RETAIL MANAGEMENT

Concept of Franchising in Retail

UNIT 1

-By
Er. VAIBHAV Agarwal
Asst. Prof.
BBD University
 METHOD OF RETAIL EXPANSION: FRANCHISING
1. Franchising is an integral part of retail in todays marketing environment.
2. Through franchising, retail business can expand at national and international level.
3. Franchising has touched all industries from automobile to Financial services.
4. McDonalds, Subway, KFC etc. are some very big business Franchisees spreading all over the world.
5. Franchising helps the entrepreneurs and ordinary people to own their business and compete with the larger
establishments.
6. Franchising has proved to be one of the most sustainable and viable business methods to establish and
expand.
7. Franchising creates jobs, builds new partnerships and relationships and contributes enormously to economic
growth.
 CONCEPT OF FRANCHISING
1. FRANCHISE is
1. “ a privilege or right granted to a person, organisation, government, state or sovereign”.
2. “authorization granted by a manufacturer to a distributor or dealer to sell his products”.
2. International Franchise Association says “ A franchise is an agreement or license between two legally
independent parties which gives,
1. a person or group of people, right to market a product or service using the trademark or trade name of
another business (franchisor)
2. the franchisee, the right to market a product or service using the operating methods of the franchisor
3. the franchisee, the obligation to pay the franchisor fee for these rights
4. the franchisor, the obligation to provide right and support to the franchisees
 ROLE OF FRANCHISING IN RETAIL

1. Expansion of any business is very difficult and risky in general ways.

2. Any business requires significant amount of investment, and that too difficult to arrange.

3. Not everyone knows how to run the business in successful way.

4. Franchising limits the investment risks and business overall risks.

5. Franchising allows expansion to occur without the vast amount operating capital,

6. Franchising creates an attractive profit picture for the franchisee owner, at the unit or operating level.
 ADVANTAGES OF FRANCHISING IN RETAIL

1. LOW RISK

2. GROWTH

3. EASE OF FINANCING AND OPERAITONAL SUPPORT

4. PROPER ADVERTISING

DIS-ADVANTAGES OF FRANCHISING IN RETAIL

1. ROYALTY/FEE
2. LACK OF CONTROL
3. STRICT REGULATIONS OF FRANCHISOR
 TOP 10 FRANCHISE IN RETAIL

1. SUBWAY
2. McDONALD’S
3. KFC
4. 7 ELEVEN
5. BURGER KING
6. SNAP-ON-TOOLS
7. PIZZA HUT
8. WUNDHAM HOTEL GROUP
9. SRVICE MASTER CLEAN
10. CHOICE HOTELS
 TOP FRANCHISE OPERATING IN INDIA

1. LOTUS HERBALS
2. HABIB’S
3. VLCC
4. AYUSH
5. ZODIAC
6. COTTONS, BY CENTURY
7. GINI & JONY
8. UNITED COLORS OF BENNETON
9. CAREER LAUNCHER
10. FERNS N’ PETALS
11. NIRULA’S
12. DOMINO’S PIZZA
THANKS