A deck with compilation of strategic do's & dont's from various sources aimed to instigate you to better your franchise model strategy - especially focussed on franchises for fashion brands #wolfSIGHT #wofSIGHTS www.wolfzhowl.com

1. Franchise:
- Franchise Model
- How to Attract People to
take your franchise
- Fashion Franchise

2. What is a Franchise?
Franchising is an established business expansion strategy
that has proven to deliver rapid growth – with arguably
reduced risk.
Some stellar examples include MacDonald’s, Singer and Coca
Cola.

3. Company Owned
Franchise Operated
(COFO)
Franchisee Owned
Franchisee Operated
(FOFO)
Types of Franchise Model
In this model the training of
staffs, initial store setup is done
by the Company and handed
over to the Franchise to over
see the operations and maintain
standards based on SOPs set by
the Company. Then on the
operations is independently
managed by the franchisee. The
Franchisee pays a licensing fee
as per the agreed terms to the
Company.
In this model the Company
leases the operations of the
business to an interested
franchise to take over the
operations of the business
with the former holding
trainings and SOP audits to
ensure standards are
adhered to.
Franchise Owned
Company Operated
(FOCO)
Franchise Invested
Company Operated
(FICO)
Only an agreed fixed amount is
paid to the Franchise by the
company for the investment
done by franchise in the
business. In this model there
can be multiple franchise
investors for a single business
unit.
In this model the
franchise owns the
business but the brand
and the operations is
handled by the company
with regular reporting
done to the franchisee on
performance of the
business.

4. Company Owned & Run
v/s
Franchise Owned / Run

5. Growth Slow Growth.
Not enough Capital to grow internationally
Rapid Growth.
Franchisees Bring in Capital, build brands in various
overseas markets and facilitate rapid growth
Motivated Owners
Company owned outlets have employees that take
care of the outlets, employees don’t have the same
level of motivation as an owner or investor does.
Franchisees that invest into other business
especially entrepreneurs are highly motivated in
making the business venture into a profitable one.
Parameters Company Owned & Operated Franchise Owned / Run
Control
If a company wants to keep majority of the control
with itself, company operated units are better since
the entire control is in the company’s hand
Even though franchisees have to abide by franchisor
set rules and regulations, in the end they
own/operate units. The profits and losses are borne
by the franchisees and they may take complete
control over the unit.
Profit The entire profit here belongs to the company
The profits belong to the unit owners. The
franchisors get some percentage of sales and some
part of the profit in the form of royalty and other
fees.

6. Flexibility Company owned and operated allows you to
be flexible and navigate your business the
way you want it to.
The franchisors dictate terms and want business to run
as per their own since they own the brand, leaving the
franchisees with no or little flexibility
Internal Resources
With company owned businesses, you need more
management to oversee the greater number of
employees you have working at each location,
requiring more internal resources from the
company.
With franchising, the employees, their remuneration
and their management is the taken care by the
franchisee. This reduces the burden of the
franchisor to manage internal resources.
Parameters Company Owned & Operated Franchise Owned / Run
Operational Risk Company takes all the risk., as the units are
managed by its employees and overlooked by the
company. There is no spreading of risk here.
Through franchising, the company can spread/share
the risks with its franchisees. Franchisees invest
their money and hence work harder for the unit to
perform well, this enables the company to spread
risks.
Investment Risk The company has to take the risk and invest
everything in a unit or a business.
Franchisees invest into the new unit or business, and
further send fees to the franchisor, which means
that the company doesn't’t have to invest capital
and take further risk.

7. Do’s and Don’ts While Setting Up a Franchise
• Keep it simple.
Simple franchise agreements attract better franchisees, as they often fail to understand complicated ones and are fearful to
invest money into complicated scenarios.
• One size does not fit all.
Often times the ideal customer isn’t considered. Look for a franchise geared toward an ideal niche audience, particularly to
consumers least and last affected by economic downturns, i.e. the “mass affluent.”
• Smart marketing beats flashy marketing every time.
Under-developed marketing and positioning strategies hinder growth. Forward-thinking, effective marketing and positioning
isn’t often considered.
• It’s never too late to aspire to world domination
Don’t restrict your franchise concept within a tight frame. Think into the future with an open mind and be creative. Consider
any areas the franchise concept could evolve into and exercise a preference for businesses with a potential for synergistic
product line additions.

8. • Don’t be the ketchup, be the Sriracha sauce.
Select a franchise that focuses on consumer experience. Offer something unique to garner attention and further
consumer satisfaction.
• Copy Ben & Jerry’s Ice Cream as much as possible without looking like a copycat.
Ben Cohen and Jerry Greenfield were ahead of their time on this and have set the social responsibility bar pretty high,
but even just one franchisee can make a difference in his or her community. Find a franchise that is high on social
activities towards the society , and this also helps to look good in the eye of the consumers.
• Stalk your fellow franchisee owners.
Do your research into the franchise’s history with other owners. See if and how their units have turned out to be a
success. If there are failures, find out why those units failed, ensure to make points and not to go down the same path.
You can learn from other franchisee’s and make a better working plan for your franchise.

9. Brand Related
Do’s and Don’t’s while adopting a Franchise

10. DO:
Get familiar with branding basics.
Branding is an extremely powerful tool in any franchisor’s toolkit.
Brand includes: logo, slogan, service quality, Facebook page, product, price, marketing materials, etc.
The Franchise Brand should be clear and consistent around emotional (such as slogan) and functional (e.g. price point)
brand elements in a way that it caters to needs of consumers and helps make the brand stronger.
DON’T:
Underestimate the importance (and difficulty) of maintaining brand consistency.
Many say that your brand is how people describe you when you’re not in the room, so try asking some of your trusted
colleagues, customers and other stakeholders to draw your logo and write down your slogan. If you asked five people and have
five very different looking logos and slogans you may have a branding awareness or consistency issue. If this is the case, a strong
positioning statement and brand guidelines will help you take charge of how your franchise network and customers talk about
you when you’re not there.

11. DON’T:
Forget about brand guidelines.
Your franchise brand guidelines helps contribute to your brand consistency. If any aspect of your brand is updated or changed, this should be
reflected in your brand guidelines
It includes:
• approved logo styles and placement instructions
• photography style description
• colour palette
• fonts, font sizes, colours and heading style
• in-situation examples of what to do, and what not to do
• brand tone and positioning statement
• instructions for sign-off, printing and display.
DO:
Automate repetitive design tasks.
Part of branding in the digital age means it is very easy to automate tasks fit it in different online and offline media. The tasks may be
created from scratch or could be repetitive such as designing Shop signage, flyers, banners, profile photos, background images, social
media posts, website images, digital ads...etc

12. Effective strategies for franchise campaigns should include:
The Key Steps to a Successful Franchise Campaign
Lead Generation
Lead generation campaigns should focus on nice
markets.
There are several ways to focus on niche markets,
such as highlighting a company's competitive
advantage, creating a brand image and advertising
in strategic ways that make use of different media
such as magazines, radio and television.

13. Effective strategies for franchise campaigns should include a two-step process, lead generation and recruitment.
The Key Steps to a Successful Franchise Campaign
Franchise Recruitment
Franchise recruitment is an essential component of
expanding the market share of a franchise. It involves
seeking out the best candidates who will invest in a
specific franchise "system" and attract new customers
Effective Marketing Campaigns
Marketing campaigns need to be cost effective i.e. the costs
shouldn't’t exceed the revenues
Before determining the cost effectiveness of a marketing
campaign, it is important to set clear goals in terms of what the
marketing campaign is set to achieve.

14. 4 Ways to Build a Franchise Brand
1. Rationalize the Need to be Compliant with Education
The key to this strategy is to educate franchisees about the
potential harm to the brand when they don’t follow
guidelines. If the brand is weaker, their own individual
investment may suffer.
2. Make it Easy to Follow the Rules
Franchisees are of the “do-it-yourself” nature. If they are not
provided with a marketing and advertising tools they might go
and create their own conception of the brand. This can
negatively affect the existing the brand the franchisor has in
mind or has developed. Hence it a must for franchisors to
make it easy and provide a robust platform of tools fo
franchisees to use in their advertising and marketing efforts.
3. Avoid Brand Extremism
Every franchisor knows how critically important it is to develop and
nurture positive relationships with their franchisees.
The third strategy is use common sense to avoid an overly harsh
approach to brand management.
Guideline often become overly rigid and they suffocate creativity and
enthusiasm for the very brand they are meant to protect.
4. Emotionally Engage your Network
If you’re successful with the first three strategies, the fourth can make
the biggest difference. It doesn't’t happen over night however,
Successfully balancing franchisee spirit and brand management depends
on your ability to motivate and foster emotional engagement of the
brand across the network.

15. 1. Elevate your brand as an authority
You should strive to leverage your company’s professional knowledge as a resource for others. A company that is knowledgeable
about their industry and is well known for demonstrating that knowledge is attractive to the type of potential franchisees
necessary to grow a franchise successfully.
2. Optimize your appeal to franchisees
Franchisees should be treated as partners and should be guided towards getting the success they want from the investment. The
franchisor should communicate in such a way that it helps build the interest of potential partners and also builds rapport with
current franchisees
3. Build strong communication with your current and potential franchisees
Utilizing social media networks and other online communication tools can help your franchise stand out to prospective
franchisees by offering extra guidance and troubleshooting as well as building community trust.
4. Use existing franchisees as advocates
Building relationships with current franchisees is an invaluable means of bringing in new, quality franchisee prospects. If
franchisees are happy, they will be inclined to let others know, garnering the attention of prospects through word of mouth..
Marketing Strategies That Attract Franchisees

16. 5. Curate a strong web presence
Prospective franchisees can find about your company only through your website. Your website should give the right information to the
franchisees on your website. Apart from sharing the right information, make sure to note what you are looking for in a franchisee and
what makes your franchisees successful as this will help you to bring in the most qualified candidates
6. Implement marketing strategies for your franchisees
A franchiser that provides marketing solutions for their partners is much more attractive to prospective franchisees because they know
that they will be set up for success if they decide to sign on. The marketing strategies offered should be tailored according to the
franchisee, the location and the franchise goals. Additionally, this helps to build good relationships with current franchise holders and
elevates your company’s reputation.
7. Nobody Buys a Franchise To Get Into Digital Marketing So Hire an agency
A well-known brand name, one of the key factors behind the decision to open a franchise can be beneficial; however, it must be paired
with an effective advertising and marketing strategy. Local SEO, Organic Search Optimization, Video Ads (and production) along with Paid
Search Ads (PPC + Facebook Ads) are all avenues to consider in your franchise marketing plan. One could also hire an agency to perform
the above mentioned digital marketing strategy.
8. Capitalize on strong brand recognition and trademarks, if they exist.
Strong franchises have grown because of their easily identifiable brands and trademarks. It may be easier to capture new clients by
incorporating that goodwill into your own outreach programs based on the intellectual property you're licensing.

17. Ways to Market Your Franchised Business
• Advertising
You may think of advertising as print media only. The truth is,
advertising encompasses any medium of advertising.
Although franchise advertising has been around for decades,
today’s advertisements tend to have a much different call to action
that those of the past. Instead of the standard “Call Now,” ads direct
viewers to a franchisor’s website where they can learn more and
engage via email with the franchisor’s development department.
• Direct Mail
This is still an effective option depending on the strength of the
message and the offer.
• Promotions
Successful franchisors use a combination of traditional promotions
and promotions that utilize new technologies. For instance, they
may hold a sweepstakes advertised in traditional media such as
print, billboards, radio and TV while also running the promotion on
Facebook, Twitter and other social media outlets.
• Public Relations
In the internet age, we have found that public
relations is still a very viable and important
pillar that needs attention. However, the
delivery has changed considerably, and in some
ways technology has made it far easier to
launch a successful PR campaign.
• Online Marketing
Not too many years ago, the “big boys,” or well-
known franchisors, had the advantage because
they had far more money and resources to
market their franchise opportunities. The
internet has now leveled the playing field
because the barriers of entry are lower, giving
creativity and not big marketing budgets, the
advantage. Online methods include website,
web presentation, podcast, blogs, social media,
etc.

18. Why Do Franchises Fail?

19. Why do new franchises often fail?
• All too often, inadequate planning and development of a franchise business structure before offering franchises is the main
reason for new franchises suffer.
• The “Me Too” attitude
Many franchisors will make the mistake of simply copying the franchise structure of their competitors when entering into the
complex world of franchising. The rationale is that “if it worked for them, it should work for me.”
• New franchisors often take advice from lawyers regarding the procedure of franchising their business rather than adopting
a strategic franchise plan for their business, this results in failure while good franchise lawyers are invaluable when it comes
to legal issues, they are unlikely to have the business experience, education, or expertise to develop sophisticated cash flow
models and the organizational development plans that should accompany them.
Need to Adopt a Unique Franchise Strategy
Each business needs its own unique franchise strategy. Development of the proper strategy for any company to
become a successful franchisor can be complex
The business strategy used in structuring the franchise offering is the foundation for every successful franchise
system, and proper strategy development can ensure that your goals are attainable. The challenge is knowing what is
right for your company, so that you can create a franchise offering that is marketable to the franchisees you want to
target.

20. 1. Lack of Training:
Often Franchisor lack the art of training the staff or the franchisee may not motivate the staff enough for them to cater to the customers in
an efficient manner.
2. Wrong Location
One of the main reasons for a franchise to fail is the location. For a franchise to be a success, the unit should be at a planned location
according to the the nice market they want to target and the buying habits and capacity of the target market. The resources needed should
also be made available at the location and the location should preferably not be a remote one.
3. “Me Too” Attitude:
Many franchisors make the mistake of simply copying the franchise structure of their competitors when entering into the complex world of
franchising. The rationale is that “if it worked for them, it should work for me.” This results in failure as the franchise agreement, the
location, the staff the resources, and the techniques adopted to garner attention, etc all differ from that of the competitor.
4. Working Capital:
In many cases the franchisee underestimates the capital needed to reach positive cash flow and has a slow startup, which requires more
working capital. The failure to meet the working capital needs often leads to losses.
5. Unrealistic expectations:
If a franchisee has unrealistic expectations about the future of their business or the profits it can derive or how the environment is going to
be, it often leads to losses. The goals of any business should often SMART – Smart , Materialistic, Achievable, Relatable and Time Bound.
Reasons for Failure

21. 6. Lack of Franchisor Support:
A franchisee pays an ongoing royalty to a franchisor for ongoing support. If the franchisee expects and does not receive the support he needs,
the chance for success is reduced.”
7. Inability to Compete with Non franchise Competitors
Franchisees need to pay royalty fees and other expenses to the franchisor. This can result in a high Cost of Goods Sold (COGS), which makes the
franchisee a prey to other competitors that are not franchisees since t
he the prices are higher than that of the competitor.
8. The Decision Is Emotional, Not Pragmatic
A franchisee may enter into an agreement because he likes something or has some level of interest in the said filed. However, it takes more
than just liking to run a business and to actually understand and be able to manage the day to day requirements of attending to a business and
its needs.
9. Lack of Research:
Many franchisees often skip the research aspect of the franchise. They need to research about the legal requirements, competition in the
market, franchise agreement, the type of franchise model, brand of the franchisor, etc.
10. Failure to Evolve:
The market in which the franchisee’s business operates is constantly changing, and if the franchisee doesn’t change with that market, they will
ultimately become irrelevant. Fortunately for the franchisee, they are not alone on this journey of constant change, as the franchisor must also
evolve to keep up with the market as well. However if the franchisee is too complacent with their business to adapt to change, the business will
inevitably suffer.

22. An Example of a Fashion Franchise Failure in India
Forever 21
• Forever 21 has changed 3 partners in India.
It started with Sharaf Retail group, moved onto
partnering with DLF Brands and is now taken over by
Aditya Birla Fashion Retail
• Forever 21 in spite of offering fashion wear at
affordable prices to the youth has not been able to get
the profits it expected to. It has faced downfall of traffic
not only in India but also in the European Market.
• The problem in India is that beyond tier I and tier II
cities, many people are not aware of the brands. So
while a large format store gives bigger exposure to
brands, at the same time operational costs and
inventory costs are higher.
• Forever 21 has now opted for downsizing its stores in
order to gain profitability by reducing its costs.
• The brand has also non decided on closing down non
performing stores in major cities.
• Brands like Gap and Aeropostale have faced similar
issues in India and have also resorted to downsizing or
what they call it “right Ssizing” their huge store space.

23. Zara’s sales have only been increasing in India since its inception.
Zara chose to enter India via the Joint Venture route and not via
Franchise route.
The reason for choosing a joint venture over the franchise route was:
• Entering into a Joint Venture with Tata Group’s Trent got better
goodwill to Zara in India due to Tata’s image in India.
• India being a difficult market, Zara wanted to enter the country via
an experienced retailer. “Trent” has experience of launching various
premium brands, which was a match for what Zara was looking for
• It enter into 51:49 partnership, hence Zara still had controlling rights
in the partnership which wouldn’t be the case of a franchise.
• Zara has an innovative solution to both style and marketing
problems. With the help of a global network of shopper-feedback it
often tweaks its designs for the next line of clothes. Secondly, the
stock changes so quickly that shoppers are motivated with a "now-
or-never" choice each time they try on a new top that won't be in
the store they next time they visit.
• However, Zara took a couple of years to improvise on its offerings to
the Indian market according to the Indian seasons and climates and
make its apparels less fit for European market and more for fit for
the Indian Market
Zara’s Success Story in India

24. Raymond’s Franchise Success Story in India
The Raymond Shop
• Raymond has around 400 franchises today.
• Its franchise model is based on ‘entrepreneurship’
where franchisees’ entrepreneurial spirit is tapped for
exponential growth through impeccable last mile
service delivery.
• Raymond also conducts extensive training programs for
its own employees and its franchisee’s pertinent to
modern retail like product training, customer
relationship management, staff development, visual
merchandising, operations, etc. , this helps them to face
challenges and eliver consumer staisfation.
• The have small store being set up in merging towns as
well. These stores are set up within 45 days from
signing of the Franchise Agreement instead of regular
90 days. This also provide flexibility for change and
design as per the needs of the small stores and their
location.

25. Difference between
Food Franchise Outlet
And
Fashion Franchise Outlet

26. Investment
Rs 6.6 -Rs 14 Crores
It contains fundamentals of cost, area, training,
operations, and the progressing expenses required
in working a McDonald's franchise.
Rs 30 – Rs 50 Lakhs
It excludes training and setting up costs required for
a Raymond Franchise, the costs depends upon size
and location of the unit.
Franchisee Fees Rs. 30 lakhs
As a franchise, you will be charged a service fee of
4% of total sales
Rs. 6 – 10 lakhs
No other franchise fees charged on sales.
Parameters McDonalds The Raymond Shop
Break Even 2- 4 years 2- 4 years
Rent Rent Payable by the Franchisee Rent Payable by the Franchisee

27. Food Franchises often go for the franchise route in India.
For e.g. McDonalds, Subway and Dominos offer COFO , FOFO models.
They have certain capital requirements and location environments to be taken care of, and the franchise from
there on is easy to operate as per the laws set my the Franchisor Company.
Fashion Brands go either for Joint Ventures or for Franchise Routes in India.
Franchise would be to expand further, this is usually adopted by Indian brands such as Manyavar, Raymond,
Lovable, Biba, Jashn , etc.
International Fashion Brands were opting for Joint Ventures due to FDI issues earlier, however they still seem to
go for the JV model even after FDI is allowed at 100% now. The reason for this is: Through a JV Model, they look
for partners in the ratio of 51:49 i.e. 51 is with the brand and 49 is with the Indian partner.
They prefer someone that can invest a huge capital, can help maintain the strong brand name in the market, help
the brand launch at the right places , has experience of the market being a local and the brand can also control
the operations and keep up its premium name in a foreign country.

28. • In the short term, the franchisees might like to de risk themselves by working with multiple brands simultaneously,
rather than tie up with just one brand. As a result, there could be various models working in conjunction at any point of
time.
• The more organized of the retailers will end up using better IT tools to ensure that the overall analytics of the business
are mapped on real-time store data. This will also help them continuously engage with franchisees and make
improvements wherever necessary and possible.
• Success now will only be achieved by those franchisors in the fashion industry which have strong entrepreneurial skills,
risk-taking ability, and which can tap the extant opportunities in these changing times.
• Today, in India, fashion franchising is no longer perceived to be merely a low-cost expansion tactic, but is instead seen
as the ultimate tool for building scale. Most retailers involve the franchise partners in the sales process.
• With innovation at its peak, franchising is all set to broaden its horizons. Innovation, in terms of formats as well as
concepts, is being touted as the next big leap in this field, in the country. For instance, with the advent of the mall
culture in recent years, in Tier I cities as well as Tier II and Tier III cities, small budget kiosks are now popular modes of
franchising.
Change in Fashion Franchising

29. International Luxury Brands– use the franchise route to enter India
• Brands like Chanel, Ferragamo, Valentino are present in India through the franchise route.
• Luxury International brands opt for franchising due to government policies and due to the
need of having someone local and experienced in a foreign and difficult to penetrate
country like India.

30. The Luxury vs. Fashion Strategy
That different lies most centrally in their business models.
The luxury brand model, for instance, is distinct from that of "fashion" and "premium" brands in that it aims to “create the
highest brand value and pricing power by leveraging all intangible elements of singularity – i.e. time, heritage, country of origin,
craftsmanship, man-made, small series, prestigious clients, etc. By mobilizing all of these intangible assets, a brand may be
positioned as largely incomparable to any other, even its rivals.
In addition to unmatched brand value and pricing power, the traditional luxury brand endeavors to create long-selling products,
as opposed to best-selling products. Two examples: The Porsche 911, which debuted in 1964, and Chanel’s N°5 perfume,
launched in 1921, both of which are still very much in demand today.
The strategy of luxury brands is distinct from fashion brands, which employ a markedly different model.
“Heritage, time, are not important; fashion sells by being fashionable, which is to say, a very perishable value.”
In other words, fashion brands largely thrive on the proliferation and adoption of seasonal trends, or, fashion brands rely on
their practice of “recreating the rhythm of the seasons.”
.

31. • Some luxury brands from the fashion, accessories and jewelry sectors consider the franchising agreement as a long
term exclusivity agreement for a certain duration and territory and with a minimum agreed turnover and
performance target.
• Luxury brands enter into a franchise only after agreeing on the location of the outlet of the brand. This is not the case
with most of the mass brands. They may want to have outlets in metropolitan cities but they wont be me so specific
like Luxury brand owners do.
• In luxury, the duration of a franchising agreement varies from 5 to 8 years and there is also an agreed timing which
varies between 3 to 4 years regarding the changing of the store fittings and furnishings.
This can be attributed to the fact that luxury brand sales may be high in number due to the price and quality of the
product but the volume of the sales will always be less than that of a mass brand which is cheap and easily bought.
• It takes time to get that ROI with luxury franchise as compared to mass franchise brand due to very high initial
investment., and the break even period for luxury brands is after 4 to 5 years from setting up the business.
• Mass brand are often available over the internet as well, For e.g. Marks & Spencer or H&M play a dual role in serving
to their consumers i.e. offline and online. Where as luxury brands are not available online, even they are available
online they do not share prices online. This can be attributed to the feel they want to give to their consumer, make
the consumer feel the worth of buying a luxury product by actually going to a store and buying it.
• One reason for luxury brands to not be available online in a country like India is because of the Indian mindset and
the price sensitive nature. Indian’s usually want to see, feel and then buy a product especially if a product is
expensive.
Luxury Fashion Franchise Agreement Differs from
Mass Fashion Brand Franchise Agreement

32. 1. Mass customization
• Made on order or customization will surely see a growth in 2018.
• This trend in fashion franchising will not only give a boost to number of
franchisee run stores but also an edge to the brand and franchisor.
• Brands like Raymonds are already doing it with Made to measure service.
• Customization is not only helping the companies stand out but also they
can easily differentiate their products from others in the market.
• Babu Mangatt, General Manager - Retail & Sales – Future Lifestyle
Fashions Ltd that has brands like Giovani, Converse, Clarks, Indigo
Nation, Lee Cooper, Scullers and many more comments:
‘One of the biggest trends in retail is the Omni channel strategy. Every
brand wants to be available at every touch point; online as well as
offline. Franchising plays a big role in terms of expansion for a brand in
the offline category.’
Trends in Fashion Franchising

33. 2. Consumer trend
Ramesh Kaushik, Vice President – Brand Experience, Blackberrys says: ‘It can be seen that the elements of active sportswear are
going to blend into the world of casual and formal wear for the sole purpose of providing comfort as lives get busier and nature of
professions demands movement. Retail businesses on the other hand have a one-dimensional approach of only being
transactional in nature. Moving forward, we are going to see the trend shifting towards an amalgamation of transactional and
functional spaces. Multi-purpose, lifestyle oriented spaces are going to be created to focus on more than one aspect of the
business and to expand target market as well rather than being product and brand centric.’
3. Multi-brand franchising
Multi-brand franchising will surely be a top trend in 2018. This way franchisees get an opportunity to seek competence in their
operations within a group. Many brands will be seen giving franchisees the chance to own multiple brands within their network.
This can obviously save and share operational costs.
4. Blurring Line Between Offline and Online Retail
It can be seen that offline retail tores are using technology to keep their customers coming.
It can be seen that Offline and Online retail lines are blurring For e.g. Mango has now hired Myntra for its sub-franchises and
Myntra who’s presence was only online has got into offline retail with this detail with Mango.
Further, brands like Benetton, Zara etc are trying to tap the online activities of their customers and utilize them in a way to provide
better service to their customers that visit their Brick and Mortar Stores.

34. Benetton’s presented a new franchising model.
Benetton, the shop of the future, thanks to cell phones, employees will
know what products clients have viewed online and what they have
already purchased and be able to suggest appropriate combinations or
accessories. We’ll see this new features in stories in 2017.
More than 230 Benetton locations have already adopted the “on canvas”
format launched two years ago: using a sort of moveable “Lego” it’s
possible to create separate rooms, alternating the clothes that are shown
on the racks, adjusting them according to demand and to the season.
It can be clearly seen that instead of treating E commerce as an enemy,
Benetton is using it to enhance customer satisfaction at its Brick and
Mortar Stores.
Blurring Line Between Offline and Online Retail
Example

35. Spanish women fashion brand Mango, which recently partnered with
online marketplace Myntra to manage its stores in India.
Mango ended its partnership with former distributor DLF Brands late last
year. It signed up Myntra in February to sub-franchise the stores here,
manage its collection on Mango.com and distribute the brands on
Myntra’s online marketplace, which includes Jabong.
The latest store in Delhi, and the new ones that will be opened, features a
new store design and a bunch of technology features. Myntra has
deployed what it calls Endless Aisles, a concept where in the store is fitted
with tablets to review the collection and have an article, which is not
available at the store at that point, delivered to the customers.
The tablets also allow shoppers to see recommendations based on their
purchase history and have the option to make the purchase themselves
using the assisted checkout feature.
Blurring Line Between Offline and Online Retail
Example

36. Do’s and Don’ts While Adopting A Fashion Franchise

37. Do:
Research about the current market trends. The clothing line that you might want to get into, may not be doing that well or is
going to be affected by recent market trends. Research about the cost and quality offered by the franchisor through its products.
And also be informed of the various channels used by the company to distribute its product.
Don’t:
Sign a long term lease. The brand may be doing well in other countries or locations. But, if it will work or not where you set up a
store is very difficult to predict. At the same time, a huge store may not bring in enough profits, and you may have to opt for
downsizing to get the desired profits.
Do:
Research about the kind of footfall expected at the store. The target audience should be a niche market if possible and the
franchisee should know exactly about the age group targeted.
Don’t:
Don’t think running a fashion franchise is like a normal 9 to 5 job. Running a franchise that too a fashion brand is much more than
that. It requires keeping the fright stock, training the employees to help the customers that visit the store, etc. A first time
franchisor and a franchisee are both new to the model and need to put in longer hours to make it a success.

38. Do:
Staff should be trained to provide a different experience to the customers. Something that will not be available online to them.
Don’t:
Don’t be a traditional franchisor. The only thing constant in today’s world is change. As trends and fashion changes, the retailer
needs to adopt to such changes to survive in the competitive world of fashion. The franchisee may be willing to adopt to such
change however at times the franchisor is unwilling to do so. Thus, the franchisor should act fast and follow the latest fashion
trends to give the customer much more than what they actually look for.
Do:
The franchisor and the franchisee should together come up with effective marketing and advertising campaigns. The franchisor
may provide marketing tools to the franchisee, but how to effectively utilize it according to the location and target audience is in
the hands of the franchisee.
Don’t:
Don’t give the entire control in the hands of the franchisee. The franchisee may be new with in the franchising business and may
not be completely aware of how a franchise works. This can affect the brand. The franchisee should be trained and it should
further be overlooked by the franchisor.

39. Do:
Research the internet price and local price for your goods and services. Carefully plan a pricing strategy that maximizes your
profit while balancing sales and customer satisfaction. If you do the right things, customers will "gladly" pay you more than the
price they find on the internet. Smart pricing is something that will require daily planning, observation and experience to
maximize success.
Don’t:
Don’t jus opt for a offline channel. With today’s digital era brand are offering an omni channel being present online and offline. To
overcome being hit by online retail, brands are trying to adopt a model where they take advantage of the online interaction of
customers to provide a better service to the same customers at their brick and mortar stores.

40. Some Fashion Franchise Examples in the
International and India Market

41. Why Zara Franchise?
Zara also offers entrepreneurs the right to own a franchise of the business. The
company has got huge success and is a brand which is really popular.
In India, Zara doesn’t offer franchise as an option since it has entered into a
Joint Venture with Tata
The start-up cost is quite lower than others when you compare other
international brands globally. However, there are other charges on top of the
initial investment – therefore, covering a total amount of $80,000. Royalty fees,
advertising fees, and other additional recurring fees shall be discussed upon
confirmation of agreement between the franchisor and the franchisee.
Zara is one of the fastest growing fashion brand in the world and currently it has
a network of more than 2,100 stores worldwide with Revenue of US$15.9
billion (2016).

42. M&S, which currently has about 20 franchises
operated by India’s Planet Retail.
Marks & Spencer has also joined hands with
local firm Reliance Retail - to add 30 stores by
the end of fiscal 2017.
Recently, Aditya Birla Fashion and Retail Limited
principally approved a proposal to enter into a
Binding MoU with Forever 21 to acquire its
exclusive online and offline rights to the global
brand - Forever 21, for the Indian market and its
existing store network in India from the current
franchisee i.e. Diana Retail Private Limited.

43. Other Women’s Western Fast Fashion Brands that offer Franchises

44. In 1999, Ravi Modi, Founder, Manyavar created a family business that
re-invented men’s ethnic wear category. The brand became
synonymous with wedding wear and later to festivals.
What is so unique about franchise strategy that is making Manvayar’s
franchise model a hit in the market?
• The business model of Manyavar is routed through the franchisee
model.
• Trust and values are the two key points that are embedded in the
strong business relations.
• The major challenges of a business with regards to the resources
usually raise three questions namely -- What, How and When. This
can be explained through robust strategies established with the
partners.
What is the criteria for selecting investor for Manyavar Franchise ?
• People should have experience in the field of retail;
• Minimum carpet area should be 1,000 sq ft
• Willing to invest Rs 40-50 lakh as an initial investment.

45. Other Ethnic Wear Brands Available for Franchising

46. Reliance Brands will be setting up independent standalone stores for
Hunkemöller across major Indian cities, starting January.
This is the first time that the 130-year-old lingerie brand is entering the
Indian market.
Reliance Brands' current portfolio of brand partnerships (franchise and joint
ventures) include 16 international brands such as Diesel, Brooks Bros,
Ermenegildo Zegna, Steve Madden and Superdry, among others.

47. Other InnerWear Brands Available for Franchising

48. Van Heusen
Van Heusen is one of the most top brands in the Menswear franchise category.
The company is all set to expand its business in the Metropolitan cities. It
already has its franchise outlet in the metropolitan cities, now it is aiming at
expanding its business in all the commercially successful cities.
The company is known for its exclusive range of products in the Menswear
category. It provides both formal and informal clothing for Men.
Van Heusen Franchise Cost
For starting its franchise the investment required is 30 to 50 lakhs.
The area requirement will also vary from one location to other location.
However, the suggested area is 1200 to 1500 square feet area.

49. Other Men's Formal Wear Brands Available for Franchising

50. Fastrack
The products of Fastrack are made keeping in mind about the choice of the
youth and has entered in the market with a vision to provide complete
fashion brands to youth.
Target customers are young brigade who can spend for quality and design.
At present its products mainly wallets, wrist bands, bags, belts, sun glasses
etc are highest selling branded accessories in Indian market.
Fastrack franchise cost, investment returns, royalty fees:
The total cost to start Fastrack franchise in India ranges between30 to 50
lakhs. This includes interiors, franchise fees or deposits and other expenses
like billing software and miscellaneous expenses. The area should be
commercial and minimum floor area should be about 800 to 1000 sq feet.
Fastrack can be started in any city including Delhi, Mumbai, Kolkata, Chennai
or even tier I and tier II cities like Pune, Baroda, Nagpur, Hyderabad,
Bangalore, Kochi, Indore, Bhopal etc.