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Project on Franchising

Nishant Motwani 50098 Nitesh Choudhary 50100


Franchising is a unique and dynamic business method. A successful franchise will allow both the franchisor and franchisee to reap the benefits. However, franchising should not be considered a fast road to fortune, nor should it be used to assist a business that is not performing well.

Benefits of franchising include the franchisees funds and labor are used to expand the business; franchisor can be free from the day-to-day operations of the business; the franchisor can see a profit without excessive investment in the business; fewer staff management problems; each franchisee will be the owner of the business and therefore more determined to succeed and more franchise businesses can be spread over a greater geographic area, therefore increasing the pool of potential customers.

What is Franchising? Franchising in general means granting of certain rights by one party (the franchisor) to another (the franchisee) in return for a sum of money. The franchisee then exercises those rights under the guidance of the franchisor.

Who is a Franchisor? He is the owner of the franchised system. It owns the know-how of the concept and the brand name. It grants franchises to third parties.

Who is the Franchisee? He is the one who has been granted the right by the franchisor to carry on the business using the franchisors know-how and the brand name. Now, depending on the rights granted, franchisees can be classified into: Unit Franchisee Master Franchisee Regional Franchisee Multiple Franchises Developers

Evolution of Franchising in the World

Franchising is a term that comes from the French language and means `to be free from servitude'. It was developed as a business method in the United States in 1850s. Franchising is a low-capital rapid growth market share gaining option. The goal of a franchisor is to provide a consistent product and consumer experience 'indirectly' through a franchisee. By the very nature of the franchising process, it is a business method more suited to generic services that evolve around a recognized brand, a basic standardized process capable of delivering a consistent product or service through a wide network of operational units.

The importance of franchising as a potential business option can be assessed based upon research in 1997 that estimated that nearly 40% of all retail sales reached consumers through the franchise route. The importance of the franchising process is reflected in the retail and hospitality industries where nearly every retailer (in malls) and every major hotel are franchisees of international as well as major national chains.

Evolution of Franchising in India

In India, acceptability is growing by the day and it has a fairly conventional industry spread. Approximately 600 franchisors spread across industries like education, retailing, professional services, healthcare etc. There are close to over 40,000 franchisees, with an annual turnover anywhere between Rs.8000-Rs.10, 000 crores from franchising. It is estimated that the total investments made by Franchisees is over Rs.5000 crores and over 300,000 people are directly employed by franchised businesses. Opportunities in Franchising in India exist in the following areas like Beauty Salons & Supplies, Business Services, Clothing, Computer & Internet, Consultancy, Consumer Services, Education & Training, Entertainment, Financial Services, Florists, Food and Beverages, Health Care & Fitness, Immigration Services, Interiors, Jewellery, Play School & Activity Centre, Retail and Travel.

Franchising affords India an opportunity to build its commercial infrastructure and develop its domestically oriented businesses in an efficient, profitable and pan-national manner. The key attractions of franchising in India are as follows:

Capital Requirements Geographical extent of the country Cultural Empathy Harnessing local market knowledge

History of Baskin Robbins

Two brothers-in-law shared a dream to create an innovative ice cream store that would be a neighborhood gathering place for families. In 1945, Irv opened Snowbird Ice Cream in Glendale, California. A year later, Burt opened Burton's Ice Cream Shop in Pasadena, CA. It wasnt until 1953 that the ice cream chain dropped the separate identities of Snowbird and Burton's and became Baskin-Robbins. Baskin-Robbins continued to expand, and by the mid1960s, the company had become an ice cream empire with more than 400 stores throughout the United States.

America's Favorite Neighborhood Ice Cream Shop Baskin-Robbins stores are visited by over 300 million happy customers year after year. A number that continues to grow as Baskin-Robbins spreads throughout the world. The original flavors when baskin-Robbins first opened in 1945 were: Banana Nut Fudge, Chocolate Ribbon, Coffee Candy, Burgundy Cherry, Date Nut

Competitors of Baskin Robbins

Marketing Strategies of BR

Demand Drivers Trends Issues and Concerns Outsourcing/Logistics Focusing on the Customer Future plans of Baskin Robbins

Procedure for Franchising

Apply online and fill the franchisee form. Once the application form is received, a representative will get in touch with you. Your proposed site will be inspected and once approved they will sign a MOU with you. Once the franchisee fee is paid, BR representatives will handover the franchisee agreement to you within next 7 days.

Baskin Robbins Business Format


Support System

The BR team will assist you with the training of your employees and other operational requirements. BR franchise support includesTraining for franchisee and his crew. Site selection assistance. Design and construction support. Marketing support. Technology support.

Franchising of BR is available in almost all the states. No performance guarantee given to unit franchisee. The likely pay back period of capital for a unit franchise is 2-3 years. The franchise term is for 3 years and its renewable.

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