FAQ's
Franchising is the practice of using another firm’s successful business model. The word ‘franchise’ is of Anglo-French derivation – from franc – meaning free. For the franchisor, the franchise is an alternative to building ‘chain stores’ to distribute goods that avoids the investments and liability of a chain. The franchisor’s success depends on 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. For those who believe in the security of a bank deposit and earning a yearly interest out of the money, it is best to continue that way. Franchising is a way of doing business and it has its risks and advantages both.
FOCO – Franchisee Owned Company Operated
FOFO – Franchise Owned Franchisee Operated
A franchise investment an active investment, which requires you to invest more than just money – there, is time, effort and even sacrifices involved. But you will stand to gain a lot more, monetarily and otherwise, if you invest in a franchise.
We agree with this completely. Which is why we do a preliminary analysis for you. We help you with the initial market research, analyze the potential of the business, draw a business plan for you.
Our franchise model, however, is unique and will assure you a fixed return monthly without the recurring cost, regardless of your sales. So that is our USP.
Our experience from the operational lounges tells us that the franchisees following the right practice and maintaining the recommended standards have found success in this business. The exact numbers will be a function of the lounge– specific factors, e.g strategic location and general business environment.
We require carpet area of minimum 900 Sqft to operate a Varietea outlet.
The Standard cost of a Varietea franchise would be around Rs 5000 per sqft.
As mentioned above, lounges with the right practices and standards are generating substantial profits from the business. For more details and figures, please do get in touch with us.
The new property will be signed by Varietea in case of FOCO model and signed by the franchisee in the FOFO model.
Since this model aims to achieve standardization of products across all lounges, continuing with old products will not be compatible with the model.
Varietea lounge is available in various different formats like Exclusive lounge/ express / boutique etc, these formats are decided as per the business potential of the location. Our company representative would be able to guide you accordingly.
You may need a minimum staff of 6-8 employees but depending on the size and location of the lounge we would come down to an exact number . However we will assist you in training them as required.
The result in each particular project is an outcome of mutual efforts. If Franchisee and Franchisor become close partners, you can safely declare that the goal is achieved. If parties position themselves as client-provider no matter how good the model, the desired results will not be achieved.