Franchising TNT

Franchise is a method of doing business by licensing trademarks. A recurring royalty fee being the prime source of income, the advent of franchise business dates back to the 1850s. The earliest example being the bars of New South Wales, the agreements between these bars and the breweries can be considered the foundation for modern franchise businesses. Further examples of early franchises include the telegraph system (operated by various railroad companies but controlled by Western Union) and exclusive agreements between automobile manufacturers and local dealers.

The term franchise holds multiple definitions. Encompassing a plethora of varied business relationships, franchises sometimes do not follow their legal definition per se, for example, an appliance maintenance franchise. In this case, though the after sales services are supposed to be done by the manufacturer, they grant the license for maintenance to some other party, thinning down further the dividing line between outsourcing and franchising.

A franchise agreement is the first step between the willing parties; the agreement binds the parties together through contractual provisions, strengthening further the arrangements of selling one’s own products or services through another person holding the license. The agreement also specifies the area of operation under the franchise holder, though the franchise provider usually denies a complete and exclusive control of the franchise holder over that particular territory. Franchise in the US abides by the jurisdiction granted by the state and federal laws though there is no federal registry of franchising or any federal filing requirements for information. However, franchise holders are required to have a Uniform Franchise Offering Circular (as per the Federal Trade Commission rules); it helps in disclosing the business transactions and purchases that remain involved. As of now, the Financial Times declared that if sales by US franchise businesses were translated into national product, they would qualify as the 7th largest economy in the world.

Franchise-based restaurants opened gates for the wave of franchise businesses since the 1930s. First came the traditional sit-down restaurants (Howard Johnson’s) and then McDonalds in the 1950s rendering United States a franchise business dominion to the point where proprietorship business has become the exception rather than the rule.

Buying a low cost franchise is a good option for those who do not have surplus capital to buy and set up a large franchise, as it needs a lot of investment in terms of fees, real estate, marketing, merchandise etc. Low-cost franchises require low initial investment of less than Rs 10 lakh. So aspiring entrepreneurs who were in a quandary due to lack of finances can take a breather and relax.

Franchising offers variety in low-cost franchises

With the evolution of franchising to its present stature, many companies have adopted the franchise route for expansion. Even small businesses which were earlier considered inapt for expansion have taken the franchise route and have tasted success in their journey. Kiosks are the best way to enter franchising in the low-cost way. Apart from taking a kiosk these are the best segments to enter franchising with low investments.

Food industry

F&B industry always gives an impression of a hefty investment for taking any franchise. However this can be quite misleading as there are few segments in this sector which require less than Rs 10 lakh investment. These are:

Juice bars and caf bars: Juice bars are becoming the in-thing with consumers becoming more health conscious. Tropical Sno, Mr Orange, Tornado Cocktails, Juice Lounge etc are some of franchised juice bars which come under low-cost. Similarly caf bars have become popular with more and more people preferring to have coffees and talk. The coffee culture is sure to increase in the future as well. Brewers, Coffee Day Xpress, Cupo Cofe, Caf Desire, etc are few franchise in low cost section.

Bakery and confectionery: This segment also offers great avenues in fetching high profits. Brands like, Waffle Express, Chocolate Graphics, Sweet World, Muffins Bakery, are some low cost attractive options under bakery and confectionary.

Ice-cream parlours: Kwality Walls, MiniMelts Ice-creams, Baskin & Robbins, Royal Ice-cream, Gelato Vinto etc are few some of the popular frozen desserts franchises.

Business Services

Business services also provide a low-investment and high- profit opportunity. Franchising in this sector is growing tremendously. Few segments are given below:

Financial services: As long as people continue to spend money, they’ll need financial services providers to manage finances for them. Financial services franchises are the perfect opportunity for agents, brokers and real estate dealers.

Courier Services: The typical feature of courier service includes doorstep booking, customer convenience and security of each and every consignment that has been entrusted to it. Jaguar Couriers Franchise, Blazeflash Couriers, etc are some of the franchising companies under this category.

Cartridge refilling: In the modern age of I.T, there is a constantly growing need of cartridge re-fills. A cartridge refill franchise offers to its users quality refills at a fractional cost. Current industry trends and future projections suggest that printer cartridges demand will continue to multiply at a very fast pace. Cartridge World, Cartridge Caf, Cartridge Xpress are some of the good low-cost franchise options.

Consumer Services

Services like, dry cleaning, matrimonial alliances, tour and travels fall under this category.

Dry cleaning services have come under the fold of franchise business in the last few years, and some franchisors are: White Tiger, Wardrobe Franchise etc.

Matrimonial sites: Matrimonial web sites like Shaadi point and Shadilagn are getting increasingly popular these days, and are offering franchise at low cost.

Travel companies: With the economic upliftment of the common people in last two decades, the tour and travel industry has witnessed a phenomenal growth. Some of the franchisors offering low cost opportunities are East Trip Planners, Mahindra Holiday & Resorts, Arzoo.com etc.

Retail franchising

Retail sector is another low cost franchise option for aspiring franchisees.

Artificial jewellery: It can be the best alternative to precious jewellery, if one has the interest in it. Trenz, Dia Gold, Silver Maya etc are some costume jewellery franchises.

Florist is another category calling for low investment. Ferns n petals, Florists, Fiore and many other companies are offering opportunities in setting up a florist franchise.

Before opting for any of the above options, clear all your doubts. Apart from your initial investment, take into account the ongoing costs that must be paid to your franchisor, including franchise royalties, marketing fees and other required purchases. After you are convinced go ahead and make your mark in the franchising arena!

The success of franchising business in the Philippines didnt only contribute to the growth of the sector, but also the growth of the Philippine economy due to its demand among the wealthy as well as the average Filipino.

Franchise Businesses Today
Unlike in the past in which most franchise business in the Philippines were large businesses such as convenient stores and fast-food restaurants, most franchise businesses in todays market are small businesses such as food-carts and food-stall businesses.

Other than its relatively smaller size compared to convenient stores and restaurants, food-cart and food-stall businesses can also offer a relatively lesser expensive franchising cost, in which according to many business experts in the Philippines today, can go as low as 20,000 Philippine Pesos a franchise.

Because of its affordability, food-cart and food-stall businesses quickly became popular and in-demand in the Philippine market, in which many business experts have said, had largely contributed to the growth and success of the franchise industry in the Philippines.

Contribution to the Economic Growth of the Philippines
The growth of the franchise industry had also contributed to the growth of the Philippine economy, according to the PFA or the Philippine Franchise Association which is the pioneer and biggest franchise association in the Philippines. It is the voluntary self-regulating governing body for franchising in the country with 180 franchisors and allied members nationwide.

According to the PFA, due to the popularity of food-cart and food-stall businesses, the number of Franchising business Philippines in the country had significantly grown from 50 in the 1990s to over a thousand today.

This growth had also reflected on the growth of the Philippine economy. According to them, the massive growth of the franchise industry had created thousands of enterprises and generation of hundreds of thousands of jobs, making franchising an important tool in the countrys economic growth.

Other contribution include the entry into the international market of Filipino brands and concepts, development of the Fair Franchising Standards, which ensures just and mutually beneficial business dealings between franchisor and franchisee, and the growth of the Philippines as the franchise hub of Asia when it comes to the development of franchise concepts.

Franchise businesses, according to many business experts, had also become a popular solution to poverty, in which many Filipinos had invested in acquiring a franchise of a small food-cart business so as to secure their future and the future of their family.

The government had also used franchise businesses as their solution for OFWs or Overseas Filipino Workers who chose to stay in the Philippines with their family rather than to work abroad.

Oxigen pioneered online payment solutions in India and is a leading company for providing online payment solutions. Oxigen provides a bouquet of services which are made available to the customers through channel partners like Retail Outlet, Retail Management Unit and Super Retail outlet. In India a vast majority of retailers are unorganized and Oxigen aims to leverage this section to distribute services across the country.
Oxigen has a strong network of distributors throughout the country. We provide low cost business opportunities in India to suit the budget of small time retailers. If you are thinking of starting a business in India then you can avail of Oxigens franchise services.
Mobile recharges, DTH recharges, Data card recharges, toll tag recharges, Bill payments of mobile, landline, data card and utilities along with money transfer facility and banking services are some of the Oxigen services that you can offer your customers all from a single service portal.
The advantages of availing Oxigen Franchise services are numerous. Oxigen is an established brand and trusted among the distribution network. The investment involved is low compared to the returns that you earn. In fact our franchise program and schemes are designed in a way that guarantees you highest return than all other allied services. Moreover by availing Oxigen franchise you need not invest in physical stock of PINs of different telecom operators. With inventory cost reduced, you have enough capital available for distributing it equally among all services. By becoming our franchise you will experience greater footfall in your store and you have opportunities for cross selling.
On choosing to invest in Oxigen franchise store you get access to Oxigens bouquet of services which you can make available to your customers and earn a high margin in the process. If you have a good network in the market you can choose to become our Retail management unit or Super Retail Outlet. You can also become our Retail outlet and make our services directly available to your customers. You need to have basic infrastructure to avail our franchise.
Our channel partners are an important part of our business model and therefore we have dedicated call center support 24X7 for all our retail management units, super retail outlets and retail outlets. We have different investment opportunities keeping in mind the wide variety of needs of retailers across the country. To know more about Oxigens franchise opportunities visit www.myoxigen.com.

Benefits of Franchising

The benefits of franchising are abundant. Position yourself with the right franchisor and you could be on your way to freedom. The only problem with franchising is that many people find it hard to come up with the liquid cash it takes to start a franchise. The median cash required to start up a franchise is around $100,000. This means many franchisors will not even speak to the prospective franchisee unless they have $100,000 or more capital available. Dont let available capital scare you though; there are many low-cost franchisors that will work with people with under $10,000 available capital. If you have good credit, then you can always look to banks for help in raising more capital.

Listed below are 9 great benefits of franchising:

1.Financing- Banks look at franchises as much more stable and secure investments as opposed to an independent start-up.

2.National brand recognition- Instead of Joes Sub Shop you can have a national brand name such as Quiznos or Subway

3.National Advertising – Part of your royalties is paid into an advertisement pool where the franchisor pays for TV, radio, print, Internet, and many other avenues of providing its franchisees with customers!

4.Proven training The franchisor has mastered their training model, and these benefits are passed on to you. By the time a company decides to become a franchise, they should have mastered their training techniques.

5.Technical Support- Whenever something goes wrong chances are the franchisor knows how to immediately fix it. Your store is essentially a complete duplicate of every other franchise owned units. Technical problems will be easy and less costly to fix.

6.Buying power- The franchisor receives tremendous savings due to its buying power of products. These savings are passed on to the franchisee, which results in more profits.

7.Flourishing business- The franchise is a franchise for a reason. Their business uses a proven model and has been in the profit zone for a while. This means your chances at succeeding are much higher than an independent start-up.

8.Self-employment- Who doesnt want to be their own boss? Work hard and your only boss will be yourself.

9.Recognition and Satisfaction Franchising is a great industry. If you can succeed, chances are you will open more units, which could result in you turning into a franchise guru. Do this and my friend you could be one rich individual.