Renting benefits for toy lovers

Parents spend huge amount of money on toys but kids soon get bored with them and desire for new ones. Thus this investment becomes a waste. As a result the concept of renting toys is emerging fast. Read on to explore the opportunity. 

 

Toys are an indispensible part of almost everyone’s childhood. However with toys becoming more and more expensive it is becoming difficult for parents to buy new toys and games for their little ones. Moreover kids get bored of toys very quickly and after few days toys become a waste and occupy lot of space. To avoid this and make toys more affordable the unique but functional concept of toy rentals has become popular in India. The concept is already quite popular in countries like New Zealand, Australia, and America where even the government funds such concepts. However in India toy libraries was an unheard concept till recently. With more of awareness, a toy library is an upcoming opportunity with many entrepreneurs already cashing in on this new concept. Read on to be more aware. 

Need for toy renting

Toys are still considered to be a luxury in India. Although parents spend huge amount of money on toys yet it is not a healthy investment.   Moreover kids get bored with the toys very soon making it a storing item. This brought the idea for buying toys on rent. The concept of rental toys work wonders for kids as well as parents. Let us have a look at the advantages of this venture:

• New toys without much expense: Kids usually get bored with toys, which are quite expensive. They store these in their playroom as useless items. However getting toys on rent saves money for parents as well as gives variety to the kid.
• Toys as learning experience: There is a continuous range of new toys available in the market. These not only provide entertainment but also knowledge to kids as well as their parents. Instead of buying them, toys can be taken on rent.
• Saves space: Presently everyone mostly have small compact houses without much storing space. Buying toys and storing them takes a lot of space. Therefore toys on rent save money as well as space.
• Play, learn and pass it on: The best thing about toys on rent is that they can be passed on to the next child when the previous owner gets tired playing with it. This way they do not get wasted.

Rental toy franchising:

Concept of renting toys is quite recent in the large bandwagon of franchising. However it is becoming more organised due to the various brands in the sector which have taken the franchise route for rapid and successful expansion. As informed by Toys-on-rent that Franchising is essential for giving the next big step to their business. Moreover seeing the success of this concept in other nations, they can be assured that it has a bright future in India also.

New and emerging players:

As mentioned the toy rental concept is quite recent, therefore there are few players who are benefitting from this concept till now. Few of them are:

• Toys-on-rent: The brand has recently opted for the franchise route. It needs a total investment of Rs 2,30,000 which would include the sign up fees and franchise set-up cost as well. Toys-on-rent is presently planning to open franchise outlets in Hyderabad, and Mumbai etc. 

• Planet Toyz: It is a fun library from where kids can get books, toys, games, CD’s etc on rent. The first outlet was opened in north Delhi. It needs an investment ranging from Rs 1.5 to 1.75 lakh with an area approximately 200 sq. ft. 

• Rent Me Toy: The toy library, headquarters at Mohali has recently opened. The brand has taken the franchise route for rapid expansion pan India. It needs an investment of Rs. two to five lakh.  

Play way for franchisees:

A toy rental franchise can be benefiting for aspiring entrepreneurs. There are not many requirements for taking toy rental franchise. Any aspirant with total commitment to quality and service can opt for this. Moreover toy rental concept is well suited for women who are home makers. They understand kids and love dealing with them. Few of its other benefits are mentioned below:

• Low cost but attractive returns: Taking a toy rental franchise is not very expensive. It is a low cost business opportunity which can fetch lucrative returns to franchisees.

• Easy to manage: Toy rental business is easy to run. As informed by Kapure: “The business can be managed at home with just a 6'X3'X3' storage space.”

• Staggered investments: The franchisees can keep expanding the business with no additional fees within their territory. Moreover adding more and more toys can give this business an easy leap.

Few hurdles on the way

Along with numerous benefits, this concept faces a few challenges as well. The understanding of rental toys among parents and kids is the greatest challenge. Moreover entrepreneurs have to keep updating newer toys, games and books in the outlet. This forms the major issue as one needs to add on toys keeping children’s expectation in mind.

It can be concluded that a toy rental franchise is low cost with high benefits and easy to manage as well. Therefore aspirants who love toys and kids can surely opt for this venture for a happy and fulfilling business growth.

SUBWAY's Double century

Subway completes double century in India

Subway, the submarine sandwich chain, is celebrating the opening of its 200th submarine sandwich restaurant in India. The Subway chain in India (and around the world) is 100 per cent franchisee owned and operated.

The company has worked closely with local chefs to ensure a good balance of vegetarian and non vegetarian food on its menu. To match the Indian consumer's palate for strong, bold flavors, Subway restaurants in India offers a wide array of popular local and international favorites, including Paneer Tikka, Veg Shammi, Alloo Patty, Chicken Tandoori, along with international flavors like Italian BMT, Subway Club, Turkey, Tuna etc

Franchisees have grown their businesses to open up to 10 restaurants due to the low investment cost through cooperation with local equipment vendors etc.  Moreover 66 per cent of franchisees in India own at least two restaurants.

BSNL: franchise model

BSNL signs franchisees for BWA spectrum

Bharat Sanchar Nigam Limited (BSNL), a telecommunications company providing comprehensive range of telecom services in India has opted for a franchise model to monetise its Rs 8,313.80 crore investment on securing pan-India Broadband Wireless Access (BWA) spectrum.

The company has opted for a franchise model on a revenue-sharing basis to use this spectrum. The company has short-listed three companies namely Teracom, Starnet and Take Solutions as its franchisees and will be responsible to distribute BWA spectrum in their respective territories. Teracom has been given Rajasthan, Karnataka and Bihar circles, Starnet has Chennai Telecom District and Himachal Pradesh and Take Solutions has won rights in Tamil Nadu, Uttar Pradesh (West) and Orissa. As per the agreement, the franchisees have to deploy the WiMax network and BSNL would provide infrastructure like premises, towers and media connectivity.

McDonald's India franchisee

McDonald's India franchisee to invest Rs 500 cr to ramp up presence

Hardcastle Restaurants Private Ltd (HRPL), which runs McDonald's outlets in West and South India, will invest Rs 500 crore over the next three years to double the number of restaurants in operation.

The company, which has been operating the fast food chain through a joint venture with McDonald's Corporation, also has converted the partnership into a development licensee model.

The recent change from joint venture to development licensee in India's South West is based on the corporation's view that India's economy will continue to grow rapidly and sustainably, creating significant present and future opportunities for the expansion of the McDonald's Brand.

According to HRPL, which plans to open 30 McDonald's outlets this year, the company's operations are profitable and cash-positive. Same-store sales have seen double-digit growth continuously for the last six years and the company has seen a total compounded growth of 35 per cent in revenues.

HRPL is a debt-free company and will fund the entire investment of Rs 500 crore over the next few years through internal accruals.

Development license:

The DL structure has been successfully employed in over 50 markets worldwide, including Latin America, Indonesia, the Philippines, Turkey and several countries in West Asia for over 20 years, McDonald's said.

Under the model, a licensee owns the entire business, including the real estate, and uses its local knowledge and capital to build the brand and optimise profitability over the long term.

In the past, McDonald's Corporation has converted about 1,700 restaurants in Latin America (18 countries) into a single development licensee under the leadership of previous joint venture partner Woods Staton. In 2009, sales of the Latin America business were in excess of $3 billion.

franchising: Berger Paints

Berger Paints all set for expansion

Berger Paints, a well-known paint company of India, is all set to open 300 retail stores. The expansion will be done via both franchise and company owned route. The company plans to open exclusive retail shops in Gujarat and Andhra Pradesh after conducting test marketing in Tamil Nadu.

The company expects to generate Rs 100 crore from the retail segment.

With its Head Office in Kolkata the company manufactures and markets a range of decorative and industrial paint products under various product brands and has it operations spread throughout the length and breath of the country. It has seven manufacturing facilities in India and more than 82 depots, several regional and area offices, besides four facilities overseas.

Burgerman

Franchising Business – Perfect for Youngsters

Franchising: Turnkey Business

Turn to Turnkey Franchise:

If you are a business aspirant exploring a business opportunity with no prior experience and want quick results, then turnkey franchising is the best option for you. Read on to know more about turnkey franchising....

‘Turnkey’ business stands for a business that carries a complete package required to start a business. A business that is being sold as a turnkey business includes tangibles such as stock and apparatus through intangibles such as a previously established reputation and goodwill. The most popular businesses sold as a turnkey business is a franchise business. 

In a turnkey package, it is the franchisor’s duty to deal with the site identification, signing the lease, instating inventory and equipments for business initiation, renovation of the outlet, recruiting and training the staff of franchisees etc. It is well known that a franchise is preferred to an individual business because the former has established a reputation, goodwill, good customer base etc, which lacks in an independent business. However a turnkey business further adds to a franchise by including all the inventory, equipments etc in running the franchise. Consequently the complete package makes it much easier for franchisees, whether experienced or inexperienced to taste success.

Internet based franchise ‘turnkey’ businesses

The maximum turnkey franchise opportunities exist in the realm of internet businesses. Increased dependability on internet for official as well as personal chores has led to the popularity of internet based businesses to a great extent. Also the web based businesses have the advantage of offering turnkey packages to its franchisees. Turnkey franchises can be a viable option for mostly the web based businesses. This is because web businesses need less infrastructure and equipments as compared with other products and service franchising, in which services/ products are offered in the outlets only. In all such opportunities, the franchisor offers fully functional websites and internet marketing to the franchisees instead of a fully functional brick store and traditional marketing.

The most popular turnkey internet business opportunities include:

•     Gaming websites: Gaming has emerged as the pleasure in leisure for the majority of the 15 to 30- year-olds across the globe. But kids apart, hundreds of millions of consumers use a variety of platforms such as PC games, console games and also handheld games. The worldwide online game market is forecasted to be over $13 billion by 2012. Similarly Indian online gaming zone is also expanding. One of the major players in gaming, taking the franchise route is zapak.com after seeing its online portal’s success has also opened gameplexes for its consumers. Starting small with turnkey package in the online gaming industry is the right foot forward to being a successful entrepreneur. 

•     Travel portals: With the tremendous increase in travel and tourism industry, the online portals have also come up. Most of the travel companies have launched their online portals to attract the maximum number of travelers. For example Arzoo.com is a full fledged online travel company offering franchisees a turkeybusiness opportunity. 

•     Shopping portals: Due to a hectic life schedule and work pressure, many people prefer to shop online for their apparels, shoes as well as other home appliances. This has led to the introduction as well as popularity of shopping portals. Pioneering with e-bay, the e-commerce websites have broadened now.Kathak Fashion Mills, ladies ethnic wear player into franchising has also opted for its online portal for retailing its products.

•     Internet marketing: It entails offering search engine optimisation services, pay per click advertisement services, website advertising services, article and blog marketing services and much more. Finding a professional turnkey provider to offer legitimate services in such areas is an opportunity that has good demand.

•     Job and marriage portals: Most of youth now-a-days search for jobs through online portals. So going in for a franchise of this kind is also a viable option for entrepreneurship. Similarly finding a match has become easier with online matrimonial sites. Shaadi.com, a popular matrimonial site had taken the franchise route after seeing its advantages and has gained a lot of prominence and success.

This does not mean that turnkey packages can only be present in web based businesses. These can also be included in other product/service franchises but it requires the franchisor to provide everything to the franchisee on a platter. Similarly for the franchisee, the initial investment would be very high as compared to a traditional franchise. So aspiring entrepreneurs here is an opportunity for you to start a business which is almost handy for you in shape of turnkey franchise business.

Franchising

Franchise regulations needed in India

Indian franchise industry which is estimated to be Rs 5,000 crore is witnessing restricted growth as a result of absence of franchise regulations.

A set of franchise laws will make the sector more transparent and will help the business to grow by 50 per cent annually from the current 30 per cent.

Presently, franchising has no regulator in India and is not governed by any legislation, unlike other developed countries which not only have legislation but also a code. India is losing huge amount of FDI in absence of legislation for the franchising industry.

The Indian franchising sector is the second largest in the world and retail and education are its main components.  There are over 1.5 lakh registered franchisees in the country.

The government allows only up to 51 per cent FDI in single-brand retail, while foreign investment is prohibited in multi-brand retail segment.

India, among some other countries, has certain rules which make entry of foreign players difficult in the retail and education markets. Many global players, therefore, opt for the franchise route under which the franchisee owns the business whilst the franchiser takes a share of the profits.

In the absence of regulation, the confidence of franchising investors is low. Legislation will make franchising transparent. In the absence of proper legislation the sector faces lack of standardisation in its operations.

Franchising: Curves Inc

Curves to open 250 fitness centres in India

Curves International Inc. the US-based women’s fitness club is now in India. The company is all set to open up to 250 fitness centres in India through its master franchise - Curves India by 2014 via franchise route confirms company official. 

Curves is a woman owned and managed business with over 4 million worldwide members and 10,000 branches in 85 countries. The brand presents a franchise opportunity for women entrepreneurs in India. 

The changing Indian demographic and its busy lifestyle calls require effective fitness services. Curves centres also offers an innovative, 30-minute fitness program that combines strength training and sustained cardiovascular activity through safe and effective hydraulic resistance.

The brand has a proven franchise model and all Curves centres are franchised across the globe. Curves products include exercise as well as diet and weight management solutions. The brand has been rated sixth in the top ten franchise brands worldwide.

Franchising: Sporty Beans

Sporty Beans all set to spread its footprints through franchising:

Sporty Beans, a Pune-based sports program company has announced its expansion plans. At the 34th Edition of FRO EXPO 2011 at Chennai, the company announced its novel program that can be offered at preschools, daycare facilities, elementary schools, and parks/recreation departments. For this the company is looking for franchisees for setting up centers.

Sporty Beans is looking forward to signing up 50 centers in the next two years, each with average enrollment strength of 40-60 kids.

Currently, there is no such program in India which focuses on creatively engaging pre-school or primary school kids to sports and instills into them the basics of sports based activities.

For a Franchisee, Sporty Beans is a low investment and high return business model. Sporty Beans has entrusted Franchise India Brands Ltd with the vocation to develop the proposed business format.

Apart from being a high potential business, the sense of fulfilment that comes from making a positive impact on a kid's future is the most striking aspect of the Sporty Beans franchise opportunity.

Franchising: Landmark stores

Tata Trent’s Landmark stores plan franchise expansion

Today at 34^th FRO(Franchise and Retail Opportunity) Show in Chennai, Tata Trent owned Landmark Book and Gift stores announced their plans to franchise their stores. At present Landmark Group has 17 stores, with larger number of stores concentrated in Indian metros. The company has plans to expand in tier II and III cities via franchise route.  

Largely the franchise model would include  store size of 5,000 to 6,000 sq.ft and the store setup(fixtures) cost would  be in tune of Rs 65 to 75 lakh plus the cost of inventory. Here the company would have two business models; Outright purchase with buyback or consignment system, depending on the investment appetite of the investor. “Books, Gifts and Music/Movies is what the entrepreneur should identify with,” .

This is Tata Trent’s second format for which the company has opted for franchise route, first being Westside.

Business Loans: Six Steps

Six Steps to Successfully Getting Business Loans

1. Decide how much money you need and for what purpose. Coming to a clear understanding of the purpose of your loan is key in selecting the kinds of business lenders you will need to approach since many commercial lenders specialize in certain areas. Some of your options would be working capital, inventory, equipment, expansion and new facilities financing.

2. Determine what collateral you will use for the loan you are seeking some of you options are your cash flow, inventory, equipment, receivables, commercial property, a new contract and personal guarantees. While you may not have to come up with 100 percent collateral coverage all lenders will want some kind of guarantee so start lining up your collateral.

3. Pull your company’s business credit report and examine it very closely for accuracy and any errors, the last thing you want is for something unexpected to prevent you from obtaining your loan. Also pull your own personal credit report and those you of your top management team or key officers and partners and do the same kind of through review as you did with your business credit report.

4. Prepare a good business plans detailing your business operations, how you will use the funds you receive, and what kind of profits your use of these funds will create. The profits your use of the business loan will create is key to any business plan or funding request, because it is from those profits that the loan will be repaid.

5. Develop a list of lenders specific to your loan needs your list could include commercial banks, commercial finance firms, specialty lenders, private lenders, and government loan programs. In selecting lenders keep in mind that while commercial banks have very strict lending guidelines there are many different kinds of commercial lenders who will lend to companies that banks will not.

6. Select those lenders you want to work with and prepare and submit your loan requests to them then give them plenty of time to make a decision on your loan request. The last thing you ever want to do is to try and rush a lender into making a fast loan decision on a loan request, or you won’t like the fast decision you get I promise.

In your search for a business loan there are many factors that are beyond your control, but these steps are six factors that you can control as you look for business financing. In troubled economic times like those we are experiencing now you may have to look a little longer for the business loan your company needs, but it will be worth the effort when you get the money you need to operate and grow your business.

Franchising: Dosa Plaza

Dosa Plaza is the sole runner in the category of south Indian cuisines that has gained popularity nationwide for its innovative approach and wide varieties of recipes. From a humble inception in 1998, Dosa Plaza grew into a lavish success story that it has become today. 

With 'World's Widest Menu in mouth watering Dosas', Dosa Plaza has the reputation of being the fastest growing chain in food retail section. Dosa Plaza plans to grow nationally and internationally through franchising. Spruced up by the rich expertise of quality food, excellent preparation and authentic taste, the Dosas available at any of the Dosa Plaza outlet make an excellent cuisine, a perfect combination of the traditional and the contemporary taste!

Outlets of Dosa Plaza is uniformly spread across the country with the presence at the major locations in Delhi, Mumbai, Karnal, Hyderabad, Lucknow, Ludhiana, Vadodara, Kaushambhi in Ghaziabad, Goa, Kolkata, Surat, Sirsa, Rajkot, Agra, Patna, Pune, Karnal, Panipat, Calicut, Guwahati, Jammu and Ahmedabad.

Franchise Expansion Plans

India: All major cities across the country and selected territories for Master Franchise.

Abroad: East Asia, Middle East Asia, South East Asia, North America & United Kingdom.

Location Specification for Dosa Plaza Franchise: 

Shopping Malls, Food Courts, Multiplexes or any prime location with high footfall.

Dosa Plaza's USP is their 104 exotic varieties of fusion dosas with 27 being trademark dosas.

Eligibility criteria for being our franchising partner:

Model A
Franchise investment*	10 to 12 Lacs
Menu	104 Types of Dosa's, South Indian meals, Filter Coffee, Variety of Idli, Wada's.
Area	300 sq. ft. - Kitchen and Counter 100 sq. ft. Stores
Total area	400 sq. ft.
Franchise fees	4 lacs
Royalty	8%

Model B
Franchise investment*	25 to 30 Lacs
Menu	104 Types of Dosa's, South Indian meals, Filter Coffee, Variety of Idli, Wada's.
Area	550 sq. ft. - Kitchen and Counter 100 sq. ft. Stores, 1000 sq. ft - Dinning
Total area	1650 sq. ft.
Franchise fees	5 lacs
Royalty	8%

Model C
Franchise investment*	33 to 40 Lacs
Menu	104 Types of Dosa's, South Indian meals, Variety of Idli, Wada's, Veg Chinese, Pav Bhaji, Fresh Juices & Filter Coffee
Area	600 sq. ft. - Kitchen and Counter 200 sq. ft. Stores, 1400 sq. ft - Dinning
Total area	2200 sq. ft.
Franchise fees	8 lacs
Royalty	8%

Dosa Plaza Investment Details:

Date Commenced Operations	:	2005
Date Commenced Frachising / Distribution	:	2005

How much working capital is required in franchise addition to this	:	2,00000
Is there exclusive territorial rights given to a unit franchise?	:	Yes
Are any performance guarantees given to unit franchisees?	:	No
What is the anticipated percentage return on investment?	:	20
What is the likely pay back period of capital for a unit franchise?	:	2 and 1/2- 3 yrs
Are there other investment requirements?	:	no

How long is the franchise term for?	:	5
Is the term renewable?	:	Yes

Dosa Plaza Property Details

What type of property is required for this franchise opportunity?	:	malls, high street,food courts,highways, multiplex
Preferred location of unit franchised outlet:?	:	highstreet, malls, highways, multiplex

Dosa Plaza is on a constant lookout for mutually beneficial partnerships. You can become an entrepreneur and own your own business at Dosa Plaza. If you are passionate about customer service, love south Indian cuisines - greet one of the most profitable franchising opportunities at Dosa Plaza. 

For Details: http://www.dosaplaza.com