CONTENTS OF THE MODULE

Franchising as Entrepreneurship
The Franchise relationship model

The wealth – creating power of franchising

Service delivery system & Real Estate

Selecting & Monitoring Franchisees

The Service Delivery System & Marketing

Transaction Analysis
Financial Analysis

The Dynamics of the Franchiser, Franchisee Relationship

Understanding the basis of Franchise Laws

International Franchising Harvest

Term Work
SERVICE DELIVERY SYSTEM AND REAL ESTATE

5TH SEPTEMBER 2010

 DEFINITION

SDS is the way in which a particular business is designed to meet

the requirements of the consumer by fashioning and modulating
the point of sales best suited for the purpose. Real estate plays an
important part in the SDS because it is the front end face of the
business and the firs and sometimes the only point of contact for
the consumer. A franchise chain is as good as its geographical
retail presence.

SERVICE DELIVERY SYSTEM AND REAL ESTATE

 SELECTING REAL ESTATE

IDENTIFYING THE TRADE AREA(MARKET) BASED ON

THE DEMOGRAPHICS OF THE PRIMARY TARGET
AUDIENCE(PTA)

SELECTING A SUITABLE PROPERTY(STORE) WITHIN

THE TRADE AREA BEST SUITED FOR THE BUSINESS

COMMERCIAL VIABILITY OF THE STORE WITH RESPECT

TO THE OUTFLOW IN TERMS OF EXPENSES(LEASING
VALUE) BEING COMENSURATE TO REVENUE
GENERATION POTENTIAL OF THE STORE.

SERVICE DELIVERY SYSTEM AND REAL ESTATE

 FACTORS AFFECTING PROPERTY SELECTION
PROXIMITY TO THE PTA CATCHMENT LIKE TRAVEL
TIME, TRAVEL MODE ETC

PRESENCE OF ANCHORS

TRAFFIC FLOW TO THE PROPERTY

SITE VISIBILITY

ZONING

COMPLIMENTATY OR CONTRADICTORY NEIGHBOURS

ESTIMATED MARKET SHARE WITHIN THE PTA FOR THE

PARTICULAR BUSINESS

FOOT FALLS AND CONVERSION ESTIMATES

SERVICE DELIVERY SYSTEM AND REAL ESTATE
 HOW TO VALUE REAL ESTATE

COST APPROACH – TO LOOK AT THE COST INVOLVED IN

CONSTRUCTING A PREMISE ON A PIECE OF LAND AS
COMPARED TO BUYING A READYMADE STRUCTURE

SALES COMPARISON APPROACH – COMPARING PRICE

OFFERED FOR A PROPERTY TO A RECENT SALE OF A
COMPARABLE PROPERTY(TOO MANY FACTORS
INFLUENCING A FAIR COMPARISON)

INCOME CAPITALIZATION APPROACH – HOW MUCH

REVENUE CAN BE GENERATED THROUGH A FRANCHISE
OPERATION AT THE PARTICULAR PROPERTY….HENCE
WHAT IS THE FEASIBLE OUTFLOW ON THE PROPERT TO
SUPPORT A FRANCHISEE OPERATION ON THAT
PROPERTY
SERVICE DELIVERY SYSTEM AND REAL ESTATE
 LEASING ISSUES

RELOCATION CLAUSE

PURPOSE CLAUSE

ALTERATIONS

RESTRICTION ON TRADE NAME USAGE

SERVICE DELIVERY SYSTEM AND REAL ESTATE

 SOME WORKINGS OF REAL ESTATE IN RETAIL

PROJECT COMMISIONING AND CONTRACTORS

RENT FREE OCCUPANCY

DEMARCATION BETWEEN CIVIL WORK AND INTERIORS

– WHO DOES WHAT

STRUCTURAL CHANGES

RENTAL, CAM, ELECTRICITY, MUNICIPAL CHARGES

RULES AND REGULATIONS FOR A TENANT(SPECIALLY

IN MALLS)

STATUTORY PERMISSIONS AND LICENSES

SERVICE DELIVERY SYSTEM AND REAL ESTATE

SERVICE DELIVERY SYSTEM AND REAL ESTATE
Reference
http://books.google.co.in/books?id=xqiwiTz_iF4C&pg

5TH SEPTEMBER 2010