Growth through Franchising
The pace of growth is enhanced when the business unlocks value through a well-crafted franchise model. One of the leading group into children art activity, design entrance preparation and stationery retailing wanted to increase the volume of business through franchising. HMV consulting was referred by one of its clients to this highly reputed SME.
We assessed the capabilities of the SME for their business as diverse as education and retailing. There was a need for additional capability building in order to be successful in franchising business of education as well as stationary. Action plans were crafted with a view to building those capabilities. We developed 3 franchise models with 2 options each for their 3 businesses. These franchise model were supported by detailed financials of ROI for franchiser and franchisee. The seasonal impact on children art activity as well as design entrance coaching was also factored in to evolve a realistic ROI scenario. Along with franchise model action plans to market the franchise and to test launch it, were also developed. The marketing campaign to sell franchise was designed by the branding agency with inputs from us. Franchisee sales & marketing structure as well as processes were defined in order to take care of the franchisee post launch. Last but not the least was the challenge to draft a balanced franchisor-franchisee agreement. The legal draft was accomplished with our business inputs and with the help of a legal counsel.
Three franchises were sold within 45 days of deployment of franchise selling action plan. The multi-million rupees franchise business has just taken off. The stationary franchise model is a runaway success with multiple units in Gujarat as well as in other states.