Franchising doubts and help needed

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irfanlai

irfanlai

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Hi Friends,

I have some questions regarding Franchise setup. Please help in clearing the doubts

Franchise example - McDonald, Subway, Natural Icecream etc

1) What is the revenue model of this business, how a franchisees earns money on this

2) Do we need to obtain some license if we want to setup such kind of business

3) Is finance available if any one wants to setup such kind of business

4) What are average rent rates in mall, specifically in Maxus Mall, Bhayander Mumbai

5) What are the laws of Franchising in India.
 
1) Food court biz model is really good, their brand is damm strong, so good return is expected even if your margin is less, now a days almost all franchising model are closing MG model, 60-70% works on Margin basis, if you open Mac.D you earn some around 15-20% of net sale

2) you will need to have registered at local sales tax office, take permission from nigam, local society

3) Finance solely depends on your background to which you belong, if are in business line since 3-4 years filling huge IT return, bank will easily provide you with loan , but not the full amount may be 60-70%

4) I dont know about mumbai, but here in Chhattisgarh an avg 500sq ft shop at ground floor cost 1.4 lac, 1st floor, 1.1 lac.... and if you are planning to open foodcourt, you will be requiring huge space, so better bargain with mall owner on profit sharing basis, then they might allow you space with less rent, expect rent to be on higher side since you are in mumbai> heart of India

5) Every franchising company has its own TOS, better contact them and read it.

** And if you are really interested to open Mac.D, Subway, Pizzabut, get ready to spend atleast 1-1.4 crore, Dominos demanded me 70 lac for store in tier-2 city
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^^ i have to say. Posts like that would be encouraged here, but why bother with the other $h!t u say!

Will be following this topic, have been thinking of setting up something like this for long
 
W@rrier said:
^^ i have to say. Posts like that would be encouraged here, but why bother with the other $h!t u say!

Will be following this topic, have been thinking of setting up something like this for long
Click to expand...

Will you like to have Yebhi store or Reliance Gameplex, i got good contacts at both place, you will enjoy VIP status
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@irfan Mumbai, would be extremely costly on all aspects.

Moreover, McDonald franchisees are not available in India, all McDonald franchisees in India is managed by a single company!

For more details buy the magazine franchisee India, or Google it!

@Smart Guy, thanks for the offer,

not interested in anything other than a food and beverage outlet!
 
Suppose if iam gonna set up a franchise for MAC D how much will i be able to take home after deducting everything?
 
W@rrier said:
@irfan Mumbai, would be extremely costly on all aspects.

Moreover, McDonald franchisees are not available in India, all McDonald franchisees in India is managed by a single company!

For more details buy the magazine franchisee India, or Google it!

@Smart Guy, thanks for the offer,

not interested in anything other than a food and beverage outlet!
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Yea since some time i am also planning to jump from retail to food court, @Warrior you are right bro, Mac.D and Pizzahut are owned by different companies in different region, they either dont offer to commom public or have to bargain higher from them.

@@ubergeek > It all depends on location, sale, managment cost, store rent, whether you take money home, or keep on running store using your pocket for 1-2 year till it get in profit situation

Anyway>> How about opening Dosa Plaza or Cafe Choco-D (Earlier Cad-B offer chocolate shake), choco-D is offering store with his eyes closed , you can bag their store damm easily
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ubergeek said:
Suppose if iam gonna set up a franchise for MAC D how much will i be able to take home after deducting everything?
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Not as much as u would like
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We pay a whole lot in royalty to the company, but some believe it's worth it, because if we start something of our own, we need to build it's name from scratch on the otherhand, a pizza hut. Opens up and people starts to pour in!

Being.smart said:
yea... earlier it was Cad-B, then cadbury put a case on them, then they renamed themselves, do you have one in your area ???,
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I thought they had changed it into cafe chockolade

Yeah Pune has a few of em
 
I remember Cafe Chokolade started from Ice Cream Magic shop in Pune... Taking up a Franchise of big players like Pizza Hut/ McD will require huge initial investment, also Location will play important role too ...

Talking about Pune, I've always missed the presence of Burger King outlet in Kothrud area; it would be an instant hit !!
 
Yes, Pune really needs a Burger King !

Only KP has places which offer decent burgers!

Opening a franchisee has a lot of difficulties, and something i particularly hate is, "you still aint the boss"!
 
can anyone contact "Burger King" and have their franchise TOS and guideline, let have a look at it, i think #Warrior should call them and update us
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, their online menu really looks delicious
 
Being.smart said:
yea... earlier it was Cad-B, then cadbury put a case on them, then they renamed themselves, do you have one in your area ???,
Click to expand...

You have got awesome knowledge of Franchising... Would like to discuss on phone or gtalk...please PM me ur contact details....
 
W@rrier said:
We pay a whole lot in royalty to the company, but some believe it's worth it, because if we start something of our own, we need to build it's name from scratch on the otherhand, a pizza hut. Opens up and people starts to pour in!
Click to expand...

It is worth it, however, depends on the locality. One of my friends is a small time entrepreneur who opens such outlets and once they are fully running and operational, sells the place and goes elsewhere.

However, after he sold it, a dosa plaza and another coffee chain moved in too in the vicinity
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Hmm instead of Investing on something big like starting franchises for Subway or MCD's cant we just have small outlest like the burgerman ? another example is Pettawrap which we have here locally which sells healthy wraps at reasonable price and they are all over chennai.

wouldnt that be more safe and profitable?
 
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