franchise comparission of baskin robins and kwality walls

Franchise Network - Food industryFranchise of Ice Cream chain – Why? , How? , T&C

By

Prakash .N 250

Vivek Kumar 187

Yarroju Srimannarayana 278

Vishak John Thomas 168

Athul K Baby 333

Chirantan Ghosh 190

3/31/2015 Franchise - Food Industry 1

Baskin Robbins

• World’s Largest Chain of Ice Cream Specialty Stores

• More than 7300 Retail Stores around the globe

• In more than 50 countries

• Headquartered in Canton, Massachusetts

• Baskin-Robbins is part of the Dunkin' Brands

• On 12th December 2005 Dunkin' Brands was acquired by a U.S.

investment group of Bain Capital, Thomas Lee Partners and the

Carlyle Group

Introduction


Sales & Distribution Management

Baskin Robbins India Operations

• Entered India in 1993 through a JV with the Graviss Group

• Now present in 150 Cities / Towns with 550+ stores

• The brand is available across India, even in far off cities like

Guwahati, Shillong & Dimapur

• 1st Manufacturing plant outside North America opened in Pune

• The company has a dedicated team of people ,well trained in the

hospitality industry



Sales Management

Kwality Wall's

• Kwality Wall’s is present in India since 1993

• Hindustan Unilever limited is parent company of Kwality Wall’s

• India's largest FMCG Company that touches life of every 2 out of 3

Indians

• “Unilever” is the world's biggest ice cream manufacturer, with an

annual turnover of €5 billion

• The red and white heart brand is a major producer and distributor of

frozen dessert products in more than 40 countries

• Kwality Wall’s has around 7000 vendors

Introduction



Sales Management

Ice Cream Parlour Concepts

European concept launched in 1994 in Netherlands

• Has over 500 parlours across the globe

• Launched in India in 2004, and there are now 51 Swirl's parlours

• Core concept - 'Create your Own' ice cream

• Attempt to capture the 'on the move' consumer trends

• Located at high footfall areas such as malls and shopping centers

• Classified under the impulse range of products

Area required

For Kiosk - 8ft X 8ft

For Exclusive shop - min of 12 ft frontage and size of 100sft carpet area

Investment

Kiosk - Rs.6 Lacs onwards

Exclusive shop - Rs.7 Lacs onwards

Swirl's



Sales Management

Kwality Wall's Parlours• Over 300 Kwality Wall's Parlours in India

• Delightful range of ice cream flavours and sundae

• Attempt to capture 'on the move' and 'out and about' consumer

trends and hence are either exclusive Parlours in colony/

residential markets or kiosks at multiplexes, mass malls, etc.

Area RequiredFor Kiosk/ SIS - at least 8ft by 6ftFor Exclusive shop - 150sft carpet with at least 10ft frontage

InvestmentFor Kiosk/ SIS - Rs.2 to 2.5 LacsFor Exclusive Shop - Rs.2.5 to 3.5 Lacs



Sales Management

Support To Franchisee

Baskin Robbins Kwality Wall’s

Parlor Design Branch design & development support

Project Implementation Marketing & advertising support

Pre-Opening Extensive business support

Operations Promotional support

MIS & Software Support Benefit from renewable franchise term for 3

years

National Marketing Leverage a well established & reputed brand

name



Franchisee Support

YOU

Equipment

Manufacturing

Training

Finance Marketing

Culinary

Supply

Chain

Operations

Design &

Construction

Development



Sales Management

B.R K.W

1993 1995

2014 2003

International

Nationwide

Nationwide

No Yes

No No

1.5 to 3 years 2 to 3 years

Investment Details

Date Commenced Operations

Date Commenced Frachising/ Distribution

What areas are available for Unit franchise?

Is there exclusive territorial rights given to a

unit franchise?

Are any performance guarantees given to unit

franchisee?

What is the likely pay back period of capital

for a unit franchise?



Sales Management

B.R K.W

Expected Investment for

Franchise

Rs. 10,00,000 - 15,00,000 Rs. 2,00,001 - 5,00,000

Investments Includes:B.R K.W

Franchise Fee Rs. 1,00,000/- No Franchise Fee

Equipments Rs. 3,00,000/- N/A

Furniture and Fixtures Rs. 1,00,000/- Rs. 2,50,000 - 4,00,000

Advertising / Marketing Rs. 1,00,000/- N/A

Expected ROI 30 - 40 % 35 - 50%



Sales Management

Property Details

B.R K.W

Highstreet/

Malls

High street,

Atrium and

Malls

300 sq ft approx 80 sq ft

Pan India Pan India

Property Details

What type of property is

required for this franchise

opportunity?

Floor area requirement

Preferred location of unit

franchised outlet



Sales Management

Training Details B.W K.W

Do you currently have detailed

operating manuals for

franchisees?

Yes Yes

Where is franchisee training

provided?

At Franchisee premises - - -

Is field assistance available for

franchisee?

Yes No

Will someone from Head Office

provides assistance to franchisee in

opening the franchise?

Yes Yes

What IT systems do you presently

have that will be included in the

franchise?

Yes No



Sales Management

Other Details

B.R K.W

Do you have a

standard franchise

agreement?

Yes Yes

How long is the

franchise term for?

5 Years Lifetime

Is the term

renewable?

Yes Yes



Sales Management

Steps in the Franchising Process

• Complete

application

• Application reviewed & contacted

• Once pre-screened, receive access to Franchise Disclosure & Qualification Package

• Review Franchise Disclosure & complete Qualification Package

Provide proof of assets

• Credit check and initial financial review completed

Step 1

• Once pre-qualified,

meet with Franchise

Manager

• Conduct due diligence; talk with existing franchisees

• Select territory and develop business plan

Step 2

• Criminal and

enhanced

background

checks completed

• Present business plan to cross functional market team

• Submit legal entity documentation

• Treasury Department review completed, based on business plan

• Receive franchise approval

Step 3

• Sign agreement

• Begin training

• Select & submit site for approval

• Secure financing

Step 4

• Finalize lease or

purchase

• Begin construction

• Begin crew training

• Store opening

Step 5

Pre-QualificationDue Diligence

& Territory SelectionBusiness Plan & Final Approval

Contract Execution, Training & Site

SelectionStore Opening Process



Sales Management

Pre-cooling facilities

Cold storagesRefrigerated

carriersPackaging IMS

Requirements In Supply Chain

Cold room within

100 metres of

factory

Minimum -18⁰C

Reefer trucks,

containers, ships

etc.

To ensure shelf life

& increase the

longeitivity of

frozen products

Tracking and

traceability



Sales Management

Kwality Wall’s Supply Chain



Sales Management



franchise comparission of baskin robins and kwality walls

Marketing

ice cream attempt

countrieskwality walls

exclusive parlours

lacsfor exclusive shop

ftfor exclusive shop

punethe company

area requiredfor kiosk

consumer trends