e-health and entertainment services; Broadband empowers the Internet. It is
constantly changing availability of content delivered or available via the Internet.

The Broadband Industry and Market

It has been established that there is a direct correlation between broadband adoption and
the gross national product of a country. We all know Internet is increasingly being used as a
medium to communicate and deliver a host of application and services to users. Technology
now makes it possible to deliver voice, data and video over internet. A typical VOIP call to
any place in the world costs a fraction of the typical phone call. In fact an international call
from Jalandhar in India to Los Angeles In United States costs approximately Rs.1.99. A
domestic phone call from Mumbai in India to a mobile in Delhi costs Rs 2.50. Internet usage
has been growing rapidly as also a variety of e-commerce applications. During the past 5
years Internet usage has grown and the figures are shown in the charts below:

According to a study conducted by IBM Business Consulting Services in association with CII,
National Broadband Economy Committee on Broadband Economy: Vision 2010, India should
expect to have a minimum of 10 million subscribers by 2010 and 35 million subscribers by
2020.

Demand Projections
Particulars
2010 2020

350 cities and

Urban Coverage All cities and town
towns

Residential connections 7.5 mn 23 to 27 mn

Commercial connections 1.6 mn 7 to 9 mn

 Urban broadband kiosk seats* 1 to 1.5 mn 2 to 3 mn

# Excluding cyber cafes/urban broadband kiosks

* 4-6 seats per broadband kiosk

Source CII: India’s Broadband Economy: Vision 2010

The report states that connectivity and services, will be a key driver for socio-economic gains
including economic growth and employment generation.

According to the study, broadband connectivity and services will impact education, health,
governance and citizen empowerment required to achieve the economic goals for all citizens
including the rural population that cannot be covered effectively using traditional brick and
mortar solutions.

The study identifies potential key drivers of broadband and recommends making appropriate
and locally relevant e-education, e-health, e-governance, and entertainment and e-
commerce services available through broadband connectivity to all cities, towns and villages
in India. Not only would the quality of these services in the rural areas improve but also, it
would assist in containing migration to urban areas and also provide job opportunities in the
rural areas.

Broadband Applications

Broadband greatly enhances the capability of transmitting lots of information over the
Internet and therefore is giving rise to new means of communicating. Communication
between two people (consumer to consumer) or between a customer and business (Business
to consumer) is greatly enhanced by enabling broadband.

Apart from providing faster access to Internet the following applications are also made
possible by broadband

1. Voice Over Internet: Currently in India ISPs are permitted to offer Voice over
Internet to those users who wish to talk to others using the Internet and this is
called a PC to PC service. The other permitted services is where users over the
Internet can call International land line or mobile phone users. Voice over the
Internet is not only bringing down the cost of communicating but making possible
new services on the web. Using Voice over Internet it is also possible for Businesses
to integrate their web sites such that customers can contact the call center if they
have any queries. As an example a customer facing trouble in placing an order over
the internet can receive telephonic support from the company on how to complete
the transaction.
2. Telecommuting: Companies cannot always provide an office to their traveling
employees. However these employees may require to access the companies email,
intranet for completing their work while they travel. They may wish to video
conference or attend a e-learning training etc. for which they need access to the
Internet. Many companies are encouraging their employees to use Broadband
centers to get their work done.
3. Education Services: By far the most used application in India today over
Broadband and it offers real benefits to the students who wish to take up a course
not available in their city. Working professionals and students who are not able to
leave the city and take up Education courses are attending different forms of
Education Services. HECL’s own Interactive Onsite Learning services are an example
 of how Voice, video and data can be integrated to provide education services to
students.
4. Tele-Medicine: Health services is another beneficiary from Broadband availability.
The availability of video and high speed data transmission enables patients to meet
Specialist doctors from far away locations. Their reports and x-rays which require
large data transfer capacity can be sent to the Doctors before the meeting allowing
the doctor to provide remote consulting to the patient.

Other Multimedia Services

The range of potential multimedia services offered by any broadband network is staggeringly
long today. As each new broadband transmission scheme is developed, applications are
designed to accommodate the available capacity and processing power of customer premise
equipment. The most prominent applications today include:

 News gathering, already a commonly used application in satellite networks.

Broadband systems allow this to be provided on a more efficient, highly mobile basis,
expanding the applicability of the service.
 Distribution services, including software, music, weather information, and
scientific data.
 Interactive gaming. This has long been considered a potentially enormous section
of the interactive services marketplace. Interactive games are presently being
operated over the Internet, with various levels of success.

Apart from providing faster access to Internet the following applications are also made
possible by broadband

Satellite Advantages over Terrestrial Networks

A host of terrestrial technologies, including LMDS, ADSL, cable modems and dedicated fiber
are available in the broadband sector. Despite this competition from terrestrial technologies
and numerous advances in fiber optic technology, satellites are poised to claim a meaningful
portion of the total broadband market due to a number of advantages satellites hold over
terrestrial technologies. The benefits include the following:

 Ubiquitous coverage. All areas within a satellites beam receive the same level of
service, making it highly attractive in rough terrain or underdeveloped regions.
 Simplicity. Satellite systems bypass the complex web of landline networks, multiple
carriers, pricing schemes and billing procedures. Network management of global
networks is often more elegant in comparison to terrestrial networks.
 Bandwidth on demand. Satellites can easily be configured to provide capacity on
demand to users within their coverage area. In the era of multimedia
communications, this capability will allow users to "pay-as-they-use," which will be
an attractive option to many private line terrestrial alternatives, which are virtually
incapable of providing asymmetrical access.
 Uniformity. Corporate customers (Partners to the Fusion network) can consolidate
multiple applications over a single satellite network, and provide the same level of
service over the same technology to each site on the network, regardless of location.
 Asymmetry. Satellites are more cost effective than many terrestrial leased-line
solutions in providing asymmetric transmission services.
 Low Cost Coverage. Depending on the system architecture, an investment of a few
hundred crores can fund a true countrywide broadband satellite system available to
virtually every potential user. Terrestrial fiber and wireless solutions are significantly
 more expensive to deploy to the same population.

 Rapid Deployment. In order to offer truly global services, satellites can be

deployed much more rapidly than fiber optic cable and other terrestrial solutions

Frequently Asked Questions

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Franchising

Q >> How is being a DF franchise better than having an independent business?

Q >> Why should I prefer DiRECWAY to other related franchisees?
Q >> Does DiRECWAY Fusion Center make a profitable business?
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Services and products

Q >> Tell me about the products and services offered to a customer at the center.
Q >> Which new services can customers expect at a DiRECWAY Fusion center?
Q >> Why would someone prefer DIRECWAY Fusion center over other cyber-cafes / internet
cafes for net or email usage?
Q >> Tell me about the payment and transaction services available to customers at a
DiRECWAY Fusion center.
Q >> Why should a customer at DiRECWAY Fusion center trust us with money and his
monthly e-commerce transactions?
Q >> What are the different Interactive Online Learning offerings at a DiRECWAY fusion
center?
Q >> Will I need courseware material ( hard copy) to give to the students in the education
part of DiRECWAY?
Q >> How will you charge us for the courseware?
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Finance related queries

Q >> How much money will be required for me to start a franchise center?
Q >> How much working capital will be required?
Q >> What would be the approximate break even time for my investment?
Q >> Can I pay the money in installments?
Q >> Is there any financing option available to me ?
Q >> Will I get a minimum guarantee?
Q >> I already have some infrastructure required for a DF center. Can I use the same? Will I
get a rebate on the investment?
Q >> What will be the duration of my contract?
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Support and Training

Q >> Do I get any technical support from DiRECWAY fusion

Q >> What is the marketing support available to me?
Q >> If I were to do my own promotion for traffic generation, will DiRECWAY Fusion help
share costs with me?
Q >> Do I get any training before I start my business as a franchise?
Q >> Can you teach this business to someone with no previous engineering/ computers
experience?
Q >> Will you provide assistance in selling the education courses?
Q >> Will you help me generate the business If I am unable to do it on my own?
Q >> How much of previous experience is required?
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Location and infrastructure related

Q >> Are there any functioning DiRECWAY Fusion centers?

Q >> Where all are you going to open DiRECWAY Fusion centers?
Q >> Do I get a protected territory?
Q >> I have a new store where I have invested Rs. 10 lacs recently. Would you want me to
change it according to your specifications again?
Q >> How long does it take to start a DiRECWAY fusion center?

Franchising

Q >> How is being a DF franchise better than having an independent business?

A >> There are a number of advantages

 Access to our already successful and established products and services ensures a
better business.
 A proven method of operating a DiRECWAY Fusion Center reduces the many risks
one faces in opening a business.
 The franchisee purchases not only a trademark, but also the experience and
expertise of the DiRECWAY.
 You get a stable and reliable business that is already established
 You get quality and brand name associated with DiRECWAY / HECL
 You get a brand name and excellent growth opportunities

Q >> Why should I prefer DiRECWAY to other related franchisees?

A >> A DiRECWAY fusion center has much more to offer than your neighborhood internet
café. First of all it offers a basket of services for customers’ convenience. All these services
are at a very affordable price. A DiRECWAY Fusion center aims to be a neighborhood retail
store where a customer can walk in and avail a range of services to make his life easier. A
customer gets variety, value for money and convenience, all at the same place.

Q >> Does DiRECWAY Fusion Center make a profitable business?

A >> Yes.

 There is a demand for the services offered.

 This demand is going to increase especially in the area of e-learning.
 The services offered are such that would ensure repeat business.
 Also with the commitment of HECL to bring in more such services, a DiRECWAY
Fusion center has all the possibilities of becoming a retail, neighborhood convenience
store .

Services and products

Q >> Tell me about the products and services offered to a customer at the center.
A >> DiRECWAY fusion has a range of product and services to safeguard your business.
Current offerings include:

1. Broadband internet for retail consumers- to access the internet and internet related
applications like surfing email and chat.
2. Global education – DiRECWAY fusion has tie ups for a variety of vocational and
career related programs for students and others who can learn in their neighborhood
through e –learning.
3. E-commerce- includes payment services for transactions
4. VOIP

Q >> Which new services can customers expect at a DiRECWAY Fusion center?

A >> DiRECWAY will be introducing soon the following services to their customers.

 e-health services.

Q >> Why would someone prefer DIRECWAY Fusion center over other cyber-cafes / internet
cafes for net or email usage?

A >> At a DiRECWAY fusion a customer gets

 Net surfing at highest speed because of satellite broadband- lower time and value for
money
 Net charging per minute and no logging charges- hence lower actual cost
 Comfort and adherence to statutory regulations.

Q >> Tell me about the payment and transaction services available to customers at a
DiRECWAY Fusion center.

A >> DiRECWAY aims to provides the customers an opportunity to pay their utility bills at
their nearest DiRECWAY Fusion center.
Currently services like Firstandsecond.com, Air Deccan transactions and NDPL payments can
take place at a DiRECWAY fusion center. Tie ups are on with several service providers and as
the centers expand these services will expand to include many more activities such as e
ticketing, payments and bill collections etc.
DiRECWAY Fusion hopes to be able to offer bill payment services free of cost to the users.
However the actual pricing (free or available at a flat nominal charge) will depend on the
primary service providers involved. The reservation services will be available at a flat
nominal charge.

Q >> Why should a customer at DiRECWAY Fusion center trust us with money and his
monthly e-commerce transactions?

A >> Relevant service providers will announce DiRECWAY fusion as their official bill
collection partners. There will be a connection of DiRECWAY Fusion database to the database
of participating service provider, and the receipt that is provided to the customer would be
officially validated by the concerned service provider. Thus customers can be sure that their
utility bill is actually getting paid.

Q >> What are the different Interactive Online Learning offerings at a DiRECWAY fusion
center?
A >> DiRECWAY Fusion offers a variety of vocational and career oriented courses to students
and others. These are satellite based education and training service for customers.
DiRECWAY has tie ups several prestigious education and management institutes. Faculty
from these institutions provide students, sitting at their neighborhood DiRECWAY Fusion
centers, with high quality supplementary education aimed at making them perform better in
school, board and competitive examinations
For students, there are numerous benefits – there are savings in terms of both cost & time,
there is no loss of productivity, students get trained in their respective locations, at the same
time, by the same instructor.
DiRECWAY Global education thus has redefined the very concept of classroom Education
retaining all its benefits, improving its reach and enhancing collaborative group learning. For
more info see www.dwge.com

Q >> Will I need courseware material ( hard copy) to give to the students in the education
part of DiRECWAY?

A >> This requirement will vary from course to course. In some cases hard copy of study
material may be required which will be distributed to students by you.

Q >> How will you charge us for the courseware?

A >> It is built in the course fee.

Finance related queries

Q >> How much money will be required for me to start a franchise center?

A >> Your total investment for starting a DiRECWAY Fusion center may vary between 5 to 6
Lacs. The investment amount will depend upon the location, interiors and infrastructure.
Details may be discussed at mutual convenience.

Q >> How much working capital will be required?

A >> The monthly out of pocket expenses are expected to be about Rs. 12,000 including
salary of one hired person, admin expenses and marketing expenses, not including your
salary.

Q >> What would be the approximate break even time for my investment?

A >> The break even time in most cases will vary between 16 to 24 months, depending
upon the infra structure already available with you. However the exact returns will depend
upon your willingness to make the efforts for capturing the market.
If you require, DiRECWAY Fusion can work with you to create a customized ROI plan with a
break even period.

Q >> Can I pay the money in installments?

A >> No.
Q >> Is there any financing option available to me ?

A >> DiRECWAY Fusion does not provide any financing. However we can assist you in
developing a business plan which can help you in securing the loan through a local bank

Q >> Will I get a minimum guarantee?

A >> The franchise model is based on revenue sharing. It is designed to maximize earnings
for you.

Q >> I already have some infrastructure required for a DF center. Can I use the same? Will I
get a rebate on the investment?

A >> If your existing equipment is relevant and is of the correct configuration as required by
DF, then it can be used in DiRECWAY fusion center. In that case your investment may reduce
depending upon the appropriateness of equipment/ material you already have.
The decision of our franchise managers will be final in this respect. And they will be able to
work out a customized investment plan for you.

Q >> What will be the duration of my contract?

A >> Three years from the execution of the agreement.

Support and Training

Q >> Do I get any technical support from DiRECWAY fusion

A >> Our technical support contact center and website is available to the franchise to
resolve any problem that may be faced right from the time of installation to routine technical
hitches in the running of the center. Our engineering team is constantly in touch with the
franchises centers to resolve any technical problem in shortest possible time.

Q >> What is the marketing support available to me?

A >> DiRECWAY fusion will create marketing campaigns for your area. We will also design
and manage the production of all sales and promotional material. For nation wide campaigns
and activities, we will provide you with a minimum amount of marketing material. All
additional material will be indented by the franchise.

Q >> If I were to do my own promotion for traffic generation, will DiRECWAY Fusion help
share costs with me?

A >> If it is done specifically for your area, the company will not share the expenses.
However if the promotion is territory wide, then the company will work out an equitable
method of sharing expenses between different franchises and itself.

Q >> Do I get any training before I start my business as a franchise?

A >> DiRECWAY Fusion will provide comprehensive training and development program as
part of induction process. In order to make your business successful, training will be a
continuous and ongoing process.

Q >> Can you teach this business to someone with no previous engineering/ computers
experience?

A >> Yes, it is more advantageous to have people with well-rounded business experience,
than to have only a degree.

Q >> Will you provide assistance in selling the education courses?

A >> If required, certainly. The exact modalities can be worked out through discussions and
to our mutual satisfaction.

Q >> Will you help me generate the business If I am unable to do it on my own?

A >> DiRECWAY Fusion franchise mangers will work with you to help you increase your
business. You are not alone in this business and our people will work with you to make it a
successful center.

Q >> How much of previous experience is required?

A >> While similar previous experience would help, we are looking for someone who has
good organizational skills, a commitment toward goals, a positive "can do" attitude,
independence with an ability to ask for support, and good people skills to foster harmonious
customer relations.

Location and infrastructure related

Q >> Are there any functioning DiRECWAY Fusion centers?

A >> Yes, Hughes has several operational DiRECWAY Fusion centers. Details of these
centers are available on our website www.hughes-escorts.com

Q >> Where all are you going to open DiRECWAY Fusion centers?

A >> We plan to open 500 centers across India.

Q >> Do I get a protected territory?

A >> No. However, we will only open new centers in an area only if we believe that the
market needs more centers. We will work to maximize every body’s profits.

Q >> I have a new store where I have invested Rs. 10 lacs recently. Would you want me to
change it according to your specifications again?

A >> Our franchise manager will look at it and see if it conforms to DiRECWAY Fusion center
specifications. If it does, you may not need to spend any more. But if it does not, specific
changes will have to be made to meet our standards.

Q >> How long does it take to start a DiRECWAY fusion center?

A >> After the keys to site are handed over and money deposited, it takes about thirty to
forty five days to set the infrastructure and interior in place