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HAPPY LEARNING CENTER Approach Note June 2013 Francorp India Advisors Pvt. Lt

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Page 1: Happy learning center

HAPPY LEARNING CENTERApproach Note

June 2013

Francorp India Advisors Pvt. Ltd.

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1About Francorp- Franchise India

Service lines offeredRelationship with Franchise IndiaMarketing Ecosystem

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Francorp - a Global Franchise consulting group

Ever since its inception in 1976, Francorp has been the unsurpassed leader of the FranchiseConsulting Industry globally. It has been providing end-to-end franchise solutions to over 2,000enterprises worldwide.

Based out of Chicago, Francorp has assisted companies in virtually every market segment withits patented processes and unmatched expertise. With 16 offices outside the U.S. Francorpservices more than 45 countries globally.

The practice is supported by an integrated, cross-functional, international team of experiencedprofessionals who specialize in providing value-added multidisciplinary services to companiesthat own, develop or operate through franchising. We count among our clients, 90% of theorganized companies/ fresh businesses aiming to make it big in the franchising industry in India.and serve more companies in the entire spectrum industry than any other professional servicefirm.

The Francorp team of professionals brings innovative solutions that incorporate industry bestpractices and cutting edge strategies to address the particular risks, challenges and needs ofopportunity, value added and franchise offerings of the industry.

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Strategy I Legal I Operations I Marketing I Sales I Training

Focused sector practices | Coordinated service lines | Specialty groups

Apparel|Aviation training school |Pre school|Pharmaceuticals retail|

Sector and specialty approachMedia & entertainment |Real estate & training |Telecommunications |Facility management|

Francorp India -Consumer Accolades

services | Consulted over 150 clients inFood & India until now with knowledgeBeverages| base of more than 2000 clients

Retail & Consumer products |Business school|

Online MBA programs |Hospitality |

Soft skills training |Beauty & wellness |Jewelry |

Home décor & furnishings |

Home basedbusinesses |MLMbusinesses |

world wide

Francorp India’s service linesAdvisory Legal Marketing OperationsStrategic planning Franchisor legal

Franchise feasibility agreementReview & Franchisee legal

recommendation agreement (Master/approach Area/ Unit)Franchise

developmentmodel

Development of OperatingMarketing procedures

communication for Sales & Trainingfranchise sales manuals.

Gurgaon

Ahmeda bad

MumbaiPune

Delhi

Kol kat a

Hyderabad

Bangalo reChennai

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Francorp India in relationship with Franchise India

Francorp & Franchise India Holdings Limited

FIHL with its core and in-depth industry expertise in Indian market forover a decade brought Francorp to India in Nov. 2008

With aim to provide a strategic objective of combining FIHL’s corecompetences and experience with Francorp’s vast knowledge andsystems

Thus, the international benchmark of providing franchisingmanagement solutions internationally to franchisors

In India both FIHL and Francorp have combined their capacities andleverage on local interface and international expertise which we bringto the aspiring franchisor of India.

Franchise India Franchise India. Franchise IndiaInternational com Property

FrancorpFranchise India Franchise India Franchise IndiaPublication brands ltd Exhibitions

Franchise India Holding Limited

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Marketing Ecosystem for Franchise acquisition1. Ads in out house magazines such

as Business Today/ India today.About 12 exhibitions & 40+

road shows across thecountry every year.

Trade shows

2) The Franchise World is 2nd highest

selling business distributed throughLeading India today group.Business

Magazines & Inhouse

franchisemagazines

Business opportunityPrint ads in adv. ThoroughMultiple SMS sent to

the entire database.

Emails sent to 125000prospective investors.

SMS Blast

Email Blast

Leading Newspapers

Website

Economic times&Times of India or anyother leading local

news paper

Generates about5000 hits very day.

In addition, Discovery day/ FranMatch would be organized to have aone to one meeting with the investor and the final deal sign-up

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2Landscape of Franchising in India

Current Models of FranchisingReasons for companies to franchise

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Franchising as a tool to growth

Franchising• Independent business owners to be part of a network

• Structured approach for executing the business. While the businessowner can focus on mapping out the larger activities. The franchiseecan control the last leg service.

• Many use it as a tool for capital investment. Big brands such asMahindra will prefer franchising for the local operational expertise itbrings in the format.

Structure• Companies can look for giving larger territories. However, master/area franchising is most prevalent in International brands.• Unit and multi unit franchisee options are the most sought afterfranchise opportunity for the domestic expansion plans.

Competitive Advantage of Franchising• Independent business owner/operators

• A greater level of commitment and accountability than employees.• Simplest way to raising funds (w/o parting ways with equity)

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Franchising in India

Market Size The rapidly growing franchise industry in India, although at a very nascent stage, is said to be the& Growth second largest in the world.

With the current growth pegged at nearly 30-40%, the industry is poised for an even more rapidgrowth in the forthcoming years.

With an annual turnover of nearly US$3.3 billion, it consists of nearly 1000 franchisors (only 10%being foreign owned) and about a million franchisees.

Key reasons Franchising has been steadily gaining popularity because of the huge untapped potential in thefor growthIndian context, emergence of tier I and II cities as the next big retail destination, the relatively

lower level of capital required to start the business, lower risk and availability of established brandnames, marketing network and sales channels

Relaxation of foreign investment rules, liberalized WTO guidelines and greater incentives from thegovernment have further spurted the growth

Also, the Foreign Direct Investment (FDI) policy for organized retail does not permit the direct entryof foreign retailers. The latter, therefore, have to resort to franchised business models to enter theIndian market.

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Reasons for companies to get into franchising…

Companies resort to franchisingwith different objectives.. However,

the same can be broadlydifferentiated by the following:

Riskmitigation

Managementfocus on corecompetencies

Raise Capital

OperationalReasons: excellence

Why companiesFranchise?

DeeperPenetration

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Happy Learning Center until now has followed a company owned approachhowever for deeper penetration Franchising would be appropriate..

Company Owned Centers

1. Company owned formats are great forlearning and setting up benchmarks

2. One can handpick the staff, be veryselective on recruitment ; Incompetency canbe replaced3. 100% compliance on operations manual

4. Definitely, larger margins due to nomiddle men in between

1. Own Investment - higher cost of capital2. Linear Growth; limited roll out possible

3. Both the backend and front end lies onthe company; large man power requirement4. The onus of entire supply chain lies on thecompany5. High Operational challenges for running alocal driven business

Franchisee Centers1. Franchise to invest - transfer the risk ofinvestment to a third party

2. Exponential growth with multiple outlets3. Company can Invest time on strategydevelopment

4. With vested interest, the franchise will be selfmotivated; therefore brings in 10 -15% efficiencyin the overall store performance

5. Lesser operational challenges due to localknowledge

1. One cannot replace incompetent franchise;has to continue through the term of contract3. Franchisor - Franchise relationship critical

4. Performance of one outlet can hamperimage of the entire chain

Franchise business model combines limited risk with Profit potential, rapid growth with long term stabilityRecommendation: Happy Learning Center should now focus on penetrating deeper through franchise model to develop Maharashtra cluster network as discussed.

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Understanding about HAPPY LEARNING CENTERFrancorp View

“ Happy Learning Center” has already initiated the business;Done it, performed it in a streamlined manner.However, in order to capitalize the opportunity, thecompany should consider sustainable growth phasethrough franchising”

Saturation

Happy Learning CenterDeeper strategy for the next

Penetration 1 -5 yrs

Growth

Roll Out

Companies venture into newer markets through a mix ofcompany owned and franchisee units. Happy Learning Center has the bandwidth to exponentially penetrate the markets through franchising only.

The company has aggressive growth plans to venture into PanIndia.

• Numerous Operational challenges wherein the franchisee can bethe best person to operate the same

• It is estimated that the franchisee generally brings in the 10- 15per cent better efficiencies in the system

• Quality man power at cheaper cost, low cost of training and100% attention to the Happy Learning Center will bring its own set of

advantages.• Company can focus on broader objectives and be “ON Businessroles” rather than “IN the business roles”

Thus, we feel Franchising would be the best way to address thecurrently faced issues

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What would franchising address for Happy Learning Center?

1Opportunity to raise

external capital Franchising is the modern way to raise capital.● The cost of franchising is often a smaller investment than the cost of

establishing even one new outlet.● After paying the cost of the franchise program, the remaining costs of

expansion (as well as most of the risk) are assumed by franchisees. Andsince franchisees usually pay the franchisor an up-front fee and royalties,the right strategy for selling your franchise idea can become an immediatehigh-impact low-risk revenue source.

● Happy Learning Center should focus on expansion by building its’ own franchise network rather than asking internal capital or external capital thorough ways of equity funds.

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What would franchising address for Happy Learning Center2

Deeper & fasterpenetration PAN

India( North/Central/West and East)

3Best way to combatoperational

challenges

● Happy Learning Center needs to secure its expansion by scouting for opportunities to Further roll out in newer territories and expand its reach into other tier I, and

II cities apart from metros.● Franchising is opted to target a larger audience.

● It is the best mode to increase the brand equity, brand presence and brandacceptability.

● Moreover, it requires lower investments to reach out to a much larger targetconsumer base.

● Franchising is the only way to penetrate the new markets by partnering withlocal people who have good local knowledge and are willing to become

partners by sharing the same vision and therefore works hard to achieve hisfinancial profitability

● Franchise to invest - transfer the risk of investment to a third party● Exponential growth with multiple outlets; Franchisor to Invest time on

strategy development● With vested interest, the franchise will be self motivated

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Franchising further, can be broadly classified into..

Product basedfranchising

Ideally, the revenues are earned by way of marginson the product

Typically, less franchisee fees are charged by thecompany

No Royalties are charged

Stock correction/ Debt/ EOSS offers/ Discounts arethe key challenges

Service basedfranchising

The technical know how is kept by the company

Higher franchisee fees are being charged.

Along with monthly royalty payments

Technical training, Last leg Service to the customer,Use of equipments are critical concerns

Corporate franchisors would typically charge theSupply chain fees, Training fees etc

Francorp in the second stage of business model development would develop the same for Happy Learning Center

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3Approach to Happy Learning Center business model

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Apart from deeper penetration, a strong franchise business modelcan assure successful franchisees..

Critical parameters

Standardization ofbusiness model

Franchisee Profile &behavioral aspect

Defined process &procedures

Payment of productdues/ Royalties

Local marketing

Detailed aspects which seek concern

ü Business model to be followed

ü Lead generation processü Sales funnelü Franchise due diligence

ü Franchisee Efforts & Behavior towards the companyü Type of person given the franchisee

ü Selection & recrutiment criteriaü Site selection supportü Franchise Evaluation processü Committee structure

ü Operational SOP s for Franchiseeü franchise development team

ü Reporting structureü Timely invoice raising

ü Timely payment of the monthly royaltiesü Local marketingü Brand marketing on a regional/ city levelü Marketing Collaterals Design supportü Marketing action plan Planning

ü Marketing action plan Execution

How francorp can assistHappy Learning Center

ü Develop the complete businessmodel

ü The same is covered in theMarketing action plan, recruitment

documentations and manuals

ü Shall be recommend both at thestrategy level as well as operations

manual stage

ü Detail guidelines & complianceformat in the Operations Manual

ü Outward marketing is Franchisorresponsibility; In store marketing isFranchisee's. Exact terms &conditions shall be identified andrecommended

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Contd..

Critical parameters

Supply chain

Training offranchisee

Branding

CRM

Detailed aspects which seek concern

ü Product & Service identificationü SKU number and mix at the franchisee storeü Product supply chain management

ü Cost price & Sales priceü Pre opening support & trainingü Launch planning

ü Media interactionü Press releasesü Technical training

ü Business management trainingü Training to the franchise manpowerü Man hour training at the company owned storeü Availability of the designated resource not availableü Refresher training

ü Architecture & design supportü Signage display

ü Brandingü Staff uniforms & badges

ü CRM practices

ü Roles & Responsibilities needs to be critically defined

How francorp can assistHappy Learning Center”

ü Standards & team structurerequired along with KRAs shall be

defined by Francorp: Howeverneed to implemented by thecompany only

ü Standard operating procedures forfranchisee management as well asfranchise training manuals shall becreated by francorp

ü Best practices shall berecommended

ü Sections on CRM best practicesshall be included in the Operationsmanual only

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Contd..

Critical parameters

Audit process &Guidelines

Detailed aspects which seek concern

ü Franchise auditü Branding auditü Marketing auditü Operations auditü Reporting audit

ü Post Audit Feedbackü Timelines to be defined for Implementation

How francorp can assistHappy Learning Center”?

ü All Audit samples/ guidelines shallbe designed by Francorp. Later in

the implementation stage,Francorp would oversea the

implementation process if agreedupon

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Key Operating models in franchising in Indian markets● Own Investment - higher cost

of capital ; Linear Growth● High time spent on

administration of dailyoperation

● Training and Manmanagement of such stores abig challenge

● COCO kiosks/stores proves thescalability of the business

model

COMPANY OWNED &COMPANY OPERATED (COCO)

● In both the models, company does invest with thefranchisee but NOT necessarily in the monetary aspect

● Exponential growth possible by minimal amount ofinvestment from the company’s perspective but a

significant interest from the franchisee ends.● The company might look at investing with the franchisee

in some or the other way. It can be by way of capex/ orsome support in the financial profitability of thefranchisee business.

● Good strategy for the company who wants to have themarket share as well as the complete control over all the

stores.

FRANCHISE OWNED & COMPANY OWNED &COMPANY OPERATED (FOCO) FRANCHISEE OPERATED (COFO)

● Full format franchising● Franchise to invest; With

vested interest, the franchisewill be self motivated andwill do everything possible tomake the store successful● Exponential growth with

multiple outlets possible atno time

● Company should Invest timeon strategy development

FRANCHISE OWNED &FRANCHISE OPERATED

(FOFO)

Various types of franchising models operating in the markets● Happy Learning Center is currently operating as a pure company owned and company operated

business model● Basis the company’s vision and the industry benchmark, Francorp would advise the best

suitable model or the multi model strategy for expansion.● This would be selective of the competition as well as the city/ neighborhood profile to accept

such formats. Also, it would be devised considering the financial profitability of the franchisee.

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4How Francorp can assist Happy Learning Center?

Broader deliverables of the project

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Our Approach for “Happy Learning Center”We have designed our approach, in line with the terms of reference. Further, our approach is based on our

expertise in executing similar assignments. Francorp proposes to undertake the assignment as per the following

steps:

Project Initialization Inception Meeting

STEP I Analysis of the current offerings/ Formats viz. competition

STEP II Market Opportunity Assessment

STEP III Project Development Plan

STEP IV Financial Feasibility Assessment

STEP V Structuring of the Business & Financial Plans

STEP VI Marketing Collaterals development

STEP VII Operational manual

STEP VIII Legal documentation

STEP IX Franchise Marketing & Recruitment

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Project Initialization- Inception Meeting

Francorp would carry out meeting with the key personnel of the Happy Learning Center in order to validate their objectives and understand

their expectations. The meeting would assist in setting up a common platform for the proposed assignment for both the teams i.e.

Happy Learning Center and Francorp. The meeting (s) would aim to achieve the following:

Happy Learning Center Discussion Francorp

Garner details of the proposed format. Evaluate the current situation

Understand the specific goals and objectives for the proposed project

Obtain information on the expected growth viz. current capabilities of themanagement/ product portfolio etc

Obtain information on the envisaged investment details for the franchisee

Set a common platform of understanding and expectations for theproposed exercise

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Our Methodology: AdvisoryMarket Opportunity Assessment

Francorp would study the respective market/ category to understand the industry dynamics and the feasibility of the proposed assignment. The

analysis would be based on:Market data and the information from major intermediaries related in the this entire segment

Information through sample study/ market research/ and real time basis focus group programs

Information / data from databases already subscribed by Francorp

Secondary research on information available in public domain

Other desk studies

MARKET OPPORTUNITY ASSSESSMENT

Market Overview

• Market size and growth rate• Market segmentation

• Market dynamics and trends• Key growth drivers for the sector• Structure across value chain• Average revenues expected• Profile & revenue structure

• Location and Target market preference of such formats• Value added segments/ revenue optimizers

Competitors Analysis

• Franchise offerings of the competition• Identify the support structure (if any)

• Comment on the business practices (franchise marketing budget payments,insurances, vendor arrangement,, application of COCO, FOFO, COFO, FOCO

models, Minimum guarantee, manpower requirements and franchise retentionpolicies etc)

• Location and Target market preference of the competition• Unique Selling Proposition

• Identify the benefits/incentives offered to potential investors (if any)• Average franchise fees, set up cost etc

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Our Methodology : AdvisoryCritical Recommendation on the business format

Francorp would define the potential target market as per the concept of proposed project. Accordingly, a detailed assessment would be

done for the project.SWOT analysis of the company’s offering

vs. the Competition offerings

Locking period, royalty, franchisee fees,type of business model, Ins. policies

TargetFranchise profile (type of investors to Market

partner with)

Franchisor and franchisee obligationsrule sheet

Analysis of Factors affecting demand and supply dynamics

Average ticket prices per category

Average per sq ft / Efficiency per sq ft

Format revenue and cost optimization and break even analysis

Assessment of critical factors size, HR,student, facility, OPEX optimization

Support structure (both monetary and nonmonetary) to be offered to the franchisee

Roll out parameters and five year roll out

Location selection criteria

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Our Methodology : AdvisoryFinancial projection & model

Based on demand - supply analysis, Francorp along with the group would create the detailed financials for both the franchisor and thefranchisee. This would indicate both the parties X year financial plans.

Break-even analysis &Proposed capitalstructure

Capital budget andadditional capex inprojection period

(X year)

Operational cost of bothFranchisor & franchisee

Area of the format

Financial modeling

Type of business model

Franchise Set up costwith industry benchmarks

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Our Methodology : Advisory

Project Development Plan

Francorp would assist the client in preparing the complete Franchise development plan, as well as a list of key

project components in terms of various the compactness of the business model ( can vary also, as the chances

of going to different markets with different business models could be high) based on the specialized needs of

the format and the management. For each component Francorp would also recommend the best practices of

each segment. This step would address the following aspects:

ü Determine the key components of the project (area classification/No required/ franchise fees)

ü Basic and support infrastructure facilities (area allocation to extra curricular activities etc)

ü Determine the target market for the project

ü Franchise Acquisition strategy

ü Franchise profile

ü Roll out plan

ü Franchisor HR Structure/Internal Staffing

ü Franchise business plan

ü Franchisor & franchisee Five Year Business Plan along with projections of revenue and cost streams.

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Our Methodology : Advisory

Other key deliverables for franchising

The specific deliverable for this assignment would be a Franchise Development program comprising of:

üComplete franchisee documentation ( Essential to growth)

üFranchisee lead generation, management and recruitment

• Franchise salesoffer document

• Email blasts/ Ads

• Daily operating manual(for format operations

• Reporting structure• Sales manual

• Training manual

Key Deliverables

Marketing Strategy

Clients business

Operations Legal

•Franchise Business Model/s•Franchise Roll-out Plan•Franchise Owner Profile

•Types of Franchisees offered•Franchise support programs

•Internal Staffing•Franchise Revenue Sources•Franchise Structure Report

• Franchise focused: Legalteam

• Franchise Legal agreementas per the acquisition

strategy• Non Disclosure agreement• Confidential agreements

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5Project Flow Chart for Happy Learning Center?

Broader deliverables of the project

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Key deliverables from the engagement

Market assessment for ‘Happy Learning Center’ expansion plans

Proof of concept of proposed retail proposition

Franchisee Proposition with financial terms & conditions

Franchisee acquisition strategy

Brand Positioning

Financial plan for of the franchise business

Franchisee Profiling

HR structure at Franchisee & at Happy Learning Center

Potential markets & roll out strategy in 1st Year

X-yr financial plan for Happy Learning Center

X-yr Marketing plan for Happy Learning Center

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We would follow a phased approach in order to best meet your requirements

Francorp proposes the following phases for this engagement…

Phase - 0Diagnosis

0Market Study &opportunity

Assessment

Phase - 1Conceptualization

1Scientificapproachto businessmodeling

Phase - 2 Phase - 3Franchising Expansion strategy

32Roll-out plan

Franchisibility For acquiringAssessment Franchisee

Business Advisory

Phase - 4Franchisee acquisition

4FranchiseeAcquisition

We have presented our detailed approach including work steps forPhase -0, Phase-1, Phase-2, Phase-2, Phase-4

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Phas1: DiagnosesPhase - 0Diagnosis

0Market Study &opportunity

Assessment

Phase - 1Conceptualization

1Scientificapproachto businessmodeling

Phase - 2 Phase - 3Implementation Expansion strategy

2 3Roll-out plan

Franchisibility For acquiringAssessment Franchisee

Phase - 4Franchisee acquisition

4FranchiseeAcquisition

What we do

Initial information download from Happy Learning Center

Our Research

• Industry assessment•Analysis of Customer buyer behavior• Competition activity

What we Achieve

Understanding on the Industry & Business

Identify the Need gap in the Business

Consumer buy pattern to build 7Ps in thebusiness

Best business practice to benchmark ourproposition

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Phase2: conceptualizationPhase - 0 Phase - 1

Diagnosis Conceptualization

0 1Scientific

Diagnoses of approachcurrent operation to business

modeling

Phase - 2 Phase - 3Implementation Expansion strategy

2 3Roll-out plan

Franchisibility For acquiringAssessment Franchisee

Phase - 4Franchisee acquisition

4FranchiseeAcquisition

Product Place• Company’s • Ideal Location

Products & criteriaService Range • Pan India

Promotion Pricing• Brand • Basis thePositioning competition• Destination & & Target

Preferred customerproducts & group

service • Competitivepricingstrategy

People Processes• Ideal Partner • We built a list

Profile of processes• HR structure that would be

at Franchisee required to• HR structure manage &

At HappyLearning Center expandfranchisee

network like• Controlmechanism• Reportingstructures

• Royalty otherfee collection

• Trainingprocesses

PhysicalEvidence• Size of the

outlet• Profile of the

outlet

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Phase3: ImplementationPhase - 0 Phase - 1

Diagnosis Conceptualization

0 1Scientific

Diagnoses of approachcurrent operation to business

modeling

Phase - 2 Phase - 3Implementation Expansion strategy

2 3Roll-out plan

Franchisibility For acquiringAssessment Franchisee

Phase - 4Franchisee acquisition

4FranchiseeAcquisition

What we do

Need of Franchising in the business

Company’s Assessment as Franchisor

• SWOT Analysis• 12-Pt Franchisibility assessment

Investor’s view On the Opportunity

• Reasons for investor to consider Happy Learning Center As Franchisor

•Financial Assessment of the Franchise proposition

What we Achieve

Phase 1 & Phase 2 are intertwinedProcessed in parallel

Franchise Proposition with financial terms &conditions

Ideal Franchisee Profile

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Phase4: Roll-Out PlanPhase - 0 Phase - 1

Diagnosis Conceptualization

0 1Scientific

Diagnoses of approachcurrent operation to business

modeling

Phase - 2 Phase - 3Implementation Expansion strategy

2 3Roll-out plan

Franchisibility For acquiringAssessment Franchisee

Phase - 4Franchisee acquisition

4FranchiseeAcquisition

We define a detailed roll-out plan for next x-yrs which covers

• This will be basis Strategic, Financial, Operational & marketing sense of the business• Ideal city profile

•Site selection criterion•Number of cities to Enter

Parameters for selection of site which could be basis

• Conversion franchisee• Last mile customer servicing center

• Target customer group approach• Competition presence

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Phase5: Franchisee AcquisitionPhase - 0 Phase - 1

Diagnosis Conceptualization

0 1Scientific

Diagnoses of approachcurrent operation to business

modeling

Phase - 2 Phase - 3Implementation Expansion strategy

2 3Roll-out plan

Franchisibility For acquiringAssessment Franchisee

Phase - 4Franchisee acquisition

4FranchiseeAcquisition

What we do

In-house Marketing /Recruitment Toolsto reach out to Target franchisee

FROs & Franchise India shows:

Business Opportunity Shows:

Website www.franchiseindia.com

Publication:

SMS & Emailer:

Discovery Days:

What we Achieve

Franchisee

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Our Methodology: ImplementationSpecific Marketing channels used for lead generation

1. Ads in out house magazines suchas Business Today/ India today.

About 12 exhibitions & 40+road shows across the

country every year.

Trade shows

2) The Franchise World is 2nd highest

selling business distributed throughLeading India today group.Business

Magazines & Inhouse

franchisemagazines

Business opportunityPrint ads in adv. ThoroughMultiple SMS sent to

the entire database.

Emails sent to 125000prospective investors.

SMS Blast

Email Blast

Leading Newspapers

Website

Economic times&Times of India or anyother leading local

news paper

Generates about5000 hits very day.

In addition, Discovery day would be organized to have a one to onemeeting with the investor and the final deal sign-up

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Our 360* Support System

Once we agree on a strategy i.e. business model & financial structure;we have independent teams with domain expertise to work on documentation

StrategyConsultant

FinancialPlanning

MarketingTeam

OperationsTeam

Franlegal

•Business Plan

•Financial plan

Legal• Marketing Plan

• Marketing collaterals

• Operation manual

• Legal agreements

Marketing

Strategy

Happy Learning Center

FinancialOperation

Francorp

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Proposed timelinesThe proposed consulting assignment would be of x months including all the phases. However, would be concluded in the following phases:

1) Phase I : Consulting project within a time period of x weeks from the day of commencement.

2) Phase II: Ongoing consulting for franchise marketing documentation & recruitment documentation.

Francorp would mobilize its engagement team to commence the assignment from the date of signing of the engagement letter. Throughout

the course of the engagement, Francorp shall be in close discussions with the client and keep them informed of the progress of the

assignment work.

Week Nos. 0 1 2 - 3 5-6 6 -7 8-9 10 -12Stage I: Strategy Phase I

Initial DownloadFeasibility Analysis site visitStrategy Formulation Meeting

Stage II: Production Phase IIFranchise Business DocumentationFranchise Marketing DocumentationFranchise Recruitment Documentation

Franchise Legal Agreement MeetingFranchise Operation Manual

Final Submission for Consulting Program Reviewset

Finalset

Audit On going exercise

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Proposed fees

Based on the scope of work, the consequent time that different team members would spend on the study and the seniority of team members

involved and also keeping in mind our abiding interest to foster a long-term relationship with you, we propose the following fee structure.

Total Project Cost INR 3,00,000 + Applicable Service Taxes

Project Deliverable Payment Linked

Fixed fees üINR 3, 00,000 + Applicable Service Tax (12.3%) at thetime of commencement of the assignment.

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Case studies

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OUR ROLE

ü Francorp Developed the Franchise Program along with the Franchise Expansion with specific roll-out anddetermination of territory. Francorp conducted Franchise Management Training course designed to educate thefranchisor’s management team on the complexities of operating and managing a growing franchise organizationalong with Detailed and comprehensive manuals along with :

Ø Strategic PlanningØ Competitive AnalysisØ Business Plan

Ø Growth Strategy & Franchise ProgramØ Legal & Discloser Documentation

Ø Site selection processØ Franchise profilingØ Franchise marketing collaterals (Franchise brochure, AD, Emailer & Flyer)

Ø Franchise sales support & trainingØ Franchise roll out & Territory

Ø Franchise Acquisition strategy (Master/ Area developer/ Unit)Ø Franchise legal agreement

Ø Franchise audit structure and toolsØ Franchise recruitment documentationØ Franchise Disclosure document

ü Additionally Francorp developed the effective marketing creative's for advertisements and promotion, franchisekits for distribution, sales & training pitch and presentations.

ü Francorp assisted the company in charting out the franchise business model as well as standardize the existingbusiness model for Tekno Point (Multi model approach) through a Full franchise development program .

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• We enjoy patronage of some of the most respected brand. A few of our consulting, Media and Marketing & Recruitment clientele are listed below.

Annexure-Clientele

Consulting Media Marketing & Recruitment

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Annexure of key clientsAbc Montessori City Look Future Group KFC Morellato - Italy Re Feel Cartridge Tech KidzAdidas Clara International Gitanjali Gems Khadims Motilal Oswal Realtech Developers The Apollo ClinicAir Hostess Academy Coffee Day Express Gitanjali Lifestyle Kidzee Mr. Orange Rebi The Corner Book StoreAnsal Api Coffee Republic GKB Opticals Killer Music World Reisswolf The Home StoreApollo Health And Lifestyle Cookie Man Gloria Jeans Coffee Koutons Mustang Jeans Reliance The LootArch Crestcom Gold Souk Kshitij My Dollar Store Reynolds The Medicine ShoppeArchies CTC Gordan max Kwality Walls (HLL) Nerolac Paints Rosebys The Mobile StoreAsmi Cup & Cino Greggio Argento Kwik Kopy Nescafe Safe Express The Taco MarkerAmity Cygnus Jewellery Habibs Lacoste New Zealand Natural Sangini Tikka ExpressAyush Therapy Center D’damas Hakoba Lifestyle International Business Next Santa Barbara Polo Timex

SynergiesBang And Olufsen Debonairs Pizza HCL Lee Cooper NIIT SAP TitanBarista Diamond Hut HDFC Bank Levis Nilgiris Satya Paul Travel PortBarnie’s Coffee DLF Health & Glow Live-in Nilkamal Enterprise SBI Bank TVSBaskin Robins Dominos Pizza HP LJ Hooker Nina Ricci Watches Seashell UnitechBath Concepts Dosa Plaza HSBC LKP Shares Nirmal Lifestyle Shadi Point United Colors Of BenettonBausch And Lomb Dulce Café Hughes Escorts Lotus Herbals NIS Sparta Shanghai Post US Dollar StoreBeningans Education One Hushes Net Lovable Numero Uno Shoe Tree VadilalBharat Students Educomp ICICI Bank M2K Odyseey Sia Art Jewellery VapianoBikanervala Emaar MGF IIFT Ma Foi Omaxe Sify i way VetaBody Spa International Era Impuls Madura Garments Oracle SONY ViaBPTP Essar Telecom Retail IMS learning Magppie Osim International Spa Zieta VideoconCandico ETP Inorbit Mall Manipal U Pantaloons Spykar Jeans VLCCCartridge Café Eureka Forbes ITZ Cashcard Maples Papa Johns Pizza Stained Glass Overlay WelhomeCastrol Euro Kids J K Industries Mariella Burani Parasvanath Developers Sub WestwoodCatridge World Excalibur J K Tyres Mary Brown Pinnacle Kids Subway WoodlandCeat Feather Lite JetKing Masala country Pizza Corner SuncityChabra 555 Ferns N Petals Juice Zone Max Pizza Hut TallyChange Fitness One Just Cavalli Mic & Mac Protocol TancleanChocolate Graphics Food Factory Just Cuts Microsoft Provogue TaraashCholayil Sanjeevanam Forever 18 Kent RO Systems Mobicare Quantum TATA Steel

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Thank You!Contact us at:

Franchise India Brands Ltd Crystal Plaza, D Wing, 414,New Link Road, Andheri( West )Mumbai - 400058Ria M Sachdeva : Sr. Manager Business DevelopmentNumber: 022 - 40685514/9022925565Email : [email protected]

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