GLOBAL FRANCHISE NETWORK

A ROAD MAP TO GFE

Roadmap
Franchising A tool to growth Global Scenario Franchising in India About Global Franchise Networks GFE Channel Development Brief GFE Profile GFE Roll-out plan GFE- Value Proposition GFN Support Brand & Marketing support 360 degrees Training support GFE- Setup Cost GFE- Revenue Model GFE- Payment Collection GFE- & terms GFE- Reconciliation &

Franchising A tool to growth

About Franchising Global Franchising Scenario Franchising in India

About Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation from franc- meaning free. Technically, franchising means - the rights of privilege granted. For the franchisor, the franchise is an alternative to building chain stores to distribute goods and avoid investment and liability over a chain. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. Things that makes Franchising fantastic: Capital Raising Human Resource mobilization Brand Equity Training

Franchising as a tool to Growth

What is required ? Invest in Systems Key elements of franchising Rights to a Name, System and Know-How Invest in Brand Maintain Standards Owner / Operation of outlets by Be sophisticated in business practices franchisees - Good record keeping Duplicating a Proven Business System - Good reporting and IT systems Network Growth - Good compliance systems Ongoing Development of Brand -Professional in dealings
Market Focus People Strategy

Customer

Business model + Distribution strategy Employee Agency Broker Dealer Enable Partnerships r Cooperative Licenses Franchise Joint Venture

Franchising as a tool to growth

Franchising A way of carrying on business Independent business owners to be part of a network Defined way to supply the services. Structure Single unit franchise Master franchise Area developer franchise Multi unit franchise Competitive Advantage of Franchising Independent business owner/operators A greater level of commitment and accountability than employees. Simplest way to raising funds (w/o parting ways with equity)

Franchising the Ultimate network

What do Coca Cola, Pepsi, Shell, BP, Mobile, Ford, General Motors, Toyota, McDonalds and KFC have in common? Franchising created the worlds biggest brands by: Sharing vision, ideas, knowledge and process Creating systems for franchisees to develop profitable businesses In Australia 1000 franchisors and 65,000 franchisees together generating over $128 Billion in revenues 500,000 jobs 25% growth since 2000 In the United States Over 3,500 franchisors and 850,000 franchisees together generating over One Trillion Dollars in revenues 11 Million jobs 20% growth since 2000

Franchising in India: Emerging trends

Grown from a questionable and not so acceptable format to a readily admissible way of business expansion in the country The pioneering companies have shown franchising can work in any country Brought a graphic change in over all working of the countrys business Technology & internet are helping at both ends: to create the awareness about new product & services, and
helping to serve the consumer better leading to fast proliferation of worthy concepts & products.

Snapshot: Industry growth Franchising industry growing at the rate of 40% 200 Home Grown Franchisors & 2,50,000 Franchisees (growing entrepreneurship) 85% Success rate vis a vis 90% failure in self start up Industry of over US$ 4 Billion Highest retail outlet density in the world (Approx 12 million) Remains the best entry & expansion strategy Small format businesses are key economy drivers

Franchising in India: Emerging trends

Education - Size of Indias private education sector, including the coaching classes segment, is estimated US $ 40 billion Retail -Expected to grow up to US $ 785 billion by 2015 F&B - Growing at 25 percent to 35 percent every year. Young spenders with hectic schedules and rising incomes are creating new appetites Travel The growing Indian travel & tour industry likely to spawn US $ 128 billion by 2016 Luxury Goods -

Features of Indian Franchising Industry

Over 150,000 franchisees currently Only 10% of the businesses are franchised as compared to 70% in U.S. Over 1,500 franchisors at present Current annual turnover estimated approx. US$ 16 billion Total annual turnover by 2013 approx. US $ 20 billion Over 950,000people directly & indirectly employed by franchised business

rends fostering in the new decade

1. Organized approach of Franchising Grown from a questionable 2. Implementation and not so acceptable of best format to a readily admissible way of business practices 3. Policy & Realizing franchise as the expansion in the country Regulations best entry & expansion Currently, the industry is non Until now limited to the strategy regulated and doesnt bind larger companies realizing Small to medium format the franchisors in any legal the potential through the businesses will adopt the Ways franchising way! However, the new decade best practice/ internationalHowever, the scenario is proven concepts to their expected to change soon would encourage smaller business to achieve growth with control & measure companies to follow the faster regulations binding the organized/technical way of franchisor and the opting franchising as a tool franchisee are likely to be to growth announced

About Global Franchise Network

GFN ((Global Franchise Network) is fast emerging as a one stop integrated franchise solution company that has developed a strong network of franchisors and franchisees across the globe. Getting associated with GFN is no less than like being born with a silver spoon. Whether you want to franchise your business or be a franchisee, you just dream of minting money and give all your franchising worries to us. Get 360 degree franchise solutions only at Global Franchise Network. Just go the right way and wait for the profits to fall into your lap.

 GFN's credibility and track record are unsurpassed. Our extensive experience with successful big name in franchising makes us the safest option. GFN's services are unique. Of course, it's clients who value our expertise and the experience of our team that make us the industry leader. Curious to find out your options for franchising, and to determine the optimal strategy for growing your business? Through our experience in developing big brand franchisees we've managed to determine the most costly mistakes in franchising. Avoiding those mistakes will gain you the most opportunity. When you quickly develop a franchise using GFN's guidance you'll succeed and be efficient. Start with our proven steps to successful franchising. Then look at the development services GFN's has to offer. See how our experience can benefit your growth strategy, and the options for getting started as soon as possible with GFN.

Cost Effective
Focused Medium Larger Reach

Customized Product

Filtered Search Understanding Needs Designed To Requirement Unique Artifact

Minimal Risk
Strategic Planning Scientific Approach Expertise In Franchising Business

2
CONSULTING

MARKETING

BUSINESS DEVELOPMENT

Global Franchise Network (GFN) is Asias one of the largest integrated franchise solution company since .., and an absolute authority on franchising and licensing.

Global Franchise Network Sector & Specialty Approach Service Lines

Strategy I Legal I Operations I Marketing I Sales I Training

Focused sector practices | Coordinated service lines | Sector and specialty approach Specialty groups Consumer services | Apparel| Media & entertainment Food & Beverages| Aviation training school | | Home based businesses Pre school| Real estate & training | | Pharmaceuticals retail| Telecommunications | MLM businesses | Retail & Consumer Facility management| products | Soft skills training | Business school| Beauty & wellness | Online MBA programs | Jewelry | Hospitality | Home dcor & GFNs Service lines furnishings |

Advisory

Legal

Marketing

Operation

Strategic planning Franchisor legal Franchise feasibility agreement Review & Franchisee legal recommendation agreement (Master/ Approach Area/ Unit) Franchise development model

Operating procedures Development of Sales & Training Marketing communication for manuals. franchise sales

Global Franchise Experts- Channel Development

he GF experts is a division of Global Franchise Network. are the franchise consultants that help you find the best franchises to make your business ownership dream a reality. ur global franchise experts with highest standards of integrity and excellence in industry are highly efficient in assisting in selling a business in just the right way till the deal is closed.

obal Franchise Experts Roll-out Plan

We have chosen 500 districts out of 626 districts to set up our network currently GF Experts Locations, currently 200 are functional and rest 300 we are likely to finalize in next 3 months.

obal Franchisee Expert Profile

Analytic al Thinkin g Network ing Skills Marketi ng Skills All the three combinations in any franchise owner is expected and given first preference to be a franchisee.

Attribut es

Global Franchise Expert Profile

Chartered Accountants Business Consultants Management Consultants Law Firm owners Advertising Agencies Insurance /IFA Agents with strong networking Sub brokers of leading financial companies Leading Real Estate firms

Global Franchise Expert

Proposition Benefits Association Value

alue Proposition for GF Experts

Identify right set of investors Identify the business needs and provide them need based business solutions Right Investor Investor/Br relationship and Management Acquisition Match Making for the Investor & Brand. Differentiated Services Strategies Cutting edge technology Centralized Back office Centralized GFE helpdesk Exclusive Franchise Manager's to support on ground Strong & experienced franchising research and robust Different products for different needs Transaction/Consulting and Multiple Product Media Sales

Business Model

GFE Channel Partner Direct Sales Team

Support to Global Franchise Experts

A. Technology Associate Portal: Our comprehensive CRM provides access to Brands investment details, Area requirements, industry reports and more in just a few clicks. Cutting-edge technology: Our superior softwares and an excellent technological platform assures a seamless transaction experience geared to meet all the business buying needs of the investors. B. Industry/ Category Research Our teams closely monitor the market trends and hence release number of research reports on the growth of a particular industry and how your investors can benefit from it.

Support to Global Franchise Experts

C. Ongoing support Centralized Back office A dedicated team at our centralized back office in Head office provides seamless back office support. Training and Development We offer extensive training facilities for all our Associates, which cover aspects like product information, systems acquaintance, operations and sales and compliance etc. Exclusive GFE Helpdesk An exclusive GFE desk assists you in acquainting you with our processes, coordinate with various operational departments and solve all queries.

360 Degrees Support

START- UP TRAINING Training on Franchise Overview Franchise Sales Strategy & Lifecycle Management Franchise Development Process Business Broker Training LAUNCH City PLAN Specific Launch Plan Global Franchise Networks Launch event Visibility Support round the year PR Support Dedicated GFE team to work closely with you

SOFTWARE SUPPORT

Access to integrated CRM Robust Online MIS Reports at a click

360 Degrees Support

LISTED BRANDS Access to all GFN listed brands from Day 1 National International Reward structures on new brand acquisitions MARKETING SUPPORT Leads support for business generation Access to Franchise Retail Opportunity Shows Access to Business Opportunity Shows* Reward & Recognition Platform VALUE ADDED SERVICES Access to Property Services Marketing Services Professional Consultancy on Business Finalization Project Planning Project Execution

Support to Global Franchisee Experts

Brand mileage GFN is one of most identified and trusted brands in India in the field of franchising One stop shop for all business solution to the Investors needs. Hand-holding to identify business potential and to develop the business in your local markets Exclusive Help Desk/Relationship manager to support. Basic induction and training to GFE for operational knowledge. Special training programs on the industry & franchising and on evolving trends Technology that guarantees seamless connectivity at all times. Unique back office support. Appropriate presence in print and electronic media. Marketing support- Local area programs, All product brochures

Global Franchise Expert

Cost Model Lines, Sharing Contract terms Collections & Reconciliations Set-up Revenue Revenue & Basic Payment

Payouts

Revenue Structure & Sharing

Elements
Joining Fee Tenure

Registratio Registration n Type A Type B

20,000 Non Exclusive

Registration Type C
1,00,000 Exclusive yr 30% for

Registration Type D
3,50,000 1Exclusive yrs 40% for 3

Profit 25% on brands Profit Sharing10% of 5% of10% of 5% of10% of 5% of10% of 5% of on Every Deal the totalthe totalthe totalthe total investment investment investment investment Training Fee NA 20,000 50,000 1,00,000 Initial MarketingNA 10,000 50,000 50,000 Support Total Initial10,000 Investment 50,000 2,00,000 5,00,000

10,000 Non Exclusive SharingNA signing

Revenue Structure & Sharing

Revenue sharing From Franchisor % Franchisee on the entire Global Franchise Network Level.. Brand Director GFN Point Of Sale GFE Advertisin g& Promotion s

10% 20% 50% 10% 10% Any GFE referring for other district would also be awarded. Revenue Generation from the Franchisee Prospects GFE 30% Advertising & Promotions 20% GFN 50%

Payment Collections & Reconciliations

All collections against Registration, Investor Service fee or any other fee to be collected in either in cheque, Draft or Payorder favoring: Global Franchise Networks Limited No other mode of payment allowed All payments to be deposited locally in informed GFN bank

BA Payout

For revenue against Registration done to be released by 7th of next month for all payment collections reported by Finance for the period 1st of the month till month-end. For revenue against Deal Closures in the same calendar period, payment to be released by 7th of next month No payment would be made on accrual basis

Key Legal Points

The Channel Partner will not be allowed to function with any other business from designated model Data secrecy has to be maintained through CRM and at all levels Payments are only supposed to be collected in form of Cheque, Draft or Payorder or Internet transfer. No other mode would be allowed Legal rights of property to be clear Contract binding tenure initial for 3 years & every year there on