FOCO model or franchise owned company operated model is one that has a franchisee boring all the cost of opening and setting up a franchising outlet but the company or the brand pays for the running costs. The profit per cent taken by a company is lower in this business model than the FOFO model. The company is responsible for equipment and its maintenance, staff and employment and expansion. The franchisee invests in location and legal procedures and the franchise will be under the name of the franchisee. A FOFO model or the franchise owned franchise operated model is one that is owned and operated by the franchisee, the franchisee pays the franchise fee and royalties to the franchisor for using the brand name but mostly keeps the majority profits incurred, and this may be variable according to the company or brand. If you are looking for a laid-back approach and are compatible with a lower profit per cent with less commitment, FOCO is ideal because it has minimum franchisee involvement. FOCO model lays control in the hands of the franchisee and the franchisee can operate it under minimum interference of the company.

Franchising is very promising in the modern economy. It has low risks with guarantee of income. It is tried and tested on various platforms like food, fitness, spa industry. You cannot think of a fast food product without thinking of a franchise based product in the modern day, it is conclusive proof that franchising is successful in the business sector. There are various models that benefit both the franchisors and the franchisees like FOCO or the FOCO model and various settlements like the Single unit or the Multi unit franchise that are malleable according to your business model and approach. Franchising also offers a safe exit plan with a good resale value which might not be the case for a brand established by you. Franchising is definitely safer than starting your own business since it requires lesser commitment and cost.

One should acquire a franchise that fits best to their business approach, franchisee involvement policies and perks offered by the franchisor. If you are a new investor, acquiring a franchise of a company that show success in the franchising sector already is the best option. Choosing the right franchise is the deciding factor for the success of your venture. Not only should one consider a franchise depending on a compatible business plan and the budget, but one should also keep in mind the competition, see if the franchise you wish to acquire has any other outlets in a radius of 2km or also consider the possible competitors around your location. You need to maximise your potential by allocating the maximum crowd into your outlet and sizing your competitors is an important part of it.

You can demand a FDD (franchise disclosure document) from the franchisor and it will be their legal obligation to provide you with fees, start-up costs etc. however, this method may not be ideal if you want information on their earnings or intellectual property like recipes etc. without investing in their franchise. You might want to connect to a franchise advisory to the job. Here’s one in Delhi NCR with the master franchise of various brands__ http://brandsandbranches.com/index.html

Most franchisors require franchisees to pay a fee on a regular basis (weekly, monthly or yearly). Usually, it's a percentage of sales; sometimes it's a flat fee. Some franchisors also require a separate royalty fee to cover travelling, audits and implement of guidelines . The typical rate of royalty fee 7% - 10% but that depends on the company or brand, to know what your brand is worth you might want to hire a Franchise strategy company, here’s one in India with the master franchise of various brands.

There are many brands that franchise their outlets in India. Investors can find brands that fit their ideologies the best, many franchises have themes and follow specific concepts. One has the option to acquire a franchise of casual dining restaurants, restaurant bars, quick service restaurant chains, cafés, café bars, Night Clubs , Buffet restaurants , Fitness Franchise , Salon and Spa Franchise, lounges, bars and breweries with various themes.

It is really important to choose the right franchisees to expand your brand especially if you are just starting franchising your brand. An expansion strategy company provides a network for expansion and helps you find the right franchisees; they offer various services and assistance and help franchisors set up a vendor base. Hers one in Delhi NCR http://brandsandbranches.com/index.html

Initial investment of acquiring a franchise is high with franchise fees, registration of govt licenses, construction, designing , equipment and appliances etc. even after earning good profit through sales the costs are succeeded with royalties and maintenance so it takes nearly an ear to come out of the negatives and finally start incurring profits in positive. This may be sooner depending on the sales. Every Brand has different payback period time and its varies on which franchise you have choosen. The Average Payback period is 24 – 36 months.