Franchise Models in India

What is a Franchise Model?

A franchise model is an arrangement where the owner of the business (Franchisor) gives right and access to the brand's name and allows the Franchisees to conduct business.

Example: With Moti Mahal Delux being the franchisor, if you choose to franchise with us and be a part of our 104 year old legacy, then you get the opportunity to open your very own Moti Mahal Delux restaurant, which is one of the fastest growing restaurant brands in India.

What Franchise Models work in India:

There are multiple franchise models that are used around the world, it isn't as simple as just getting rights and access to the franchisor's business. With time multiple franchise models have been developed that are used by millions of brands around the world with the aim of streamlining the process for the franchisee and themselves.

Below are some of the most popular franchise models used around the world and in India.

FOCM (Franchise-Owned-Company-Managed)

This is one of best franchising models out there and also the one at which Moti Mahal operates, this model is called the "Franchise Owned Company Managed" model wherein the franchisee owns the franchise as usual but the company or the franchisor is the one that manages the day to day functions around the franchise. For example - hiring and staffing, marketing, sourcing raw material, operations and management etc.

The aim of this model is to make sure that work is done in such a way that all the mundane tasks are taken care of by the franchisor while the franchisee only invests into the business and let's the franchisor or the company grow the franchise with their expertise.

COFO (Company-Owned Franchise-Operated)

This is the complete opposite of the franchise owned company managed model. In this model the franchisee after signing the deal gets access to the business, but the franchisee itself has to manage his franchise according to him and only certain things are taken care of by the franchisor.

Here the franchise is owned by the franchisor and the franchisee takes care of the day to day tasks and management of it, it is usually financially less risky for the franchisee as he only has to manage it and the franchisor is the one that actually the franchise and with it also the risk of operating it.

FOFO (Franchise-Owned Franchise-Operated)

This right here is the most widely used franchise model out there, as the name says enough about it. In this model the franchise owns the franchisee and they themselves are liable for managing the franchise.

Here in this model the franchisee owns the franchise and also manager all the functioning around it and they themselves have to take care of everything, from staffing to sourcing the materials, finances etc.

Here usually the franchisee only pays for the brand name of the franchisor while knowing that they themselves have to manage the whole business by themselves.

Multi unit franchising

In this model a single franchisee obtains a deal to maintain and operate multiple franchise outlets within a single or multiple geographical location(s).

This allows the franchisee to have economies of scale and operate on better profit margins but it also has a very big hurdle, and that is the fact that it requires a huge funding amount and capital to even get started with it.

Moti Mahal's franchise model

As mentioned earlier, Moti Mahal works on a franchise owned company managed model, wherein the franchisor that is Moti Mahal takes care of all the mundane and day to day operations like staffing and hiring, sourcing materials, marketing etc.

The franchisee or the investor can then focus solely on expanding their business to more franchises with us while we manage them with our expertise.

The reason why we introduced this franchising model in India was because we wanted to show some innovation into how the franchise operated and give leverage to the investors while making sure that they make good profits with us while we manage the operations.

Another big reason is because not everyone knows how to manage a restaurant, so why just give them the franchise and expect them to manage it, because it would be very hard for them to make a profit and make sure that it runs smoothly.

The biggest reason to have this as our franchising model at Moti Mahal was to make sure that the franchisee remains profitable and can get an ROI faster and more efficiently.

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Kiosk:
A kiosk is actually our smallest offering with the least investment. You can start this with a very small area and get going.

• The investment range for this is: 20-30 Lacs
• And the expected return on investment on this Moti Mahal franchise is within 6-12 months

Casual Dine:
This is a proper restaurant with more seating than the kiosk and can accommodate a good number of diners at once.

• The investment range for this Moti Mahal franchise is: 50-60 Lacs
• You can expect an ROI in 12-15 Months

Fine Dine:
The name says it all. This Moti Mahal franchise is a fine dine and 2nd biggest offering that we offer to franchisees.

• With the investment ranging between 70-90 Lacs, you can expect an ROI within 24-30 Months

Moti Mahal Barbecue:
This is our flagship offering which is set in the finest possible seating and offering top notch ambience and facilities to the diners.

• With the investment ranging from 1-1.5 Cr you can expect an ROI in 30-36 Months

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