Franchise Categories

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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.

The company
which acquires
has all the
controls.

Distributor may
sell competitors
product

-

-

-

Partnership
disputes

Assets and
liabilities
manage by a
single enity

THANKYOU

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