Categories and Sub Categories in FranchiseWhat are areas to Franchise
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FRANCHISE
GROUP- 7
DEFINITION
• A type of license that a party (franchisee) acquires to
allow them to have access to a business's (the
franchisor) proprietary knowledge, processes and
trademarks in order to allow the party to sell a product
or provide a service under the business's name. In
exchange for gaining the franchise, the franchisee
usually pays the franchisor initial start-up and annual
licensing fees.
FEATURES OF FRANCHISE
• Well established business
• Needs limited investment
• Easy entry in new markets
• Helps in diverting business risks
• Allows use of brand name and trademark
CATEGORIES IN FRANCHISE
• Advertisement & Media
• Automotive
• Beauty & Health
• Business Services
• Dealers & Distributors
• Education
• Entertainment
• Fashion
• Food and Beverage
• Home Based Business
• Hotels and Resorts
• Manufacturing
• Retail
1. BEAUTY & HEALTH
1.A) Beauty Salons & Supplies
SUB- SUB CATEGORIES
BRAND
BEAUTY SALOON
JAVED HABIB, CHIVAS,TONY AND GUY
COSMETICS
ORIFLAME, MODI REVLON
TATOOS
RHAPSODY NAIL STUDIO
1.B) Health Care & Fitness
SUB- SUB CATEGORIES
BRAND
Ayurvedic, Herbals & Organic
Products
Shathayu Ayurveda, Patanjali
Clinics & Nursing Homes
Richfeel, Dr Batra, Noble Dental Care
Diet Consultancy
Diet Clinic Health Care Pvt Ltd. , Health
Asters
Gyms & Fitness Centres
Gold’s Gym, Shape Up, Talwalkars,
Powerhouse
Health Care Products
Johnson Healthcare Pvt.Ltd, Gleam
Medicare
Hospitals
Restro, Apollo
Massage & Spa Centres
Kerala Aruyveda Center, Four Fountain
Pathological Labs
DR. Lal Pathlabs, SRL Diagnostics
2. FASHION
2.A) ACCESSORIES
SUB- SUB CATEGORIES
BRAND
Fashion Accessories
Claire’s, Esbeda, Titan
Luggage & Handbags
Samsonite, Travelon, Emmi
Opticians/Eye Wear
GKB Opticals, Sunglass Hut, Titan Eye
Plus
2.B) CLOTHING
SUB- SUB CATEGORIES
BRAND
Departmental/Unisex
Spykar Jeans, Monte Carlo
Ethnic Stores
Fabindia, Study by Janak
Kids Wear
Mothercare, Me n Mom, Nauti Nati
Lingerie & Innerwears
Jockey, Lovable
Mens & Womens Wears
Cotton County, Ritu Kumar
Textiles
Bombay Dyeing, Siyaram
Woollens
Monte Carlo
2.C) FOOTWEAR
SUB- SUB CATEGORIES
BRAND
Casuals
Lotto, Crocs
Designers
Tresmode, Franco Leone
Formals
Woodland, Red Tape
Kids
Willy Winkies
Sports
Reebok, Liberty
2.D) JEWELLERY
SUB- SUB CATEGORIES
BRAND
Gems & Stones
IVY Jewellery, Amor Jewellery
Imitation, Art/Junk Jewellery
Diagold, Shweta Creations
Precious Jewellery
Gitanjali Jewels, Senco gold
3. RETAIL
3.A) BOOKS, Toys & Gifts
SUB- SUB CATEGORIES
BRAND
Books Stores
Om Book Shop, Humming Bird
Education
Florists
Ferns & Petals, Floralis
Gift Shop, Card Galleries
Red Moments, Hallmark, Archies
Kids/Candy Stores
Pidilite Industries( Feviryl), Amar
Chitra Katha
Office Supplies & Stationery
Stores
Om Publishers, Solo
Toy Shops
Rhythm Toys, Hamleys
3.B) Consumer Durables & IT
SUB- SUB CATEGORIES
BRAND
Computers & Peripherals
Technocure Solutions Pvt. Ltd.
Consumer electronics
Chroma Electronics, Philips
Mobile &
Communication/Internet
Connections
The Mobile Store, Airtel
Music Equipment & Music Stores
Music Shoppe, Music world Retail Ltd.
Photography
Fotoage, Kodak India
Web design and Applications
1Pixel Design, Virgo Computer
Consultancy
3.C) Home and Office
SUB- SUB CATEGORIES
BRAND
Art, Craft, Antique
The Bombay Store, Artu
Bathroom & Ceramics
Grescasa,
Furniture/Home Décor &
Furnishing
Pure, Opal, Concept Living
Garden Stores
Garden Glory India, Herni Studio
Handicrafts
Khadi, Daffodils Boutique
Hardware Stores
Csj Enterprise, Zotalic
Home Security
Livfuture
Kitchen
Lighting, Electrical & PlumbingDreamlite
3.D) Sports Goods & Fitness Stores
SUB- SUB CATEGORIES
BRAND
Fitness Equipment
Stores- Cardio Fitness, Prime Fitness
Sports Equipment Stores
Triumph sports
Golf Stores
Golf Usa Inc.
3.E)Super Markets and Marts
Dairy/ F&V Stores
Gujrat Co-operative Milk Marketing, Natures
Feast Food and Grocery
Department and Convenience Store
Home store India Ltd.
Food Marts
Sahara Q Shop , Sabji on Wheels
Grocery Stores
Godrej Natures Basket
Kiosks
Koncept Retail
Meat and Chiken Shops
Suguna Poultry Ltd.
Organic Products
Then Natural Store
Pet Store
Aquariumworld, Pet Spot
Superstores
Everyday Retails, Home plus -Housing
Super store
Wine Shops
The high Spirit
DEFINITIONS
JOINT VENTURE
A joint venture (JV) is a business agreement in which
the parties agree to develop, for a finite time, a new
entity and new assets by contributing equity. They
exercise control over the enterprise and consequently
share revenues, expenses and assets.
EXAMPLE: STARBUCKS AND TATA
DISTRIBUTION
• Distribution is the process of making a product or
service available for use or consumption by a consumer
or business user, using direct means, or using indirect
means with intermediaries.
• EXAMPLE: Pepsi, bisleri, arvind mills.
LICENSING
• The verb license or grant license means to give
permission. The noun license refers to that permission
as well as to the document recording that permission.
• EXAMPLE: Microsoft office
FRANCHISING
• Franchising is the practice of the right to use a firm's
business model and brand for a prescribed period of
time.
• EXAMPLE: Mc Donald’s, Subway
MERGER & ACQUISITION
• Mergers and acquisitions (M&A) are both aspects of
strategic management, corporate finance and
management dealing with the buying, selling, dividing
and combining of different companies and similar
entities that can help an enterprise grow rapidly in its
sector or location of origin, or a new field or new
location.
• EXAMPLE: ICICI bank acquires The bank of rajasthan.
• Reliance power and Reliance natural resources merger
DIFFERENTIATION
Distribution
Licensing
Franchising
Joint
Ventures
Merger and
acquisitions
Distributor sells
the goods to
dealer and
distributor gets
it from the
manufacturer.
1. Licensor
owns patent or
secret of
technology
(Technology
license)
2. License to
manufacture
and sell
according to
licensor
specifications
(Trademark/
collateral
product
licensing)
1. Gives the
franchise to
work under pre
packaged
business format
, provides initial
training and
assistance in
establishment
(packaged
franchising)
Entities
associate to
earn profit and
share.
Merger is legal
consolidation of
two
companies .
2. Product
franchising
merely an
outlet of the
goods.
Acquisition
one company
takes over
other.
.
Distribution
Licensing
Franchising
Joint Ventures Merger and
acquisitions
Lower capital
employment
Income without
significant
investment or
effort
Lower capital
expense then
company owned
outlets
Flexibility in
structuring and
growing in
business
Distributor /
dealer assumes
the loss on the
product
purchased from
the
manufacturer
Licensor to
Receive income
without financial
risk
Most of capital
Risk is absorbed
by franchisee
(he becomes a
responsible
employee )
Capital risk is
shared
-
Increase
In Assets and
resources.
To gain
competitive
advantage or
edging
technology
Distribution
Licensing
Franchising
Joint Ventures Merger and
acquisitions
Dealers pay
taxes
Licensee pays
taxes
Franchisee pays
taxes
Entity pays the
taxes
Advertising
All expenses
expense are
incurred by the
incurred by
licensee
dealer or shared
by the company
More interested
in business
expansion
All expenses are All expenses are
incurred by the
incurred by the
Entity formed
Acquiring
company
Loss of control
over sales for
the company
Limited or no
control for
licensor and no
goodwill of the
licensee
business
activities.
Franchisor
Greater control
control over the then dealer and
operations to
distributorship
check the
marketing of the
product.