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1/28/13Share 0 The India Franchising Blog: March 2010 More Next Blog» Create Blog Sign In The India Franchising Blog Please visit the India Franchise Blog on http://indiafranchiseblog.blogspot.com/ as we have moved all content from here to that site. WEDNESDAY, MARCH 31, 2010 FOLLOWERS Destination Maternity Opens 2 More Motherhood Maternity Stores In India PHILADELPHIA, March 31 /PRNewswire-FirstCall/ -- Destination Maternity Corporation (Nasdaq: DEST), the world's leading maternity apparel retailer, announced the opening of two more Motherhood Maternity® shop-in-shops in India. Motherhood's trendy, affordable maternity fashions are now available for the first time at the Mantri Mall in Bangalore, India and the Korum Mall in Thane, India. Motherhood Maternity shop-in-shops are found in Mom & Me® stores which are owned and operated by Mahindra Retail, part of the Mahindra Group, Destination Maternity's franchisee in India. Mom & Me stores offer an extensive range of pre- and post-natal products including maternity wear, baby clothes, toys, wellness products, nursery furniture and more. Including these two new locations, there are now a total of eleven Motherhood shop-in-shops in Mom & Me stores in India. Under a multi-year franchise agreement, Destination Maternity has granted to Mahindra Retail, the master franchise, the exclusive rights to operate branded retail locations and market merchandise under the Company's Motherhood Maternity, Destination Maternity®, and A Pea in the Pod® brands in India. Mahindra Retail is part of the Mahindra Group. The Mahindra Group is one of India's leading federation of companies with operations in several key sectors of the Indian economy. About Destination Maternity Corporation Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel. In the United States and Canada, as of February 28, 2010, Destination Maternity operates 1,689 retail locations, including 711 stores, predominantly under the tradenames Motherhood Maternity®, A Pea in the Pod®, and Destination Maternity®, and sells on the web through its DestinationMaternity.com and brand-specific websites. Destination Maternity also distributes its Oh Baby by Motherhood® collection through a licensed arrangement at Kohl's® stores throughout the United States and on Kohls.com. In addition, Destination Maternity is expanding internationally and has entered into exclusive store franchise and product supply relationships in India and the Middle East. About Mahindra Retail Mahindra Retail is an extension of the Mahindra Group's trading foray in the domestic India market. Apart from distributing toys, games and wellness products under licenses from various international brands like Mattel® and NUK®, it has now entered into a unique venture with the launch of Mom & Me stores, which specialize in infant and maternity care. Mom & Me stores are built around the unique needs of mothers to be, young mothers, infants and children up to the age of nine. The absence of a single retail outlet addressing mother and child product and non-medical advisory needs is the most critical need gap that Mom & Me seeks to address with a one-stop store for moms and kids across the country. Mom & Me stores carry a range of the best international brands and private labels to give Indian mothers unparalleled choice. Mom & Me now has stores in Ahmadabad, Bangalore, Delhi, Ludhiana, Mumbai, Pune and Vadodara. About Mahindra Group Join this site w ith Google Friend Connect Members (16) Already a member? Sign in BLOG ARCHIVE ▼ 2010 (185) ▼ ► September (9) ► ► August (24) ► ► July (24) ► ► June (31) ► ► May (20) ► ► April (24) ► ▼ March (22) ▼ Destination Maternity Opens 2 More Motherhood Mate... Timex To Expand Further Into Tier 1 & 2 Cities wit... Top 100 Franchise Business Opportunities In India Multiple Brands Open Joint Franchise Stores Start A New Franchise Business In India: Franchise... Educomp To Open 75 IIT Coaching Franchise Educatio... Taco Bell Opens Its First Restaurant In India India and USA launch a Joint Initiative for SME's.... BigShoeBazaar.com Builds Offline Presence, Begin w... Laptop Service Franchise Company ClubLapTop to Ope... Educational Institution Bill And What It Would do ... franchiseinindia.blogspot.in/2010_03_01_archive.html 1/29 1/28/13 The India Franchising Blog: March 2010 Mahindra is a US $6.3 billion Indian multinational company. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and integrity. Mahindra is one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09. For more information, please visit www.mahindra.com Destination Maternity Corporation (the "Company") cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made from time to time by management of the Company, including those regarding international expansion, results of operations, financial condition, and various business initiatives, involve risks and uncertainties, and are subject to change based on various important factors. The following factors, among others, in some cases have affected and in the future could affect the Company's financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any such forward-looking statements: the impact of the current global economic slowdown on the retail industry in general and on apparel purchases in particular, our ability to successfully manage our various business initiatives, our ability to successfully implement our merchandise brand and retail nameplate restructuring, the success of our international expansion, our ability to successfully manage and retain our leased department and licensed relationships and marketing partnerships, future sales trends in our existing store base, unusual weather patterns, changes in consumer spending patterns, raw material price increases, overall economic conditions and other factors affecting consumer confidence, demographics and other macroeconomic factors that may impact the level of spending for maternity apparel, expense savings initiatives, our ability to anticipate and respond to fashion trends and consumer preferences, anticipated fluctuations in our operating results, the impact of competition and fluctuations in the price, availability and quality of raw materials and contracted products, availability of suitable store locations, continued availability of capital and financing, goodwill impairment charges, our ability to hire and develop senior management and sales associates, our ability to develop and source merchandise, our ability to receive production from foreign sources on a timely basis, potential stock repurchases, potential debt prepayments, changes in market interest rates, war or acts of terrorism and other factors set forth in the Company's periodic filings with the Securities and Exchange Commission, or in materials incorporated therein by reference. SOURCE Destination Maternity Corporation Tags:A Pea In The Pod, Baby Franchise, Baby Products Franchise, Baby Stores, Destination Maternity, Franchise Agreement, Kids Franchise, Kids Stores, Master Franchise, Maternity Fashion, Mom and Me Posted by Amit Nahar at 11:24 PM 1 comment: Women Taking On Franchise Opportunities In India Hospitals take to franchising In India For Their E... TCY adopts Franchise Fee Refunds After 1 Year If f... Retailers Treading Carefully on Realty Deals and N... Budget 2010: What it brings to the franchise indus... MAAC to add 30 training centres by March 2011 Top 100 Franchise In India: India Franchise Rankin... Franchise Industry Reforms Road Map : A Wish List ... After Dominos Another Franchise Company Career Poi... India's Airports Aiding The Growth of Food Franchi... KFC Franchise Expanding In India ► February (20) ► ► January (11) ► ► 2009 (21) ► ► 2008 (1) ► ABOUT ME Amit Nahar Am a Specialized Franchise Consultant, having consulted, some of world's finest franchise companies. Lead a team of professionals involved in pioneering work in franchising at www.SparkleMinds.com & www.FranchiseBazar.com and in some way or the other catalyzing franchising specifically in the developing countries. My family is based at Bangalore/India, while i practically live outta suitcase.Am married,have a son and a daughter :). Occasionally also speak on various platforms, am a columnist and a blogger, off-course also tweet and mentor CEO's and Business Founders.Believe strongly in being the change that I want to see the world to be. View my complete profile Recommend this on Google Labels: A Pea In The Pod, Baby Franchise, Baby Products Franchise, Baby Stores, Destination Maternity, Franchise Agreement, Kids Franchise, Kids Stores, Master Franchise, Maternity Fashion, Mom and Me Timex To Expand Further Into Tier 1 & 2 Cities with 20 Franchise Stores Timex to open 20 franchised stores in tier I and tier II cities Last updated : March 31, 2010 03:33 IST Timex Group, an Indian based watch maker company is planning to launch 20 franchised stores across the nation in the next fiscal year in tier I and II cities like Guntur, Kakinada, Asansol, Hazaribagh and few more to expand its footprint. The company is also planning to expand its presence in cities like Delhi-NCR region, Pune, Hyderabad, Ludhiana, Ahmedabad, Bengaluru, Chennai, Kolkata and Mumbai. Presently, the company is operating 70 stores across India, both in kiosks and exclusive brand outlets EBO (The Time Factory format). The company requires an investment of Rs 10 to 15 lakh and an area of 120 sq. ft for Timex kiosk. While for The Time Factory, a franchiseinindia.blogspot.in/2010_03_01_archive.html 2/29 Fashion and accessory brands: With the changing preferences. Among the Indian players Sagar Ratna (south Indian cuisine) and Club City (multi specialty chain) are included in the top 30 established companies.A peek into the rankings reveals the following: Established franchisors: Established franchisors are referred to as Masters of Franchising. Apparel. Cadd Centre. Amul (milk products)have also been included in the F&B sector. With Indians. With English language proving to be essential for job seekers. renowned textile company also occupy this section.EXPLORE INDIA'S LIST OF FINEST FRANCHISE BRANDS. F&B.Watch Retail Store. Low Investment Franchise. offering franchise opportunity. They are followed by branded Western wear Spykar. Fashion and Accessories. Timex.in/2010_03_01_archive.html 3/29 . a readymade apparel chain and Raymonds.ft and an investment of around Rs 20 lakh. the F&B is the next prominent category among the established players in franchising. The evaluation seems to have been done seeing the success and growth of the brand and how far they have been successful in retaining their success. Watch Retail Store Location: 20. Financial Service. health and fitness franchisors swear by. India's Top Franchise. growth and concepts offered has been done by the franchising world magazine by Franchise India. Education franchising is the most established and lucrative franchise segment due growth of literacy rate and also due to the increase in disposable income particularly among the middle classes Moreover.Top Franchise Posted by Amit Nahar at 11:19 PM No comments: Recommend this on Google Labels: EBO. 2010 Top 100 Franchise Business Opportunities In India ENTREPRENEURS:START A NEW BUSINESS. Apparel:Garment Franchise: Franchisors in apparel segment have also established themselves successfully. the pre-schools are gaining momentum. Franchised Stores. Mar 29. ICA.96288 MONDAY.1/28/13 The India Franchising Blog: March 2010 franchisee requires an area of 450 to 650 sq. Kwality Wall’s (ice-creams). F&B:Food Franchise: With more and more people preferring to dine out and celebrate the small moments of life. Gifts and Greetings. Beauty. and Fitness Brands: Healthy soul rests in healthy body is what all beauty. there is a transition of franchiseinindia. Automotive. Time Factory. companies like Veta are the most successful franchises. getting more beauty and health conscious. Education Franchise: The most successful sector in the category of established brands is education and pre-school sector. MARCH 29.blogspot. Jetking and NIIT show that the job opportunities in animation courses and the dependency on computers make more and more students opt for higher computer and software courses. the success of institutes such as Arena Multimedia. Watch Franchise. Shahnaz Husain Group and VLCC are top established franchisors in this beauty and fitness category. The survey has listed 30 franchisors representing 30 brands in various sectors of franchising like. 2010 – A look at the franchising Industry and the Top 100 Brands 2010 from different industries evaluated on the basis of their success. Education and pre-school. Florists. Health and Fitness. this sector provides ample business opportunities to the aspirants. Health.593684. Pre-schools are also proposed to be the best profit makers. Eurokids and Kidzee are among the top brands in pre-school category. Thyrocare is a leading established Diagnostic centre. These brands have successfully grown over the past 10 years and have contributed greatly to the franchise industry. Consumer Durable. Tags:Watch Franchise. 78. This trend has prompted the beauty and fitness brands to establish themselves as successful franchisors. With the increase in working women. Beauty Franchise. Chhabra 555 leads the Indian wear category. Madura Garments.Low Investment Franchise. and Bookstore Franchises. Timex Group is expecting a growth of 10 per cent in the current fiscal year as against three per cent growth in 2009-10. Monginis (bakery chain). 53125250339508 FRIDAY. MARCH 26.” ClubLaptop has embarked on an industry that has been majorly untapped. Franchise India.blogspot. Speaking about the store. the Jodhpur franchisee. offers a one stop solution for laptop repair and laptop accessories. reliable and affordable laptop repair and care services from the store. friendly. what are you waiting for? Explore the various opportunities available in India and start franchising. ClubLaptop is a first of its kind retail service chain that provides quality repair services at affordable prices. Daga said. Franchising. Mr Amit Barmecha. automotive. Franchise Opportunities. However. Daga said. Moreover. we are positive about the store receiving a great response for both cartridge refilling and laptop servicing. florists.1/28/13 The India Franchising Blog: March 2010 traditional market to being more trendy and contemporary markets. Having highlighted the top established franchisors in India the decision for all aspiring entrepreneurs to take up the franchise business is much easier now. the laptop service franchise specialist. explore the franchise lists that are available online. Started on March 7. the franchise in jodhpur is the biggest one till date with an area of 700 square feet. franchiseinindia. 77. “With increasing awareness among the Indian users about using environmental friendly and cost effective alternatives. It is a spectacular store has received immense response from the consumers so far. So. the most spectacular Re-feel-ClubLaptop store so far has been the Jodhpur franchise store. this section also occupies our list of top established brands. both similar to the original cartridges. Within its inception of only two months ClubLaptop caught on the imagination of the customers and franchisees alike and now boasts of opening 16 franchise stores in 13 cities of India. Posted by Amit Nahar at 3:05 AM 3 comments: Recommend this on Google Labels: Education Franchise. fast turn around time and world class service. Says Puneet Daga. Start a New Business Location: 23. Tanishq and Titan are the top players in the section. 2010. Besides these. it aims to be a one-stop solution for all kinds of queries on laptop care and accessories. ClubLaptop stands out to be a better alternative to the authorized service centers for affordable pricing. Re-feel and ClubLaptop said. Mr. Pioneered by young entrepreneurs. “At Re-feel we use cutting edge technology and state of art equipment to ensure print quality and print quantity. food franchise. Director Franchise Development. Franchisors. who happens to be the owner of this store.” Mr. consumer durables and book stores are the dominating established franchise categories.html 4/29 . These sectors are also providing ample business opportunities to the aspirants to get associated with the successful franchisors.” Echoing the enthusiasm. Customers will get fast. With mostly women and youngsters preferring to endow themselves with jewellery and trendy accessories.” Clublaptop. Franchise Business. ClubLaptop is a unique initiative of establishing a chain of branded laptop repair stores in India. Pre School Franchise.in/2010_03_01_archive. financial services.004243798643007. They provided me with all sorts of possible assistance that I required. “I have received a very good initial response and my entire team has been well trained and supported by Re-feel. “It was only because of encouragement and support from ClubLaptop that I could open this franchise store. gifts. 2010 Multiple Brands Open Joint Franchise Stores Re-feel ClubLaptop Opens A Joint Franchise Store in Jodhpur It is the biggest franchise store for the company till date at 700 square feet. We target to open 250 Re-feel cartridge store and 300 ClubLaptop stores by the end of 2011 and contribute by setting quality benchmark in an otherwise unorganized market. in the course of over two years. that one cartridge dumped. With service. Many franchise opportunities are of traditional types & don’t offer much in terms of monetary support & skill set.in/2010_03_01_archive. 2009. are you committed to keep up with it? For increased business prospective. Re-feel group is dedicated in providing low cost environment friendly solutions to the customers. India. That’s why a franchisor is usually seen searching for good franchise opportunities that would enable him/her to implement on a new business idea or ensure growth to the existing business. Asia’s highest selling franchise magazine.Read the franchise document properly and in particular the franchise agreement. laptop service franchise. The number of cartridges in landfill increases by 12 per cent each year. 2009. franchiseinindia.Kolkata. has saved over 4 Lac cartridges from being dumped into landfills and would save many more in the future. 03/26/2010 Posted by Amit Nahar at 4:14 AM No comments: Recommend this on Google Labels: amit barmecha. top 100 business opportunities Start A New Franchise Business In India: Franchise Opportunities pave way for the wannabe entrepreneurs Creating New Business Opportunities Through Franchise The franchise in India is emerging out as a new business option for many first timers to small scale entrepreneurs in India. knowledge & technology forming the core brand differentiators. clublaptop. at the Annual Franchise & Star Retailer Awards. One good example is the leading garment franchise Arvind who would sale goods on consignment orders & decided a commission for franchisees based on its value.in) has also been ranked amongst Top 30 emerging franchisors and Top 100 business opportunities in India. How profitable it would be for you & what amount of ROI do you think this business can fetch you? One of the most important thing. In such cases you have to pay for hundreds of thousands of rupees annually as the annual franchise fee which may again vary from one place to another.blogspot./newswire/ . re-feel. refeel. Re-feel (re-feel. Considering. you need to generate business for the franchisor thereby highlighting it. franchise in jodhpur. Re-feel is a highly committed organization that offers superior solutions to its ever growing customer base through Re-feel & ClubLaptop Stores through out India.html 5/29 . the training & education franchise company who fixes up a territory wise flat franchise fee irrespective of quantity. takes 400-1000 years to biodegrade. trust. And unfortunately with every passing day. However. More than 10 billion cartridges are projected to end up in landfills. To the contrary. the problem is getting worse. this a great environmental hazard. Another one is the CADD. If you think you can run the business on your own without the necessity of all the franchise costs then it would be better to invest in it alone. Source: NewswireToday . thereby creating a huge amount of e-waste. Franchise in India serves as a good alternative & provides business owners excellent franchise opportunities that can be handles on a trial & test basis.1/28/13 The India Franchising Blog: March 2010 The Re-feel & ClubLaptop project is a pedestal to the cost cutting mantra of the corporate power houses. franchising w orld. Discarding laptops due to problems is a common practice. one needs to carefully consider certain factors before settling for a particular franchise in India business from so many: Set your goal – Find out the possible causes for venturing into this business. franchise development. Don’t initiate unless you have requisite funds – Some of the popular franchise opportunities come for a heavy price. It is the franchisor of a reputed brand who would be responsible for laying out most of the rules upon which franchise opportunities seekers are needed to act on for bringing out instant visibility. West Bengal. What strategies the franchisors follow are not all same & differ a lot from franchisor to another. 2009 by the Franchising World. Re-feel. Re-feel Cartridge Engineering has been given the prestigious award for "The Emerging Company of The Year". garment franchise. among franchiseinindia. The Mexican-style food is perfect for the Indian taste palate and we will be offering a variety of vegetarian meals as well so that everyone can enjoy it. NEW DELHI: Education content and service provider Educomp Solutions Ltd will open around 75 Indian Institute of Technology coaching centres in the upcoming fiscal. franchise costs. Taco Bell's "Think Outside the Bun" positioning and brand essence is expected to resonate extremely well with India's young population. fifty percent of the menu features a vegetarian range of products specially created for Indian consumers including potato paneer burritos and crunchy potato tacos. franchise royalty. If you still have faith in your planning but facing fund crunch. franchise fee. It plans to roll out other test preparatory material for BBA and medicine from 2011-12. 1307 hrs IST. initial franchise fee & royalty payments if any. In addition.html 6/29 . Yum! Restaurants International (YRI). Franchise Opportunities. just as it is in the United States. franchise documents. 2010 Taco Bell Opens Its First Restaurant In India Yum! is Largest and Fastest Growing Restaurant Company in India and Building Taco Bell into Third Powerhouse Global Brand Yum! Brands. the firm said in a statement. Posted by Amit Nahar at 12:37 AM 1 comment: Recommend this on Google Labels: Franchise Agreement. the franchisor will try to make the offer look like attractive & their ROI calculations are most likely to be centered around the setup cost. burritos. don’t take the risk of staring it unless you have necessary fund. In any case. So avoid opting for the franchise in India franchise offers if you don’t have sufficient resources to continue with it for initial years.1/28/13 The India Franchising Blog: March 2010 In the earlier negotiation stage. we expect it will become extremely popular. counselling and assessment. Yum! Restaurants International. The coaching centres will be opened on a franchisee basis. a key growth market in our global portfolio. "We're delighted to be offering Taco Bell to consumers in India. is the country's first experience with the Mexican-inspired quick-service restaurant brand. India. Education Franchise. located in Bangalore. Source:25 Mar 2010." MD and CEO Shantanu Prakash in the statement. president. Franchise In India. Don’t forget that the business is not likely to keep growing from the first day itself & you will have to pay for the necessary requirements for a while.blogspot. nachos. quesadillas and Crunchwraps. forge partnership with some one who can provide you with necessary back up. educomp. The new Taco Bell India menu features tacos. popular franchise Educomp To Open 75 IIT Coaching Franchise Education Centres In 2011. MARCH 25. Education Business." Yum!'s new Taco Bell international restaurant. IIT coaching franchise. "Based on customer feedback so far.(IIT Coaching Franchise) "We have undertaken restructuring of our business recently and have created a new entity called Educomp Supplemental for our supplemental education business. The introduction of the first Taco Bell in India reflects the Company's strategy of creating a third global brand. Supplemental business includes tutoring. shantanu prakash THURSDAY. Yum! is the leading restaurant company in India with its KFC and Pizza Hut brands." said Graham Allan.in/2010_03_01_archive. including spicier products tailored to the Indian market. The menu offers breakthrough value priced items starting at 35 cents. Inc. REUTERS Posted by Amit Nahar at 12:28 AM No comments: Recommend this on Google Labels: coaching franchise. educomp supplemental. franchise offers. (NYSE: YUM) announces the grand opening of the first Taco Bell in India by its international division. Yum! Restaurants International India. including vegetarian items. Spain and Cyprus.1 billion people. chicken tikka appetizers and spicy Indian drinks.S. pizza and Mexican-style food categories. Pizza Hut. Yum Brands. MARCH 22. Pizza Hut has been named the "Most Trusted Food Service Brand" in India for the fifth year by The Economic Times (India). open seating areas for large groups and flat-panel televisions to innovative marketing programs to unique signature products.html 7/29 . Ky. and China. Pizza Hut.are the global leaders of the chicken. Yum! Brands system opened more than four new restaurants each day of the year. and China Division. In 2009. is the world's largest restaurant company in terms of system restaurants with more than 37. Long John Silver's and Taco Bell . franchiseinindia. Last year.. Costa Rica. The India Franchising Blog: March 2010 "We are confident that Taco Bell will redefine the eating-out market in India with incredible taste catering to many consumer segments.blogspot. India is a key growth market for Yum! Brands due to its extremely young and large population of 1.S. based in Louisville. Iceland. The year 2009 also marked the tenth year that YRI has opened more than 700 new restaurants outside the U. The company is ranked #239 on the Fortune 500 List.000 restaurants outside the U. Niren Chaudhary. Graham Allan. localized menus offering value options. Food Brand. growing middle class and emerging economy. KFC is a young. ahead of all other Indian and global brands.KFC.000 restaurants in more than 110 countries and territories. the Company has expanded Taco Bell beyond Canada and Puerto Rico to other markets including Guatemala. KFC is the fastest growing quick-service restaurant brand in India with 72 restaurants in 13 cities as of year-end 2009. KFC. there are more than 250 Taco Bell restaurants outside of the United States. YRI is the largest division of Yum! Brands with more than 13. Long John Silvers. Guam. up from 230 restaurants as of year-end 2009. Yum! Brands. Four of the company's restaurant brands . Yum! has become the largest and fastest growing restaurant company in India by successfully developing a strong infrastructure. dairy-based and soda-based drinks and teas. Inc. Dubai. highly-skilled workforce focused on providing outstanding customer service and innovative. Taco Bell. Taco Bell is the second most profitable brand in the United States. One of Yum! Brands' four key business strategies is to drive aggressive international expansion and build strong brands everywhere. Philippines. LOUISVILLE. By 2015. As of year-end 2009. vibrant brand in India from its contemporary restaurant designs featuring bold colors. Yum! opened 27 new KFC restaurants in India in 2009. Over the past 12 years. which is among the highest number of store openings in the country's quick-service restaurant industry." Yum! Brands is focused on developing Taco Bell into its third global brand after KFC and Pizza Hut. quickservice seafood. Over the past few years. there are 158 Pizza Huts in 34 cities offering a range of localized products including masala pizza. Krushers.--(// BUSINESS WIRE //)-Posted by Amit Nahar at 12:09 AM 1 comment: Recommend this on Google Labels: Fast Food Franchise. managing director. 2010 India and USA launch a Joint Initiative for SME's." said Niren Chaudhary.1/28/13 others. "We are excited to be opening the first Taco Bell in India and we plan to expand it nationally as an incredibly vibrant and youthful brand. As of year-end 2009. Ky. the Company expects to have at least 1. Yum! is optimistic about the long-term potential of growing Taco Bell internationally. day parts and occasions at an unmatched price. with revenues of nearly $11 billion in 2009. the Company opened its first KFC Krushers beverage bar and store design in India highlighting YRI's popular new line of yogurt and fruit smoothies. Yum Restaurants MONDAY. Dominican Republic..in/2010_03_01_archive. demonstrating its popularity in the country. Outside the United States. A&W Restaurants is the longest running quick-service franchise chain in America and amongst the most preferred fast food franchise globally. operating profit for YRI was $491 million. franchise chain. making it a leader in international retail development. quick service franchise.000 restaurants in India. Panama. In New York. At his meeting with Kirk.blogspot. led by India-based Indo-American Chamber of Commerce. The SMEs from India are looking forward to their US counterparts to explore if they can give technology and machineries.Integrating US and Indian Small Businesses into the Global Supply Chain . "It's a two-way traffic -.html 8/29 .we need the technology." Sharma told journalists during a press conference in New York at the end of his three-day visit to Washington. but if there is a tilt. over 50 chief executive officers of Indian SMEs met their US counterparts in New York at a two-day conference to explore opportunities for technology transfer and mutual investment. the tilt is in favour of the US. the minister said. The first ever summit in the US also discussed opportunities in education in India. namely innovation and technology. Sharma said the US corporate leaders are of the view that there is need for creating greater sensitivity and awareness about visas.is aimed at expanding trade and job-creating opportunities for US and Indian small and medium-sized companies.1/28/13 The India Franchising Blog: March 2010 India and the United States have launched a joint initiative for cooperation between small and medium enterprises. CII president and Rajan Bharti Mittal. The Indian companies. jobs are being taken away by India." he said. comprised companies that represented industries like food-processing and agriculture. "We will ensure that the nodal groups that are responsible for the SMEs in both countries meet regularly to take it forward. said S K Jain. Noting that SMEs in India [ Images ] account for substantial part of domestic production and for 40 per cent of the manufacturing and exports. restrictive trade measures and the need for reform of US export controls to promote high technology bilateral trade. particularly among 'well-meaning but inadequately informed people' who feel because of incorrect perception. There is more or less a balance. Last week. Venu Srinivasan. Sharma had said that India and the US discussed in Washington the areas of cooperation. the minister said that SMEs. During his visit. Therefore. president of the chamber. particularly the medium enterprises. he also met Indian business leaders and entrepreneurs during a meeting organised by the Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry. are great incubators of technologies.in/2010_03_01_archive. Sharma was in Washington mainly to sign India-US Trade Policy Forum Framework for Cooperation on Trade and Investment with his counterpart to strengthen the overall trade and investment cooperation. In response to a question. The delegation. Ficci president and ambassador Meera Shanker were present at the meeting. "This was clear to my interlocutors that the issue should be addressed. The initiative -. brand and the franchisee and we have all the raw material and basic inputs." he said. healthcare and tourism as well as civil aviation ancillary industries and legal process outsourcing. In October last year. Sharma met United State Trade Representative Ron Kirk and also addressed a meeting of the US-India Business Council as well the Brookings Institution. "We would like India and the US to be true partners in developing new technologies that have applications across industrial sectors. have created $106-billion income within the US in the past franchiseinindia. commerce minister Anand Sharma said." he said. India is not just an exporter of services but it is also a net importer. according to a recent report by PricewaterhouseCoopers and International Business Forum. an initiative like this would make bilateral trade and commerce more meaningful. Sharma raised India's concerns about visas for Indian professionals. would like to first uphold their dignity and right to travel as free citizens of the Republic of India to work in any country. women’s and kids in formals.000 designs on one platform. Reebok. Begin with their first retail store How big can BIG be? How much choice can make you shop till you drop? Spoilt for choice? All these cliche will acquire a new meaning when bigshoebazaar. Indo American Chamber Of Commerce. 2010 12:37 IST Posted by Amit Nahar at 11:38 PM No comments: Recommend this on Google Labels: Anand Sharma. M.bigshoebazaar.C. casuals and sports. Nike. Red Tape. and created 300. have a diverse reach in more than 1500 cities in the country and 30 countries of the world." he said.com retail outlets open its doors for customers in Patna.blogspot. but will virtually have shoes from all over the world.' Because of the absence of such an agreement. It is the only store that provides its customers more variety that a physical store can hold. and when they are informed. Near Colony More. The customer has to just log in to www. restrictions on movement of highly skilled people from India to whichever country they go. "I. they will get access to an unlimited virtual variety. This event marked the auspicious presence of Valmiki Singh. they would withdraw amendments (read restrictions on travel by Indians). During his meetings. Main Road.000 jobs out of which 250. "I have been urging the US CEOs that since they are aware of these facts they should sit with the members of Congress and give them the true picture.the benefits of commencing negotiations on a 'totalisation agreement. "It's a myth that jobs are being taken away by the Indians. The largest e-commerce company brings together all leading international and domestic brand like Woodland.com via a touch-screen kiosk and a whole new world of footwear franchiseinindia.com’s multibranded retail outlets will not only have a huge collection under its roof. In the first of its kind format for retail business. In New Delhi's [ Images ] view. Bigshoebazaar.in/2010_03_01_archive. Source:Suman Guha Mozumder in New York Last updated on: March 22.000 were taken up by the Americans. Ron Kirk. Kankarbagh. Indian companies in the US have been making double payments of social security. "Therefore. Brookings Institution. there has to be level playing fields globally. Ficci. There are shoes on discounts. At the same time.com Builds Offline Presence. come as a barrier to trade and commerce. Brand. Adidas. the minister raised a very important issue -. The said store is located in Deo Siddhi Plaza. Puma. US-India Business Council BigShoeBazaar. as their representative. without getting any benefits. The dispatch system is very fast and it just takes maximum 72 hours to get you your desired shoes. we respect the right of nationals from other countries to come and work in India.com is offering its customers an experience which till date had been a fantasy.com consists of more than 85 brands and 15.html 9/29 . What’s more interesting for the customers of BSB is that you will not only find the International brands but also the national and local brands just within a single click of the button." Sharma said in response to a question.L. ID and the list just goes on and on.1/28/13 The India Franchising Blog: March 2010 three years ending 2009.Patna. LeeCooper. the latest shoes as well as international brands. Bigshoebazaar.com introduces itself as India’s largest ecommerce store which is the first and only online shopping portal in Asia which provides a complete shopping solution of your footwear. CII." Sharma said. This family shoe store has variety for men’s. Bigshoebazaar. Bihar. Bigshoebazaar. ” Agarwal added. ” While speaking on the predominance of laptops in today’s world. Director of Bigshoebazaar. footw ear franchise. 2010 Laptop Service Franchise Company ClubLapTop to Open 300 Stores By 2011 CLUBLAPTOP’S RESPONSE has been phenomenal so far.1/28/13 The India Franchising Blog: March 2010 opens to him.com will set out its footprint in large metros in the second phase. But that’s not all whenever a customer is dissatisfied. However.in/2010_03_01_archive. Clublaptop does not merely want to reach the pinnacle of success alone. Clublaptop counter was always filled with more and more people. Chief executive officer of Re-feel. and within two months has opened 16 stores in 13 cities of India. Retail outlets with virtual access to the entire industry. whereas in the laptop segment.com.” said Manmohan Agrawal.html 10/29 . Bigshoebazaar. while desktops are on a steady decline. desktops have proper after-sales support team. Woodland FRIDAY. The inquisitiveness of the people about the company has been so exceptional that the company plans to open 300 stores all across India by 2011. It is in this realm that we are targeting to venture into this segment. The return policy is very efficient and is without any hassle or any cost or fee involved. he will be provided with all the customer support. franchise store. The focus of expansion in the initial phase will be cities other than metros and will be looking to open more franchise stores across the country. Nike. Agarwal added. The company started franchising in December 2009. Agarwal emphasized. the company aims to achieve success by enhancing the broader community of franchisees and consumers and in due course of time create an ambiance for the development of a good and responsible corporate citizen. With multiple franchisees as part of the Clublaptop family. “There is a dearth of proper aftersales services in the laptop segment and services provided by the OEM are very timeconsuming as well as costly. Puma. Posted by Amit Nahar at 11:30 PM No comments: Recommend this on Google Labels: Adidas. The tremendous responses from franchisees and consumers alike have been taken in a positive way with the assurance of success guaranteed in future and a clear indicator of entrepreneurs seeking tech service franchisees. red tape. Along with laptop services. “Our unique retail model offers vast choices to customer on one hand and helps the industry clear its inventory fast and in real-time on the other. it is our endeavor to offer the best services at reasonable prices.blogspot. Thus it’s a win-win model for all stakeholders. BigShoeBazaar. manmohan agraw al.com. ID. The first phase itself involves the launch of its first franchise store in East India in Bihar. thus bringing a big relief to footwear manufacturers whose biggest problem has been real-time inventory clearance and all other troubles associated with it. dearth of proper services is plaguing the field. At franchise exhibitions. leecooper. and hence procure spare parts and related equipment from these locations. Also. Reebok. Hence. retail outlets. eager to know more about the company and their queries were cleared by the one-to-one sessions. laptops are outshining desktops. A laptop offers mobility and ease of use. We have always maintained one objective and that is never to compromise on quality. family store. We are confident that this model will be hugely successful and become a benchmark for the industry. Alkesh Agarwal says. “We have excellent contacts nationally as well as internationally. giving him dozens of brands and thousands of shoes to choose from. will also help footwear industry clear its inventory faster. “These days. both in terms of usage as well as in sales in the metro markets. The Company will take franchise route to expand its footprint.” Speaking about the venture. MARCH 19. Clublaptop plans to showcase a wide range of laptop franchiseinindia. Our focus is to offer quality services at a reasonable price. Women of today has now not only confined to kitchen and domestic jobs. "The Foreign Educational Institution (Regulation of entry and operation) Bill" is all set to be tabled in the parliament for discussion soon. RJD and SP would oppose it. Posted by Amit Nahar at 4:46 AM No comments: Recommend this on Google Labels: education bill. March 16. Stanford and the like start to show interest in Indian education market we may soon move towards a standardization in the education sector which is the need of the hour. Education Franchise.in/2010_03_01_archive. Relatively easy to set up. more robust education system and better education franchisers may evolve and more than anything else it would create a respect for Indian education scenario in the rest of the world. Unification of education metrics has been echoed a number of times by the education minister and few other government bodies and this bill can do just that in an indirect fashion. refeel. Service Franchise Educational Institution Bill And What It Would do to Education Franchising In India. clublaptop. Subway and the like bring to India? Well. would be a big boost to the education system in India. According to the current trends the Indian student is in high demand in the global market but the Indian education is looked down upon. money for the Indian economy. when passed. The Left is expected to rattle a little but they have been disarmed in the recent times by the UPA government's massive numbers. Many other sectors have tried the franchise model as well . franchiseinindia. work for the local lads. With India franchising sector growing day by day women entrepreneurs are becoming more active and weaving the stories of success in every field. 2010 Women Taking On Franchise Opportunities In India From President to astronomers to actors to doctors to teachers to successful entrepreneurs the fair sex has in all. Oxford. franchise model. a lot of good food. A number of universities have had similar successful experiments in countries like Singapore specially in fields of technology. The franchise model of business has worked wonders in the food sector in India. laptop service franchise. Education Franchise . 2010 What did McDonald. Education franchising would bring better education to the people of India. Posted by Amit Nahar at 4:59 AM No comments: Recommend this on Google Labels: Agarw al. she is now becoming the future of the franchising sector as many marketers are just ogling at the women entrepreneurs as out of the box thinkers and a challenge for the male dominated society.Foreign Educational Institution Bill Posted on Tuesday. the bill would get acceptance in BJP and other sorted out parties and should get cleared without much ado. an instant brand recognition and invaluable assistance in terms of knowledge makes it an instant hit in booming economies like ours. If everything goes right in the next few months in the Parliament we may see the same franchise business model in the education sector as well. it aims at being a one-stop solution to offer quality service to laptops as well as provide the latest gadgets when it comes to laptop accessories.the hospitality industry for example. entrepreneurs. The bill. The education system in India in present times is raked by malpractices across all fields of study. fashion and other contemporary fast paced courses.blogspot.html 11/29 .1/28/13 The India Franchising Blog: March 2010 accessories. KFC. If Universities like the Harvard. club laptop. business for the local businessmen. computer service franchise. this Bill may change the attitude of the world. kapil sibal THURSDAY. alkesh. education franchising. The cabinet has cleared it and Kapil Sibal is confident that though parties like BSP. Hence. MARCH 18. Women in franchising business have got best opportunities to run business at their own pace and succeed in their own business. The dental chain with six centres in Chennai is looking at having a network of franchisee-operated clinics after it builds up the brand in all the four metros. Franchise For Women. The Indian Franchising sector. 2010 by Bhawna Satsangi Posted by Amit Nahar at 4:29 AM No comments: Recommend this on Google Labels: Body Care. One can also start the business with a minimum investment of Rs. women from all walks of life are attracting towards this model of business. which is estimated to be around Rs. MARCH 8. technologies and people selection is needed in healthcare more than any other business.000 only. training.000 crore is attracting lot of women entrepreneurs. VLCC. Body Care. franchiseinindia. former CEO of Apollo Health and Lifestyle and in-charge of the Apollo Clinics. Source:18.” he said. Gaurav Marya. Substantial involvement from the part of franchisor. ‘responsible franchising’ is a successful model for developing healthcare infrastructure. Oriflame. With my all other responsibilities of family I am happy to work for Avon where I am the boss of my own. The fairer sex is making a consistent move in the business.” lamented Asha. Be it housewife or a professional. Franchise India. are some of the franchise companies which is attracting lot of women to start their business. NIIT. According to Ratan Jalan. The franchisee doesn’t have to invest huge amount of money in the business. the franchisee brings in capital. According to Gaurav Marya. This is where franchising comes as a model for healthcare franchise to attract investments from non-medical investors. at least in the initial stages is crucial. Women Entrepreneurs. female franchises. “Currently. Talwalkars. Tupperw are. The business gives return from 15 to 20 per cent. Thanks to Franchising that has come as a boon for the housewives.” he said.10. V Vijayakumar. With the government policies becoming liberal for the business more and more women folks are entering this sector.” Tupperware. quality and focus. Apollo Hospitals is one among the pioneers to have sought franchisee model for its clinics. Talw alkars. etc. “Careful choice of franchisee and increased involvement of the franchisor. 2010 Hospitals take to franchising In India For Their Expansions Considering the huge investment needed for establishing the necessary healthcare infrastructure in the country.50. But the potential is huge as healthcare is a highly capital-intensive business.1/28/13 The India Franchising Blog: March 2010 “I have been associated with Avon from last two years and making handsome money in the business. However the earning of women in this sector has increased to four fold with the influence of the fellow competitors. a housewife. Oriflame.franchising is emerging as a viable option for hospitals to expand to newer geographies. the healthcare industry in India is short of one million beds and this requires a capital investment of $30 to $40 billion. VLCC. President. MD of V V Dentistree sees franchising as an option to replicate standardized protocols and practices in smaller towns. Franchise India Holdings believes. president of Franchise India. Mar. According to estimates. only five per cent of the hospitals in the private sector are franchisee-operated.blogspot. NIIT. Women Franchise MONDAY. besides financial resources. Less than 10 per cent of Apollo’s franchisees have any medical background. But they have a passion for healthcare. I do not have to give full time to the business. “The franchising business is considered to be the best and safest option for the women today.html 12/29 .. Presently the young brigade specially women aged between 18 to 45 years have got more potential to do the business and has got control over the buying and purchase decision of the product.in/2010_03_01_archive. local know-how and entrepreneurial enthusiasm to the business. Another advantage for the potential franchisee is the instant brand recall that he would get by associating with an established business brand. BetterThink. if a franchisee wants to exit the business within one year of start of operations. franchise business model. Education Franchise.html 13/29 . National Benchmarking Test (N. TCY is currently operating more than 32 franchisees across North India and is looking for partners in Haryana. also known as Top Careers and You.). Offers to refund 'License Fees' if the franchise doesn't take off. Franchising Model. Ludhiana. the publicity costs are also greatly reduced for the franchisee. VV Denstistree TCY adopts Franchise Fee Refunds After 1 Year If franchise Location does'nt work : Another Franchise Strategy To Woo Franchisees TCY Scouts For Business Partners.000 students from more than 1500 cities and town of India enrolled on it.blogspot. is one of India's most admired educational services providers in the education franchise industry." The two major initial outlays of starting a franchising business are the infrastructure costs and licensing fees.in/2010_03_01_archive. has coached more students than any other entity in India. Healthcare franchise. Himachal Pradesh and J&K. 2010. MARCH 5. In fact. TCY. Vijaykumar. franchise fee. March 8. Operating with a hybrid offline as well as online model. On the website. Gaurav Marya.TCY. the business head of franchising division of TCY said.1/28/13 The India Franchising Blog: March 2010 However. has unveiled a franchising model wherein a new franchisee enters the business with 'zero investment loss risk'. In the event of a franchisee location not working out. Punjab. has received rave reviews from schools across India. "Franchising is a proven and replicable business model but sometimes doubts remain in the mind of the potential franchisees. we will refund the entire licensing fees. Ratan Jalan. TCYonline. Franchise Business. Its English coaching arm. licensing fee. CMD of Dr Agarwal’s Eye Hospital finds that transferring the vision and ensuring the same-level of quality are major challenges in a franchising model. the company will refund the licensing fees while the infrastructure will remain with the franchisee. Apollo Hospitals. March 3 franchiseinindia. the education services company.B. franchising business. many franchisees that originally started out with one centre are operating multiple centres now. Dental Franchise. the website of the company has over 7. Apollo Clinics. Posted by Amit Nahar at 11:10 PM 2 comments: Recommend this on Google Labels: Agarw al's Eye Hospitals. 2010 Retailers Treading Carefully on Realty Deals and New Store Costs. The company is now offering a clause in the contract wherein a new franchisee can exit the business without having to bear the licensing fee costs. Bangalore. 50. Notes to Editor About TCY TCY. Since TCY bears all the advertisement costs. Top Careers and You FRIDAY. Posted by Amit Nahar at 10:46 PM No comments: Recommend this on Google Labels: Better Think.com. Aman Bansal. The company has been in the business for more than twelve years and has developed an efficient franchise business model which has proven to be robust and scalable. Dr Amar Agarwal.T. Offers 'Zero Investment Loss Risk' TCY is taking the risk out of franchising. students can take free tests from more than 50 categories. a school programme by the company. Franchise India. franchisee operated. TCY has carved out an identity in test preparation sector. With our new contractual clause. when valuations drove retailers' expansion plans. President. “Retailers will no longer sign rental agreements at terms which do not make commercial sense. “Mall developers now understand the retailers' profit and loss numbers and they have learnt to keep their cost down and expect return on their investment on the longer period.html 14/29 . says Mr Farook Mahmood. food retailer Spencer's rationalised its operations by closing down 150 stores in the last year and opening 35-40 stores because of high rentals and wrong locations.” Retailers. 2010 Budget 2010: What it brings to the franchise industry With most of the market signals remaining positive with Union Budget 2010-11. says Mr Sushil Mantri.blogspot.President.” Rentals and lease values have gone up by 10 per cent in cities like Mumbai with low inventories. In all it has been the budget has been moderately favorable for the franchise industry. “The situation has changed from realtors' yesterday to retailers' tomorrow. developers assess the retailers' track-record and the value-addition they would bring to their malls. SportXS.Morover service tax on rental proceed further makes deters the profitable feasibility. Singhal. However. Bangalore. Managing Director.. challenges remain. March 3 Posted by Amit Nahar at 10:59 PM No comments: Recommend this on Google Labels: Arvind Singhal. retailers are now toning down their expansion plans.” Unlike the pre-slowdown period. Presently both service tax as well as VAT are imposed upon the franchise services which distorts the franchise model completely. However the long impending demand of abolishing dual taxation on the franchise services has been clearly ignored by the policy makers. Silverline Realty. Sushil Mantri. Franchise India. a sports gear retailing outlet.” says Mr Arvind K. MARCH 4. critical retail brands are also demanding that spaceowners ship in with them in doing up store interiors. says Mr Gaurav Marya. adding. Similarly. TTK Prestige THURSDAY. ended up opening stores of wrong sizes. imposing service franchiseinindia. consumer is happy being at the center stage of consumption story and is in a better position than a year ago. while retailers look at business sustainability. Mantri Developers. Chief Executive Officer. Chairman and Managing Director. with retailers focusing more sharply on the cost of retail space. Franchise India Holdings. Read on to know what is in platter for for the SMEs and franchise industry. have learnt their lesson and therefore will not pay more than what their business model can support. Retailers. For instance. While increased income tax exemption limits will certainly boost consumption. Farook Mahmood.1/28/13 The India Franchising Blog: March 2010 The first signs of a receding recession is being reflected in retailers getting back their bargaining power in realty deals even though they are still taking a longer time to close. adds Mr Zahir Laliwala. Gaurav Marya . “Both retailers and developers (mall-owners) have become cautious in their approach. Silverline Realty. This is in contrast to a situation couple of years ago when retailers would “rush” to occupy any available space. then. Also. Smart Kitchens. On the other hand. lifestyle retailer The Bombay Store opted for expansion through mid-sized stores instead of larger ones. Technopak. Chairman. Gaurav Marya. Technopak. which has two malls in Bangalore. 2010 would see more realism.. A positive GST outlook by government and rise in threshold for tax compliances has been seen as a very positive move by the franchise industry. Franchise India Holding Ltd shares’’ The budget 201011 brings a reasonable assortment for small retailers as well as franchisors.in/2010_03_01_archive. who expanded because competition did. real estate deals have again become long and protracted. Franchise industry has been looking forward several regulatory as well as policy reforms to facilitates its growth. SportsXS. Mantri Developers. a management consultancy firm. while consumer durable company TTK Prestige shut down or relocated 50 Smart Kitchen stores. For per sq ft efficiency. This is a disappointment since this is the first step towards reforming the sector and organising the highly unorganised sector. it also demands a favorable ecosystem which can be realized by necessary monetary policy reforms. Franchise Industry. However. Further. The threshold earlier was only 40 lacs. Accretive Global stated that the budget has both the shades of gray and white for the franchise industry he further explains detail implications The good news No change in service tax rates and the same continues at 10. the franchisee in this sector could claim credits of service tax paid on various input services such as renting of immovable property and franchisee fee which is currently adding to the cost of the operations. franchise model. The judgment of the Delhi High Court in the case of Home Solutions Retail is negated by making mere renting of immovable property liable to service tax. if carefully managed. The frequency of remittance of central excise is extended to quarterly basis from the current scheme of monthly payments for units operating under the SSI Scheme. The institute. Chariman.blogspot. Posted by Amit Nahar at 11:32 PM No comments: Recommend this on Google Labels: business models. MARCH 2. As a welcome step.' According to D P S Kohli.in/2010_03_01_archive.” Small businesses stand benefited on account of lower direct tax compliance costs. As the franchise industry brings with its surge innovative new franchise business models to tap the potential of Indian consumption. which was acquired by IT training and education major Aptech in January franchiseinindia.1/28/13 The India Franchising Blog: March 2010 tax on rental property distorts retail business models by making the accessibility of retail spaces precipitously expensive. the FM has retained the CST at 2 per cent and the base rate of excise is increased from 8 per cent to 10 per cent. This would provide the necessary boost to consumer’s spending a pre-requisite to unleash the true growth momentum of the retail sector. small businesses with turnover/receipts lower than 60 lacs can also choose to be covered by the presumptive tax system. Franchise Business. watches and garments imported in pre-packed condition for retail sale. ‘Overall. This is likely to increase the cost of healthcare services.3 per cent. franchise fee. franchise services. Koutons Retail India Ltd. The FM in his budget speech states that this proposal is “to maintain the growth momentum and also to bring about a convergence in the rates of tax on goods and services.html 15/29 . In addition. reduction of surcharge on domestic companies that the finance minister has announced is sure to accelerate the expansion plans for the retail players at home. The hike in the excise duty is also not favorable for us since this might directly affect the quality of production. Further. exemption from 4 per cent special additional duty of customs is granted to mobile phones. 2010 MAAC to add 30 training centres by March 2011 3D animation and visual arts trainer Maya Academy of Advanced Cinematics (MAAC) plans to add 30 centres by March next year. much against the industry expectations. hence making it unviable to sustain profitably. Franchise India. healthcare services. However. kuotons. New tax slabs and rates have been introduced which would offer 60 per cent relief to the tax payers providing them with greater disposable income. it has been a mixed budget for us. Director. Badrinath. The threshold for having the accounts audited for tax has been increased from 40 lacs to 60 lacs. The not so good news The FM has retrospectively amended the provisions relating to levy of service tax on renting of immovable property. new franchise TUESDAY. This could reduce the net price impact for the end consumer. The FM has extended service-tax on health check-up services provided to employees of a business-entity or persons covered under health-insurance-schemes if such payment is made by the business entity or insurance company. industry status continues to delude the retail sector. franchisee. With our propreitory index. Maac Franchise. annual exercise initiated.entrepreneur of today complements the core Indian values of respect.Training Franchise. Silvio Zannoni. maya academy of advanced cinematics. leaving behind a lot of more important parameters. Since. one of the investors in Maverick Franchise Ventures. Aptech." MAAC Vice-President and Head (Sales) Kuldeep Pareek told PTI. We already have 70 centres. MAAC would be merged with Aptech.IT Franchises. Aptech. franchisee profitability and success ratios. Source:Press Trust of India / New Delhi March 02. Founder of MFV India said. maya.Animation Franchise. these franchisee . at present. we will definitely see us increase our market share in India as well. Here is how we compile this mega-list--the first. that prefer to speak over the telephone are not asked for their identity or location. Computer Franchise. kuldeep pareek.html 16/29 .com has been quite successful in helping us launch unique-first initiatives like the India Franchise Rankings. 13:44 IST Posted by Amit Nahar at 2:00 AM No comments: Recommend this on Google Labels: animation franchise. Franchising shapes the lives of 85.1/28/13 The India Franchising Blog: March 2010 this year for Rs 76 crore. The franchisee . no. within their family. 'We are pleased to launch the inaugural India Franchise Rankings 2010. MAAC would continue as a separate brand. Speaking on this occasion. on this occasion said that. freedom and hard work. the MFV India Team has been constantly examining franchisors and confidentially surveying franchisees.000 Plus Franchisees across India. Training Franchise Top 100 Franchise In India: India Franchise Rankings Maverick Franchise Brands launches India Franchise Rankings 2010 Inaugural India Franchise Rankings. MFV India decided to salute these 'solid gold franchisors' and acknowledge their contribution to the Indian Economy.blogspot. 2010.Computer Franchise. Today's franchisees and businessmen are always on the lookout for franchise and business opportunities. IT Franchises. Some of them. of franchisee locations closed. but are not aware of various companies. "We are planning to add 30 centres by March 2011 to strengthen our presence across tier I and II cities.in/2010_03_01_archive. Asked if post-acquisition. franchisees receive codes for confidentiality. Participation in the franchisee’s surveys is anonymous.MAAC. The process began in November 2009. November 2009. we have developed a methodology for evaluating and assessing India's leading franchise companies'. India Franchise Rankings 2010 is an annual exercise aimed at encouraging franchise companies. best and most comprehensive franchise ranking in India. Considering the undividable association of celebration and entrepreneurship. none of them have the a clear methodology on the basis of which they are ranked. Similar to our online franchise portal in Italy. 'Our Partnership with Way2Franchise. that. has 70 centres across 40 cities.awards to honour the achievements and the entrepreneurial spirit of Indian franchisors. a first of its kind. when we asked franchisors to participate in this franchiseinindia. Maverick Franchise Ventures (MFV India) announced the launch of the first-of-its kind 'India Franchise Rankings 2010'. Mumbai. Despite there being several initiatives to award franchise brands. Dhawal Shah.Maya.entrepreneurs transform and mould the franchise system and spreads the same entrepreneurial idea. The current awards gauge franchise recruitment progress and is where number and expansion driven. of which five are company-owned and rest through franchise." Tags:Education Franchise. India 2nd March 2010: With an aim to encourage and promote best practices in franchising in India. Pareek said: "There would be a dual branding strategy and the students would have the choice of joining either. Of those. start-up costs. We also consider the number of years a company has been in business and the length of time it's been franchising. quantifiable measures of a franchise operation. and whether the company provides financing.html 17/29 . All the factors are plugged into our proprietary methodology. The 100 franchises with the highest cumulative scores become the India Franchise 100. Each submission was vetted before being entered for data analysis.1/28/13 The India Franchising Blog: March 2010 year's survey. with each eligible company receiving a cumulative score.blogspot. with 164 companies making the first cut. percentage of terminations. 'India Franchise Rankings is a much needed initiative that will benefit everyone in the franchise industry in India as well as provide foreign franchisors with a fair idea about the performance of the Indian franchise industry' All companies. Remember that the India Franchise 100 is not intended to endorse. MFV India stresses that you should always conduct your own independent investigation before investing money in a franchise. advertise or recommend any particular franchise. The most important factors include financial strength and stability. based on franchisee satisfaction and profitability. The winners of the inaugural annual India Franchise Rankings 2010 Competition honoring excellence in franchising are: 1 Raymonds 2 Angel 3 Subway 4 Eurokids 5 NIIT 6 Helen O Grady 7 Siyarams 8 Aptech Computer Education 9 Coffee Day Xpress 10 Reliance Money 11 Koutons 12 Career Launcher 13 TIME 14 Motilal Oswal 15 Institute of Management Studies 16 Spykar Jeans 17 Max Mind Abacus 18 Kwality Walls 19 Bachpan Play School 20 Levis franchiseinindia. Geetanjali Mehlwal. regardless of size.in/2010_03_01_archive. growth rate and size of the system. a legal expert and an experienced franchise veteran said that. are judged by the same criteria: objective. It is solely a research tool you can use to compare franchise operations. the top 100 companies made the Franchise 100 ranking. 1/28/13 21 ICICI Securities 22 Animaster 23 N Power 24 The Apollo Clinic 25 VETA 26 Jawed Habib Hair Xpreso 27 Podar Happy Kids 28 Golds Gym 29 Cartridge World 30 Easy Bill 31 Sharekhan 32 Suvidha 33 Academy Of Broadcasting 34 Flair English 35 India Infoline 36 Karrox 37 Snap Fitness 38 Srinathjis 39 Way2Wealth 40 Abacus Mental Mathematics Academy 41 US Dollar Store 42 Texas Chicken 43 US Pizza 44 K Lounge 45 Sykes and Ray Equities 46 Fashion and I 47 Sarva Jal 48 The Loot Store 49 VLCC 50 Institute of Computer Accountants 51 English Express 52 Sykes and Ray Equities 53 Remax 54 Go Chaatz 55 iPlayiLearn The India Franchising Blog: March 2010 franchiseinindia.html 18/29 .in/2010_03_01_archive.blogspot. Kumars) 63 Animation Traning School (ANTS) 64 Oxford Book Store 65 Zapak Gameplex 66 Time Zone India 67 Frameboxx 68 Castol Bike Zone 69 Tanclean 70 SVK Institute of Management 71 Pizza Corner 72 Re-Feel 73 Jetking Infotrain 74 Ideal Play Abacus (IPA) 75 Comfort Securities 76 Sagar Ratna 77 Sykes and Ray Equities 78 Mahindra First Choice 79 Zee Institute of Creative Arts 80 Russell's Institute of English 81 Geetanjali Group 82 Dandy Collection 83 Adidas 84 Kaati Zone 85 Gini and Jony 86 Kidzee 87 REBI 88 Baskin Robbins 89 Java Green The India Franchising Blog: March 2010 franchiseinindia.blogspot.html 19/29 .in/2010_03_01_archive.1/28/13 56 LJ Hooker 57 Avalon 58 Ace Tours and Travels 59 Clipso beauty School 60 Jumbo King Foods 61 Desk to Desk Couriers (DTDC) 62 Belmonte Apparel (S. Posted by Amit Nahar at 12:42 AM 3 comments: Recommend this on Google Labels: Best Franchises. According to the figure.1/28/13 90 Slice of Italy 91 ABC Montessori 92 Western Union Money Transfer 93 Multi Utility Solutions 94 Appin Knowledge Solutions 95 Talwalkar's Gyms 96 Ventura Securities 97 Reebok 98 Sharkey's Cuts for Kids 99 Tropical Sno 100 Vichare Couriers The India Franchising Blog: March 2010 Legal Disclaimer: Before making any commitment. including consequential losses and any failure of business which may result from the use of this information or the use of or reliance on data contained in it. franchise directory. top franchises MONDAY. mature business systems are yet to be developed in terms of redesigning the whole process of starting a business which ideally should be a seamless process. India has presented a curious case as entrepreneurial activity here always had its own implication. As a result. india franchise rankings 2010. discuss the franchise opportunity with any other franchisees and take appropriate professional advice from an experienced franchise consultant. Franchising as an entrepreneurial route is extremely interesting and successful. or paying any money. it is essential that prospective buyers make their own careful enquiries. However.blogspot. the Indian market is testing waters in terms of readiness for newer business concepts and formats. Franchising paves way to entrepreneurship The magnitude as well as the future potential that Indian domestic consumption exhibit makes it an attractive destination for investments. MARCH 1. Moreover. liberalisation and market openings have facilitated the business dynamics to become more conducive for entrepreneurial activity. Unfortunately. Yet the investments. statistical trends give a wider perspective of the potential of the Indian market. 2010 Franchise Industry Reforms Road Map : A Wish List to Govt Of India. The acceptability of franchising has been quite prolific amongst Indian business minds.in/2010_03_01_archive. in India the burden of regulatory procedures as well as processes makes it strenuous for the entrepreneurs as well as innovators. 90 per cent of the franchiseinindia. There has been a positive entrepreneurial activity in the business environment which is extremely important as the economic studies have repeatedly proven that innovation as well as entrepreneurship can propel the fiscal machinery of the nation. Franchise List. Firstly. franchise companies. most of the entrepreneurial activity is reduced to low involvement as well as low risk models. It has been observed that 90 per cent of start ups fail in the first year of their inception. There are many reasons for it.html 20/29 . new franchise. costs and expenses. Presently. India's Top Franchise Companies. both domestic as well as international have had always taken a conservative pace.we ar any of our sponsors or endorsers or related companies will be responsible or liable for losses. franchise brands. Pave way to FDI reforms Historically. merit and strength). Ratan Jalan. "Assuming that the current sectoral limit remains unchanged. "The need of the hour is that the Indian franchising be formally recognised as an industry. In addition. especially in a capital constrained market like India.1/28/13 The India Franchising Blog: March 2010 franchising ventures have a huge probability of success. The importance of the franchising process is reflected in the retail and industries where nearly every retailer (in malls) and every major restaurant are franchisees of international as well as major national chains. Lack of appropriate format for franchising agreements can have far fetching impact on the Industry. although. In the forthcoming budget. retail. technology as well as business know-how from the developed countries. This would have mammoth implications in terms of perception that overseas market carry about Indian franchisors and franchising products / services and bestow credibility (which. Medium Healthcare Consulting Pvt. but score out heavily in terms of resource deployment and hence are able to reap away most of the benefit. Ltd recommends.html 21/29 . manufacturing or service sectors. Sonali Dey. property. as any developing country seeks investment. the demographic variables make this expansion a risky proposition. which would propel the action plan and processes of the industry and set the ball rolling. SouthEast Asia. taxation. due to lack of Government sanctity currently rests mostly on private players who have forayed abroad on their own grit. labor. in terms of knowledge of local preferences and delivery mechanism.in/2010_03_01_archive. Industry status to franchising India is an attractive market for franchising. it would be pertinent for the Government to ease borrowing for players interested to open outlets for these international players. Managing Director. The expanded market size seeks deeper as well as broader market penetration. franchising is very well accepted and is entrenched deeply within USA. However. This however is just the tip of the iceberg." Currently. Granting legitimacy would not only put an end to the shadow war but also make the world wake up to the fact that Indian policy makers are serious about the franchising business. This attracts many investors to invest in proven business models and concepts which involve less risk as well. there are a number of laws that affect the franchisor-franchisee relationship. "The expected foreign investment reform in the forthcoming budget is likely to encourage international players to enter the Indian market. The franchise industry in India is currently an anonymous contributor to the country's economy. may be brought under the automatic route. Western Europe. which is not favourable for a sustainable growth. As Arun Khetan. There are restrictions on payment of royalties if it is a technical collaboration agreement between the foreign master franchisor and Indian master franchisee. South Africa. FDI up to 51 per cent. Foreign investments have repeatedly done wonders in turning the market game around as it tends to make markets more competitive for IT. Hence." Improved legal and regulatory framework While India has no specific legislation regulating franchise arrangements. that would have a cascading effect on all the interfaces that are related to it either directly or indirectly. Intellectual property. Also. the Government would need to address some of these issues also in addition to the foreign investment reforms. The New Age Knowledge Solutions (NAKS) explains. the prevailing ambiguity over FIIs should be clarified. A limit of 51 per cent on foreign investment in retail has brought in a lot of innovation in the market. International investors have always come up with India-centric policies. which are much new to the Indian turf. Indian policy makers had been skeptical about Foreign Direct Investment or FDI. competition." He further adds . Fox & Mandal shares." The policy makers must recognise the fact that this is a format segment that cuts across all the industries and that its presence in the Indian backdrop is real. and exchange control regulations all influence franchising. Dey agrees it is seen several times that due to absence of any franchiseinindia. "The status will not only have a detrimental impact on further proliferation of franchising but will also deprive excellent local brands the opportunities to come up with products/services that are of relatively superior value proposition compared to many foreign brands. franchising in the Indian market becomes much more intricate rather than just being a low capital expansion mode.blogspot. Internationally. India. there are also restrictions on the number of shares a foreign company or person can hold in an Indian company if the joint venture option is considered. there is a lot more to franchising than the apparent. Founder and Principal Consultant. Khetan agrees. Credit is a major hurdle in the growth of franchising obtaining capital to finance single or multi-unit operations has been relatively difficult for franchisee entrepreneurs. to make certain disclosures to the prospective franchisee. it is seen that most of the times the franchisees do not have much bargaining/negotiating capacity in front of the giant franchisors. Product franchising is a mode of product distribution. it is important that the government makes a special budgetary allocation to franchising businesses in its SME finance allocated to the financial institutions. Managing Director & CEO of Aptech Ltd recommends that a lot more effort is required to institutionalise the funding infrastructure.S. This will ensure transparency. the mechanism for financing the franchise formats has not evolved. Indian franchisor is subjected to dual taxation of service tax and sales tax.06. This is a sad state and would be addressed immediately once the Government confers franchising with industry status. A franchisor should be required by law. In view of the circumstance. however in a franchise operation the implication franchiseinindia. Countries with specific franchising legislations or guidelines make it mandatory for parties to a franchise agreement to disclose certain factual information pertaining to their businesses. it may be advisable if the Government frames certain guidelines taking care of the needs and concerns of both the franchisors and franchisees. via details regarding pending litigation and bankruptcy history.in/2010_03_01_archive. However. franchisors prefer to give product outright basis with advance billing rather than on consignment basis and also prefer to call their partners dealers instead of franchisees to avoid the service tax accrual. there is VAT applicability. particularly in United States. service tax is payable on the gross amount charged by the franchisor from the franchisee in relation to franchise. U. Today. franchisors tend to follow formats which are approved or followed in other countries. the taxes are nonetheless critical. However. Industry believes that as the risk involved in a franchise business model is optimised to a large extent. To avoid a dual tax liability. a prospective franchisee is rendered helpless as the franchisor is under no statutory obligations to make disclosures.2003. In India. banks must offer an easy interest rate. Small Business Administration (SBA) financing has played a significant role in helping new or small operators secure the necessary capital to start or acquire franchise units. The SBA and its sponsored loan programs are one of the best sources of capital to open a start-up franchise unit or purchase an existing resale unit for small-business franchise operators that would otherwise experience difficulties in qualifying for conventional financing or loans.html 22/29 . in the absence of any such Government guideline. which dampen the entrepreneurship of the small businesses.5 million units respectively covering almost 75 per cent of the SME sector. financial position. from cost price to sales price.blogspot.1/28/13 The India Franchising Blog: March 2010 franchising laws or any Government guidelines in India. etc. The final burden of the service tax is passed on to the franchisee. There are 35 million SMB units in India of which retail sector constitutes 18 million units and service sector has 9. No more than five per cent of the entire franchise financing requirement in India is met by financial institutions. franchisors are liable to pay service tax on franchise service given to the franchisee. Ninad Kapre. as the franchisor is unable to forgo his share of franchise fees. Adding further. While. Also. Internationally. Facilitate an industry centric credit infrastructure New-age small and medium businesses in India are seeing a transition from manufacturing to the service industry. As new unit franchisees. In order to bring an orderly growth in these sectors." Remove dual taxation policy on the franchise systems Under Notification No. growth in 2010 is expected to be 40 per cent. The implementation triggers a lot of impact on the operationalisation of the format. the definition of franchise services flawlessly comprehends the scope of the business activity. as the banks don't render industry specific funding options due to lack of knowledge. 7/2003 dated 20. she said that it is important to have mandatory disclosure requirements. A sound mechanism of franchising funding is hence very essential as non-availability of third party guarantee often proves to be a hurdle to obtain required funds. Franchising has been responsible for bringing structural growth and modernising the formats in both the service and retail-based small businesses. At the same time. Therefore. "The current ambiguity in the Government's policy guidelines with respect to the franchising industry has left the franchisor and the franchisees at the mercy of the bankers /financial institutions that use their discretion to interpret and regulate the funding propositions from the franchising industry and are quite passive in their response towards franchising as a business model. Shubhranshu Pani. retail franchisors are shying to term themselves as franchisors and have diluted the business practices which are fundamental to the success of franchising format. Badrinath. the Government should use this budget to align the rates of taxes towards the proposed GST rates. In this context." Service tax on rentals should be avoided Real estate has become one of the most important aspects of franchise preposition or for that matter a retail success. The GST implementation should be robust to involve the extended industries. suggests. but for services. Franchisee of Catmoss based in Sarojani Nagar New Delhi says. Supply chain efficiencies will further support this phenomenon. Lack of structured industry specific measures prevent the business to avail industry appropriate benefits. Accretive Business Consulting. service franchising may be less lucrative. and coverage of tax may rise resulting in higher prices. "For the franchise industry to thrive successfully. an Archies Franchisee based in Ranchi says. it should indicate the roadmap for the publishing of draft laws and constitutional changes required thereto'. Further. Director. Since GST is not just VAT plus service tax but an improvement over the previous VAT and disjointed service tax. "The applicability of service tax on rentals should be clarified. rentals being one of major expenditures. the tax incidence will come down in case of goods. Over the last few years. "The industry is hopeful that implementation of GST will be breather for the retail. the existing rate is more than 20 per cent. Director.1/28/13 The India Franchising Blog: March 2010 of these taxes are not justified and commonly led to situation where franchisors particularly. For goods.3 per cent since GST is expected to be in the range of 1216 per cent. Cartridge World Franchise voices the same and says. but also other sectors like software are facing a negative impact for the same. Agreeing to the point Akhil Chaturvedi. Tax experts are of the view that this budget is crucial for implementation of a comprehensive as well as flawless implementation of GST nation-wide to enable the economy to become more competitive. rent and commission. cash flow as well as margin perspective` This would be a relief for a margin centric business like retail. Jones Lang Lasalle Meghraj recommended that pertaining service tax on the rentals should be clarified and freed from existing ambiguity. complicates the franchisee-franchisor relationship. In the retail sector. said that the dual taxation status needs to be resolved.blogspot. Badrinath adds. the existing rate is 10. This has not only added to the cost of operations. Jalan explains. it would be good if the Supreme Court could hear the case and provide the ruling at the earliest. the incidence.in/2010_03_01_archive.html 23/29 . Ninad Kapre. MD. There is a strong opposition from the franchisees as the franchise system in India is yet to reach a mature stage and hence the tax policy must facilitate the format to become more competitive. Both franchisors as well franchisees across sectors believe that franchise services should not be liable to service tax. in addition." franchiseinindia. also believes that there should be a simple tax structure which is implemented in a fair and transparent manner. a 10. not only retail. "In case of services. the whole magnitude of the franchising industry is often misinterpreted. the prices may rise in the services segment due to the rising tax burden. The rental lease cost could be a significant contributor to the franchisee's running cost. Retail Services. but also has put the sector at cross roads. application of a uniform GST. every tenant will now pay service tax equivalent to six weeks of rent. and also make the legal framework more tedious. Government should understand the franchise concept is unique in the way that the most of the resources involved are invested by the franchisee. "Service tax should be abolished as the franchisees pay full VAT and hence dual taxation should be avoided.30 per cent. With service tax plus education cess at 10." This being the last budget to be presented before the proposed implementation of GST. the business practices that emerged further. Baba Chandok. for the franchise industry. "Service taxes causes unnecessary burden on the franchise service formats and cause operational hurdles. Among others. Thus. The industry seeks abolition of service tax on the rental leases.30 per cent of rent therefore is significant from both. Chander. Introduction of a flawless GST Eliminating the current system of dual taxation." Sharing the same view. will have its own implications." Badrinath. Provogue (India) Limited says. Sharing his views Kundan Kashyap. there has been an increasing tendency to indiscriminately levy tax on contracts rather than tax on services. Further." With the verdict of Delhi High Court in case of home retail already being challenged by the Central Government. this is also the last instrument for the Government to step ahead to align itself with GST implementation. it would require the abolition of service tax currently levied on transportation. " Conclusion: The future of Indian retail markets seek organised and innovative business formats to ensure scalability which healthy franchise practices can facilitate. the cost of tax in the supply chain is envisaged to be reduced. therefore. "For example. Franchising has been a significant organiser as well as facilitator of small and medium businesses across industry verticals. Hence. in the previous budget and thereafter. "Tax structure needs to be much more integrated with a long term approach. the franchisee must be able to derive maximum benefit so that the same could be passed on to the end users. which incidentally includes a new breed of Indian entrepreneurs. This would contribute in reducing the effective cost of inter-state purchase of goods and also in keeping the inflation at current levels. policy makers are yet to deliver a conducive eco-system for the growth of the franchise community. "While there are much deliberations happening around the withdrawal of the stimulus granted in form of reduction in central excise and service tax rates. the overall growth from 2008 to 2010 does not appear impressive since the year 2009 was a slump. the individual service provider is not exempt from the Service Tax Registration and payment if he/she is a franchisee where the turnover of the franchisor is above the exemption limit (currently Rs 10 lakh). the cumulative impact of withdrawal of stimulus (added costs) and reduction in supply chain tax cost (benefit) is believed to be mitigated by the businesses. but seems highly dual and confused policy for education and indirectly leads in suppressing the growth of education at some point in the value chain. While. Replication of structured business practices through franchising has contributed significantly in bringing a large number of business units under the tax net." Withdrawal of stimulus Badrinath adds. Abolition of CST Badrinath adds. the tax structure is certainly not conducive for a robust franchise environment. With the union budget 2010-11. such rationale is fine for consumer goods. Thus. "In terms of the initial agenda of the Central Government. It would be good for the Government to reduce the CST to one per cent and ultimately move towards a complete abolition with the introduction of GST according to the expectation of the industry. if not reduce. It could be withdrawn as part of the GST implementation. With the implementation of GST. Hence. It is worthwhile to note that with the support of the Government. A composite scheme involving a threshold exemption of Rs 50 lakh is proposed by the industry. the franchise industry's budget expectations would facilitate the necessary reforms and enable the sector to take the next big leap. It is but natural that the franchisor's turnover for the entire year would exceed this and as a consequence. An intricate framework of legal policies supported by transparent tax policies as well as robust funding institutions is sought by the industry. but still continues at two per cent. the policymakers must bring about industry centric reforms to unlock the potential of the SME. collect the service tax from students and deposit the same to the Government. with the inflation rate continuously rising.in/2010_03_01_archive." Speaking on the issue of a structured taxation policy for franchising Arun Khetan explains. in education franchising. the stimulus should ideally be continued and help the industry completely recover from the recession.html 24/29 . the businesses have demonstrated their strength to survive the recession and shown a positive trend as a year-on-year performance.1/28/13 The India Franchising Blog: March 2010 Introduction of composite scheme for threshold exemption Currently. thus galvanising the evolution of organised markets. Further. impact the growth of retail business. Withdrawal of stimulus could result in high service cost and goods and thereby. However. it does not again appear to be the right time for withdrawal of stimulus. even if their individual turnover does not reach the exemption threshold have to get registration with service tax department. a composite scheme for small business is the need of the industry to reduce the cost of compliance and hence encourage entrepreneurship. As a SME. CST was to be zero rated effective 1-4-07. this does not appear to be the right time to withdraw the same. Franchising paves way to entrepreneurship franchiseinindia. all the franchisees.blogspot. While the performance from 2009 to 2010 is positive and growing. merit and strength). especially in a capital constrained market like India. the definition of franchise services flawlessly comprehends the scope of the business activity. Indian franchisor is subjected to dual taxation of service tax and sales tax. liberalisation and market openings have facilitated the business dynamics to become more conducive for entrepreneurial activity. Managing Director. India has presented a curious case as entrepreneurial activity here always had its own implication. both domestic as well as international have had always taken a conservative pace. there is VAT applicability. which are much new to the Indian turf. franchising in the Indian market becomes much more intricate rather than just being a low capital expansion mode. Franchising as an entrepreneurial route is extremely interesting and successful. due to lack of Government sanctity currently rests mostly on private players who have forayed abroad on their own grit.1/28/13 The India Franchising Blog: March 2010 The magnitude as well as the future potential that Indian domestic consumption exhibit makes it an attractive destination for investments. This attracts many investors to invest in proven business models and concepts which involve less risk as well. There are many reasons for it." The policy makers must recognise the fact that this is a format segment that cuts across all the industries and that its presence in the Indian backdrop is real. The New Age Knowledge Solutions (NAKS) explains. Yet the investments. retail. there is a lot more to franchising than the apparent. However. that would have a cascading effect on all the interfaces that are related to it either directly or indirectly. As a result. Granting legitimacy would not only put an end to the shadow war but also make the world wake up to the fact that Indian policy makers are serious about the franchising business. However. This would have mammoth implications in terms of perception that overseas market carry about Indian franchisors and franchising products / services and bestow credibility (which. The implementation triggers a lot of impact on the operationalisation of the format. which is not favourable for a sustainable growth.blogspot. which would propel the action plan and processes of the industry and set the ball rolling. manufacturing or service sectors. most of the entrepreneurial activity is reduced to low involvement as well as low risk models. The expanded market size seeks deeper as well as broader market penetration. Unfortunately. Presently. although. in India the burden of regulatory procedures as well as processes makes it strenuous for the entrepreneurs as well as innovators. "The status will not only have a detrimental impact on further proliferation of franchising but will also deprive excellent local brands the opportunities to come up with products/services that are of relatively superior value proposition compared to many foreign brands. It has been observed that 90 per cent of start -ups fail in the first year of their inception. Product franchising is a mode of product distribution.html 25/29 . Moreover." He further adds . Industry status to franchising India is an attractive market for franchising. as any developing country seeks investment. 7/2003 dated 20. service tax is payable on the gross amount charged by the franchisor from the franchisee in relation to franchise. India. Remove dual taxation policy on the franchise systems Under Notification No. Today. statistical trends give a wider perspective of the potential of the Indian market. Therefore. There has been a positive entrepreneurial activity in the business environment which is extremely important as the economic studies have repeatedly proven that innovation as well as entrepreneurship can propel the fiscal machinery of the nation.06. from cost price to sales price. However. "The need of the hour is that the Indian franchising be formally recognised as an industry. The franchise industry in India is currently an anonymous contributor to the country's economy. Foreign investments have repeatedly done wonders in turning the market game around as it tends to make markets more competitive for IT. 90 per cent of the franchising ventures have a huge probability of success. Firstly. franchisors are liable to pay service tax on franchiseinindia.Khetan. This however is just the tip of the iceberg. At the same time. As Arun. the demographic variables make this expansion a risky proposition.2003. According to the figure. technology as well as business know-how from the developed countries. the Indian market is testing waters in terms of readiness for newer business concepts and formats. mature business systems are yet to be developed in terms of redesigning the whole process of starting a business which ideally should be a seamless process.in/2010_03_01_archive. The acceptability of franchising has been quite prolific amongst Indian business minds. in terms of knowledge of local preferences and delivery mechanism. but score out heavily in terms of resource deployment and hence are able to reap away most of the benefit. Also. the prices may rise in the services segment due to the rising tax burden. Tax experts are of the view that this budget is crucial for implementation of a comprehensive as well as flawless implementation of GST nation-wide to enable the economy to become more competitive. In this context. said that the dual taxation status needs to be resolved. The final burden of the service tax is passed on to the franchisee. The GST implementation should be robust to involve the extended industries. a 10. Government should understand the franchise concept is unique in the way that the most of the resources involved are invested by the franchisee. retail franchisors are shying to term themselves as franchisors and have diluted the business practices which are fundamental to the success of franchising format. in addition. but also other sectors like software are facing a negative impact for the same. With service tax plus education cess at 10. Further. there has been an increasing tendency to indiscriminately levy tax on contracts rather than tax on services. but for services. Ninad Kapre. for the franchise industry. not only retail. every tenant will now pay service tax equivalent to six weeks of rent. Supply chain efficiencies will further support this phenomenon. Shubhranshu Pani.30 per cent. and coverage of tax may rise resulting in higher prices. While. Chander. and also make the legal framework more tedious.html 26/29 ." franchiseinindia. the existing rate is more than 20 per cent. Sharing his views Kundan Kashyap." Service tax on rentals should be avoided Real estate has become one of the most important aspects of franchise preposition or for that matter a retail success. as the franchisor is unable to forgo his share of franchise fees. Jalan explains.3 per cent since GST is expected to be in the range of 1216 per cent. Lack of structured industry specific measures prevent the business to avail industry appropriate benefits. Provogue (India) Limited says. the tax incidence will come down in case of goods. "For the franchise industry to thrive successfully.blogspot. the business practices that emerged further. This has not only added to the cost of operations.in/2010_03_01_archive. application of a uniform GST. To avoid a dual tax liability. suggests. "In case of services. rent and commission. complicates the franchisee-franchisor relationship. Retail Services. the existing rate is 10. Jones Lang Lasalle Meghraj recommended that pertaining service tax on the rentals should be clarified and freed from existing ambiguity. Agreeing to the point Akhil Chaturvedi. The rental lease cost could be a significant contributor to the franchisee's running cost. it would be good if the Supreme Court could hear the case and provide the ruling at the earliest. There is a strong opposition from the franchisees as the franchise system in India is yet to reach a mature stage and hence the tax policy must facilitate the format to become more competitive. "Service tax should be abolished as the franchisees pay full VAT and hence dual taxation should be avoided. but also has put the sector at cross roads. the incidence. Accretive Business Consulting. Since GST is not just VAT plus service tax but an improvement over the previous VAT and disjointed service tax. The industry seeks abolition of service tax on the rental leases. Introduction of a flawless GST Eliminating the current system of dual taxation. service franchising may be less lucrative. however in a franchise operation the implication of these taxes are not justified and commonly led to situation where franchisors particularly. also believes that there should be a simple tax structure which is implemented in a fair and transparent manner.1/28/13 The India Franchising Blog: March 2010 franchise service given to the franchisee. For goods. Thus. the whole magnitude of the franchising industry is often misinterpreted. "The applicability of service tax on rentals should be clarified." Badrinath. Both franchisors as well franchisees across sectors believe that franchise services should not be liable to service tax. Director. the taxes are nonetheless critical. will have its own implications.30 per cent of rent therefore is significant from both. Over the last few years. MD." Sharing the same view. "Service taxes causes unnecessary burden on the franchise service formats and cause operational hurdles. franchisors prefer to give product outright basis with advance billing rather than on consignment basis and also prefer to call their partners dealers instead of franchisees to avoid the service tax accrual. cash flow as well as margin perspective` This would be a relief for a margin centric business like retail. it would require the abolition of service tax currently levied on transportation. an Archies Franchisee based in Ranchi says. Director. In the retail sector. Franchisee of Catmoss based in Sarojani Nagar New Delhi says. Badrinath." With the verdict of Delhi High Court in case of home retail already being challenged by the Central Government. which dampen the entrepreneurship of the small businesses. rentals being one of major expenditures. in/2010_03_01_archive. Franchisee. Intellectual property. in education franchising. "Tax structure needs to be much more integrated with a long term approach. It is but natural that the franchisor's turnover for the entire year would exceed this and as a consequence. via details regarding pending litigation and bankruptcy history. it should indicate the roadmap for the publishing of draft laws and constitutional changes required thereto'. In India. "For example. it is important that the government makes a special budgetary allocation to franchising businesses in its SME finance allocated to the financial institutions.1/28/13 The India Franchising Blog: March 2010 This being the last budget to be presented before the proposed implementation of GST. and exchange control regulations all influence franchising. Adding further. financial position. Improved legal and regulatory framework While India has no specific legislation regulating franchise arrangements. Credit is a major hurdle in the growth of franchising obtaining capital to finance single or multi-unit operations has been relatively difficult for franchisee entrepreneurs. the Government should use this budget to align the rates of taxes towards the proposed GST rates. growth in 2010 is expected to be 40 per cent. it may be advisable if the Government frames certain guidelines taking care of the needs and concerns of both the franchisors and franchisees. There are 35 million SMB units in India of which retail sector constitutes 18 million units and service sector has 9. all the franchisees. a prospective franchisee is rendered helpless as the franchisor is under no statutory obligations to make disclosures. the franchisee must be able to derive maximum benefit so that the same could be passed on to the end users. However. Countries with specific franchising legislations or guidelines make it mandatory for parties to a franchise agreement to disclose certain factual information pertaining to their businesses. taxation. Among others. the tax structure is certainly not conducive for a robust franchise environment. she said that it is important to have mandatory disclosure requirements.blogspot. the mechanism for financing the franchise formats has not evolved. Badrinath adds. As a SME. Facilitate an industry centric credit infrastructure New-age small and medium businesses in India are seeing a transition from manufacturing to the service industry. in the absence of any such Government guideline." Speaking on the issue of a structured taxation policy for franchising Arun Khetan explains. Lack of appropriate format for franchising agreements can have far fetching impact on the Industry. etc. as the banks don't render industry specific funding options due to lack of knowledge. While. such rationale is fine for consumer goods. competition. this is also the last instrument for the Government to step ahead to align itself with GST implementation. Baba Chandok. Also. Further. there are a number of laws that affect the franchisor-franchisee relationship. As new unit franchisees. but seems highly dual and confused policy for education and indirectly leads in suppressing the growth of education at some point in the value chain." Introduction of composite scheme for threshold exemption Currently. Thus. it is seen that most of the times the franchisees do not have much bargaining/negotiating capacity in front of the giant franchisors. property. Dey agrees it is seen several times that due to absence of any franchising laws or any Government guidelines in India. franchisors tend to follow formats which are approved or followed in other countries. to make certain disclosures to the prospective franchisee. A composite scheme involving a threshold exemption of Rs 50 lakh is proposed by the industry. A franchisor should be required by law.5 million units respectively covering almost 75 per cent of the SME sector. No more than five per cent of the entire franchise financing franchiseinindia. "The industry is hopeful that implementation of GST will be breather for the retail. In order to bring an orderly growth in these sectors.html 27/29 . a composite scheme for small business is the need of the industry to reduce the cost of compliance and hence encourage entrepreneurship. the individual service provider is not exempt from the Service Tax Registration and payment if he/she is a franchisee where the turnover of the franchisor is above the exemption limit (currently Rs 10 lakh). This will ensure transparency. even if their individual turnover does not reach the exemption threshold have to get registration with service tax department. Cartridge World voices the same and says. labor. collect the service tax from students and deposit the same to the Government. In view of the circumstance. Franchising has been responsible for bringing structural growth and modernising the formats in both the service and retail-based small businesses. CST was to be zero rated effective 1-4-07.S. Hence." Abolition of CST Badrinath adds. this does not appear to be the right time to withdraw the same. U. Western Europe. This would contribute in reducing the effective cost of inter-state purchase of goods and also in keeping the inflation at current levels. Indian policy makers had been skeptical about Foreign Direct Investment or FDI. Internationally. The SBA and its sponsored loan programs are one of the best sources of capital to open a start-up franchise unit or purchase an existing resale unit for small-business franchise operators that would otherwise experience difficulties in qualifying for conventional financing or loans. A limit of 51 per cent on foreign investment in retail has brought in a lot of innovation in the market. There are restrictions on payment of royalties if it is a technical collaboration agreement between the foreign master franchisor and Indian master franchisee. International investors have always come up with India-centric policies. Internationally. the overall growth from 2008 to 2010 does not appear impressive since the year 2009 was a slump. therefore. Managing Director & CEO of Aptech Ltd recommends that a lot more effort is required to institutionalise the funding infrastructure. South Africa. SouthEast Asia. This is a sad state and would be addressed immediately once the Government confers franchising with industry status. FDI up to 51 per cent. it does not again appear to be the right time for withdrawal of stimulus. The importance of the franchising process is reflected in the retail and industries where nearly every retailer (in malls) and every major restaurant are franchisees of international as well as major national chains. with the inflation rate continuously rising. the Government would need to address some of these issues also in addition to the foreign investment reforms. Ratan Jalan. Khetan agrees. the cumulative impact of withdrawal of stimulus (added costs) and reduction in supply chain tax cost (benefit) is believed to be mitigated by the businesses. Withdrawal of stimulus could result in high service cost and goods and thereby. franchising is very well accepted and is entrenched deeply within USA. if not reduce. "In terms of the initial agenda of the Central Government. "The current ambiguity in the Government's policy guidelines with respect to the franchising industry has left the franchisor and the franchisees at the mercy of the bankers /financial institutions that use their discretion to interpret and regulate the funding propositions from the franchising industry and are quite passive in their response towards franchising as a business model. Ninad Kapre. In the forthcoming budget. Small Business Administration (SBA) financing has played a significant role in helping new or small operators secure the necessary capital to start or acquire franchise units. particularly in United States. Founder and Principal Consultant. It is worthwhile to note that with the support of the Government. While the performance from 2009 to 2010 is positive and growing. the businesses have demonstrated their strength to survive the recession and shown a positive trend as a year-on-year performance. "The expected foreign investment reform in the forthcoming budget is likely to encourage international players to enter the Indian market." Withdrawal of stimulus Badrinath adds. Ltd recommends. banks must offer an easy interest rate.1/28/13 The India Franchising Blog: March 2010 requirement in India is met by financial institutions. Fox & Mandal shares." Currently. Industry believes that as the risk involved in a franchise business model is optimised to a large extent. may be brought franchiseinindia. A sound mechanism of franchising funding is hence very essential as non-availability of third party guarantee often proves to be a hurdle to obtain required funds. the stimulus should ideally be continued and help the industry completely recover from the recession. Hence. Sonali Dey. impact the growth of retail business. there are also restrictions on the number of shares a foreign company or person can hold in an Indian company if the joint venture option is considered. Medium Healthcare Consulting Pvt. in the previous budget and thereafter. the cost of tax in the supply chain is envisaged to be reduced. It could be withdrawn as part of the GST implementation. "Assuming that the current sectoral limit remains unchanged. Further.blogspot." Pave way to FDI reforms Historically. it would be pertinent for the Government to ease borrowing for players interested to open outlets for these international players. but still continues at two per cent.in/2010_03_01_archive. With the implementation of GST.html 28/29 . It would be good for the Government to reduce the CST to one per cent and ultimately move towards a complete abolition with the introduction of GST according to the expectation of the industry. "While there are much deliberations happening around the withdrawal of the stimulus granted in form of reduction in central excise and service tax rates. 1/28/13 The India Franchising Blog: March 2010 under the automatic route. Indian Franchisors. Ratan Jalan Newer Posts Subscribe to: Posts (Atom) Home Older Posts Simple template. Archies Franchise. franchiseinindia. Aptech. Franchise Industry. franchise services. Catridge World Franchise. Arun Khetan.blogspot. the policymakers must bring about industry centric reforms to unlock the potential of the SME.html 29/29 ." Conclusion: The future of Indian retail markets seek organised and innovative business formats to ensure scalability which healthy franchise practices can facilitate. Hence. Ninad Kapre.in/2010_03_01_archive. In addition. Posted by Amit Nahar at 10:59 PM No comments: Recommend this on Google Labels: Akhil Chaturvedi. Powered by Blogger. the prevailing ambiguity over FIIs should be clarified. franchise business model.