techJoYnT appoints Sparkleminds to recruit their master franchise in India

Written by Sparkleminds Pvt Ltd

Every child is unique and has the power to innovate.  techJOYnT, with its head office in Austin Texas,  the gamified hands-on learning centers for STEM (science, technology, engineering, and math) education utilizing a proprietary GEAR (game design, electronics, app development, and robotics) learning pathway platform, announced a strategic franchise growth initiative that aims to add new franchise locations in markets across India. The strategic franchise growth initiative is to empower more children and communities to transform from passive users to passionate innovators than has been previously reached through the company’s unique and proven instructional delivery system.

techJOYnT is seeking investors, within their franchising platform, with a passion for helping the next generation to become tomorrow’s innovators of an advancing technologically-driven world through STEM enrichment education that encourages students to create, tinker, and learn.

Sparkleminds, which is an integrated franchise development company with 17 years of franchise consulting experience in the Indian Subcontinent. Subsequent to 1998, a couple of our esteemed clients are some hallmark names including BG Cleaning Systems, Rajdhani, Barista, Castrol Bike Zone, Pizza Corner, ICI Dulux Paints, Stori, Presto, Veta, Hughes, US Dollar Store, Maple Bear, Moti Mahal, Coffee Day, Lakme, Kwality Walls, Manhattan Pizza, Edu comp, Euro Kids and some more. The company offers an extensive variety of franchise services to companies seeking business development/expansion via the franchise route.

India being a strong market for global brands, we have a master franchise program under which we have a full-fledged 10 step schedule that will allow you a methodical entry into the country. This begins with entry into the country and involves processes like finalizing the franchise and also designing and implementing training modules. You could be assured that we have all the answers that you need to be able to operate in a very challenging market like India. In addition, we work as a single agency who could fulfill all your pre-set up requirements and get your foundation in place before you got started.

When to sell your business- The Story of La Quinta

Written by Sparkleminds Pvt Ltd

La Quinta in Spanish means “The fifth”. It can also mean “the country place”. The story of La Quinta started out at San Antonio, Texas in 1968. La Quinta corporation was made the parent company of the subsidiary called La Quinta properties as they grew to be a large chain with standardized company owned hotels and franchised hotel with a symbol of LQ. It also grew outside the United states across Canada, Mexico and Honduras. La Quinta now has its headquarters in Irving, Texas. In January 2006 a merger closed between a private equity firm, Blackstone group and La Quinta properties for $3.4 billion paid by Blackstone group in cash and debt.

In April 2014 LA Quinta holdings inc was listed on the New York stock exchange where they sold shares to the public for the first time.
Wyndham worldwide corporation via Wyndham hotel group manages owns and manages many brands in the hospitality industry. Wyndham has a long history of acquiring any successfully hotel brand that it can acquire and now it is acquiring La Quinta’s hotel franchise business. The acquisition is happening for a price of 1.96 Billion USD, 8.4$ per share in cash will be paid to the stockholders of La Quinta and 715 million of La Quinta’s debt will be repaid by Wyndham Group. Further Wyndham will pay taxes after the acquisition that is expected to close in the second quarter of 2018.

Wyndham Group aims to expand its presence to reach further into the fast growing upper middle scale segment to position it’s brands as the preferred choice in the hospitality industry. Indian market happens to type of market that Wyndham is trying to reach to. Wyndham is planning to add 40 new hotels by 2020 in addition to its hotels which are operational under the brands like Howard Johnson, Brands Days and Ramada Encore.  Regional Vice president Deepika Arora emphasized that India is a key market for a group and they plan to introduce new brands in India with Wyndham Grand scheduled to open in 2020 in Bengaluru. The acquisition of La Quinta by Wyndham could mean that La Quinta may be one among the brands that Wyndham will introduce in India. The new brands who enter the Indian market  in the franchising model usually give a master franchise for the country.However the companies that wants to experiment the Indian market and expand slowly will recruit unit franchises to target only certain locations.

The right time to sell a business is not when it is under loss. There is little to talk about a business that is sold under loss and it is not a good sale even if it sold. So what is a good sale and when is the right time to sell your business?

Sell it when you find a great buyer.
Who is the right buyer. The right buyer is the one who can grow your business better on a larger scale. The buyer should not only have better investment capabilities to buy your business at a good price, he should also be able to accelerate its growth rate.

Sell it when the company has outgrown your skill set.
It requires humility for an entrepreneur to accept that the expertise and leadership of other professionals in the company surpasses his own. When the company is reaching out to the areas where you have no expertise selling the company to those capable in those areas is an excellent exit strategy. Converting your position in the company into a sleeping partner to enjoy the dividends and stop involvement in the management is an good a option at the point. Indeed a few share holders La Quinta can still adopt this strategy and stop voting on policies.

Sell it when the business can be automated:
A business that can be automated can also be developed into a franchise. This kind of business that has been developed into a franchise is likely to have a very high market value. The automated business can be sold at a very high market value. This is one of the reasons La Quinta is being sold to Wyndham for a high price.

Fill in an enquiry form to find out if you can develop a franchise to increase the value of your business. If score above 500 on the franchise quiz you can get started with franchise expansion  in a very short period of time.

The franchise strategy of OYO rooms has proved to be successful

Written by Sparkleminds Pvt Ltd


OYO (Oravel Stays Pvt Ltd) has been adopting various strategies for expansion. But the franchise strategy has found success.


Ritesh Agarwal, CEO of Oravel Stays Pvt ltd launched a website for hotel bookings in 2012. After staying in over 100 Hotels to research the industry, he pivoted his startup to OYO rooms. OYO rooms started with one hotel in Gurgaon in January 2013 and by September 2017 it had around 70000 rooms in 8500 hotels.  In 2015, at the age of 21, Ritesh raised $25 million from investors like, sequoia, DSG Consumer Partners, Light speed ventures and San Francisco based Greenoaks Capital.


In December 2017 OYO announced that it will be changing its expansion strategy from hotel aggregator model to the franchising model and all hotels will be shifted to the franchising model. Mr Agarwar said that moving to the franchising model had very less impact on the pricing of the rooms. Due to the shift the company is able to manage, agreements, franchise partners, and hotel inventory more efficiently with fewer hotel staff.  OYO has new procedures in place for all franchises, for example, one floor manager assigned for every 100 rooms, simplifying the managers work by data analytics and computers, auditors for checking 30% of hotels every day, etc.


The franchise strategy has turned out to be very successful and the company is generating more than 90% of its revenue from the new model where it is has leased out hotels from owners. It is adding 10000 rooms or 500 hotels every month by this strategy. The franchise model has increased the OYO’s commission from 18% to 22%.  Its 5% is a increase.


Franchise consultants at Sparkleminds have been helping various brands adopt the right franchise strategies for about 20 years. The brands have been able to shift to the best suitable franchise model quickly so their growth over the years has been rapid. To find out if your business can grow the same way on a large scale register and take a franchise quiz, you may score high right away.

Franchise model is the best business expansion strategy!

Written by Sparkleminds Pvt Ltd


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 addresses 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 before hand 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 McDonalds

Connaught Plaza Restaurants Pvt. Ltd (CPRL) is a franchise partner to McDonalds India Pvt Ltd (MIPL). CPRL which had a master franchise of McDonalds 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 out lets. Vikram Bakshi, the managing director of CRPL said, “Outlets in north India are already open and the ones in 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 to 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 with out 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.

Franchise Model could have saved Samsung’s top-notch position in the market

Written by Sparkleminds Pvt Ltd

MI Homes is set up in the Franchise Model

Hoskote is a rural town in Karnataka with less than 60000 inhabitants who mostly depend on agriculture for livelihood. It was low on priority for phone makers, but now it is not so for Xiaomi. Xiaomi’s market share in India has exceeded that of Samsung by 2.4 percentage points within just 3 years of entering the market and is seeks to increase its sales by reaching out to remote areas in India.For growth in India Xiaomi has taken 3 approaches to supply their products: MI homes, electronic retail chains and MI preferred partners. Of these three approaches MI homes is proven to be the best because it has adopted the franchise model for growth and expansion. It is similar to the Apple store franchise where the store is owned by the franchise partner but is operated by the company.

franchise, xiaomi,samsung

Amid rumors that Samsung is unhappy with two major retail chains for promoting Xiaomi, a Samsung industry executive without wanting to be named said “Samsung is trying to sort out the issue with the two retailers ahead of the festive season.”

Samsung’s Drawback: Not Choosing the Franchise Model

Samsung recently boycotted more than 200 retailers who entered into an agreement with Xiaomi as preferred partners. For the first time Samsung has stopped supplying their handsets to these retailers for preferring another brand. Several retailers are approaching Competition Commission of India (CCI) to take legal action against Samsung. A Xiaomi executive said, “Xiaomi is helping the affected retailers with advice and additional business support. This is a good opportunity for Xiaomi to get retailers’ confidence, now that it is betting big on brick-and-mortar retailers to grow in India,” A retail chain CEO said that Xiaomi will support them by changing its business strategy to launching their new phones offline first.

Boycotting retailers is never a healthy strategy for competing. Samsung’s dependency on retailers proved to be a major drawback. Samsung had built a great brand and people trusted its name for the quality of its products. It had the largest market share in India until Xiaomi overtook.

Choosing the right channels of supply for sales and services can help your firm compete with better priced products and even better-quality products. If Samsung had adopted the franchising strategy to set up stores that sell Samsung phones, it would not have been threatened by Xiaomi’s entry into the market. Much like an Apple-franchise store, people who went to a Samsung store would not find a Xiaomi alternative, So Samsung would not have felt the need to boycott retailers.

Choosing the right strategies for competition will help business succeed without any conflict with the rules and regulations set by CCI. At Sparkleminds we can help you compete in the market without any legal obligations and more importantly we will help you win.

Franchising as a Market entry strategy. A win-win for Eric LifeSciences and Strides Shasun

Written by Sparkleminds Pvt Ltd

Franchising as a market entry strategy.

Selling your brand as a franchise can enable your business to realize its full potential. Such a deal can be focused on a particular market alone. Partnerships with the well-established business in a new market can be a great strategy for entry into that market.

A win-win for Eric lifesciences and Strides Shasun.

Sashank Sinnha, Managing Director of Strides Shasun said that their focus always has been building a B2B portfolio. Strides Shasun, he said has scaled up its operations in Australia as one of the top two players. As their international operations scaled up, they decided that Strides Shasun in India will achieve its full potential under an India focused company.Franchising

Eris life sciences entered into a definitive agreement to acquire marketing and distribution rights of Strides Shasun in India. It acquired the rights along with the employees of the business at an aggregate cash consideration of RS 500 crores.
Amit Bakshi, Managing Director of Eric lifesciences intends to expand it as more of a franchise. This could help build more number of brands. He said that the gross margins of Strides Shanun will increase from 70% to 75% in the next three to four quarters because of the deal.

Your interests in continuing your business can be protected even while you sell your brand away. Contact us at Sparkleminds to know the expansion strategy that best suits your business.

Franchise strategy development for your business. Exit strategy was a sweepstake for Havmor.

Written by Sparkleminds Pvt Ltd
Franchise Strategy Development, Exit strategy, deal

The right time to consider an exit strategy is when your business is developing. The best value for your brand is realized when you start franchising development with exit strategies in mind. There is a significant investor interest in the franchise industry. Beginning from 2010 dozens of mergers and acquisitions franchising transactions have closed and the trend is increasing. Private equity groups have more than 800 billion in cash and strategic buyers have more than 4 trillion to invest. It creates a potential demand driving prices to rise. Small business financing may be problematic at times but the availability of bank financing for large acquisitions enables private equity firms to use leverage while paying high prices for best quality franchisors.

Havmor is an ice cream shop that started in 1994 in Karachi. It moved to Ahmedabad within 3 years following the partition of India. A large number of ice cream shop owners and small entrepreneurs tied up with Havmor as franchisees. It grew to be a prominent brand with more than 40000 outlets across India by 2016. The brand has been growing at a CGAR of 23-25%. It had a turnover of about 250 crores in 2012 and its turnover was about 450 crores during FY 2015-16. In 2016 Havmor had expected its sales to double by 2020. It had aimed to increase its sales to 1000 crores.

Lotte confectionery is taking a lion’s share in Korea’s ice cream market and its’ turnover has been constantly increasing. Lotte confectionery was looking to enter the Indian market for expansion. This turned out to be the right opportunity for Havmor. Havmor signed a deal by selling 100% of its homegrown ice-cream brand for Rs 1020 crore in an all cash deal. The deal values Havmor at more than 2.5 times its 2016-17 turnover of Rs 400 crore. Ankit Chona will continue as the CEO advisor to the brand and will see through its merger with the maker of Lotte Choco Pie.

Configuring the best strategy has proven to increase the value of the brands significantly. It is important to consult experts to choose the right deal and get the best benefit from it. At Sparkleminds we can help you find the best exit strategy to suit your needs.

Configuring your franchise agreement correctly in India. See how it helped NIIT.

Written by Sparkleminds Pvt Ltd

The franchise industry in India is growing by 35% every year with close to 5000 new brands adopting the franchising model. International franchisors prefer to appoint a master franchisee and the local franchisors usually do direct franchising. It is necessary to understand the parties’ rights and obligations carefully while entering into a franchise agreement. Hence if you are a brand looking for a franchise agreement format india, then you must make sure that it is done through the experts and with professional help.

Why is it critical to ensure that you have a strong franchise agreement draft built at the onset of developing your franchise model?

Unlike many other countries India sets a maximum limit for prices; Products cannot be sold above the maximum retail price. The laws governing each state is different. International brands seeking to enter the Indian markets might be unaware of the laws pertaining to competition, pricing, royalties, and so on.

The Contract Act 1872 and the Competition Act 1999 prohibit agreements that can hurt competition within India.  The CCI (Competition Commission of India) had admitted petitions against NIIT under competition act. There were also allegations that NIIT increased its share of revenue from 42.67% to 48% between July and April. However this month, the CCI totally dismissed all allegations against NIIT with regard to franchise agreements. The CCI said that “the OP (NIIT) is not the dominant player with presence of large players like Jetking, Aptech etc in the market. In order to improve efficiency in the market and to add value for the consumers, almost all the services including professional training are imparted through online mode rather than through the traditional classroom mode to meet growing requirements of the consumers. This signifies that the OP’s conduct is not contrary to the dynamics of competition in the relevant market.”

It is always advisable to approach attorneys and consultants for reviewing the terms carefully and configuring the right agreement to mitigate the business risks involved in making a franchise agreement.

In addition, ensure that you build your franchise model first and never copy paste any existing draft franchise agreement india sample template which you come across. Each business is governed by its own dynamics and hence your agreement must also have its own uniqueness and protect your brand adequately.

Franchising Fuelling SME Growth in India

Written by Sparkleminds Pvt Ltd

India is set to become a $5 trillion economy by 2025. Small and Medium Enterprises (SME’s) are going to probably play the biggest role in this growth. The initiatives from the Government of India through Make in India, Start up India, Pradhan Mantri Mudra Yojana, and Public Procurement Policy are all aimed at strengthening the fastest growing segment of the economy.