In FOCO the franchiser gains more profit than the investor. Basically, every business model should be above the rate of investment forecast or above it. For franchiser, who is investing Brand name in models other than FOCO is always on a stake as a franchise can practice unethical and unprincipled act. The Standard operating procedure and values which any company wants to retain can be ignored by the franchise for minimal profit. It is a risk-free model. We at selectdine.com choose the best model which would the investor and the franchiser is looking for.
This model is adopted by companies for faster expansion of business/brand presence and to penetrate completely new markets with the help of local businessmen. In this model the training of staff, initial store setup is done by the Company and handed over to the Franchise to oversee the operations and maintain standards-based on SOPs set by the Company. Then on the operations are independently managed by the franchisee. The Franchisee pays a licensing fee as per the agreed terms to the Company. Surprise and scheduled SOP audits are done by the Company to ensure high standards are maintained. When Franchise fails repeatedly in audits, the Company either levies fines or pulls out from the contract eventually closing the franchise.
The Company Owned Company Organised franchise businesses are better run. These are primarily run by the franchisor itself and a franchise partner only puts in a stake in the property. The best part is that the franchise gets a guaranteed return and does not have to engage in its daily running. The only thing required is an investment. CoCo actually offers franchisees the unique opportunity to profit from an established and well-loved brand