1. An Introduction to Infinity Retail franchisee

2. What is franchising?
“A franchise operation is a contractual relationship between the franchisor and franchisee in which the franchisor offers or is obliged to maintain a continuing interest in the business of the franchisee in such areas as know-how and training; wherein the franchisee operates under a common trade name, format and/or procedure owned or controlled by the franchisor, and in which the franchisee has or will make a substantial capital investment in his business from his own resources.”
- Definition by International Franchise Association

3. What is franchising?
Legal and commercial arrangement concerning the successful business of a franchisor
Use of franchisor’s trade name, format, system and/or procedure under licence
Means to raise capital and expand quickly
Assistance to franchisee
Marketing, management, advertising, store design, standards specifications
Payment by franchisee by way of royalty, licensee fee or other means

4. Franchising is more than distributorship
What is franchising?
Franchising is more than distributorship
Extends to an entire operation or method of business
Greater assistance, control and longer duration
Distributor merely re-sells products to retailers or customers

5. TYPES OF FRANCHISE 3 main types of franchise:
Product distribution franchise;
Business format franchise; and
Management franchise.

6. PRODUCT DISTRIBUTION FRANCHISES
A product distribution franchise model is very much like a supplier-dealer relationship.
Typically, the franchisee merely sells the franchisor’s products. However, this type of franchise will also include some form of integration of the business activities.

7. PRODUCT DISTRIBUTION FRANCHISES
Examples of famous product distribution franchise:

8. PRODUCT DISTRIBUTION FRANCHISES
Produces the syrup concentrate
Sells the syrup concentrate
FRANCHISEE
Produces the final drink
Retail Stores
Restaurants & F&B Outlets
Vending Machine Operators

9. BUSINESS FORMAT FRANCHISING
In a business format franchise, the integration of the business is more complete.
The franchisee not only distributes the franchisor’s products and services under the franchisor’s trade mark, but also implements the franchisor’s format and procedure of conducting the business.

10. Famous Examples

11. BUSINESS FORMAT FRANCHISING -
outlet in
Sale, Australia
outlet in
Marseille, France

12. MANAGEMENT FRANCHISE A form of service agreement.
The franchisee provides the management expertise, format and/or procedure for conducting the business.

13. Famous Examples

14. Why is franchising important to SMEs?
Leveraging on a recognised brand name
Enhancing business image
Ensuring consistent quality
Attaining higher productivity/better motivated staff
Access to good locations
Economies of scale
Reducing risks of failure

15. WHY FRANCHISE? Franchises offer important pre-opening support:
site selection
design and construction
financing (in some cases)
training
grand-opening program

16. WHY FRANCHISE? Franchises offer ongoing support training
national and regional advertising
operating procedures and operational assistance
supervision and management support
increased spending power, access to bulk purchasing and economies of scale

17. Common considerations of franchisors
Developing franchise concept
Market research
Familiarity with local laws and regulations
Providing training and support to franchisees

18. Common considerations of franchisors
Criteria for choosing franchisees
Control over franchisees
Supply of products/materials to franchisees
Intellectual property rights issues, e.g. trade mark registration

19. Common considerations of franchisees
Demand
Profitability of franchise, and length of time required to recoup investment
Track record of franchisor
Support rendered to other franchisees

20. Common considerations of franchisees
Experience and profitability of other franchisees
Existence of competition
Capital required
Demands of franchisor, e.g. income projections, deadline to open more franchise outlets

21. Franchisor–Franchisee relationship
Regulated by contract which usually covers:
Initial fee
Royalty fee/Management fee
Capital required from franchisee
Territory/Area of operation
Duration of license and renewal
IPRs
Termination

22. BE CAREFUL The franchisee is not completely independent.
In addition to the initial franchise fee, franchisee must pay ongoing royalties and advertising fees.
Franchisee must be able to balance restrictions and support provided by the franchisor with their own ability to manage the business

23. BE CAREFUL
A damaged image or franchise system can result if other franchisees perform poorly or the franchisor has financial problems.
The duration of a franchise is usually limited and the franchisee may have little or no say concerning termination

24. Common Mistakes of Prospective Franchisees
Not reading, understanding and/or asking questions about the franchisee agreement and other legal documents
Not understanding the responsibilities of a franchisee and the rights and obligations of a franchisor
Not seeking sound legal and financial advice
Not verifying oral representations of franchisor

25. Common Mistakes of Prospective Franchisees
Not analyzing the local market in advance
Not analyzing the competition
Not making thorough due diligence of the franchisor
Not choosing the right location

26. FRANCHISING SURVEY Generally young and well educated
62% below 40 years old
57% had post-secondary education
32% own their own outlets
46% occupy the outlets as tenants

27. Reason for Franchising
FRANCHISING SURVEY
Reason for Franchising
2/3 of franchisees felt that economies of scale in bulk purchasing encouraged them to consider franchising

28. Feasibility of Franchising
FRANCHISING SURVEY
Feasibility of Franchising
Franchising is a more feasible option of business expansion than starting own outlets

29. Success of the Franchise
FRANCHISING SURVEY
Success of the Franchise

30. Success of Franchising
FRANCHISING SURVEY
Success of Franchising
Franchisors’ Improvement in Average Monthly Sales since Franchising

31. Success of Franchising
FRANCHISING SURVEY
Success of Franchising
Franchisors’ Improvement in Average Monthly Net Profit since Franchising

32. Success of Franchising
FRANCHISING SURVEY
Success of Franchising
Franchisors’ Improvement in Average Monthly Sales since Franchising

33. Franchising helps existing businesses do better.
FRANCHISING SURVEY
Franchising helps existing businesses do better.
Franchisees’Response to the Statement:
“Joining a Franchise has Helped Me to Do Better than Before.”

34. FRANCHISING SURVEY Business Performance
Percentage Increase in Average Monthly Sales for Franchisees who were Previously Running a Business in the Same Trade

35. FRANCHISING SURVEY Business Performance
Percentage Increase in Average Monthly Net Profit for Franchisees Previously Running a Business in the Same Trade

36. What is IMS ? (Infinity Marketing Services Pvt Ltd)
Started in September 2009
CIN No. U51101DL2009PTC194069
International Head office in New Delhi, India
Renowned Organization in the field of Online Education and Networkmarketing
ISO 9001:2008 certified company
Having a customer base of more than 6200 families in more than 50 cities across 10 major states of India

37. Infinity Retail Franchisee
Minimum Area Required sq ft
Location – Prime location, easily accessible
Capital Required – 5 lac INR
Qualification required - Higher secondary
Minimum population Families
Rent to be paid by Franchisee
Salary to be paid by Franchisee

38. Infinity Retail Franchisee
Electricity, Phone, Water and internet bill etc to be paid by Franchisee
Fixed return on capital invested 1.50%
pin point (optional) -100 pins
Commission on Pin Sales Minimum -100/- per pin
Stock loss will be bearded by franchisee.
franchisee amount to be deposited in full. (no token system)
Terms & Conditions Apply

39. Infinity Retail Franchisee
Store will be started within 90 days after deposit of franchisee amount.
If the franchisee holder wants to withdraw from franchisee, a franchisee fee of 25% will be      deducted from franchisee amount.
Computer system (hardware/software) will be provided by company.
Branding, color work, racks, furniture, electrical fixtures will be provided by company.
Terms & Conditions Apply

40. Infinity Retail Franchisee
Product Category
Associate Discount
Franchisee Commision (cash sales)
Fanchisee commison (Voucher sales)
Associate commision
Commision upto 20 levels
Category I 0%
0.25 5%
Category II 6% 3%
Category III
10%
Category IV
15%
Category V
20%

41. Thank You
Infinity Marketing Services Pvt Ltd
Refer to
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