Infrastructure & Network Creation(Including Retail, Franchise Network, and Supply Chain

Implementation > Consumer Products and Retail > Infrastructure & Network Creation

Franchisee Network Creation for a Sports Apparel and Footwear Brand

About the Client

A global athletic footwear and apparel company was looking to expand its store network in India through the franchisee route.

Project Objectives:

Core objective was to identify, evaluate and sign up franchisees for the selected locations. Key projects questions included:

What should be the franchise model and business plan including total operating model, investments required, margins, revenue sharing model, financial projections and detailed roll out plan?
What should be the franchise identification, evaluation and selection model?
What should be the process for management of the franchisee network?

Deliverables:

Developed Franchise strategy& Business Plan:
1. In-depth study of the business, key value proposition and management expectations
2. Studied few successful business/franchise model of top existing players
3. Framed the strategy & business Plan – defining franchisee term sheet; and roles and responsibilities of the franchisor and franchisee
Set up Franchise Selection Model
1. Established the identification parameters and the selection filter for the Franchise
2. Shortlisted franchises were evaluated through a model framed by assigning weightage to key selection parameters
Defined process for management of franchisee network
1. Studied the key support systems required for the operation of franchise businesses
2. Suggested strategies and standard operating procedure for managing each process system for inducting & managing new /existing franchisees

Retail Expansion Through Franchise Route

About the Client

A leading Indian Beauty and Wellness Retailer intended to expand its retail footprint through the franchise route, and therefore thus it wanted to develop have a franchise strategy & as well as required assistance in the implementation of the same.

Project Objectives:

The core objective was to develop a franchise strategy and implementation plan, answering the following key strategic questions:

What are the possible operating models? What are the pros and cons of each model?
What type of franchising business structure should be used?
What should be the franchisee terms?
What should be the potential expansion strategy (in terms of cities, no. of stores, etc.) for the client’s franchise network?

Deliverables:

1. Franchise strategy and Business plan: economics of the model e.g. investments required, margins or revenue sharing model between franchisee & franchisor, revenue & profitability projections, and a detailed rollout plan.

Market scenario – market size and growth, existing players, location strategy, etc.
Target investees’ profiles – company background, product portfolio, no. of stores, design capability, sourcing model, manufacturing capacity, logistics & warehouse, etc.

2. Franchise Identification, Evaluation & Selection Model/Matrix on the basis of identified key parameters.

3. A process for inducting, starting, and managing each franchisee and the entire network by defining standard operating procedures and roles & responsibilities of all parties involved.

4. Franchise Identification, Evaluation & Selection by-

A long list of potential franchisees from the selected states/cities, seeking expression of interest& details of the franchise model
Shortlisted candidates on the basis of pre-defined criteria, site visits & one on one interviews
A detailed background check & assisting in final negotiations with the client