We, at PAXLAR use the Business format franchises which is the most popular of the franchise types. Under this arrangement, the franchisee pays an initial fee and an ongoing royalty to the franchisor in exchange for a proven business operation and identity. Benefits of this package include the franchisor's name and its product line, marketing techniques, production and administration systems, and operating procedures.
There are many significant advantages to franchise ownership. In most instances, an entrepreneur who decides to buy a franchise is purchasing a business concept with a proven track record of success. In addition, a franchise agreement provides instant name recognition for the business, which can be a huge advantage of the name which enjoys a solid reputation in the marketplace. But franchising provides benefits in many other areas of business operation as well.
Advertising and Promotion Franchisees benefit from any national advertising campaigns launched by the company with which they have gone into business. In addition, we, the franchisor provide our franchisees with a wide range of point-of-sale advertising materials, ranging from posters to brochures. Since such materials are often expensive to produce, they would otherwise be beyond the reach of some individual franchisees.
We provide our franchisees with a wide range of help in the areas of administration and general operations. The entrepreneur who becomes a franchise owner is instantly armed with proven products and service systems; inventory systems; financial and accounting systems; and human resources guidelines. Many franchisors also provide management training to new franchisees, and ongoing seminar workshops for established owners.
Research and Development Most small business owners are able to devote little time or money to research and development efforts. Franchising, then, can provide a huge lift in this regard, for many franchisors maintain ongoing research and development systems to develop new ways of promotions and forecast market trends.
Consulting Services - It is in the franchisor's best interests to do all it can to ensure the success of all of its franchisees. As a result, the entrepreneur who decides to become a franchisee can generally count on a wide range of training and consulting services from the larger company. Such services can be particularly helpful during the startup phase of operations.
While the benefits of franchising are many and varied, there are well-documented drawbacks that should be considered as well.
Cost The initial franchise fee, which is not refundable, can be quite expensive. Some fees are only a few thousand Rupees. Franchisors require their franchisees to pay them regular royalty fees—a percentage of their weekly or monthly gross income—in exchange for permission to use their name.
Franchisees are subject to many franchisor regulations concerning various aspects of business operation and conduct. Many franchise agreements include stipulations that give the franchisor final say in site selection. Some franchisors also limit franchise territories, and while such restrictions generally prevent other company franchisees from impinging on your territory, they can also act to restrict your ability to relocate once you have become established.
As per global research data 68% of the car owners never visit washing outlets in their entire lifetime. Therefore, stationed units manage to tap 32% of car owners and are still sucessful. Imagine, hoe things will work in doorstep model. It will have a better reach to a large segment of car owners, thus, creating a favourable environment eventually increasing customer base for both stationed and doorstep. out of those 32% car owners visiting washing outlets less than three times an year because of the reasons mentioned below:
Improtance of becoming a franchise:
Beniifits for Franchise:
Support By the Franchisor:
|Start up||Individuals Unit||Franchise Units|
|Brand||Yet to establish||Well Established|
|Risk||Very High||Comparatively Low|
|Time to frame to establish||High||Already Established|
|Technical know how||Self Development||Provided by Franchisor|
|Training and Support||Not available||Provided by Franchisor|
|Business Model||Risky||Tried and tested|
|Recharch Development||Very costly||Available at reasonable cost|