Case # 1:
A typical education franchise organization had around 80 per cent of its outlets owned and run by the franchisor. The rest were all franchise outlets or “centres”. The franchisor had set up 10 of his centres initially and run them as successful centres before venturing into franchising.
The brand name was popularized initially through aggressive traffic – oriented advertising for the franchisor’s centres. Franchise centres were started initially in the territories where these centres existed, thereby leveraging the brand awareness that had already been created.
The system was clearly documented in a set of seven manuals. These were the start – up, marketing, academic administration, course conduct, placement, accounts and centre management manuals. By using the manuals, know – how could be transferred easily and the centres could become operational very fast. The franchise chain grew at the rate of over 100 centres every year for five years and became the largest network of education centres worldwide.

Case # 2:
A leading manufacturer of cosmetics and toiletries sets up a chain of saloons under franchising arrangement. The offer document clearly mentioned that the franchisor did not have any prior experience in this business. However, in order to develop his products, the franchisor had accessed a large amount of data collected through market surveys and customer feedback. Using this data, the franchisor created hair, face and body treatment packages, which the customer could avail of at any franchise saloon.
The franchisee’s investments were made on the premises, equipment and manpower. The franchisor supplied the products for use by the franchisee. The franchisor also trained the franchisee’s staff on the use of the various products like lotions and shampoos. The franchisor advertised in the national media and created awareness for the franchise