Franchise
A franchise is an authorization granted to a company or an agency for specified business activity in accordance with the standards set by the franchiser. When a business is expanding as a franchise it is necessary to carefully configure the franchise agreements. The terms and conditions are to be well thought out. All the possible conflicts and should be addressed beforehand. Experts with a foresight into all possible conflicts are the ones who will be able to configure it and there are no better experts in creating a franchise than the franchise consultants at Sparkleminds. Sparkleminds can recognize a profitable franchise beforehand and help companies create brands which they will be able to give as a franchise. The royalties that a business will enjoy by giving out a franchise will increase the value of its shares manifold.
A recent strategy by McDonald’s
Connaught Plaza Restaurants Pvt. Ltd (CPRL) is a franchise partner to McDonalds India Pvt Ltd (MIPL). CPRL which had a master franchise of McDonald’s was ordered to close down 169 McDonald outlets that it was managing. CPRL was no longer permitted to utilize McDonald’s intellectual property on allegations that they are not complying with the standards set my McDonalds with regard to supplies, safety standards, operations, and quality. The conflict was primarily due to CRPL’s partnership with Coldex logistics, a cold chain company serving brands like KFC, Domino’s, Burger King Subway, Starbucks, ITC, Nestle, and Amul.
However mint reported that the issue is resolved and CRPL would soon be opening all the closed outlets. Vikram Bakshi, the managing director of CRPL said, “Outlets in north India are already open and the ones in the east will reopen by the end of this week. The movement of vehicles (supplies) is slow due to fog. By the end of this week, 167 McDonald’s will be operational, while two outlets (in Delhi) are shut for renovation.” CRPL has succeeded in convincing MIPL to reinstate the franchise agreements that were terminated last year.
Sparkleminds is helping many companies in recruiting the franchisees who will comply with the standards set by the franchisor with respect to quality, safety, and supplies. Unlike the conflict between CRPL and MIPL, the franchisors who consulted Sparkleminds are able to enforce the terms of their franchise agreement successfully without any conflict. Most franchisors are also renewing their franchise agreements at the end of the expiry period and providing fresh renewal and franchise opportunities.
Providing franchise opportunities is the best way to appoint distributors for your products and services. Franchising is our recommended supply chain model for a safe success for franchisors and franchisees as well. Success has been the story of the business who consulted sparkleminds for expansion. Call +91 9844441300 to know more.
