Should you Invest in FOCO ( Franchise Owned Company Operated) Business | Gaurav Marya
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- เผยแพร่เมื่อ 3 ต.ค. 2024
- Should you Invest in FOCO ( Franchise Owned Company Operated) Business | Gaurav Marya
Franchise Guru Mr. Gaurav Marya Speaks on Should you Invest in Franchise Owned Company Operated Business i.e FOCO Model. Benefits & Risks of FOCO Model. Watch & Stay Tuned for more such Business Content.
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14-15% is very high.. I doubt they give anything greater than 10% ..
FOCO works out well for those franchisees who own the property on which the business is being run. The Franchisees gets the rental (roughly 3-4%) of sales along with expected net margins on the FOCO business (roughly 12-15% of sales). So total return is in the vicinity of 17%-19%. This is not bad considering franchisee's near zero involvement in running the business on a day to day business & being spared the headaches of daily operational hassles including staff hiring, store maintenance issues, customer service, etc. However, once the store reaches desired profitability level of the Franchisor company (roughly 3-4 years), the company retains the right to convert the model into FOFO or COCO (as per franchisee contract) & tries to get rid of the franchisee by buying his share out/or paying his capital out & taking control of the profitable store. This is true for Lenskart, Bluestone & new age businesses.
You can get better stable returns in bank duh 🤡
Thank you sir Giving this information, Sir If you make videos in Hindi then many people will reach out, some people have money for business but no knowledge, if you make similar videos in Hindi then many people will get guidance.
Noted, we will be bringing videos in Hindi Soon.❤️ Keep Watching
Informative video. Does 20% on revenue sound practical and less worrysome for a relatively newer FOCO franchise?
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