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The document provides information about a franchise opportunity for broadband distribution with TrueiNet Networks. It outlines the franchise system specifications, eligibility criteria, location requirements, staffing needs, and TrueiNet's commitments to provide support. A hypothetical income statement shows how a franchise could become profitable within a year with an initial investment of Rs. 2.65 lakhs. The document invites potential franchisees to complete a preliminary assessment form to evaluate franchise viability in their area.
The document provides information about a franchise opportunity for broadband distribution with TrueiNet Networks. It outlines the franchise system specifications, eligibility criteria, location requirements, staffing needs, and TrueiNet's commitments to provide support. A hypothetical income statement shows how a franchise could become profitable within a year with an initial investment of Rs. 2.65 lakhs. The document invites potential franchisees to complete a preliminary assessment form to evaluate franchise viability in their area.
The document provides information about a franchise opportunity for broadband distribution with TrueiNet Networks. It outlines the franchise system specifications, eligibility criteria, location requirements, staffing needs, and TrueiNet's commitments to provide support. A hypothetical income statement shows how a franchise could become profitable within a year with an initial investment of Rs. 2.65 lakhs. The document invites potential franchisees to complete a preliminary assessment form to evaluate franchise viability in their area.
- Franchise System Specification - Franchisee Requirements - Product Overview
Page 2 Private & Confidential
Who We Are:
In this document, we (the franchisor, TrueiNet Networks) have provided you (the potential franchisee) with the appropriate level of information to better understand our franchisee requirements and our IT products and services.
We believe that with this information and follow up discussions with ourselves, both parties will be better positioned to assess the potential of a franchisor franchisee relationship.
Corporate Overview
TrueiNet Networks, based in Thane, Maharashtra, India was founded on an idea of excellence. We are one of the leading providers of internet & networking solutions in India. Since its Communication Division was established, TrueiNet Networks has re-enforced its investment in Partnering with Major ISPs in India to provide Internet access for home, telecommuters, and SME users.
The heart of TrueiNet Networks brand is its value - Energy, Dedication, and Discipline. TrueiNet Networks was started as an organization, is to inspire the next generation to become entrepreneur. We are passionate to develop people.
Our vision
To be rated as most ethical organization & to be rated in top 1000 fortune companies in 2020.
Our mission
Passion & Desire to develop people Desire to make a difference.
Via our capability of Research & Development equipped with network experts with experience in this field, TrueiNet is determined to pursue the leading-edge position of the industry and to provide our current and future customers with the best quality of networking & internet solutions. In the past few years TrueiNet Networks has been dedicated in developing and offering comprehensive solutions for Broadband, Internet leased line, and VPN solutions to meet the growing demands of varying Internet market segments.
Page 3 Private & Confidential
The product lines include following series: - Internet Leased Lines - Broadband Distribution - LIVE Streaming - International Private Leased Circuit (IPLC) - MPLS VPN, Layer 2 and 3 - Global International MPLS VPN - IDC (Data Centre) for Co-location, Dedicated Server and Managed Services. - Indoor structured cabling - Outdoor cabling - Wireless Point to point - Wireless Point to multi point - Wireless Indoor access - VOIP - PRI lines - ERP Solutions - Tally Solutions - Thin clients
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Franchisee Eligibility Criteria:
The following guidelines are recommendations based on our experience of what key attributes and skills are required to deliver business success. They are not, however, mandatory requirements:
Education: Graduate, Engineer, Management.
Experience: minimum of 2 year's experience in any industry, or in running or Managing business, or in selling broadband or internet leased line.
Character: individuals with a flair for business and a passion for people with Ethics.
Location Requirements:
The Location should be located at an Area of high potential for internet usage. The office should be located on the ground floor or first floor. The server room may be in the office or at the terrace of the building.
The facility should have a clear carpet area of between 100-300 ft 2 (or more for a prominent location) and should be equipped with the following: 1. Office area for administration and Customer counseling. 2. Stable power with minimum 1.5 kW. 3. At least two telephone/Mobile lines. 4. Exclusive e-mail account for centre operations.
Staffing Requirements:
1. One Marketing executive 2. One Networking Engineer
Financial Requirements:
As the franchisee you should have the capacity to invest approximately 1 - 3 lakhs (dependent on location and existing infrastructure). This investment will be the following (approximations only):
Working capital: Rs. 40,000.
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TrueiNet Networks Commitment:
We will provide comprehensive and industry leading guidance to the franchisee in establishing and managing your business. At a minimum, this will include support in the following areas:
1. Organizational set-up. 2. Marketing strategy. 3. Capacity planning. 4. Manpower training - technical and sales. 5. Manpower planning - specialized training on demand. 6. Location selection and design layout. 7. Space planning. 8. Hardware & software purchase. 9. Bandwidth Management Software Training & Support
Technical and Staffing Requirements:
Staff Training: The preferred location to conduct your staff training is at our local headquarters in Palghar, Thane. This will help to get a good perspective of our organization and an understanding of the brand.
On-line Training: In addition to the 'on-site' training, we are proud to offer regular scheduled, and on- request, on-line training sessions.
Duration of support from TrueiNet Networks: We will support the franchisee both in terms of technical, marketing and sales expertise, as long as the partnership exists. Our franchisor franchisee contract has been developed to ensure a longstanding business relationship.
Marketing: All promotional activities such as advertisements in daily newspapers, popular magazines, local television channels, banners, hoardings, distribution of pamphlets, etc. is to be handled by the franchisee.
When your franchise has been established as a provider of outstanding quality and customer service, sales will start to grow quickly through word-of-mouth rather than any other media. We strongly believe that every Customer will become the best marketing tool we have.
In addition, as your franchisor, we will: 1. Routinely introduce alternative advanced marketing strategies to improve your sales. 2. Train your franchise team in effective marketing, advertising and selling.
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Business Financial Assessment:
Hypothetical Income statement: A low investment start-up cost is paramount in ensuring your franchise becomes profitable at the earliest opportunity. One such scenario is shown below. With a start-up investment of Rs 2,64,000 (Initial setup cost, Equipments, etc.) it is possible for the franchise to be profitable by month 12 based on a monthly average throughput of 100 Customers.
What your Client Income Statement Could Look Like One time Investment
Income (+) Rs 100000 Server Rs 20000 Hypothetical Monthly (average) Income per 100-150 connections Rs 1,00,000 Switches Rs 3000 Cables Rs 5000 Running cost (-) Rs 42000 Wireless Base Station Rs 190000 Leased line (10 mbps) Rs 30000 Ups / Backup Rs 17000 Bandwidth Management Software Rs 2000 Leased line (10 mbps) 1 month Advance Rs 30000 Staff Rs 5000 Rent Rs 5000
Total Investment Rs 265000 Potential Monthly Earnings(=) Rs 58000
Where you can do the cost cutting and Increase your profit?
You can save Approx. 50000 to 60000 of your one time investments, If you can acquire terrace of the top most building of your town (Height of the building should be such that you can have bird eye view of the whole city)
You can initially save Bandwidth cost upto Rs.10000 monthly if you have start with 4mbps Leased line instead of 10mbps.
You can initially save staff (Network Engineer) cost Approx. Rs.5000 monthly if you have partner / brother / friend and increase your earnings up to Rs.5000.
You can save Rent Approx. 5000 monthly if you have owned premises for operating and increase your earnings up to Rs.5000.
You may charge your customer an Installation Fee Approx. Rs.3000 to Home user and Rs.5000 to Business User. From this amount you can get handsome returns on your investments apart from the monthly earnings.
For e.g. Income from Installation Charge 80 Home users x 3000 = 2,40,000 20 Business users x 5000 = 1,00,000 Total Installation Fees Received = 3,40,000 Installation (CPE) Avg. Cost is Approx. 2000 per Client x 100 = 2,00,000 Final Earnings on Installation: 1,40,000
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Preliminary Franchise Viability Assessment
The purpose of this section is to jointly assess the viability of introducing your business into the TrueiNet Networks franchise network with our unique experience. Please spend some quality time completing this form. This will assist both parties in assessing the potential of introducing our franchise in your area. To ensure a fast turnaround, please complete this document and return by e-mail to info@trueinet.com
About You
Full Name:
Educational Qualifications:
Age:
Home Address:
Telephone (mobile):
Telephone (Skype):
e-mail Address:
Work Experience (years):
Business Experience (years):
Current Employment:
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% Time to be spent on Franchise:
Investment Capacity (Lakhs):
Reasons for wanting to become a TrueiNet Networks Franchise:
Additional Personal Information: e.g. goals or expectations (personal or financial) from the franchise business.
Year 1 (turnover, profit, quarterly cash flow): Year 2 (turnover, profit, quarterly cash flow); Year 3 (turnover, profit, quarterly cash flow):
Personal Motivations:
About Your Area
Location:
Catchments population:
Number of industries/ companies:
Number of colleges / universities:
Number of Home:
Page 9 Private & Confidential
About the Franchise Location
Preferred location for franchise: (inc. full address if available)
Is a location already available (Y/N):
If yes, available floor space (ft 2 ):
If yes, is the premises owned / leased:
Choice of Franchise
Why you chose TrueiNet Networks?
Did you consider any other franchisor? (Name, reasons for this not going ahead)
Page 10 Private & Confidential
Appendix 2: 10 Ways to Optimize your Franchise Start-up
Owning a franchise is not a quick and easy way to get rich. It takes time, effort and a lot of hard work. This is the same irrespective of the nature of your start-up business. The benefits of franchising, however, are that no re-invention is required. The brand has already been established and you benefit from the support, marketing, established products, services and systems of the franchisor organization.
The decision to buy a franchise is not one that should be taken without extensive consideration, although the key to success is about following some straightforward steps:
1. Select a franchise business that you feel passionate about.
This does not just apply to a franchise but to any business whether you are an employee or the business owner. If you are passionate about you do, this will flow into your products and services, the customers and ultimately the bottom line profit. Understand what is important to you. It will be easier to evaluate the business opportunity and know whether it is right for you.
2. Select the right franchisor for you. This has to do with choosing an established company with a proven track record and great reputation, even better if they belong to one of the national franchise organisations. Ensure that the business is run in accordance with franchising best practices. Make sure the business is profitable.
3. Assess the competition, the location & the business viability. Is this an industry where there is growth? Ensure that the marketplace is not saturated with similar industry-types. It helps if demand (for the product or service) outstrips supply. Location is paramount. You may have the best franchise, with the best product or service, with the best customer support, but that all counts for nothing if your location is sub-optimal.
4. Develop a business plan. Every profitable business has one. If nothing else it helps you develop your ideas and sense of what is important to get the business to be viable. Most start-up companies are too optimistic in their forecasts. A business plan puts some realism into your ideas. I know you dont like the thought of writing one. But there are plenty of templates out there to choose from.
5. Get the right team and train them. Without the right team on-board in your new franchise you are doomed to failure. Ensure that each person understands the values of the brand. Make sure that everyone is
Page 11 Private & Confidential working towards the same goals. The appropriate training is important. Not just in the franchise system itself, but in the specific area that each person is operating.
6. Maintain a great franchisee franchisor relationship. Most breakdowns in franchisee franchisor relationships boil down to poor communication between the two parties. Ensure from day one you understand each others expectations. Dont just assume, find out! Communication must be both ways and at regular intervals. Use your franchisors experience to good use.
7. Optimize your income statement and monitor your cash flow. One to avoid I hear you say. No way. Optimizing your income statement and understanding its sensitivities to things like products costs, day-to-day expenses, numbers of customers, etc. can be great fun. OK, well it could just save your business.