A ROAD MAP TO GFEGLOBAL FRANCHISE NETWORK

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 & Payouts

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

Key elements of franchising• Rights to a Name, System and Know-How• Owner / Operation of outlets by franchisees• Duplicating a Proven Business System• Network Growth• Ongoing Development of Brand

What is required ?• Invest in Systems• Invest in Brand• Maintain Standards• Be sophisticated in business practices

- Good record keeping- Good reporting and IT systems- Good compliance systems-Professional’ in dealings

Business model + Distributionstrategy

Employee Agency Broker Dealer Partnerships Cooperative Licenses Franchise Joint Venture

Market Focus

People

Strategy

CustomerEnabler

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 commitmentand accountability than employees.• Simplest way to raising funds(w/o parting ways with equity)

Franchising the Ultimate network

•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

What do Coca Cola, Pepsi, Shell, BP, Mobile, Ford, General Motors, Toyota, McDonald’s and KFC have in common?

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 country’s 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 Employs over 10 Million employees directly / indirectly

Franchising in India: Emerging trends

Education - Size of India’s private educationsector, including the coaching classes segment,is estimated US $ 40 billion

Retail -Expected to grow up to US $ 785 billionby 2015

F&B - Growing at 25 percent to 35 percent everyyear. Young spenders with hectic schedules andrising incomes are creating new appetites

Travel – The growing Indian travel & tourindustry likely to spawn US $ 128 billion by 2016Luxury 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

•Grown from a questionableand not so acceptableformat to a readilyadmissible way of businessexpansion in the country• Until now limited to thelarger companies realizingthe potential through thefranchising way!• However, the new decadewould encourage smallercompanies to follow theorganized/technical way ofopting franchising as a toolto growth

3. Policy & Regulations

Trends fostering in the new decade

•Realizing franchise as thebest entry & expansionstrategy• Small to medium formatbusinesses will adopt thebest practice/ internationalproven concepts to theirbusiness to achieve growthfaster

2. Implementation of bestpractices

•Currently, the industry is nonregulated and doesn’t bindthe franchisors in any legalWays•However, the scenario isexpected to change soonwith control & measureregulations binding thefranchisor and thefranchisee are likely to beannounced

1. Organized approach ofFranchising

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.

Global Franchise Network: A Leader in the making

• 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.

          Focused Medium

Filtered Search

Larger Reach

Cost Effective

Strategic Planning

Scientific Approach

Expertise In Franchising Business

Minimal Risk

Understanding Needs

Designed To Requirement

Unique Artifact

Customized Product

CONSULTING

MARKETING

BUSINESS DEVELOPMENT

1

2

3

Global Franchise Network (GFN) is Asia’s 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 | Specialty groups

Apparel|Aviation training school |Pre school|Pharmaceuticals retail|Retail & Consumer products |Business school|Online MBA programs |Hospitality |

Media & entertainment |Real estate & training |Telecommunications |Facility management|Soft skills training |Beauty & wellness |Jewelry |Home décor & furnishings |

Consumer services |Food & Beverages|Home based businesses |MLM businesses |

Sector and specialty approach

GFN’s Service lines

Advisory

Strategic planningFranchise feasibilityReview &recommendationApproachFranchise developmentmodel

Legal

Franchisor legalagreementFranchisee legalagreement (Master/Area/ Unit)

Marketing

Development ofMarketingcommunication forfranchise sales

Operation

Operating proceduresSales & Trainingmanuals.

Global Franchise Experts- Channel Development

The 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.

Our 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.

Global 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.

Global Franchisee Expert Profile

Attributes

Analytical Thinking

Networking Skills

Marketing Skills

All the threecombinations in anyfranchise owner is

expected and given firstpreference to be a

franchisee.

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 Value Proposition

Association Benefits

Value Proposition for GF Experts

Identify right set of investors• Identify the business needs andprovide them need basedbusiness solutions• Investor relationshipManagementMatch Making for the Investor & Brand.

• Different products for differentneeds• Transaction/Consulting andMedia

Cutting edge technology•Centralized Back office•Centralized GFE helpdesk•Exclusive Franchise Manager's to support on ground•Strong & experienced franchisingresearch and robust training

GFE• Channel Partner• Direct Sales Team

Right Investor/Brand

Acquisition

Multiple Product Sales

Differentiated Services

Strategies

Business Model

Support to Global Franchise Experts

A. TechnologyAssociate 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 software’s and an excellent technological platform assures a seamless transaction experience geared to meet all the business buying needs of the investors.

B. Industry/ Category ResearchOur 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 officeA dedicated team at our centralized back office in Head office provides seamless back office support.Training and DevelopmentWe offer extensive training facilities for all our Associates, which cover aspects like product information,systems acquaintance, operations and sales and compliance etc.Exclusive GFE HelpdeskAn 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

LAUNCH PLAN SOFTWARE SUPPORT

• Training on

• Franchise Overview• Franchise Sales Strategy& Lifecycle Management• Franchise DevelopmentProcess• Business BrokerTraining

• City Specific Launch Plan

• Global Franchise Networks Launch event• Visibility Support round the year• PR Support• Dedicated GFE team to work closely with you

• Access to integrated CRM• Robust Online MIS• Reports at a click

• Access to all GFN listed brands from Day 1

• National• International

• Reward structures on new brand acquisitions

• Leads support for business generation• Access to Franchise Retail Opportunity Shows• Access to Business Opportunity Shows*• Reward & Recognition Platform

• Access to• Property Services• Marketing Services

• ProfessionalConsultancy on

• Business Finalization• Project Planning• Project Execution

LISTEDBRANDS

MARKETINGSUPPORT

VALUE ADDEDSERVICES

360 Degrees Support

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 Investor’s 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 and GFN branding.

Global Franchise Expert

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

Revenue Structure & Sharing

Elements Registration Type A

Registration Type B

Registration Type C

Registration Type D

Joining Fee 10,000 20,000 1,00,000 3,50,000

Tenure Non Exclusive Non Exclusive Exclusive for 1 yr Exclusive for 3 yrs

Profit Sharing on signing brands

NA 25% 30% 40%

Profit Sharing on Every Deal

10% of 5% of the total investment

10% of 5% of the total investment

10% of 5% of the total investment

10% of 5% of the total investment

Training Fee NA 20,000 50,000 1,00,000

Initial Marketing Support

NA 10,000 50,000 50,000

Total Initial Investment

10,000 50,000 2,00,000 5,00,000

Revenue Structure & Sharing

Brand Director

GFN Point Of Sale

GFE Advertising &

Promotions

10% 20% 50% 10% 10%

Revenue sharing From Franchisor % Franchisee on the entire Global Franchise Network Level..

Revenue Generation from the Franchisee Prospects

GFE Advertising & Promotions

GFN

30% 20% 50%

Any GFE referring for other district would also be awarded.

Payment Collections & Reconciliations

• All collections against Registration, Investor Service fee or any

other fee to be collected in either in cheque, Draft or Pay-

order favoring: ‘Global Franchise Networks Limited’

• No other mode of payment allowed

• All payments to be deposited locally in informed GFN bank

account number

• Reconciliations to be done by HO with data from CRM

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 Pay-

order 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