Kem Cho, Readers! 🙏
Recently, I stumbled upon a cheesecake business in Surat that blew my taste buds away 🧀🍰. Honestly, these cheesecakes were so good they reminded me of Nutcracker’s magic at BKC (and that's saying something). But here’s the kicker—the owner told me her business is stuck. Why? She can’t expand beyond Surat. Cheesecakes don’t have wings, and being perishable means they can’t just fly to other cities.
Her DMs are FLOODED with people begging for a slice, even offering ₹350-400 for one. (Honestly, they’d jump off the roof for these cheesecakes, and I don’t blame them.) But the sad reality is: a killer product is useless if it doesn’t reach the customer.
Here’s where the fun begins: franchising! 🏪✨
Think of it as cloning your business, but instead of using a clone software, you’re handing over the recipe, systems, and brand name to other people (the franchisees) who are dying to replicate your success. In return, you charge fees and royalties 💰. It’s a win-win. They handle expansion, and you focus on making your cheesecake empire famous.
Also, heads up: businesses like this, which are run from home with zero distribution, aren’t VC-fundable. Why? Because VCs want scale, not scarcity. Franchising hacks this problem!
If cheesecakes can’t travel, why not let the cheesecake shops do the traveling? 😉Today, let’s dive deeper into the franchise business model and explore it in detail!
Franchise and Bollywood Sequels
A Bollywood sequel builds on a hit movie with a formula that worked—be it horror comedy, catchy songs, or over-the-top drama. Similarly, a franchise builds on a blockbuster business, using the same secret sauce for success. 🎬🍰
Sequels bring in more fans, just like franchises tap into new markets. If Bhool Bhulaiyaa had everyone hooked, why not spin out Bhool Bhulaiyaa 2 and even Bhool Bhulaiyaa 3? Cha-ching! 💰
But not all sequels hit the jackpot. Some flop harder than Ek Villain Returns (seriously, who asked for that?) 🤦♂️. And franchises? Same story—not every outlet can recreate the OG magic.
Moral of the story? Whether it’s a sequel or a franchise, success depends on the execution. Get it right, and you’ve got a mega-hit. Get it wrong, and... well, you’re Heropanti 2. 🏃♂️💥
Franchise Styles : Choose your model🍕🎬
FOFO: Franchise-Owned, Franchise-Operated
Franchisee, You are the boss here—own it, run it, make it work 🚀. The company gives you the brand, training, and support, but you’re in charge of execution.
🍕 Example: Domino’s often uses this model.
FOCO: Franchise-Owned, Company-Operated
Franchisee, You invest the money 💸, and the company runs the show 🎬. Sit back, relax, and watch the business grow (hopefully). Perfect for those who want returns without the day-to-day headache.
🍔 Example: Some McDonald's outlets operate under this model.
COCO: Company-Owned, Company-Operated
The company is in full control—money, operations, everything. It’s their baby 👶. High risk, high reward, but also high micromanagement.
☕ Example: Starbucks in India follows this model.
Lets understand the advantages and disadvantages of each model.
FOFO: Franchising Out, Freaking Out? 😅
Running a FOFO (Franchise Owned, Franchise Operated) model is like lending your prized car to someone else. 🚗 On the bright side:
No gas money, no headaches! 🎉 The franchisee covers setup and operations, leaving your wallet and stress levels intact.
Zoom-zoom growth! 🚀 Tap into new markets fast using the franchisee’s funds and local know-how.
Eureka guaranteed! 💰 Sit back and enjoy franchise fees, royalties, and supply profits.
Big brand vibes: 🌟 Your name shines across towns without you lifting a finger.
Risk transfer? Yes, please! 🙌 The franchisee eats the operational losses, not you.
But, oh boy, the downsides hit hard sometimes:
Control issues: 😬 Your brand could turn into a circus 🎪 if the franchisee starts playing chef, Like whipping up Dal Khichdi instead in a salads chain.
Cleanliness? What's that? 🤢 Recently met a cheesecake startup whose franchisee made cakes in conditions that even rats would reject. Yeah, yikes.
Brand reputation on thin ice: 🧊 One sloppy franchisee, and your whole brand image might crumble faster than a Papad in my Papad churi.
Over-reliance blues: 😓 If your franchisees slack off or fail, your dreams of empire-building could hit a wall.
In short: FOFO is great, but keep an eye on your franchisees—before they turn your salad bar into a khichdi mess! 🥗➡️🥣
FOCO: Franchisee Pays, Franchisor Slays! 💰👑
FOCO is like finding a roommate who pays rent but lets you decorate the house. 🏠✨ Here's why it’s a win:
Franchisee’s wallet, your rules 💸➡️✅: They invest the money; you call the shots.
Bye-bye chaos, hello consistency 🎯: Full operational control means no rogue menu items (no Khichdi at your burger joint this time).
Reputation protected 🌟: Your brand stays shiny with company oversight.
Sounds dreamy, right? But wait...
Franchisee FOMO 🤔: “I paid for this; why can’t I decide where the ketchup goes?” 🍅 Expect debates.
More hands-on, more headaches 🤯: You’re managing operations, so get ready for long hours and tight schedules.
Only for the strong 💪: If your brand isn’t a superstar, no franchisee will hand over cash and control
FOCO is perfect if your brand’s a celeb. ⭐ Franchisees pay, you play—just don’t forget to bring your A-game to operations! 💼🎉
COCO: Own It Like a Boss 💼👑
COCO is like being the captain of a ship—you control the course, the crew, and the cargo, but if the ship sinks, it’s all on you! 🚢⚓
🏅 Keep the quality on point! Everything is top-notch, just like your favorite pizza joint. 🍕
📢 No “franchisee mix-ups”! The brand message stays consistent—because who likes confusion? 😅
💰 100% of the revenue = more $$$ for the company (no need to share with anyone, yay!) 🎉
But COCO has alot of challenges
💸 Ouch! Huge upfront costs for real estate, infrastructure, and setup. Who's got that kind of cash lying around? 🏠
🤯 Managing ALL outlets? Yeah, that’s a lot of work, and even more coffee! ☕
📉 Risk alert! You get to carry all the weight when things go south—like a bad batch of fries 🍟.
🤖 Handling logistics and employees everywhere can turn you into a full-time circus ringmaster. 🎪
🌍 Miss out on local market magic! Franchisees bring local secrets.
Conclusion: Franchising – The Magic Potion... or the Potion of Chaos? 🧪✨
So, what's the verdict? Franchising is a bit like trying to make a cheesecake in a microwave – sometimes it works, sometimes it melts into goo. 🍰💥(Yeah am a chef too XD) Whether you’re handing over your business baby to someone else or managing it all yourself, there’s no “one-size-fits-all” solution.
FOFO is like giving your favorite sneakers to a friend—quick and easy, but you might end up with scuffed shoes or a size mismatch. 👟💥 FOCO? It’s like lending your shiny new bike to someone, but you’re still responsible for keeping it in perfect condition—except you have no say in how fast they ride it. 🚴♂️
And then there's COCO, where you’re the boss of everything… until you realize you’re the one cleaning up the mess after the party ends. 🎉🍕 High rewards? Yes. High risks? Absolutely. So, whether you go FOFO, FOCO, or COCO, remember: It’s not about how you franchise—it’s about how you handle the unexpected chaos that comes with the business!
Choose wisely, because in franchising, things can go from smooth sailing to a full-on storm in a heartbeat! 🌪️
Till we meet again—Aavjo! And don’t forget, phir padhaar jo!
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