Elements of an International Franchise Module outside of India
In this module, The International Franchisee first sets up a Unit Model restaurant, “Ustad Banne Nawab’s Ethnic Hyderabadi Restaurant – Dining, Takeaway and Catering” in a particular City / Suburb of the desired Country of operation, thus becoming a partner in the Franchise business with the Franchisor, Charminar Foods & Exports (P) Ltd’s Restaurant division. The one time, Franchise Fee for all International Unit Franchisees is Rs 5 Lakhs and the Royalty Fee will be 5% of gross sales payable every month. 50% of Franchise Fee is refundable upon closing down the business due to any reason.
After running the Unit Model restaurant successfully for some time, the International Unit Franchisee has three options.
(1) Confine Himself to just running the Unit Franchise.
(2) Buy another or more Unit Franchises in other Cities
/ Suburbs of the desired Country of operation.
(3) Become a Master Franchisee for the entire Country
of operation.
As a Master Franchisee he will be entitled to scout and appoint Unit Franchisees in the Country of operation with the consent and approval of the Franchisor subject to fulfillment of terms and conditions laid down by the Franchisor. This effectively means that the Master Franchisee apart from owning the profits of his own Model Restaurant is also entitled to 50% Franchise Fee and 2.5% monthly Royalty Fee from all the Unit Franchisees he may appoint in his area. The other 50% Franchise Fee and 2.5% Royalty Fee being the entitlement of the Franchisor, Charminar Foods. The Franchise and Royalty fee for all further Unit Franchises in the Country of operation will be the same as above.
The Franchise Fee for becoming a Master Franchisee will have to be decided later on mutually between the Franchisor (Charminar Foods & Exports (P) Ltd.’s Restaurant division) and the Franchisee.
Initial Investment required by the International Franchisee:
The Initial investment required by the International Franchisee apart from paying the Franchise Fee of Rs 5 Lakhs to the Franchisor (Charminar Foods & Exports (P) Ltd’s Restaurant division) will depend upon the Country / City / Suburb of operation. The heads of costs involved will be as follows:
Owning / Leasing a Ground floor facility of between 1500 to 4000 square feet in a mix of commercial / residential locality on a main road with ample parking space and service entrance. The ideal space utilization will be 600 to 1200 square feet of dining area to accommodate 50 to 100 people, 300 square feet for cash counter and Takeaway area, 300 to 600 square feet for kitchen, 600 to 1200 square feet for store room / office / washroom. The cost involved here will be variable depending upon the location and needs to be added to the below totals.
|
The prospective Franchisee will have to conduct a detailed and through survey of the market and come up with the costs involved in the City / Suburb of the Country of operation for the above heads and also for cost of raw materials like Meat/Chicken/Vegetables/Basmati rice/ Cooking oil, etc., etc. (A complete list can be provided). The cost of Utilities, Labor and other heads also need to be worked out. Apart from Costing, Sales Potential / Projections have to be worked out.
Based on the inputs from the Franchisee, the Franchisor
in consultation with the Franchisee can work out a detailed
feasibility report together and come up with exact costs
involved and decide Menu pricing, number of personnel
required, Projected profitability statements along with
other details and develop a Business plan and act accordingly.
TOP |
 |
Back to
Franchising Home
I) Elements
of a Unit Franchise Module in India
II) Elements of a Master Franchise Module in India
III) Elements of an International Franchise Module
