How to decide the right FOCO model?
As the franchise business is rapidly growing in India and many upcoming and existing entrepreneurs are interested in exploring the franchise industry, franchisors have come up with business models that will help gain success in the competitive market and yield profits faster.
When you plan to invest in a franchise business, you work on a deep research and analysis plan, business format for better return on investment. When this planning keeps taking a fair shape, you try looking for business models which would be risk-free.
Industries explores business models to find out which suits their success path. FOCO model is one model which has provided success to organization like Thomas Cook. Jatinder Paul Singh, Sr. V.P. & Head – Sales & Distribution Leisure Travel (Outbound), Thomas Cook (India) Ltd says, “For our brand, FOCO model emerges as the more feasible and profitable venture because on one hand, the franchisee gets its proceeds sharing without participating in the business operations and on the other hand, the enterprise gets verve to its brand by prolonging quality. Otherwise, out of the COCO and FOCO models, choosing the more practicable model would completely depend on the individual’s preference on taking up the commerce as an investor or as an entrepreneur.”
FOCO model is basically Franchise Owned and Company Operated model. Here the franchisee gets a percentage of revenue while the company bears the running cost. The company is responsible in running the marketing, logistic, resources, wages, electricity etc, and franchise is the owner.
It is crucial to understand, evaluate on company’s business structure before you decide to choose the FOCO model. They are like-
Study the brand’s turnover and quarterly growth to get idea if the decision is in the right track.
With constant innovations, industries come up with new strategies is necessary to study as many as strategies and check how your prospective brand is close to the best marketing practices.
How brand building has captured the consumer’s attention and could turn into long time association?
Software used to get the maximum benefit with modern outlook and approaches.
Most importantly, the resources involved in the process and how their development is under continuous upskilled for profitable outcome.
Among the business models, which model has been implemented by the brand which could give a risk-free and growth in long term.
What is the brand’s planning for expansion? How much are they trying to provide the best solution and making consumer’s life easy?
These are few important things you must evaluate while choosing your right FOCO model.
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