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Draft strategy presentation for Happy Learning Center
January 2014

Principal Consultant: Mr. Gaurav Marya
Consultant:
Mr. Shashwat Prakash
Confidential

Francorp India Advisors Pvt. Ltd.
Table of Content
S. NO.

TABLE OF CONTENTS

Status

1

Background of the Project



2

Approach to the Happy Learning Center franchise business model



3

Happy Learning Center current business snapshot



4

Mapping the Education System in India



5

Case Studies to analyze the Home-based Franchise System



6

Competition Assessment & Benchmarking in Education & Training
Franchise for Other Segments



7

Assessment of Opportunity for Happy Learning Center



8

Franchisee Business Format



9

Franchisor – Unit Franchisee Relationship



10

Franchise Acquisition Strategy



11

Marketing Need of the Business



12

Way Forward



2
1. Background of the project
Objectives of the study
Project scope of work

3
Objectives of the study
To assess the market opportunity in the Private Coaching Education industry

To develop comprehensive strategy to capture market share in different field

To analyze the current franchised model

To Develop a Franchise model & Franchisee Proposition

To set out a roll out plan

4
2. Approach to the Happy Learning Center
franchise business model

5
The Intent is to standardize the franchise offerings in the market..
Francorp View
“Happy Learning Center is a new
education training institute brand which
need to be established and performed well.
Now its time to cross the penetration phase
get into fast track growth phase”

The brand has aggressive growth plans and intends to
approach through a standardized and benchmarked
franchise proposition. Standardization will ensure:

Lifecycle

Saturation

Growth

Ideally companies venture into newer markets through a mix
of company owned and franchisee units. So, Happy Learning
Center has initiated penetration into the key markets
through a mix of both the franchise and company owned
outlet

Happy Learning
Center strategy
for the next 5-10
yrs

Penetration

• A sustainable format for future growth
• Ease of operations, faster growth and a large brand
presence
Thus, we have approached the business through a
standardized franchise strategy on the basis of industry
norms

Roll Out
6
Hence, we have outlined the business plan with a Phase wise
approach for Happy Learning Center..
The stage wise approach has been formulated with the objective to create
more realistic approach to franchising for the Happy Learning Center
business

Phase I
Diagnosis of current
stores

Phase II

Phase III

Analysis of the franchise
model
Benchmarking

Recommendations and
Strategies for future
franchising and growth

Though issues faced by different markets may differ, the model must be standardized!

Critical reasons for above mentioned phase wise approach:
 Understanding of the current model essential to chart out future course of action
 Specific recommendations in the franchise offerings !
 Independent strategy for growth

7
3. Happy Learning Center current business
snapshot
Snapshots of the business
Management Team
Company USP

8
Snapshots of the client’s business operation (1/3)
Name of the Company

Happy Learning Center Education Private Limited

Years in establishment

From 2006

Registered Office
Industry and Segment
Brand Name
Marketing Medium
Courses

401/402, Jamuna Niketan, Manav Mandir Road, Neapensea Road, Mumbai,
Maharashtra, India 400006
Education & Training
Happy Learning Center (HLC)
Distribution of Pamphlets, Facebook advertisements, Quikr Billboards,
advertisements in newspaper, Stalls in social functions etc.
Preparation for competitive school exams and all classes tutorial

Target Group

Only premium customers who wants good quality education at any cost
and want guaranteed results.

Company Required

High profile investors initially, Doctors, lawyers, CAs, Teachers, Principals,
Business men, pre-schools, Hotels owners, Politicians, Rotary club
members, Social workers, ladies in kitty party, MLM leaders in the area,
HR Trainers, Bankers, Jewelers, Senior Police officers
9
Snapshots of the client’s business operation (2/3)
About the Company
•
•
•
•

Happy Learning Center is a home based K12 tutorial institute.
It help children to increase the mental strength by several innovative ways.
It is the most highly rated tutorials were people come from 15 km distance to
study
Every teacher can teach 4 kids per batch for 1.5 hours and 0.5 hours is for
Meditation and Goal Visualization and Food break , i.e. 2 hours per batch
timing

Vision
•

To create an Education System based on creating Scientific, Creative,
Inventive, Innovative & Entrepreneurship Qualities, to be financially
independent at an early age

Mission
•

To Create world number one kids. Every kid is infinite potential..

10
Snapshots of the client’s business operation (3/3)

Objectives
•

Company want to save children from mental
pollution.

•

Improve current school education which needs
better methods of teaching

•

To eliminate useless commercial tutorial business
methodology of study.

•

Change the Attitude of parents towards children to
study.

•

Improve the children performance in studies.

11
Management Team

Name

Designation

Ms. Richa Kumar

Director Trustee of HLC

Mr. Anil Kumar

Director Trustee of HLC

Ms. Binnu Mathur

Trustee of HLC

Mr. Yogesh Mathur

Trustee of HLC

Ms. Girija Anirudhan

Trustee of HLC
12
Company USP
 Daily Practice of Meditation & Goal visualization.
 Students Teach back session.
 Video recording of teaching for Revising lessons at home in laptops.
 Offer delicious food after every 1.5 hrs study as strategy break time like IPL matches.
 Daily /weekly feedback from Quality Departments regarding progress and issues to be
dealt with the child.
 Concentration and learning cycle analysis.
 There is no studies to be done at home only systematic revision and work sheet sent
on mail regularly.
 Daily /weekly Reminder for revision of chapter on mails. Quality Department monitors
the tracking of errors by students.
 Weekly/Monthly Error reduction analysis.
 Company Teachers help students with problems in meditation (concentration).
 Company follow the book Think and Grow Rich by Napoleon Hill for Goal
visualization.
 Company refund fees in case of poor performance.

13
4. Mapping the Education System in India
Structure of India Education System
Industry Analysis
Projected Demand

14
Structure of the Indian Education System
Education system category based on regulations governing

Education system category based type of education

Formal
Schools

Higher Education

Non - Formal

K12 (Kindergarten to 12th)

Pre school
Private tutoring

Professional courses
Diploma courses
University education
Distance education

Private tutoring

Vocational training
IT / ITES
IT training
Corporate training
Hardware and networking
training

Skill Development

Language Training
Other segment specific
training

E-learning and online
tutoring
Falls under the purview of MHRD with
regulations
15

Segments are free from any regulations
Industry Analysis (1/2)
Industry Size:
 India rating expects the Indian education sector’s market size to increase to INR 602,410 crore
by FY15 due to the expected strong demand for quality education. Indian education sector’s market
size in FY12 is estimated to be INR 341,180 crore.
 The private education segment alone is expected to cross US$ 45 billion mark by 2015 from the
present US$ 35 billion, according to a research report prepared by Investor Relation Society, affiliated
to US based Global Investor Relations Network.

Private Education Industry Growth Rate- 2005-2012

CAGR
16.5%
FY 2012
FY 2005

16
Industry Analysis (2/2)
Education Franchisee:
 Today Education and Training accounts for around 30% share of Indian Franchise Industry, and there
are more than 50,000 franchise education outlets in the country while there are only 2200 companyoutlets (approx.) operational by education franchisor in all.

17
Key Facts on Private Tuition Market
India’s education system has undergone significant capacity expansion over the last decade. Most
of it has been in the higher education and K12 space. As per ASSOCHAM The current size of the
private tuition or coaching industry in India is about $23.7 billion (INR 1,41,416.33 crore) and is
likely to touch $40 billion (INR 2,38,677.36 crore) by 2015.

A survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has revealed
that a whopping 87 per cent of primary school and 95 per cent of high school students in metros
receive private tutoring.

In the last six years (2006-2013), the number of primary school children taking private tuitions
increased by 100 per cent, while the number of high schools students enrolling in tuitions
increased by 92 per cent.

Private tuition industry grew by 35 per cent in the last six years, ASSOCHAM stated in a publication,
“Business of Private Coaching Centres in India”.
Source: ASSOCHAM Survey, June 2013
18
Preference to Private Tuition
A survey conducted by ASSOCHAM across 10 cities — Bangalore, Delhi NCR, Mumbai,
Kolkata, Chennai, Hyderabad, Lucknow, Ahmedabad, Jaipur and Chandigarh which reveal
the preference or reason for the private tuition

A majority of the
middle-class parents
have been spending
one third of their
monthly income on
private tuitions for their
wards to do better in
their examinations and
prepare them for
competitive entrance
exams for professional
courses.

Many teachers of
reputed schools and
colleges have left their
jobs to take up private
coaching, for the reason
that the monthly
income of tutors is
equal to the annual
salaries of school
teachers.

The desire to score
well has resulted in
more and more school
children going for
private tuitions.

19

Parents rely on
tuitions due to lack of
time or because they
are ill-equipped to
teach their children.
Working parents have
to spend a whole day
away from home,
making it difficult for
them to pay due
attention to their
children.
Value Proposition for Consumer
Fewer distractions. In a classroom setting, noise and other interruptions from
peer groups can hugely affect child's performance. Private one-on-one
tutoring is a much more controllable environment, small batches and
therefore far less susceptible to interference.
Focus on specific areas. A private tutor is able to focus on specific areas that
your child may be having problems with. A school teacher will only be able to
give limited private attention to students as they are constrained by time and
tough targets for subject coverage.
Confidence and self-esteem. These are extremely important factors to
learning any subject. Children will feel more confident in smaller batches
which means they will be able to grasp complicated concepts much more
easily.
Coverage. A private tutor is able to cover a lot of detail in a short time. Every
child is different and a good tutor should be able to identify and adapt to the
individual needs and capabilities of the student.

20
Value Proposition for Investor
 Eight years of experience in running and managing Private
tuition
 Requires Low investment
 The profit will start coming in first year itself.
 Very high return.
 A well designed and researched curriculum.
 Guidance and support for advertising, Marketing &
promotion.
 Extensive training and ongoing skill up gradation program.
 Staff hiring, screening and training.
 Scheduled visits from Support Executive.
 Meetings, teleconferences and workshops designed to
keep informed and ahead of market needs.
21
5 (1). Case Studies to analyze the Education &
Training based Franchise System
Bansal Tutorial
Kota Tutorial
IIFT
i360 Staffing & Training Solutions
Mexus

22
Bansal Tutorials
Business Overview
• Bansal Tutorials was established in the year
1991 to provide coaching to the students
preparing for India’s Premiere Engineering
colleges, the Indian Institutes of Technology.

Company Details
Company Name

Bansal Tutorials

Business Categories

Education

• The institute was founded by a former IIT
lecturer, Dr. T.K.Bansal. It currently claims of
having around 11 centers in different parts
of the country.

Address

65, Kalu Sarai, Sarv Priya Vihar,
Hauz Khas,
New Delhi-110016

• Bansal Tutorials has recognized the
potential of market penetration to tap
talent from smaller towns.

Country

India

Website

www.bansaltutorials.com

Franchise Model
Franchisee Requirement

Franchise offering

• Investment Required - INR 15-18 Lacs
• Area Required-1000-1500 Sq.Ft.
• Royalty to franchisor: 10-15%
• Should have a complementary retail neighborhood with
books shops, stationery shops, educational institutes.

• Payback from the first year itself.
• Franchisee Coordinator: You will be assigned a
coordinator who will act as your main contact person
• Regular checks, feedback & business development
• Updated curriculum, course content and test series on
regular basis
• Marketing and advertising - creative support
23
Kota Tutorials
Business Overview
• Kota Tutorials is a Agra based education
coaching institute.

Company Details

• Kota Tutorials has been showing remarkable
performance in preparing and guiding IIT
JEE & Medical aspirants.

Kota Tutorials

Business Categories

Education

Address

14/145, Mandi Sayeed Khan, Near St.
Peter's College, Sanjay Place,
Agra

Country

India

Website

• Kota Tutorials is an educational group
spreaded all across the country to impart
quality education students preparing for IITJEE/Medical competitive examination.

Company Name

www.kotatutorials.com

Franchise Model
Franchisee Requirement

Franchise offering

• Investment Required - INR 5-10 Lacs
• Area Required-1500-2000 Sq.Ft.
• Sound Financial Background
• Royalty to franchisor: 15%

• Payback from the first year itself.
• Recognition & Goodwill of 9 Years.
• Nationally Renowned Coaching Institution
• Complete Centre Development Guidance
• Well Researched study Material for Students.
• Unique Teaching Methodology
24
International Institute of Fashion Technology
Business Overview
•

•

•

Company Details

International Institute of Fashion
Technology (IIFT) was established in India
in 1990 by Mr. Ratnadeep Lal – a Leading
fashion technologist.

Company Name

International Institute of Fashion
Technology

Business Categories

Education

IIFT also has a tie-up with over 500
companies and has trained more than
50,0000 professionals, who are currently
working in various countries as well as in
India.

Address

H-12, South Extension Part - I,
New Delhi

Country

India

IIFT has 70+ franchisee center in India

Website

www.iiftindia.net

Franchise Model
Franchisee Requirement

Franchise offering

• Area: 1500-2500 Sq. Ft
• Investment: 5-10 Lacs
• Franchise Fees: 3 Lacs
• Royalty: 20%
• Franchise Term: 3Yrs.

• Marketing Support
• Set up support
• Administrable Support
• All kind of support which require to run a center

25
i360 Staffing & Training Solutions
Business Overview
•

•

i360 Staffing & Training Solutions is a
vocational training institute started in
2008 with the aim of reducing the gap
between employers’ expectations and the
available talent pool, by providing
necessary training to improve
employability.
i360 is a fast paced Training Solutions
Company, offering industry specific
custom designed courses to the students
and corporate.

Company Details
Company Name

i360 Staffing & Training Solutions

Business Categories

Education & Training

Address

33, 1st Floor, DLF Industrial Area,
Najafgarh Road, Moti Nagar,
New Delhi

Country

India

Website

www.i360training.in

Franchise Model
Franchisee Requirement

Franchise offering

• Area: 700-1000 sq. Ft
• Investment: 6-10 Lacs
• Royalty: 25%
• Franchise Term: 3 Yrs.

• i360 organizes induction programmes for new Business
Partners and their staff
• i360 takes Marketing & Advertising campaign creation
initiatives at a national level
• Onsite and Offsite support periodically
26
Mexus
Business Overview
•

Mexus’s focus on Combining engaging
educational content with technology
creating futuristic educational models for
children of different age groups.

Company Details

It derives its futuristic outlook from its
dynamic mix of intellectual professionals,
managerial team, enterprising investors
and an experienced advisory board.

•

It’s key endeavour are towards creating
futuristic technology-based models for
education.

Mexus Education Pvt. Ltd.

Business Categories
•

Company Name

Education & Training

Address

Mexus Education Pvt Ltd.
612, Midas, Sahar Plaza,
J.B Nagar, Andheri(E),
Mumba

Country

India

Website

www.mexuseducation.com

Franchise Model
Franchisee Requirement

Franchise offering

• Area: 300 sq. ft.
• Investment: 13-15 lakhs
• Franchise Fee: 2 lakhs
• Royalty: 15%

• Marketing Support
• Set up support
• Administrable Support

27
5 (2). Case Studies to analyze the Home-based
Franchise System
Jymka
Beehive DataSoft
Maid2Clean
Multi Link
Genieforyou.com
Rajdhani Data Center

28
Jymka
Business Overview

Company Details

• Jymka is an subsidiary of Irish company,
KidFit, which is established in 2003.

Company Name

Jymka

• It teach many sporting skills and other
activities and offer specialized gymnastic
and sport class programmes.

Parent Company

Fit Kids

Business Categories

Kids fitness

• Expert instructors use state-of-the-art
equipment to provide a safe platform for
children to learn movement & gymnastic
skills, tumbling & agility obstacle courses,
multi-sports & skills and fun active.

Country

India

Website

www.jymka.com

Franchise Model
Franchisee Requirement

Franchisee Revenue

• Area required should be 1500 sq. ft.
• Franchisee fee Rs. 3,00,000.
• Investment requirement is 13 – 15 Lac
• Franchisees must have the use of a Car, laptop with
broadband, MP3 player and speakers, printer and have
a Cert in First Aid course.

• Revenue based on the enrollment of the student .
• Payback Period would be 1 year
• Rate of return for the first five year would be around
152%.

29
Beehive DataSoft
Business Overview

Company Details

• Beehive DataSoft is a Bangalore Based
Company and operate in all fields like data
entry projects, pcb design, engineering.

Company Name

Beehive DataSoft

Parent Company

Bindu infotech Solutions

Business Categories

Home Based

• Company has about 10 years experience in
electronics and data entry domain.

Address

• Company offer home based work of data
such as image to doc conversion by typing
and provide payment upto 70% to 100%
accuracy.

1st floor,behind vakkaligara kalyana
mantapa, Doddaballaur, Bangalore ,
Karnataka – 561203

Country

India

Website

www.binduinfotech.com
www.beehivedatasoft.com

Franchise Model
Franchisee Requirement

Franchisee Revenue

• Should be any firm or a company with small space and

• On every sale, Franchisee will get Rs.1000/- up to 5
Sales.
• 6th to 15th Sale Rs.1500/-.
• 16th Sale onwards Rs.2000/-.
• Bonus and Extra benefits shall be considered on
performance

staff with good communication skills.
• Franchisee fee Rs.10,000/- for 6 months.
• Minimum sales are 5 projects per month.

30
Maid2Clean
Business Overview

Company Details

• Maid2Clean, a core service provider for
domestic cleaning company of UK.

Company Name

Maid2Clean

Business Categories

Domestic Cleaning

Address

Caidan House, Canel Road, Altrincham,
Cheshire

Origin Country

UK

Website

www.maid2clean.co.uk

• It start in 1993 and offering franchise from
2003.
• Presently, the brand has 160 franchise
centres in the UK, Ireland, Canada and
Australia

Franchise Model
Franchisee Requirement

Franchiser offering

• Area required should be 150-300 sq. ft. Or home based.
• Franchisee fee Rs. 12.75 Lacs (For Area franchise)
• Investment requirement is 15 – 20 Lac
• Target Cities: Hyderabad, Mumbai, Kolkata, Delhi,
Chennai and Bangalore

• The USP of business is the faster pay back period and
the quick break even point.
• Pre-post Lunch Assistance, Stationary, Training Module,
Operational Support, Marketing Knowledge,
Technology Support is given by the company.
31
Multi Link
Business Overview

Company Details

• Company offer business in box service.

Company Name

Mos Utility Pvt.Ltd

• Company provide complete travel or
ecommerce website with best fares.

Business Categories

E commerce solution

Address

3-3-50&50/1 Amrutha Arcade Kachiguda
Hyderabad 500027

Origin Country

India

Website

www.multilinkworld.com

• Company provide the maximum
commission on any booking of ticket,
package or any other deal.
• Company expand their horizon through
franchise model.

Franchise Model
Franchisee Requirement

Franchiser offering

• Minimal area required or an operate from home based.
• Franchisee fee Rs. 7,000
• Investment requirement is Rs 20- 25 thousand.
• Franchisee must have Computer, Laser Printer, Internet
Connection, Bank Account, Basic Computer knowledge

• Travel Startup Kit
• Your Own Website (100% Online)
• Banner 06Ft x 03 Ft
• Operation Manual
• Indian Railways as authorized agent
• Multilink Online Services Partner Certificate

32
Genieforyou.com
Business Overview

Company Details

• Company provide web technology based
marketing, branding and media solution in
various domain to SMB customer in India
and across the world.

Company Name

Genie Communications

Business Categories

Web Based Creative Studio

Address

Level 9, Raheja Towers
26-27, Mahatma Gandhi Road
Bangalore 560 001

Origin Country

India

Website

www.genieforyou.com

• It also offer consulting services in the same
domain.
• It is situated in Bangalore, Chennai,
Gurgaon, Hyderabad, Kolkata, Mumbai,
Nagpur, New Delhi and Pune.

Franchise Model
Franchisee Requirement

Franchiser offering

• Minimal area required 50-150 sq.ft., SOHO set up
(Small Office Home Office).
• Franchisee fee Rs. 1.25-1.75 Lac for 2 year contract.
• Franchisee must have Computer, Laser Printer, Internet
Connection, Bank Account, Basic Computer knowledge

• 20% to 30% gross profit.
• Payment is directly credited to the franchisee’s bank
account before 7th of every month.
• Offer Training and other required support.

33
Rajdhani Data Center
Business Overview

Company Details

• RDC- Rajdhani Data Center is an Data center
established in Jaipur Rajasthan by the name
www.rajdhanidatacenter.com .

Company Name

Rajdhani Data Center Private Limited

Business Categories

Hosting Services and Web Development

• This Data Center provide with all services
they are Shared Web Hosting for Linux and
Windows, Dedicated Servers, Virtual
Dedicated Servers, Server Co-location
Services and SEO services.

Address

Rajdhani Data Center Private Limited
Siker Road, Jaipur
Rajasthan

Origin Country

India

Website

www.rajdhanidatacenter.com

Franchise Model
Franchisee Requirement

Franchiser offering

• No area required, word of mouth business, need good
contacts in the city
• Franchisee fee up to Rs 50,000.
• Franchise Term would be 10 Years.

Average Monthly Income Assurance• For Master Franchise- This will be Rs 21000/- monthly
(i.e. Net Approx. Rs 50 Lacs in the Franchise Period)
• For Franchise- This will be Rs 4000/- monthly ( i.e. Net
Approx. Rs 10 Lacs in the Franchise Period.)

34
Amway
Business Overview

Company Details

• Amway India was established in 1995.

Company Name

Amway India Enterprises Pvt. Ltd.

• It commenced commercial operations in
May 1998.

Business Categories

Hosting Services and Web Development

Address

First Floor, Elegance Tower, Plot No. 8,
Non Hierarchical Commercial Centre
Jasola, New Delhi - 110 025

Country

India

Website

www.amway.in

• It has emerged as the country’s largest
Direct Selling Company.
• The Company has provided income
generating opportunities to over 550,000
active Distributors also known as Amway
Business Owners

Amway Sales & Marketing Plan (ASMP)
• Retail Profit Margin: Distributors buy Amway products at Distributor Acquisition Price (DAP) and may resell
products at a retail price, not to exceed the maximum retail price, as published.
• Commission on Personal Purchases: Under Amway’s Performance Bonus Schedule (6% - 21%) a Distributor may
earn commission on the volume of the Distributor’s individual purchases of Amway products during the month.
• Commission on Group Sales: A Distributor may recruit a sales group and based on the success and productivity (as
defined by product sales) of the sales group, a Distributor may earn commissions. It is important to note that a
Distributor only earns commissions on the volume of Amway products actually sold in accordance with Amway’s
Performance Bonus Schedule.
35
6. Competition assessment and Benchmarking in
Education & Training Franchise for Other
Segments


Benchmarking Analysis in Education & Training franchise
system in Other Segments

36
Snapshot of other franchise offerings in the small investment bracket..
Brand name Vs
the franchise
offerings

Food sector: Yum
brands with its YO
kiosks

CCD with its smaller
format CCD express

Semi precious jewelry
store franchised formats

Peter England franchise
stores

Area

50 -100

60 -100 sq ft Kiosk

300 -500

400 -500

Total
Investment

500,000
Under multi unit
franchise contracts

Security deposit model 5
lacs; 80% refundable and
20% goes as non
refundable

20 -25 lacs (1300 psft)

15 -20 Lacs (1500 psft)

Brand
penetration

Low

High

Medium

High

Choice of retail
location

Malls/ Hi street

High footfalls locations

Malls/ Hi street

Mid market malls / Hi
street locations

Franchise fees

5 -10 % of project
cost

NA

5 -10 % of project cost

2 Lacs

Margins
offered

Not applicable

Not applicable

30- 35%

30 -33% on Outright
13 -15% on consignment

Royalty (if any)

7%

20%

None

None

Marketing fund
(if any)

None

None

None

2% of sales

Estimated Pay
back period

1 year

1 year

1 -1.5 years

1.5 -2 years

37
Learning's from the Benchmarking study of Industry Players
Entering into franchise model indicating management
vision and realization of company potential.

Investment indicates capital intensive and strays away
non-serious people in the franchise business.

FOFO (Franchise owned Franchise operated) models is
the most preferred way of expansion

Employment of Professionals’ indicates they want to
communicate clearly who they are to the target
population.

WHY WERE THEY SUCCESSFUL?
• Early move to franchise model, thereby gaining first mover advantage in the particular industry.

• Unit and Multi-unit franchises strategies are used to penetrate deeper into the market.
• Additional revenues to Happy Learning Center obtained through franchise fees and royalty.
• Pan-India expansion once the operations are established in Central India.

38
Thus, it is recommended to follow the best practices of the Industry for
the franchise business model.. (Home Based Model)
Key recommendations
Average area (sq ft)
Investment (Lac)

2.5-3.5 lakhs

Construction cost (per sq ft)

NA

Average Sales (lacs)

2-4%

Average break even (years)

Within 1 year

Franchise fees (Lac)

INR 50,000 - 1 lakh

Royalty (%)

15%

● The ideal size of
centre/premise should be
as per the volume and can
be managed premise being
home based.

1 – 1.5 lakhs

Marketing cost (%)

Recommendations
for Happy Learning
Center

2 Rooms (Home based)

● Royalty should not be more
than 15% bringing revenues
to both Franchisor and
Franchisee
● Commission of 30-35%
should be given to given to
the Part-time faculty.

● Also, for affordable home based education & training brands, the construction cost will be minimal
with a minimal cost on equipment
● We recommend charging fixed royalties of 15% of gross sales on a monthly basis & a central marketing
fund of 2% of gross sales each.
39
Thus, it is recommended to follow the best practices of the Industry for
the franchise business model.. (Centre Based Model)
Key recommendations
Average area (sq ft)
Investment (Lac)

5-6 lakhs

Construction cost (per sq ft)

300-350

Average Sales (lacs)

2.5-3.5 lakhs

Marketing cost (%)

2-4%

Average break even (years)

Recommendations
for Happy Learning
Center

200-500

Within 1 year

Franchise fees (Lac)

INR 1 - 2 lakh

Royalty (%)

15%

● The ideal size of
centre/premise should be
200-500 sq. ft.
● Royalty should not be more
than 15% bringing revenues
to both Franchisor and
Franchisee
● Commission of 25-30%
should be given to given to
the Part-time faculty and
15% to Full-time faculty.

● Also, for affordable home based education & training brands, the construction cost will be minimal
with a minimal cost on equipment
● We recommend charging fixed royalties of 15% of gross sales on a monthly basis & a central marketing
fund of 2% of gross sales each.
40
Risk & Remedies
•
Confidentiality in
Business
Starting Business
on Own

•

Associated Risk
Customer
Satisfaction

•

Substantial
Business
Generation

•

41

Confidentiality in Business: Confidentiality
of content, customers, pricing etc. needs
to be maintained by signing a robust
agreement with the Trainer/Teacher and
should be a mandate.
Starting Business on Own: Clause will be
mentioned in the Franchise Legal
Agreement to safeguard the interest of
Franchisor.
Customers Satisfaction: All Franchisee
Owners will share compete customer and
sales data with Franchisor. Feedback form
filled and signed by customers should be
submitted by Franchisee on an weekly
basis and Franchisor should call the
customers to ensure their satisfaction.
Substantial Business Generation: Need to
incentivize the business and also need to
replace the non-performing franchisee
and should be a part of agreement.
7. Assessment of Opportunity for Happy Learning
Center
Franchise capability test
SWOT Analysis for Happy Learning Center
Strategies for business model

42
Feasibility 12 point Analysis
Criteria

Current
Model

Franchise
India
Model

Credibility

3

4

Refined and successful Prototype Operations

3

4

Market Trends and Conditions

4

4

Differentiation

4

4

Documented Systems

3

4

Capital

3

3

Transferability of Knowledge

3

4

Affordability

3

3

Commitment to Relationships

4

4

Adaptability

3

4

Return of investments

3

3

Strength of Management

3

3

Score for the Company

39

44

 The opportunity is ripe to tap the
phenomenally growing Private tuition and
coaching business.

Not Franchisable

 We feel, with the sporadic demand
coming from all sectors of society and
increased focus on Scoring high marks,
Happy Learning Center should develop
deeper reach and a PAN India growth
chart.

Franchisable in
the current
Indian Market

0-15

Moderately Franchisable

 Currently, the organised market stands
with less competition in private K12
tuition.

16-35

Definitely Franchisable

>35

43
Feasibility 12 Point Analysis
Criteria

Description

Credibility

Happy Learning Center is already an established name in the areas it serves. The franchised
model will also bank on the credibility previously built.

Refined and successful
Prototype Operations

The company has one outlet on board and is doing fair in terms of revenue generation and
business profitability. The unit will serve as the business prototype suitable for franchisee

Market Trends and
Conditions

The business is growing phenomenally. The demographics is shifting in favor of such segments.

Differentiation

Happy Learning Center an Innovative concept catering to small kids to youngsters. However,
with larger expansion plans in mind, the company will have to evolve as a best education
services institute which offer best education under one roof for school level to university level.

Documented Systems

Franchise documents for the business operations are already developed by the company.
Francorp is in the process of vetting all the information, creating the detailed documents at par
with international standards.

Capital

The business would demand low amount of investments. However basis the company’s
expansion plans we have devised the unique business models for moderately low rental
location.

44
Feasibility 12 Point Analysis
Criteria

Description

Transferability of
Knowledge

If experienced human resources are hired, moderately simple to transfer knowledge. Retailing is
a science that requires ‘basic intelligence’, ‘taste for good life’, ‘aesthetics’ and ‘general
managerial abilities’ which can further be groomed through systematic training. Every
prospective franchisee will have basic understanding of the retail business and thus ‘training’
will not be a major challenge. However, training the technicians and retaining them is one of
major issue .

Affordability

The business is relatively affordable for a franchisee due to low overheads/ low cost of delivery/
larger spend ticket size and give good returns after reaching a certain mass. The business is bit
expensive on the HR front, with employees requirement costing with part-time employees with
high revenue sharing.

Commitment to
Relationships

Backed by the clean corporate philosophy exhibited at all levels, Happy Learning Center possess
high level of commitment towards happiness of business associate.

Adaptability

Indian consumer is open to novel business formats, future looks promising!

Return of investments

Sustainable and attractive growth at Unit franchisee level. Break even in the first or second year
is very lucrative for the franchisee.

Strength of
Management

The company has high experience of decent technical/operational knowledge, likely to bring in
best practices to franchisee business as well.
45
SWOT Analysis for Happy Learning Center
STRENGTH








WEAKNESS
 Cost of acquiring customers is high initially
 High operating costs in up market locations
 Pricing Pressure

Growing regional Brand with Unique Business Proposition
Less affected by recession.
Efficient supply chain management
High margins business after reaching a critical mass
Backed by vast experience and industry knowledge
Ability to manage & train faculty;
Management involvement in all areas of operations

OPPORTUNITY

THREAT

 Private tuition & coaching industries are on a growth curve in
India.
 Sizzling growth in tier II and tier III cities.
 Increasing competition and willingness to grow among
youngsters.

46

 Intense competition (although fragmented) from
unorganized players
 Rising real estate costs
 Pricing pressure from peers
 Low entry risk.
The strategy should be to gain position & selectively push for market
share
Industry Life cycle stage
Embryonic

Growing

Matured

Ageing

Dominant
Strong
Favorable
Tenable
Weak
Competitive positions
Dominant:

Strong:

Favorable:

Tenable:

Weak:

• Rare. Often results from a near monopoly or
protected leadership.
• A strong business can usually follow a strategy
without too much consideration of moves
from rivals.
• Industry is fragmented. No clear leader
among stronger rivals.
• Business has a niche, either geographical or
defined by the product.
• Business is too small to be profitable or
survive over the long term. Critical
weaknesses.
47

According to an ‘India rating’, the size of the
education sector is expected to above US$ 100
billion by 2015 with the rise in government
expenditure along with an increase in middle-class
income .
There exists a large customer base ready to be
served with innovative services, as well as
corporate/institutional sector which can be tapped
by group discounts.
Happy Learning Center can leverage its position as
one of the first few players in the industry with a
first movers advantage.

Ideally, Happy Learning Center should try and gain
position through both up sell and cross sell to its
existing customers, innovative marketing
strategies, impeccable services and high focus on
key fashion trends.
Happy Learning Center should also work on further
building its brand image and brand recall to tap
both a larger customer base and investors through
franchising.
The success of the business model will demand a high market
penetration and development activity
Market

Product

Current

New

Current

Penetrate

Market Dev

New

Product Dev

Diversify

The market in India, is unorganized, growing, and dynamic in
nature, so are the services and products offered.
It can be observed that customers are willing to spend in
even tier I and tier II cities, and a market exists, however
trends vary from conservative to unconventional depending
to the size of the city

Market Development:
Current - The metros enjoy a customer base in sync with the latest trends and support all types of services and
products. The service spectrum can be expanded here as well as more outlets can be launched to tap the ever
increasing market
New - A reduced service line can be offered at tier I and tier II cities, smaller formats with lower number and less
qualified staff may also be employed initially.
Product Development:
Current – successful products and services at large format metros may later be introduced at tier I and tier II cities.
New – successful products, services and trends overseas may be introduced at large format outlets. Customer
feedback may be incorporated and key global technologies and techniques may be employed depending on their
financial feasibility.
48
Therefore the final terms & conditions for Happy Learning Center
would be as follows: (Home Based)
The franchise offerings for Happy Learning Center
Area

As per Volume

Total Investment

INR 2.5-3.5 lakhs

Brand penetration

Focused marketing efforts needs to channeled

Choice of retail location

Location with good visibility, ideally at a residential property

Franchise fees

INR 1 lakh

Royalty (if any)

15% royalty is recommended keeping the industry standards in mind

Marketing fund (if any)

We recommend a total of 2% central marketing fund contribution, wherein
2% would be contributed towards local marketing.

Marketing collaterals

To be provided by the franchisor on cost basis

Term of business relationship (years)

3 years

49
Therefore the final terms & conditions for Happy Learning Center
would be as follows: (Centre Based)
The franchise offerings for Happy Learning Center
Area

200-500 sq. ft.

Total Investment

INR 5-7 lakhs

Brand penetration

Focused marketing efforts needs to channeled

Choice of retail location

Location with good visibility, ideally at a residential property

Franchise fees

INR 1.5 lakhs

Royalty (if any)

15% royalty is recommended keeping the industry standards in mind

Marketing fund (if any)

We recommend a total of 2% central marketing fund contribution, wherein
2% would be contributed towards local marketing.

Marketing collaterals

To be provided by the franchisor on cost basis

Term of business relationship (years)

3 years

50
For an ideal franchisee profile, Happy Learning Center should
franchisee through the FOFO..
Franchise Owned and Franchise Operated
●

Franchisee brings all the investments both for the initial capital and also the working capital costs.

●

Since the franchisee has invested a large amount of money in the business, he has vested interest and stake in the
business.

●

Will bring in more efficiencies, better control; thus likely to have a profitable business venture

●

Limited training & man power costs to the franchisor

●

The Franchisee pays royalties to the franchisor

●

This FOFO business model is expected to the bring sustainability and independent scalability to the franchisee.

Francorp’s recommendations: We feel there exists high opportunity for the better services in the given segment
and there is a shortage of such concepts which are customized as per end consumer needs. However, the model is
most suitable with the Franchise owned and Franchise operated model targeting the metros and Tier-I & Tier –II
cities in the initial phase.

51
8. Franchise business format
Franchise business format requirement for the deal making

52
Franchise Model - Options

Master
Franchisee

Unit
Franchisee

Option
of

Multi Unit
Franchisee

Alliances
Area
Franchisee

Zonal
Franchisee

Considering the ‘Happy Learning
Center’ business model and industry,
possible options are Unit or MultiUnit Franchise. Again considering the
risk factors of the business and
operational effectiveness;
Consultants recommend UNIT
Franchise as a feasible option at this
growth phase and option of MultiUnit Franchise can be considered at
the penetration phase of newer
markets.
Property should be ideally a room at
residential place/apartment.

53
Franchise Fee and Royalty Approach
The methodology for fee determination calls for Franchisors to look to their franchise fees primarily
as a cost recovery tool and only secondarily as a profit center. However, would obviously like to
maximize its franchise fee revenue. Royalty is generally based on education franchise format.

COST PLUS
APPROACH

COMPETITIVE
APPROACH

PERCEIVED
VALUE
APPROACH

• The cost-plus approach is one way to determine the "floor" level above which a franchise fee
should be set. To establish this floor, the Franchisor calculates its total marketing, training and
initial support costs involved in selling a franchise and add a reasonable markup.

• Francorp recommends a "ceiling" price for the franchise by considering what the market will
bear.

• Francorp uses this approach to determine where a franchise fee should be set above the
"floor" price.
• Note: Some franchisors will intentionally price above the ceiling price to establish the
"EXCLUSIVITY" of the franchise offering, while others will price well below its assumed costs in
an effort to saturate the market.
Francorp recommends franchise fee of INR 1 Lac for 3+3 year term with renewable option fee of
INR 50,000 payable after agreement tenure with royalty of 15% on gross sales.
For Centre based Franchise, we recommend a Franchise Fee of INR 1.5 lakhs with 50% of the
amount as renewal fee.
54
Franchise Profiling(1/2)
Any opportunity for a franchisee can be assessed on the basis of the several parameters. The below
radar chart portrays the impression that a franchisee will have a training classes like ‘Happy Learning
Center’. We have rated the following 10 parameters on a 5 point scale.



Investment capacity.
Ability to run the business.
Teaching Experience.



Ability to manage faculty.



Space and Location.



Network strength.



Educational Qualifications.



Experience in educational training.



Comfort level with franchisor.



Passion for education.




55
Franchise Profiling: Primary Shortlist (2/2)
FRANCHISEE
REQUIREMENT

EXISTING OWNERS OF
TRAINING CENTERS

HOUSEWIVES

EXP FACULTY

Investment Capacity

3

5

3

2

Ability to Run the Business

4

4

5

3

Teaching Experience

2

2

3

4

Ability to Manage faculty

4

2

4

3

Space and Location

4

4

5

3

Network Strength

3

3

4

4

Educational Qualifications

3

2

2

4

Experience in Educational Training

4

2

3

4

Comfort level with Franchisor

3

3

3

2

Passion for Education

5

3

5

5

TOTAL

35

30

37

34

INDICATORS

High profile investors like Doctors, Lawyers, CAs, Teachers,
Principals, Business men, Pre-schools, Hotels owners,
Politicians, Rotary club members, Social workers, ladies in
kitty party, MLM leaders in the area, HR Trainers, Bankers,
56
Jewelers, Senior Police officers shall also be targeted.

3rd

1st
Preference Ranking

2nd
Identifying other appropriate franchise profiles
Investor Types

Government
employees who
have taken VRS &
Senior Citizens

Bankers and New
set of CAs, IFAs,
DSAs

Insurance Agents

Real estate Brokers

Pure investors

Degree of
Appropriateness

Remarks

They probably
would like to use
their time
constructively, and
possibly get into a
business with ample
of time and cash
reserve.

Already have huge
clientele
and
typically have under
utilized
facilities
which may not be
profitable with the
current set up but
the fortune wheel
can be reversed by
getting
into
franchise set up
with Happy Learning

Profile’s good wrt
the network that an
agent bring in along
with the existing
insurance clientele.
The one concern
would be heavier
focus on insurance
due to comfort with
the product line.

Existing customer
base,
already
possessing a facility
however would like
to diversify their
business.

Though this profile
offers good options
in
terms
of
financially healthy
investor but the
worry
is
participation in the
store operations on
a daily basis and the
business bent of
mind

Model Type

Can be definitely
considered for FOFO
(Home-based)

Good option for
Centre based FOFO

Good option for
being a FOFO (Both
models), provided
they have sufficient
capital.

Should
be
considered for FOFO
(Centre based)

Should
considered
multi-unit

Scale

Most appropriate franchise for the type of format 57

Least appropriate franchise for the type of format

be
for
SOMF Analysis for Potential Market(1/2)
TO DRIVE THE REVENUE AT THE CENTER, IT IS ESSENTIAL TO UNDERSTAND THE ATTRIBUTES OF THE
STUDENTS THERE BY DRIVING THE SUCCESS OF THE CENTER.

Strategic
Fit

Marketing
Fit

Operational
Fit

ATTRIBUTES OF POTENTIAL CUSTOMER

58

Financial
Fit
SOMF Analysis for Potential Market(2/2)
Strategic Fit

Operational Fit

Marketing Fit

Financial Fit

Is the city viable
for setting up
training center?

Will it possible to
operate the
center in the
particular
shortlisted city?

Is the center
economically
viable to market ?

Do all the cities
make a
financially viable
plan ?

• Marketing cost

• Yield per sqft
• Efficiency per centre

Market penetration
• Increase in market
share
• City profile

• Set up cost
• Social conditions

59
Roll Out Strategy (1/3)
Selection of rollout cities were based on:
Target Customers
Target customers for the ‘Happy Learning Center’ business will be Kids. At initial rollout phase, ‘Happy
Learning Center’ has to target such population in the tier 1 and tier 2 cities, specifically Mumbai during
initial phase, then as Western India in 2nd phase. After setting and running up profitably in these areas,
the services might be rolled out as PAN India. However at each stage of expansion cluster approach is
considered on the basis of population, premium residential colonies/apartment etc.
Market Size
Most of the near by tier1 cities of country have a potential for minimum 30-40 centers and the tier 2
cities have a potential of minimum 20-30 centers. Tie-ups with schools, colleges and corporate is a
huge market with ready and continuous customers.
Brand Image
For initial phase of franchise operations, as mentioned above will target western India, since being a
known brand and for operational effectiveness. As the business is influenced by reference and word of
mouth which leads to increase in brand value company will enter in newer markets.

60
Roll Out Strategy (2/3)

City Demographics
Franchisee centers will require minimum of 150 Sq. Ft. preferably in a residential property area near
premium residential places within the city premises.
Competition
After making its stand in nearby states, company will enter in competitive markets on the basis of its
quality offerings and proven track records.

61
Roll Out Strategy (3/3)

Phase 1

Phase 2

Phase 3

• Western India
Francorp recommends
cluster approach at
each stage considering
the population etc.

• Central India

• PAN India

62
9. Franchisor - Unit franchise Relationship


Obligations of the subjects

63
Franchisor’s Obligations
Provide course structure to be delivered by the franchisee during business operations for the Unit franchisee
Training programs on a regular basis for the Unit Franchisees, as well as additional training for sales stuff and
marketing team.
Provision of all administrative forms & formats.
Provision of all forms, formats, Cash Sheets, Sales Sheets and Monthly report sheets.
Provision of informative material, presentations, reference books and other required notes.

Assistance in organizing of local promotional activities and events.
Printed material like Brochures, Pamphlets and Flex Banners on cost basis
Assistance in monitoring and managing the business to make sure that the best business practices get implemented at the
franchisee end to run it on profit. Step wise training programs (start-up phase, the operating phase and the growth phase.)

Happy Learning Center will also take care of quality of services to be delivered at the franchisee end as well as to
the end customer (Thorough candidate feedback, regular check candidate profiles etc.)
64
Unit franchisee Obligations
Center- Site Selection (In case it is a commercial property)
Fit-outs of the office as per the company’s specifications
Pre-opening purchases of required equipments, software's etc.
Full involvement in opening launch promo
Attending initial and ongoing training individually plus key staff
Payment of fees to the franchisor on monthly basis
Compliance with standards and policies/operating guidelines
Compliance of the customer service standards as set by Happy Learning Center
Be adequately insured
Proper maintenance of books and accounts
Follow timely reporting structure of database developed at the franchise end
Will have to ensure smooth flow of business at all times

65
Pre-Opening Franchise Support extended to the unit franchisee
Comprehensive turn-key assistance from site selection to setup and start operations

Layout and design; architectural support

Pre-opening purchasing assistance

Assistance in organizing of launch promotions

Training:
• A comprehensive training is provided to all the Franchisees on service operations, Each and every standard check up procedures,
accounting, inventory control etc. Employees from all verticals are being trained on a regular basis which helps to continuously groom
and enhancing operating efficiencies of employees.
The franchisor can provide following assistance to its franchisees during this period:
• Ordering of all equipments for the center
• Negotiation of suitable terms and organizing of lease
• Monitoring of fabrication of the center
• Daily/ weekly assistance in the service operations.

All the franchisees are put through a highly focused support system which educates them on utilizing
their entrepreneurial skills to become highly efficient and happy franchisees.
66
Post Opening Franchise Support extended to the unit franchisee
Operations Guidelines
Franchisee Coordinator
Ongoing R & D, marketing and customer service and other related market development initiatives
Advertising & local promotion:
• The franchisor will organize events specific to marketing/ branding for Happy Learning Center business at the
national level. This will include participation in the related retail expos/ sponsoring such events, tie ups with
magazines/ newspapers etc and much more in collaboration with its business partners to promote its each
Franchisee outlet.

Control and check the job conversions ratio
Operational support:
• Day to Day operations, Technical & Administrative advices.
Regular advices on inventory control and administrative issues.
Frequent official visits, audit, advices on local promotions programs etc.
Structured Marketing Ideas to suit a location
PR support:
• Regular PR coverage at national as well as regional
• Centralized Brand Building through all media - Print, Outdoor, Web, Retail, Electronic.
67
10. Franchise Acquisition Strategy

68
Franchise Acquisition Strategy
Target Market
Strategy:

• The use of some franchisees in only certain markets and with company-owned
units in other markets. This strategy is used where a strong local or regional
company wishes to expand in remote markets.

Spiking Strategy:

• The use of company-owned units to develop a presence in specific markets for
the purpose of creating a franchise demand.

Opportunistic
Strategy:

• Sell franchisees at the moment and at the place the opportunity arises.
• Let the franchise operators suggest potential business locations and open new
units when good sites have been identified.

Projected
Performance
Strategy:

• Explore each market by searching for favorable locations and develop a portfolio
of potential locations. Develop only the most promising sites.

Unit Franchise : Target Market Strategy along with the Opportunistic strategy
(specific for phase approach to the roll out cities)

69
Franchise acquisition process
Marketing
Email Blasts to prospects
Advertisements in The
Franchising World & website

Lead Generation

Lead Management

Basic Information provided
to all Inquiries.

Franchise meetings, further
scrutiny of the prospect.

Recruitment
Franchise Application
signed.

Expression of Interest
generated

Agreement Process
initiated.

Site details will be discussed
as per client requirement

Rollout Plan.

Franchise Exhibition
Franchise kits &
Communication design
Information/training to all
regions by Francorp

Weekly progress sheet
submitted to client
Test & measure marketing
activity- to identify gaps.

Expression of Interest

Detail Application form

Signing the
agreement

Franchise Evaluation

Franchise Approval

70

City & Site
evaluation
11. Marketing Need of the Business (B2C)

71
B2C Marketing
Marketing of Happy Learning Center is needed to build long term brand equity, to
communicate the brand’s benefits and hence incentivize the consumer to purchase the
services. Long-term results will occur when Promotions would work in conjunction with
advertising and other elements of marketing mix.

Advertising

Long Term
(Builds Equity)

Advertising and PR
Brand PR

Promotions
Strategic
Short Term
(Builds Usage)

Sales Promotion
Tactical

72
Why Promotion is needed for Happy Learning Center?
 Promotions would translate favorable attitudes towards the brand into sales through offering a
value proposition and an encouragement to the consumers to buy the services. Primary objectives
are as follows:
• Increase Household Penetration
• Increase Share of consumers category purchase
• Increase Consumer Consumption
• Maintain current users/current purchase levels
• Counter/ Preempt Competition

a. Increase Household Penetration
•
•
•

Increase the Customer Base to a specific number of new households
Support achieving awareness levels for the brand
Achieve a specific level of presence all across in the given geography
Target Group

•

All Residential Places in the
Geography

Promotion Actions
Trial Offers
Combo Offers
Campaign at schools at discounted price
Seminars & Demonstration of services
Contests with discounted registrations

73
Why Promotion is needed for Happy Learning Center?
b. Increase share of consumer category purchase
•
•

Convert a specific number of consumer sales to the target group
Increase the depth and quality of distribution to specific levels across the line
Target Group

•

Alternators and Occasional users

Promotion Actions
Offers at Education & training centres
(complimentary ones)
Certificate Awards assurance
Coupons for Discounts & Trial Class
Shelf Display Programme in Education &
Training Institute (complimentary ones)
In house Merchandising on sale
Innovative Reward Offers to convert existing
client base with referral options

74
Why Promotion is needed for Happy Learning Center?
c. Increase consumer consumption
•
•

Increase the depth and quality of reach to specific levels across the geography
Incentives to join back and bring more referrals

Target Group

Promotion Actions
Multiple purchase coupons for referrals

•

Loyalty offers

• Loyal Core Customers
Alternators and Occasional users

In-house branding (in the premise)
Course Demonstrations should be done with a
Power Point Presentation (accolades included)

75
Why Promotion is needed for Happy Learning Center?
d. Maintain current users/current purchase levels
•
•
•

Defend the franchise against intense competitive activity
Maintain household consumption by consumers
Hold current levels of presence in the given Geography by expanding and Marketing and
cluster approach
Target Group

•

• Loyal Core Users
Alternators and Occasional users

Promotion Actions
Consumer contests
Consumer promo
Loyalty programmes
Loyalty Programme
Scratch Coupon Rewards to High scorers
Display Contests (Occasional)

e. Counter/Preempt Competition
•
•
•
•
•

Response to a competitive initiative
A new product launch positioning the New Product versus competition
A competitor’s new product launch that threatens our brand
A new product upgrade to counter competition
A preemptive measure at the onset of a season
76
Franchise Financial and Franchise Legal
Agreement (Separate Submission)

77
12. Way Forward

78
Program Deliverables and Status
PARTICULARS

Completed

FIRST DRAFT SUBMISSION

Initial Client interaction and information download

YES

YES

Franchise Feasibility Assessment

YES

YES

Franchise Strategy Presentation

YES

YES

Industry overview & growth strategy

YES

YES

Establishing franchise Strategy

YES

YES

Franchise Business Format

YES

YES

Franchise Profile

YES

YES

Rollout Strategy

YES

YES

Franchisor - Franchisee obligations

YES

YES

Franchise Acquisition Strategy

YES

YES

Recommended Financial Model

Initial No. s

Initial No. s

Franchise Legal Structuring and documentation

Franchise Kit
Franchise Marketing Brochure
Franchise Recruitment Documentation
Launch of the Opportunity (M&R Phase)

79
Thank You

DISCLAIMER
This Report is highly confidential and provided for general information for the Happy Learning Center management only and nothing contained in the material
constitutes a direct recommendation for any investment related decisions. The plans, materials, and consulting advice provided here in have been prepared based on
our experience and the information available to us. However, because the success of a franchise program depends upon a variety of factors outside Francorp's control,
Francorp India cannot and does not warrant the success of any such program or forecasts provided by Francorp India contained herein. Although the statements of fact
in this report are obtained from sources that Francorp India consider reliable, we do not guarantee their accuracy and any such information may be incomplete or
condensed. Views expressed in this Report are based on the research materials available from sources considered reliable and are subject to change on the basis of
additional or new research, new facts or developments.
Chicago * Argentina • Chile • India • Japan • Malaysia • Mexico • Middle East • Philippines • South Africa • Thailand

80

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Draft strategy presentation for happy learning (1)

  • 1. Draft strategy presentation for Happy Learning Center January 2014 Principal Consultant: Mr. Gaurav Marya Consultant: Mr. Shashwat Prakash Confidential Francorp India Advisors Pvt. Ltd.
  • 2. Table of Content S. NO. TABLE OF CONTENTS Status 1 Background of the Project  2 Approach to the Happy Learning Center franchise business model  3 Happy Learning Center current business snapshot  4 Mapping the Education System in India  5 Case Studies to analyze the Home-based Franchise System  6 Competition Assessment & Benchmarking in Education & Training Franchise for Other Segments  7 Assessment of Opportunity for Happy Learning Center  8 Franchisee Business Format  9 Franchisor – Unit Franchisee Relationship  10 Franchise Acquisition Strategy  11 Marketing Need of the Business  12 Way Forward  2
  • 3. 1. Background of the project Objectives of the study Project scope of work 3
  • 4. Objectives of the study To assess the market opportunity in the Private Coaching Education industry To develop comprehensive strategy to capture market share in different field To analyze the current franchised model To Develop a Franchise model & Franchisee Proposition To set out a roll out plan 4
  • 5. 2. Approach to the Happy Learning Center franchise business model 5
  • 6. The Intent is to standardize the franchise offerings in the market.. Francorp View “Happy Learning Center is a new education training institute brand which need to be established and performed well. Now its time to cross the penetration phase get into fast track growth phase” The brand has aggressive growth plans and intends to approach through a standardized and benchmarked franchise proposition. Standardization will ensure: Lifecycle Saturation Growth Ideally companies venture into newer markets through a mix of company owned and franchisee units. So, Happy Learning Center has initiated penetration into the key markets through a mix of both the franchise and company owned outlet Happy Learning Center strategy for the next 5-10 yrs Penetration • A sustainable format for future growth • Ease of operations, faster growth and a large brand presence Thus, we have approached the business through a standardized franchise strategy on the basis of industry norms Roll Out 6
  • 7. Hence, we have outlined the business plan with a Phase wise approach for Happy Learning Center.. The stage wise approach has been formulated with the objective to create more realistic approach to franchising for the Happy Learning Center business Phase I Diagnosis of current stores Phase II Phase III Analysis of the franchise model Benchmarking Recommendations and Strategies for future franchising and growth Though issues faced by different markets may differ, the model must be standardized! Critical reasons for above mentioned phase wise approach:  Understanding of the current model essential to chart out future course of action  Specific recommendations in the franchise offerings !  Independent strategy for growth 7
  • 8. 3. Happy Learning Center current business snapshot Snapshots of the business Management Team Company USP 8
  • 9. Snapshots of the client’s business operation (1/3) Name of the Company Happy Learning Center Education Private Limited Years in establishment From 2006 Registered Office Industry and Segment Brand Name Marketing Medium Courses 401/402, Jamuna Niketan, Manav Mandir Road, Neapensea Road, Mumbai, Maharashtra, India 400006 Education & Training Happy Learning Center (HLC) Distribution of Pamphlets, Facebook advertisements, Quikr Billboards, advertisements in newspaper, Stalls in social functions etc. Preparation for competitive school exams and all classes tutorial Target Group Only premium customers who wants good quality education at any cost and want guaranteed results. Company Required High profile investors initially, Doctors, lawyers, CAs, Teachers, Principals, Business men, pre-schools, Hotels owners, Politicians, Rotary club members, Social workers, ladies in kitty party, MLM leaders in the area, HR Trainers, Bankers, Jewelers, Senior Police officers 9
  • 10. Snapshots of the client’s business operation (2/3) About the Company • • • • Happy Learning Center is a home based K12 tutorial institute. It help children to increase the mental strength by several innovative ways. It is the most highly rated tutorials were people come from 15 km distance to study Every teacher can teach 4 kids per batch for 1.5 hours and 0.5 hours is for Meditation and Goal Visualization and Food break , i.e. 2 hours per batch timing Vision • To create an Education System based on creating Scientific, Creative, Inventive, Innovative & Entrepreneurship Qualities, to be financially independent at an early age Mission • To Create world number one kids. Every kid is infinite potential.. 10
  • 11. Snapshots of the client’s business operation (3/3) Objectives • Company want to save children from mental pollution. • Improve current school education which needs better methods of teaching • To eliminate useless commercial tutorial business methodology of study. • Change the Attitude of parents towards children to study. • Improve the children performance in studies. 11
  • 12. Management Team Name Designation Ms. Richa Kumar Director Trustee of HLC Mr. Anil Kumar Director Trustee of HLC Ms. Binnu Mathur Trustee of HLC Mr. Yogesh Mathur Trustee of HLC Ms. Girija Anirudhan Trustee of HLC 12
  • 13. Company USP  Daily Practice of Meditation & Goal visualization.  Students Teach back session.  Video recording of teaching for Revising lessons at home in laptops.  Offer delicious food after every 1.5 hrs study as strategy break time like IPL matches.  Daily /weekly feedback from Quality Departments regarding progress and issues to be dealt with the child.  Concentration and learning cycle analysis.  There is no studies to be done at home only systematic revision and work sheet sent on mail regularly.  Daily /weekly Reminder for revision of chapter on mails. Quality Department monitors the tracking of errors by students.  Weekly/Monthly Error reduction analysis.  Company Teachers help students with problems in meditation (concentration).  Company follow the book Think and Grow Rich by Napoleon Hill for Goal visualization.  Company refund fees in case of poor performance. 13
  • 14. 4. Mapping the Education System in India Structure of India Education System Industry Analysis Projected Demand 14
  • 15. Structure of the Indian Education System Education system category based on regulations governing Education system category based type of education Formal Schools Higher Education Non - Formal K12 (Kindergarten to 12th) Pre school Private tutoring Professional courses Diploma courses University education Distance education Private tutoring Vocational training IT / ITES IT training Corporate training Hardware and networking training Skill Development Language Training Other segment specific training E-learning and online tutoring Falls under the purview of MHRD with regulations 15 Segments are free from any regulations
  • 16. Industry Analysis (1/2) Industry Size:  India rating expects the Indian education sector’s market size to increase to INR 602,410 crore by FY15 due to the expected strong demand for quality education. Indian education sector’s market size in FY12 is estimated to be INR 341,180 crore.  The private education segment alone is expected to cross US$ 45 billion mark by 2015 from the present US$ 35 billion, according to a research report prepared by Investor Relation Society, affiliated to US based Global Investor Relations Network. Private Education Industry Growth Rate- 2005-2012 CAGR 16.5% FY 2012 FY 2005 16
  • 17. Industry Analysis (2/2) Education Franchisee:  Today Education and Training accounts for around 30% share of Indian Franchise Industry, and there are more than 50,000 franchise education outlets in the country while there are only 2200 companyoutlets (approx.) operational by education franchisor in all. 17
  • 18. Key Facts on Private Tuition Market India’s education system has undergone significant capacity expansion over the last decade. Most of it has been in the higher education and K12 space. As per ASSOCHAM The current size of the private tuition or coaching industry in India is about $23.7 billion (INR 1,41,416.33 crore) and is likely to touch $40 billion (INR 2,38,677.36 crore) by 2015. A survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has revealed that a whopping 87 per cent of primary school and 95 per cent of high school students in metros receive private tutoring. In the last six years (2006-2013), the number of primary school children taking private tuitions increased by 100 per cent, while the number of high schools students enrolling in tuitions increased by 92 per cent. Private tuition industry grew by 35 per cent in the last six years, ASSOCHAM stated in a publication, “Business of Private Coaching Centres in India”. Source: ASSOCHAM Survey, June 2013 18
  • 19. Preference to Private Tuition A survey conducted by ASSOCHAM across 10 cities — Bangalore, Delhi NCR, Mumbai, Kolkata, Chennai, Hyderabad, Lucknow, Ahmedabad, Jaipur and Chandigarh which reveal the preference or reason for the private tuition A majority of the middle-class parents have been spending one third of their monthly income on private tuitions for their wards to do better in their examinations and prepare them for competitive entrance exams for professional courses. Many teachers of reputed schools and colleges have left their jobs to take up private coaching, for the reason that the monthly income of tutors is equal to the annual salaries of school teachers. The desire to score well has resulted in more and more school children going for private tuitions. 19 Parents rely on tuitions due to lack of time or because they are ill-equipped to teach their children. Working parents have to spend a whole day away from home, making it difficult for them to pay due attention to their children.
  • 20. Value Proposition for Consumer Fewer distractions. In a classroom setting, noise and other interruptions from peer groups can hugely affect child's performance. Private one-on-one tutoring is a much more controllable environment, small batches and therefore far less susceptible to interference. Focus on specific areas. A private tutor is able to focus on specific areas that your child may be having problems with. A school teacher will only be able to give limited private attention to students as they are constrained by time and tough targets for subject coverage. Confidence and self-esteem. These are extremely important factors to learning any subject. Children will feel more confident in smaller batches which means they will be able to grasp complicated concepts much more easily. Coverage. A private tutor is able to cover a lot of detail in a short time. Every child is different and a good tutor should be able to identify and adapt to the individual needs and capabilities of the student. 20
  • 21. Value Proposition for Investor  Eight years of experience in running and managing Private tuition  Requires Low investment  The profit will start coming in first year itself.  Very high return.  A well designed and researched curriculum.  Guidance and support for advertising, Marketing & promotion.  Extensive training and ongoing skill up gradation program.  Staff hiring, screening and training.  Scheduled visits from Support Executive.  Meetings, teleconferences and workshops designed to keep informed and ahead of market needs. 21
  • 22. 5 (1). Case Studies to analyze the Education & Training based Franchise System Bansal Tutorial Kota Tutorial IIFT i360 Staffing & Training Solutions Mexus 22
  • 23. Bansal Tutorials Business Overview • Bansal Tutorials was established in the year 1991 to provide coaching to the students preparing for India’s Premiere Engineering colleges, the Indian Institutes of Technology. Company Details Company Name Bansal Tutorials Business Categories Education • The institute was founded by a former IIT lecturer, Dr. T.K.Bansal. It currently claims of having around 11 centers in different parts of the country. Address 65, Kalu Sarai, Sarv Priya Vihar, Hauz Khas, New Delhi-110016 • Bansal Tutorials has recognized the potential of market penetration to tap talent from smaller towns. Country India Website www.bansaltutorials.com Franchise Model Franchisee Requirement Franchise offering • Investment Required - INR 15-18 Lacs • Area Required-1000-1500 Sq.Ft. • Royalty to franchisor: 10-15% • Should have a complementary retail neighborhood with books shops, stationery shops, educational institutes. • Payback from the first year itself. • Franchisee Coordinator: You will be assigned a coordinator who will act as your main contact person • Regular checks, feedback & business development • Updated curriculum, course content and test series on regular basis • Marketing and advertising - creative support 23
  • 24. Kota Tutorials Business Overview • Kota Tutorials is a Agra based education coaching institute. Company Details • Kota Tutorials has been showing remarkable performance in preparing and guiding IIT JEE & Medical aspirants. Kota Tutorials Business Categories Education Address 14/145, Mandi Sayeed Khan, Near St. Peter's College, Sanjay Place, Agra Country India Website • Kota Tutorials is an educational group spreaded all across the country to impart quality education students preparing for IITJEE/Medical competitive examination. Company Name www.kotatutorials.com Franchise Model Franchisee Requirement Franchise offering • Investment Required - INR 5-10 Lacs • Area Required-1500-2000 Sq.Ft. • Sound Financial Background • Royalty to franchisor: 15% • Payback from the first year itself. • Recognition & Goodwill of 9 Years. • Nationally Renowned Coaching Institution • Complete Centre Development Guidance • Well Researched study Material for Students. • Unique Teaching Methodology 24
  • 25. International Institute of Fashion Technology Business Overview • • • Company Details International Institute of Fashion Technology (IIFT) was established in India in 1990 by Mr. Ratnadeep Lal – a Leading fashion technologist. Company Name International Institute of Fashion Technology Business Categories Education IIFT also has a tie-up with over 500 companies and has trained more than 50,0000 professionals, who are currently working in various countries as well as in India. Address H-12, South Extension Part - I, New Delhi Country India IIFT has 70+ franchisee center in India Website www.iiftindia.net Franchise Model Franchisee Requirement Franchise offering • Area: 1500-2500 Sq. Ft • Investment: 5-10 Lacs • Franchise Fees: 3 Lacs • Royalty: 20% • Franchise Term: 3Yrs. • Marketing Support • Set up support • Administrable Support • All kind of support which require to run a center 25
  • 26. i360 Staffing & Training Solutions Business Overview • • i360 Staffing & Training Solutions is a vocational training institute started in 2008 with the aim of reducing the gap between employers’ expectations and the available talent pool, by providing necessary training to improve employability. i360 is a fast paced Training Solutions Company, offering industry specific custom designed courses to the students and corporate. Company Details Company Name i360 Staffing & Training Solutions Business Categories Education & Training Address 33, 1st Floor, DLF Industrial Area, Najafgarh Road, Moti Nagar, New Delhi Country India Website www.i360training.in Franchise Model Franchisee Requirement Franchise offering • Area: 700-1000 sq. Ft • Investment: 6-10 Lacs • Royalty: 25% • Franchise Term: 3 Yrs. • i360 organizes induction programmes for new Business Partners and their staff • i360 takes Marketing & Advertising campaign creation initiatives at a national level • Onsite and Offsite support periodically 26
  • 27. Mexus Business Overview • Mexus’s focus on Combining engaging educational content with technology creating futuristic educational models for children of different age groups. Company Details It derives its futuristic outlook from its dynamic mix of intellectual professionals, managerial team, enterprising investors and an experienced advisory board. • It’s key endeavour are towards creating futuristic technology-based models for education. Mexus Education Pvt. Ltd. Business Categories • Company Name Education & Training Address Mexus Education Pvt Ltd. 612, Midas, Sahar Plaza, J.B Nagar, Andheri(E), Mumba Country India Website www.mexuseducation.com Franchise Model Franchisee Requirement Franchise offering • Area: 300 sq. ft. • Investment: 13-15 lakhs • Franchise Fee: 2 lakhs • Royalty: 15% • Marketing Support • Set up support • Administrable Support 27
  • 28. 5 (2). Case Studies to analyze the Home-based Franchise System Jymka Beehive DataSoft Maid2Clean Multi Link Genieforyou.com Rajdhani Data Center 28
  • 29. Jymka Business Overview Company Details • Jymka is an subsidiary of Irish company, KidFit, which is established in 2003. Company Name Jymka • It teach many sporting skills and other activities and offer specialized gymnastic and sport class programmes. Parent Company Fit Kids Business Categories Kids fitness • Expert instructors use state-of-the-art equipment to provide a safe platform for children to learn movement & gymnastic skills, tumbling & agility obstacle courses, multi-sports & skills and fun active. Country India Website www.jymka.com Franchise Model Franchisee Requirement Franchisee Revenue • Area required should be 1500 sq. ft. • Franchisee fee Rs. 3,00,000. • Investment requirement is 13 – 15 Lac • Franchisees must have the use of a Car, laptop with broadband, MP3 player and speakers, printer and have a Cert in First Aid course. • Revenue based on the enrollment of the student . • Payback Period would be 1 year • Rate of return for the first five year would be around 152%. 29
  • 30. Beehive DataSoft Business Overview Company Details • Beehive DataSoft is a Bangalore Based Company and operate in all fields like data entry projects, pcb design, engineering. Company Name Beehive DataSoft Parent Company Bindu infotech Solutions Business Categories Home Based • Company has about 10 years experience in electronics and data entry domain. Address • Company offer home based work of data such as image to doc conversion by typing and provide payment upto 70% to 100% accuracy. 1st floor,behind vakkaligara kalyana mantapa, Doddaballaur, Bangalore , Karnataka – 561203 Country India Website www.binduinfotech.com www.beehivedatasoft.com Franchise Model Franchisee Requirement Franchisee Revenue • Should be any firm or a company with small space and • On every sale, Franchisee will get Rs.1000/- up to 5 Sales. • 6th to 15th Sale Rs.1500/-. • 16th Sale onwards Rs.2000/-. • Bonus and Extra benefits shall be considered on performance staff with good communication skills. • Franchisee fee Rs.10,000/- for 6 months. • Minimum sales are 5 projects per month. 30
  • 31. Maid2Clean Business Overview Company Details • Maid2Clean, a core service provider for domestic cleaning company of UK. Company Name Maid2Clean Business Categories Domestic Cleaning Address Caidan House, Canel Road, Altrincham, Cheshire Origin Country UK Website www.maid2clean.co.uk • It start in 1993 and offering franchise from 2003. • Presently, the brand has 160 franchise centres in the UK, Ireland, Canada and Australia Franchise Model Franchisee Requirement Franchiser offering • Area required should be 150-300 sq. ft. Or home based. • Franchisee fee Rs. 12.75 Lacs (For Area franchise) • Investment requirement is 15 – 20 Lac • Target Cities: Hyderabad, Mumbai, Kolkata, Delhi, Chennai and Bangalore • The USP of business is the faster pay back period and the quick break even point. • Pre-post Lunch Assistance, Stationary, Training Module, Operational Support, Marketing Knowledge, Technology Support is given by the company. 31
  • 32. Multi Link Business Overview Company Details • Company offer business in box service. Company Name Mos Utility Pvt.Ltd • Company provide complete travel or ecommerce website with best fares. Business Categories E commerce solution Address 3-3-50&50/1 Amrutha Arcade Kachiguda Hyderabad 500027 Origin Country India Website www.multilinkworld.com • Company provide the maximum commission on any booking of ticket, package or any other deal. • Company expand their horizon through franchise model. Franchise Model Franchisee Requirement Franchiser offering • Minimal area required or an operate from home based. • Franchisee fee Rs. 7,000 • Investment requirement is Rs 20- 25 thousand. • Franchisee must have Computer, Laser Printer, Internet Connection, Bank Account, Basic Computer knowledge • Travel Startup Kit • Your Own Website (100% Online) • Banner 06Ft x 03 Ft • Operation Manual • Indian Railways as authorized agent • Multilink Online Services Partner Certificate 32
  • 33. Genieforyou.com Business Overview Company Details • Company provide web technology based marketing, branding and media solution in various domain to SMB customer in India and across the world. Company Name Genie Communications Business Categories Web Based Creative Studio Address Level 9, Raheja Towers 26-27, Mahatma Gandhi Road Bangalore 560 001 Origin Country India Website www.genieforyou.com • It also offer consulting services in the same domain. • It is situated in Bangalore, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Nagpur, New Delhi and Pune. Franchise Model Franchisee Requirement Franchiser offering • Minimal area required 50-150 sq.ft., SOHO set up (Small Office Home Office). • Franchisee fee Rs. 1.25-1.75 Lac for 2 year contract. • Franchisee must have Computer, Laser Printer, Internet Connection, Bank Account, Basic Computer knowledge • 20% to 30% gross profit. • Payment is directly credited to the franchisee’s bank account before 7th of every month. • Offer Training and other required support. 33
  • 34. Rajdhani Data Center Business Overview Company Details • RDC- Rajdhani Data Center is an Data center established in Jaipur Rajasthan by the name www.rajdhanidatacenter.com . Company Name Rajdhani Data Center Private Limited Business Categories Hosting Services and Web Development • This Data Center provide with all services they are Shared Web Hosting for Linux and Windows, Dedicated Servers, Virtual Dedicated Servers, Server Co-location Services and SEO services. Address Rajdhani Data Center Private Limited Siker Road, Jaipur Rajasthan Origin Country India Website www.rajdhanidatacenter.com Franchise Model Franchisee Requirement Franchiser offering • No area required, word of mouth business, need good contacts in the city • Franchisee fee up to Rs 50,000. • Franchise Term would be 10 Years. Average Monthly Income Assurance• For Master Franchise- This will be Rs 21000/- monthly (i.e. Net Approx. Rs 50 Lacs in the Franchise Period) • For Franchise- This will be Rs 4000/- monthly ( i.e. Net Approx. Rs 10 Lacs in the Franchise Period.) 34
  • 35. Amway Business Overview Company Details • Amway India was established in 1995. Company Name Amway India Enterprises Pvt. Ltd. • It commenced commercial operations in May 1998. Business Categories Hosting Services and Web Development Address First Floor, Elegance Tower, Plot No. 8, Non Hierarchical Commercial Centre Jasola, New Delhi - 110 025 Country India Website www.amway.in • It has emerged as the country’s largest Direct Selling Company. • The Company has provided income generating opportunities to over 550,000 active Distributors also known as Amway Business Owners Amway Sales & Marketing Plan (ASMP) • Retail Profit Margin: Distributors buy Amway products at Distributor Acquisition Price (DAP) and may resell products at a retail price, not to exceed the maximum retail price, as published. • Commission on Personal Purchases: Under Amway’s Performance Bonus Schedule (6% - 21%) a Distributor may earn commission on the volume of the Distributor’s individual purchases of Amway products during the month. • Commission on Group Sales: A Distributor may recruit a sales group and based on the success and productivity (as defined by product sales) of the sales group, a Distributor may earn commissions. It is important to note that a Distributor only earns commissions on the volume of Amway products actually sold in accordance with Amway’s Performance Bonus Schedule. 35
  • 36. 6. Competition assessment and Benchmarking in Education & Training Franchise for Other Segments  Benchmarking Analysis in Education & Training franchise system in Other Segments 36
  • 37. Snapshot of other franchise offerings in the small investment bracket.. Brand name Vs the franchise offerings Food sector: Yum brands with its YO kiosks CCD with its smaller format CCD express Semi precious jewelry store franchised formats Peter England franchise stores Area 50 -100 60 -100 sq ft Kiosk 300 -500 400 -500 Total Investment 500,000 Under multi unit franchise contracts Security deposit model 5 lacs; 80% refundable and 20% goes as non refundable 20 -25 lacs (1300 psft) 15 -20 Lacs (1500 psft) Brand penetration Low High Medium High Choice of retail location Malls/ Hi street High footfalls locations Malls/ Hi street Mid market malls / Hi street locations Franchise fees 5 -10 % of project cost NA 5 -10 % of project cost 2 Lacs Margins offered Not applicable Not applicable 30- 35% 30 -33% on Outright 13 -15% on consignment Royalty (if any) 7% 20% None None Marketing fund (if any) None None None 2% of sales Estimated Pay back period 1 year 1 year 1 -1.5 years 1.5 -2 years 37
  • 38. Learning's from the Benchmarking study of Industry Players Entering into franchise model indicating management vision and realization of company potential. Investment indicates capital intensive and strays away non-serious people in the franchise business. FOFO (Franchise owned Franchise operated) models is the most preferred way of expansion Employment of Professionals’ indicates they want to communicate clearly who they are to the target population. WHY WERE THEY SUCCESSFUL? • Early move to franchise model, thereby gaining first mover advantage in the particular industry. • Unit and Multi-unit franchises strategies are used to penetrate deeper into the market. • Additional revenues to Happy Learning Center obtained through franchise fees and royalty. • Pan-India expansion once the operations are established in Central India. 38
  • 39. Thus, it is recommended to follow the best practices of the Industry for the franchise business model.. (Home Based Model) Key recommendations Average area (sq ft) Investment (Lac) 2.5-3.5 lakhs Construction cost (per sq ft) NA Average Sales (lacs) 2-4% Average break even (years) Within 1 year Franchise fees (Lac) INR 50,000 - 1 lakh Royalty (%) 15% ● The ideal size of centre/premise should be as per the volume and can be managed premise being home based. 1 – 1.5 lakhs Marketing cost (%) Recommendations for Happy Learning Center 2 Rooms (Home based) ● Royalty should not be more than 15% bringing revenues to both Franchisor and Franchisee ● Commission of 30-35% should be given to given to the Part-time faculty. ● Also, for affordable home based education & training brands, the construction cost will be minimal with a minimal cost on equipment ● We recommend charging fixed royalties of 15% of gross sales on a monthly basis & a central marketing fund of 2% of gross sales each. 39
  • 40. Thus, it is recommended to follow the best practices of the Industry for the franchise business model.. (Centre Based Model) Key recommendations Average area (sq ft) Investment (Lac) 5-6 lakhs Construction cost (per sq ft) 300-350 Average Sales (lacs) 2.5-3.5 lakhs Marketing cost (%) 2-4% Average break even (years) Recommendations for Happy Learning Center 200-500 Within 1 year Franchise fees (Lac) INR 1 - 2 lakh Royalty (%) 15% ● The ideal size of centre/premise should be 200-500 sq. ft. ● Royalty should not be more than 15% bringing revenues to both Franchisor and Franchisee ● Commission of 25-30% should be given to given to the Part-time faculty and 15% to Full-time faculty. ● Also, for affordable home based education & training brands, the construction cost will be minimal with a minimal cost on equipment ● We recommend charging fixed royalties of 15% of gross sales on a monthly basis & a central marketing fund of 2% of gross sales each. 40
  • 41. Risk & Remedies • Confidentiality in Business Starting Business on Own • Associated Risk Customer Satisfaction • Substantial Business Generation • 41 Confidentiality in Business: Confidentiality of content, customers, pricing etc. needs to be maintained by signing a robust agreement with the Trainer/Teacher and should be a mandate. Starting Business on Own: Clause will be mentioned in the Franchise Legal Agreement to safeguard the interest of Franchisor. Customers Satisfaction: All Franchisee Owners will share compete customer and sales data with Franchisor. Feedback form filled and signed by customers should be submitted by Franchisee on an weekly basis and Franchisor should call the customers to ensure their satisfaction. Substantial Business Generation: Need to incentivize the business and also need to replace the non-performing franchisee and should be a part of agreement.
  • 42. 7. Assessment of Opportunity for Happy Learning Center Franchise capability test SWOT Analysis for Happy Learning Center Strategies for business model 42
  • 43. Feasibility 12 point Analysis Criteria Current Model Franchise India Model Credibility 3 4 Refined and successful Prototype Operations 3 4 Market Trends and Conditions 4 4 Differentiation 4 4 Documented Systems 3 4 Capital 3 3 Transferability of Knowledge 3 4 Affordability 3 3 Commitment to Relationships 4 4 Adaptability 3 4 Return of investments 3 3 Strength of Management 3 3 Score for the Company 39 44  The opportunity is ripe to tap the phenomenally growing Private tuition and coaching business. Not Franchisable  We feel, with the sporadic demand coming from all sectors of society and increased focus on Scoring high marks, Happy Learning Center should develop deeper reach and a PAN India growth chart. Franchisable in the current Indian Market 0-15 Moderately Franchisable  Currently, the organised market stands with less competition in private K12 tuition. 16-35 Definitely Franchisable >35 43
  • 44. Feasibility 12 Point Analysis Criteria Description Credibility Happy Learning Center is already an established name in the areas it serves. The franchised model will also bank on the credibility previously built. Refined and successful Prototype Operations The company has one outlet on board and is doing fair in terms of revenue generation and business profitability. The unit will serve as the business prototype suitable for franchisee Market Trends and Conditions The business is growing phenomenally. The demographics is shifting in favor of such segments. Differentiation Happy Learning Center an Innovative concept catering to small kids to youngsters. However, with larger expansion plans in mind, the company will have to evolve as a best education services institute which offer best education under one roof for school level to university level. Documented Systems Franchise documents for the business operations are already developed by the company. Francorp is in the process of vetting all the information, creating the detailed documents at par with international standards. Capital The business would demand low amount of investments. However basis the company’s expansion plans we have devised the unique business models for moderately low rental location. 44
  • 45. Feasibility 12 Point Analysis Criteria Description Transferability of Knowledge If experienced human resources are hired, moderately simple to transfer knowledge. Retailing is a science that requires ‘basic intelligence’, ‘taste for good life’, ‘aesthetics’ and ‘general managerial abilities’ which can further be groomed through systematic training. Every prospective franchisee will have basic understanding of the retail business and thus ‘training’ will not be a major challenge. However, training the technicians and retaining them is one of major issue . Affordability The business is relatively affordable for a franchisee due to low overheads/ low cost of delivery/ larger spend ticket size and give good returns after reaching a certain mass. The business is bit expensive on the HR front, with employees requirement costing with part-time employees with high revenue sharing. Commitment to Relationships Backed by the clean corporate philosophy exhibited at all levels, Happy Learning Center possess high level of commitment towards happiness of business associate. Adaptability Indian consumer is open to novel business formats, future looks promising! Return of investments Sustainable and attractive growth at Unit franchisee level. Break even in the first or second year is very lucrative for the franchisee. Strength of Management The company has high experience of decent technical/operational knowledge, likely to bring in best practices to franchisee business as well. 45
  • 46. SWOT Analysis for Happy Learning Center STRENGTH        WEAKNESS  Cost of acquiring customers is high initially  High operating costs in up market locations  Pricing Pressure Growing regional Brand with Unique Business Proposition Less affected by recession. Efficient supply chain management High margins business after reaching a critical mass Backed by vast experience and industry knowledge Ability to manage & train faculty; Management involvement in all areas of operations OPPORTUNITY THREAT  Private tuition & coaching industries are on a growth curve in India.  Sizzling growth in tier II and tier III cities.  Increasing competition and willingness to grow among youngsters. 46  Intense competition (although fragmented) from unorganized players  Rising real estate costs  Pricing pressure from peers  Low entry risk.
  • 47. The strategy should be to gain position & selectively push for market share Industry Life cycle stage Embryonic Growing Matured Ageing Dominant Strong Favorable Tenable Weak Competitive positions Dominant: Strong: Favorable: Tenable: Weak: • Rare. Often results from a near monopoly or protected leadership. • A strong business can usually follow a strategy without too much consideration of moves from rivals. • Industry is fragmented. No clear leader among stronger rivals. • Business has a niche, either geographical or defined by the product. • Business is too small to be profitable or survive over the long term. Critical weaknesses. 47 According to an ‘India rating’, the size of the education sector is expected to above US$ 100 billion by 2015 with the rise in government expenditure along with an increase in middle-class income . There exists a large customer base ready to be served with innovative services, as well as corporate/institutional sector which can be tapped by group discounts. Happy Learning Center can leverage its position as one of the first few players in the industry with a first movers advantage. Ideally, Happy Learning Center should try and gain position through both up sell and cross sell to its existing customers, innovative marketing strategies, impeccable services and high focus on key fashion trends. Happy Learning Center should also work on further building its brand image and brand recall to tap both a larger customer base and investors through franchising.
  • 48. The success of the business model will demand a high market penetration and development activity Market Product Current New Current Penetrate Market Dev New Product Dev Diversify The market in India, is unorganized, growing, and dynamic in nature, so are the services and products offered. It can be observed that customers are willing to spend in even tier I and tier II cities, and a market exists, however trends vary from conservative to unconventional depending to the size of the city Market Development: Current - The metros enjoy a customer base in sync with the latest trends and support all types of services and products. The service spectrum can be expanded here as well as more outlets can be launched to tap the ever increasing market New - A reduced service line can be offered at tier I and tier II cities, smaller formats with lower number and less qualified staff may also be employed initially. Product Development: Current – successful products and services at large format metros may later be introduced at tier I and tier II cities. New – successful products, services and trends overseas may be introduced at large format outlets. Customer feedback may be incorporated and key global technologies and techniques may be employed depending on their financial feasibility. 48
  • 49. Therefore the final terms & conditions for Happy Learning Center would be as follows: (Home Based) The franchise offerings for Happy Learning Center Area As per Volume Total Investment INR 2.5-3.5 lakhs Brand penetration Focused marketing efforts needs to channeled Choice of retail location Location with good visibility, ideally at a residential property Franchise fees INR 1 lakh Royalty (if any) 15% royalty is recommended keeping the industry standards in mind Marketing fund (if any) We recommend a total of 2% central marketing fund contribution, wherein 2% would be contributed towards local marketing. Marketing collaterals To be provided by the franchisor on cost basis Term of business relationship (years) 3 years 49
  • 50. Therefore the final terms & conditions for Happy Learning Center would be as follows: (Centre Based) The franchise offerings for Happy Learning Center Area 200-500 sq. ft. Total Investment INR 5-7 lakhs Brand penetration Focused marketing efforts needs to channeled Choice of retail location Location with good visibility, ideally at a residential property Franchise fees INR 1.5 lakhs Royalty (if any) 15% royalty is recommended keeping the industry standards in mind Marketing fund (if any) We recommend a total of 2% central marketing fund contribution, wherein 2% would be contributed towards local marketing. Marketing collaterals To be provided by the franchisor on cost basis Term of business relationship (years) 3 years 50
  • 51. For an ideal franchisee profile, Happy Learning Center should franchisee through the FOFO.. Franchise Owned and Franchise Operated ● Franchisee brings all the investments both for the initial capital and also the working capital costs. ● Since the franchisee has invested a large amount of money in the business, he has vested interest and stake in the business. ● Will bring in more efficiencies, better control; thus likely to have a profitable business venture ● Limited training & man power costs to the franchisor ● The Franchisee pays royalties to the franchisor ● This FOFO business model is expected to the bring sustainability and independent scalability to the franchisee. Francorp’s recommendations: We feel there exists high opportunity for the better services in the given segment and there is a shortage of such concepts which are customized as per end consumer needs. However, the model is most suitable with the Franchise owned and Franchise operated model targeting the metros and Tier-I & Tier –II cities in the initial phase. 51
  • 52. 8. Franchise business format Franchise business format requirement for the deal making 52
  • 53. Franchise Model - Options Master Franchisee Unit Franchisee Option of Multi Unit Franchisee Alliances Area Franchisee Zonal Franchisee Considering the ‘Happy Learning Center’ business model and industry, possible options are Unit or MultiUnit Franchise. Again considering the risk factors of the business and operational effectiveness; Consultants recommend UNIT Franchise as a feasible option at this growth phase and option of MultiUnit Franchise can be considered at the penetration phase of newer markets. Property should be ideally a room at residential place/apartment. 53
  • 54. Franchise Fee and Royalty Approach The methodology for fee determination calls for Franchisors to look to their franchise fees primarily as a cost recovery tool and only secondarily as a profit center. However, would obviously like to maximize its franchise fee revenue. Royalty is generally based on education franchise format. COST PLUS APPROACH COMPETITIVE APPROACH PERCEIVED VALUE APPROACH • The cost-plus approach is one way to determine the "floor" level above which a franchise fee should be set. To establish this floor, the Franchisor calculates its total marketing, training and initial support costs involved in selling a franchise and add a reasonable markup. • Francorp recommends a "ceiling" price for the franchise by considering what the market will bear. • Francorp uses this approach to determine where a franchise fee should be set above the "floor" price. • Note: Some franchisors will intentionally price above the ceiling price to establish the "EXCLUSIVITY" of the franchise offering, while others will price well below its assumed costs in an effort to saturate the market. Francorp recommends franchise fee of INR 1 Lac for 3+3 year term with renewable option fee of INR 50,000 payable after agreement tenure with royalty of 15% on gross sales. For Centre based Franchise, we recommend a Franchise Fee of INR 1.5 lakhs with 50% of the amount as renewal fee. 54
  • 55. Franchise Profiling(1/2) Any opportunity for a franchisee can be assessed on the basis of the several parameters. The below radar chart portrays the impression that a franchisee will have a training classes like ‘Happy Learning Center’. We have rated the following 10 parameters on a 5 point scale.  Investment capacity. Ability to run the business. Teaching Experience.  Ability to manage faculty.  Space and Location.  Network strength.  Educational Qualifications.  Experience in educational training.  Comfort level with franchisor.  Passion for education.   55
  • 56. Franchise Profiling: Primary Shortlist (2/2) FRANCHISEE REQUIREMENT EXISTING OWNERS OF TRAINING CENTERS HOUSEWIVES EXP FACULTY Investment Capacity 3 5 3 2 Ability to Run the Business 4 4 5 3 Teaching Experience 2 2 3 4 Ability to Manage faculty 4 2 4 3 Space and Location 4 4 5 3 Network Strength 3 3 4 4 Educational Qualifications 3 2 2 4 Experience in Educational Training 4 2 3 4 Comfort level with Franchisor 3 3 3 2 Passion for Education 5 3 5 5 TOTAL 35 30 37 34 INDICATORS High profile investors like Doctors, Lawyers, CAs, Teachers, Principals, Business men, Pre-schools, Hotels owners, Politicians, Rotary club members, Social workers, ladies in kitty party, MLM leaders in the area, HR Trainers, Bankers, 56 Jewelers, Senior Police officers shall also be targeted. 3rd 1st Preference Ranking 2nd
  • 57. Identifying other appropriate franchise profiles Investor Types Government employees who have taken VRS & Senior Citizens Bankers and New set of CAs, IFAs, DSAs Insurance Agents Real estate Brokers Pure investors Degree of Appropriateness Remarks They probably would like to use their time constructively, and possibly get into a business with ample of time and cash reserve. Already have huge clientele and typically have under utilized facilities which may not be profitable with the current set up but the fortune wheel can be reversed by getting into franchise set up with Happy Learning Profile’s good wrt the network that an agent bring in along with the existing insurance clientele. The one concern would be heavier focus on insurance due to comfort with the product line. Existing customer base, already possessing a facility however would like to diversify their business. Though this profile offers good options in terms of financially healthy investor but the worry is participation in the store operations on a daily basis and the business bent of mind Model Type Can be definitely considered for FOFO (Home-based) Good option for Centre based FOFO Good option for being a FOFO (Both models), provided they have sufficient capital. Should be considered for FOFO (Centre based) Should considered multi-unit Scale Most appropriate franchise for the type of format 57 Least appropriate franchise for the type of format be for
  • 58. SOMF Analysis for Potential Market(1/2) TO DRIVE THE REVENUE AT THE CENTER, IT IS ESSENTIAL TO UNDERSTAND THE ATTRIBUTES OF THE STUDENTS THERE BY DRIVING THE SUCCESS OF THE CENTER. Strategic Fit Marketing Fit Operational Fit ATTRIBUTES OF POTENTIAL CUSTOMER 58 Financial Fit
  • 59. SOMF Analysis for Potential Market(2/2) Strategic Fit Operational Fit Marketing Fit Financial Fit Is the city viable for setting up training center? Will it possible to operate the center in the particular shortlisted city? Is the center economically viable to market ? Do all the cities make a financially viable plan ? • Marketing cost • Yield per sqft • Efficiency per centre Market penetration • Increase in market share • City profile • Set up cost • Social conditions 59
  • 60. Roll Out Strategy (1/3) Selection of rollout cities were based on: Target Customers Target customers for the ‘Happy Learning Center’ business will be Kids. At initial rollout phase, ‘Happy Learning Center’ has to target such population in the tier 1 and tier 2 cities, specifically Mumbai during initial phase, then as Western India in 2nd phase. After setting and running up profitably in these areas, the services might be rolled out as PAN India. However at each stage of expansion cluster approach is considered on the basis of population, premium residential colonies/apartment etc. Market Size Most of the near by tier1 cities of country have a potential for minimum 30-40 centers and the tier 2 cities have a potential of minimum 20-30 centers. Tie-ups with schools, colleges and corporate is a huge market with ready and continuous customers. Brand Image For initial phase of franchise operations, as mentioned above will target western India, since being a known brand and for operational effectiveness. As the business is influenced by reference and word of mouth which leads to increase in brand value company will enter in newer markets. 60
  • 61. Roll Out Strategy (2/3) City Demographics Franchisee centers will require minimum of 150 Sq. Ft. preferably in a residential property area near premium residential places within the city premises. Competition After making its stand in nearby states, company will enter in competitive markets on the basis of its quality offerings and proven track records. 61
  • 62. Roll Out Strategy (3/3) Phase 1 Phase 2 Phase 3 • Western India Francorp recommends cluster approach at each stage considering the population etc. • Central India • PAN India 62
  • 63. 9. Franchisor - Unit franchise Relationship  Obligations of the subjects 63
  • 64. Franchisor’s Obligations Provide course structure to be delivered by the franchisee during business operations for the Unit franchisee Training programs on a regular basis for the Unit Franchisees, as well as additional training for sales stuff and marketing team. Provision of all administrative forms & formats. Provision of all forms, formats, Cash Sheets, Sales Sheets and Monthly report sheets. Provision of informative material, presentations, reference books and other required notes. Assistance in organizing of local promotional activities and events. Printed material like Brochures, Pamphlets and Flex Banners on cost basis Assistance in monitoring and managing the business to make sure that the best business practices get implemented at the franchisee end to run it on profit. Step wise training programs (start-up phase, the operating phase and the growth phase.) Happy Learning Center will also take care of quality of services to be delivered at the franchisee end as well as to the end customer (Thorough candidate feedback, regular check candidate profiles etc.) 64
  • 65. Unit franchisee Obligations Center- Site Selection (In case it is a commercial property) Fit-outs of the office as per the company’s specifications Pre-opening purchases of required equipments, software's etc. Full involvement in opening launch promo Attending initial and ongoing training individually plus key staff Payment of fees to the franchisor on monthly basis Compliance with standards and policies/operating guidelines Compliance of the customer service standards as set by Happy Learning Center Be adequately insured Proper maintenance of books and accounts Follow timely reporting structure of database developed at the franchise end Will have to ensure smooth flow of business at all times 65
  • 66. Pre-Opening Franchise Support extended to the unit franchisee Comprehensive turn-key assistance from site selection to setup and start operations Layout and design; architectural support Pre-opening purchasing assistance Assistance in organizing of launch promotions Training: • A comprehensive training is provided to all the Franchisees on service operations, Each and every standard check up procedures, accounting, inventory control etc. Employees from all verticals are being trained on a regular basis which helps to continuously groom and enhancing operating efficiencies of employees. The franchisor can provide following assistance to its franchisees during this period: • Ordering of all equipments for the center • Negotiation of suitable terms and organizing of lease • Monitoring of fabrication of the center • Daily/ weekly assistance in the service operations. All the franchisees are put through a highly focused support system which educates them on utilizing their entrepreneurial skills to become highly efficient and happy franchisees. 66
  • 67. Post Opening Franchise Support extended to the unit franchisee Operations Guidelines Franchisee Coordinator Ongoing R & D, marketing and customer service and other related market development initiatives Advertising & local promotion: • The franchisor will organize events specific to marketing/ branding for Happy Learning Center business at the national level. This will include participation in the related retail expos/ sponsoring such events, tie ups with magazines/ newspapers etc and much more in collaboration with its business partners to promote its each Franchisee outlet. Control and check the job conversions ratio Operational support: • Day to Day operations, Technical & Administrative advices. Regular advices on inventory control and administrative issues. Frequent official visits, audit, advices on local promotions programs etc. Structured Marketing Ideas to suit a location PR support: • Regular PR coverage at national as well as regional • Centralized Brand Building through all media - Print, Outdoor, Web, Retail, Electronic. 67
  • 69. Franchise Acquisition Strategy Target Market Strategy: • The use of some franchisees in only certain markets and with company-owned units in other markets. This strategy is used where a strong local or regional company wishes to expand in remote markets. Spiking Strategy: • The use of company-owned units to develop a presence in specific markets for the purpose of creating a franchise demand. Opportunistic Strategy: • Sell franchisees at the moment and at the place the opportunity arises. • Let the franchise operators suggest potential business locations and open new units when good sites have been identified. Projected Performance Strategy: • Explore each market by searching for favorable locations and develop a portfolio of potential locations. Develop only the most promising sites. Unit Franchise : Target Market Strategy along with the Opportunistic strategy (specific for phase approach to the roll out cities) 69
  • 70. Franchise acquisition process Marketing Email Blasts to prospects Advertisements in The Franchising World & website Lead Generation Lead Management Basic Information provided to all Inquiries. Franchise meetings, further scrutiny of the prospect. Recruitment Franchise Application signed. Expression of Interest generated Agreement Process initiated. Site details will be discussed as per client requirement Rollout Plan. Franchise Exhibition Franchise kits & Communication design Information/training to all regions by Francorp Weekly progress sheet submitted to client Test & measure marketing activity- to identify gaps. Expression of Interest Detail Application form Signing the agreement Franchise Evaluation Franchise Approval 70 City & Site evaluation
  • 71. 11. Marketing Need of the Business (B2C) 71
  • 72. B2C Marketing Marketing of Happy Learning Center is needed to build long term brand equity, to communicate the brand’s benefits and hence incentivize the consumer to purchase the services. Long-term results will occur when Promotions would work in conjunction with advertising and other elements of marketing mix. Advertising Long Term (Builds Equity) Advertising and PR Brand PR Promotions Strategic Short Term (Builds Usage) Sales Promotion Tactical 72
  • 73. Why Promotion is needed for Happy Learning Center?  Promotions would translate favorable attitudes towards the brand into sales through offering a value proposition and an encouragement to the consumers to buy the services. Primary objectives are as follows: • Increase Household Penetration • Increase Share of consumers category purchase • Increase Consumer Consumption • Maintain current users/current purchase levels • Counter/ Preempt Competition a. Increase Household Penetration • • • Increase the Customer Base to a specific number of new households Support achieving awareness levels for the brand Achieve a specific level of presence all across in the given geography Target Group • All Residential Places in the Geography Promotion Actions Trial Offers Combo Offers Campaign at schools at discounted price Seminars & Demonstration of services Contests with discounted registrations 73
  • 74. Why Promotion is needed for Happy Learning Center? b. Increase share of consumer category purchase • • Convert a specific number of consumer sales to the target group Increase the depth and quality of distribution to specific levels across the line Target Group • Alternators and Occasional users Promotion Actions Offers at Education & training centres (complimentary ones) Certificate Awards assurance Coupons for Discounts & Trial Class Shelf Display Programme in Education & Training Institute (complimentary ones) In house Merchandising on sale Innovative Reward Offers to convert existing client base with referral options 74
  • 75. Why Promotion is needed for Happy Learning Center? c. Increase consumer consumption • • Increase the depth and quality of reach to specific levels across the geography Incentives to join back and bring more referrals Target Group Promotion Actions Multiple purchase coupons for referrals • Loyalty offers • Loyal Core Customers Alternators and Occasional users In-house branding (in the premise) Course Demonstrations should be done with a Power Point Presentation (accolades included) 75
  • 76. Why Promotion is needed for Happy Learning Center? d. Maintain current users/current purchase levels • • • Defend the franchise against intense competitive activity Maintain household consumption by consumers Hold current levels of presence in the given Geography by expanding and Marketing and cluster approach Target Group • • Loyal Core Users Alternators and Occasional users Promotion Actions Consumer contests Consumer promo Loyalty programmes Loyalty Programme Scratch Coupon Rewards to High scorers Display Contests (Occasional) e. Counter/Preempt Competition • • • • • Response to a competitive initiative A new product launch positioning the New Product versus competition A competitor’s new product launch that threatens our brand A new product upgrade to counter competition A preemptive measure at the onset of a season 76
  • 77. Franchise Financial and Franchise Legal Agreement (Separate Submission) 77
  • 79. Program Deliverables and Status PARTICULARS Completed FIRST DRAFT SUBMISSION Initial Client interaction and information download YES YES Franchise Feasibility Assessment YES YES Franchise Strategy Presentation YES YES Industry overview & growth strategy YES YES Establishing franchise Strategy YES YES Franchise Business Format YES YES Franchise Profile YES YES Rollout Strategy YES YES Franchisor - Franchisee obligations YES YES Franchise Acquisition Strategy YES YES Recommended Financial Model Initial No. s Initial No. s Franchise Legal Structuring and documentation Franchise Kit Franchise Marketing Brochure Franchise Recruitment Documentation Launch of the Opportunity (M&R Phase) 79
  • 80. Thank You DISCLAIMER This Report is highly confidential and provided for general information for the Happy Learning Center management only and nothing contained in the material constitutes a direct recommendation for any investment related decisions. The plans, materials, and consulting advice provided here in have been prepared based on our experience and the information available to us. However, because the success of a franchise program depends upon a variety of factors outside Francorp's control, Francorp India cannot and does not warrant the success of any such program or forecasts provided by Francorp India contained herein. Although the statements of fact in this report are obtained from sources that Francorp India consider reliable, we do not guarantee their accuracy and any such information may be incomplete or condensed. Views expressed in this Report are based on the research materials available from sources considered reliable and are subject to change on the basis of additional or new research, new facts or developments. Chicago * Argentina • Chile • India • Japan • Malaysia • Mexico • Middle East • Philippines • South Africa • Thailand 80