Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday, 27 May 2021

FRANCHISING - PRAMOD KHERA


 

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When I read any book, I scribble my comments / notes in the margins


These reflect my views / opinions about what the author is saying – including my disagreement

Often, my comments are in the nature of telling myself :

Hey ! We should try out this idea in our own business ( Head-hunting / Online Recruitment )

Following are my comments re :

FRANCHISING - PRAMOD KHERA          

                                                                                                          
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Page no = 03

·         In our case, the processes of building up resume database / resume search / order E execution.

·         Even though ours is a “SERVICE” (as opposed to a product) we will need to ensure that our franchisees deliver the same swivel level of satisfaction that we provide from our HQ. This is crucial.

    Page no = 04

·         We should develop stick CRITERVNA (RE –who can come our franchisee) but, we should certainly “consider” van “us placement agencies who have joined us.

·         This is also but, to be successful ,we will need to invest  in a VPN , which links all franchisees across the country to our HQ- based resources –especially, resume- databases / Module 1 / & OES. May be we can levy, on each of our franchisee, a “NETWORK ACCESS” deposit or recurring fee. “Targets” must be set & affianced by each franchisee.

Page no = 05

·         A tour HQ, OES, must work perfectly for 6 month, before it thrown open to franchisees.

·           None thru less all franchisees must use OES! All assignments / orders must be executed thru OES only. 

·         “pending orders” of each / every franchisee must be trans pertly visible to the on tire network thru OES – then only there can be “synergy” 

   Page no = 06

·         Unless, we master –and use –website / module 1 / OES / (and someday, integrated accounting system), at HQ religiously, our franchisees cannot be expected to have “faith in these systems!

·         Whereas Naukri / jobsahed / jobs Trent / monster India. Etc.- are opening their “owned- offices / pranches “all over India , we could still over  India, we  could still overtake them by following “ Franchisee-route”

Page no = 08

·         Nirmit /

·         It would help If we can find the names of these –and, if possible –get hold of their “Frenchie-Agreement” copies. Can Karen help?  What was the “reason” their “success”?

Page no 09

·         “Services” we can start by metros & mini-metros where corporate HQ is located. May be 20 cities to begin with. Quality Place .time price we should control these 4 factors, by ensuring that all franchisees work thru Module 1 / OES only

Page no = 10 

·         Franchisee’s Responsibility / 3p’ s responsibility / local “selling” Resume- search Resumes Delivery Interview – schedules follow-up  ontstandivgs collection . Module 1 OES

·         Database creations

·         R & D

·         Systems

·         Central MLCG

Page no = 11

·         Our Reference list. We must examine the offrice premises of each potential franchisee & satisfy ourselves that this meats “Minimum” critena steadied by us- Also its location.

Page no = 12

·         We are well known in Mumbai should we consider appointing some franchises in Mumbai – thane etc.? 

·         Then move to nearly cities. Setting –up franchisees in other regions would require investing heavily in promotion / advertising our BRABD.

Page no = 13

·         This is why, we should not venture into franchising until, and our OES / Module 1 / website are working absolutely flawlessly for 6 months & thoroughly tested for remote connectivity.

·         Besides this, OES will need to be modified to take care of franchisee commission for orders executed by a given franchisee.

Page no = 14

·         This is the reason; we have to ensure that all franchisees conduct their business thru OES only (cremote access) this would require developing & integrating our (proposed) FINANCIAL MODULE into OES.

Page no = 15 

·         Independent placement Agencies .reveal their last 3 years income / profit to us? Without this we cannot set “Annual Invoicing / collection” targets for each franchisee and this is most crucial (just as in case of our in-house consultants) 

Page no = 17

·         Our website is well –established for 3/2 yrs.( OES / MODULE 1 are just being tested.

·         (We will need to modality OES & integrate accounting) (Not without prior expeneace in recruitment. These “controls” need to be built into OES NA we need to setup a mechanism to get direct feedback from our franchisee’s clients.

Page no = 18

·         We don’t have our “own” centers (branches) ideally, we would like to avoid setting –up our own centers anywhere & directly go for franchisees.

Page no =19

·         We not certainly do.

·         If not seven, we will most certainly need 2/3 manuals BEFORE we should get an executive responsible- for “franchisee – cooperation’s “from a SERVICE INDUSTRY to develop such manuals & then select franchisees & then implement the network.

Page no = 21

·         We are in this category.

Page no = 22

·         Local publicity & local adv. (local promotions) VS National Promotion by franchisor.

Page no = 23

·         Support to be given…..

Page no = 24

·         Before we appoint our first franchisee, we must integrate OES & A/C system. Very IMP.

Page no = 27

·         We must fix min sales target.

Page no = 33

·         Very important. We are in a “service” business.

Page no = 36

·         This is why we should first integrate our “Financial system “with our “order Execution system” then ourselves use it for a few months and then so arrange that all of our franchisees have to use these to use these systems for conducting their day to day business. All revenues must be records in the system.

Page no = 38

·         How many “corporates “(recruiters) are located in that particular city?

·         How many persons do they employ? Turn –over / expansion etc. of each unit.

Page no = 60

·         In our case, we may need to bring to our marol office, all the franchisee’s personnel, & train them in use of OES/ Modules website etc.

Page no = 61

·         If we select as our franchisees, HR consultants where main income is coming from other HR activities (such as training – consulting- counselling etc., ) they will not pay full-time attention to “recruitment”!

·         OES should take care. May not be “key” for our franchisees. This is what we too experience.

Page no = 60

·         On 23/03, our staff agreed that Monica (our HR ager) should develop a “Group performance incentive plan” she is expected to come –up with her proposal by and April.

·         If such plan works with us well, it may be a model for our franchisees too.

·         I.e. The owner himself not- his staff so, if the franchisee has “sales” background so much the better. We will need to have an “Annual Franchisee conference” 

Page no = 63

·         How to lock –in A Franchisee

·         Fortunately, in our business, if we ensure that for all of his day-to-day operations, each & every

·         Franchisee has got to use –

·         Our database ( module 1 )

·         Searchenication tools

·         Communication tools

·         Order Execution System ( OES)

·         From =

·         Our central serves in marol,

·         Then,

·         We have all the information / data, about all franchisees, in real-time and in the same formats (real-time and in the same formats (reports / logs / input screens / schedulers etc. etc.), as we ourselves use. 

·         Idea is, NOT to allow / permit any franchise to develop / use his OWN systems /procedures, so even if he quits our network, the accumulated “Knowledgebase / Database” remains with US.

Page no = 64

·         Most important step, too

·         How do we define “territory” in case of a “service” industry like ours, where there no “retail” sales but only dealing with corporate clients, with multiple regional / zonal / branch offices & FACTORIES? “Quote” differently to 2 branches of same client, wanted in 2 diff. cities? Can a franchisee underquote the franchisor?

Page no = 65

·         He may look upon each new franchisee appointed by us, in his state / region, as his “competitors”

·         In our case, what happens if our Rajkot & Bhavnagar franchisees, both, send “promotion” AMTREX or ADANI’S HQ in Ahmedabad? And if a corporates has a website, then, we are talking, of “Virtual” territory! Could we, for example, in our case define each franchisee’s unique “customers” instead of defining “territories”?

Page no = 66

·         In executive- search business, “repeat” business / from same client company depends upon what kind of personal equation has our consultant (or for that matter, our franchisee) has built-up with the HR manager of the client. For us every new assignment is a” NEW “product but for us, promotions in “HR manager of the client.

·         For us, every new assignment is a “NEW “product But for us, promotion in “HR Mgrs.Confevence” s are vital to promote our brand.

·         Especially when he knows that a customer in Borivali will never travel to Andheri, to buy a pair of shoes! But in our case, in each city/ region, customers, (i.e. Companies) are very few and they never visit the office of a recruitment firm! We have to go out & meet them in their offices. So, if I am a franchise of 3p, I would not want more franchisees in my town/ city!

Page no = 67

·         In our case, it would be other way around. With a network of franchisee around the country, we could tell a client to enter into an “All India” contract with our NETWORK for all of his manpower needs, across the entire country. So, every franchisee would stand to benefit.

Page no =68

·         Once again, in our case, to could be other easy around, we should encourage our own consultants to go out & set-up their own franchisee outlets for 3p, after they have spent 3years with us first. They would make ideal franchisees. And they would earn much more-and independently. And feel more involved too.

Page no = 70

·         By 2004, we should as one of our senior consultant to become our “FRANCHISEE NETWORK MANAGER, with a target to set-up, 10 franchisees, a cross country, in 2004,

Page no = 71

·         Resume database (content Head / DBA) OUR Technical team (software Development) 

·         E.G.;-  Different Types Of Alliances ( See Kal-Chalcra ) Adoption Of NEW  technologies ?( e.g. phone in resumes video interviewing etc.)

Page no = 72

·         Database / search Engines / Communication Tools / OES. New “hires “of franchisee to be ) trained at MAROL

Page no = 73

·         No question about this.

Page no = 74

·         We can have many parameters such as % Growth in billing / in No. of executives appointed

·         In no.of clients serviced / in are billing / person appointed.

Page no = 75

·         I suggest in our case each franchisee should be separate / independent person; - not connected with others.

Page no = 76

·         We should start with metros; then mini-metros; then state capitals. This would reduce “fear of completion “amongst franchisee.

Page no = 77

·         So the relationship is quite clear.

Page no = 78  

·         In our case, all transactions / business processes, of all franchisees, must happen / take place, only on our central SERVERS located at MAROL. We should be able to see / read view, everything franchise on our own, in Neal time.

·         In other word, in our case, managing of “A franchisee in Chennai = consultant in MAROL”

Page no = 80

·         As of today, we have not incorporated these specs in OES.

Page no = 81

·         Orders booked / Invoices raised / collections made.

·         By forcing franchisees operate only thru OES; we are quote mating this business process. No need for periodic collection.

·         In our case, franchisee will instruct MAROL server to print / issue an invoice & clients cheques to be deposited in a separate bank account, from which , a franchise cannot issue any cheques or make any withdrawals. We can modify OES to produce a wide Variety statistics & comparative statements. Extremely difficult to

Page no = 82

·         Even then doubtful at best.

Page no = 83

·         Will any franchisee, ever pass-on to the franchisor, any negative feedback, he collected from a client? 

·         Whenever chairman of “HERTZ” (RENT-A- CAR) travelled to another city, he used to disguise himself as a customer & phone-up local dealer / franchisee, to rent-a- car!

Page no = 84

·         I believe, in our OES, we have a report on “Inquiries that failed to get converted in to an order” – consultant wise.

·         In OES, we have “standard Time” for each activity and actuals to give “variances”

Page no = 85

·         The “scheduler” screens in our OES ensure that a consultant (or a franchisee) is daily reminded of all pending activities.

·         As soon as a particular “activity” is completed, the reminder automatically shifts to the next activity

·         Reminders stop only when an order gets executed (i.e.: all carried out)

·         Once video conferencing is installed, 3p & its franchisee can look at same “scheduler” screen in real time and discuss, face to face! For each executive appointed (by franchisee) using OES.

·         In our case a franchisee cannot even execute the order without using OES; (online)

·         Franchisee cannot raise an invoice except thru OES.

·         We have to only ensure that each “forced closure” by a franchise- without raising an invoice except OES.

·         We have to only ensure that each “forced closure” by a franchisee-without raising an invoice- gets cross- checked directly either the client as well as candidates. This is where there is a possibility of frand.

Page no = 86

·         I think OES has controls such as franchisee (Branch) wise customer outstanding Invoices raised payments received etc. but these can be improved. Franchise?

·         Not applicable to us / we should adopt this system only. / Not applicable to us.

Page no = 87

·         If franchisee is forced to use our modified OES v.2 w may not even need to quit a franchisee’s operation since we are not concerned with his expenses / profits.

·         All that we must ensure is that our franchisee is not appointing an executive in a fictitious from first, at 8% which firm, in turn, appoints same executive with the ultimate client – company at 20%! Such frand is quite possible. 

Page no 88

·         once OES is fully implemented, we could easily become the first ISO -9000 Executive –search firm of INDIA when ready. Nirmit should ask Pradeep udhas, to take a look.

·         Data search prelim interview & invoicing.

·         In our case, no diff, between the two.

·         Not difficult since, all our franchisees must use same OES & follow same processes!

Page no = 89

·         I don’t believe in these. Our only valid control mechanism is use of OES by franchisee.

Page no = 91

·         E.g. what industries are booming & have great demand for executives (what kind?) –with what skills? 

·         So THAT content Head focus on getting such resumes for us that is “new product” our consultants.

Page no = 92

·         What “skills” are going to be in demand during next 12 months?

·         Getting resume over phone & auto- conversion to database in module 1 video-interviewing / sms alerts. Auto –creation of “converted Resume” in a striking format. Lot can be done. Forget! In our business, neither a resume nor software is any one’s patented monopoly. Speed of impel- mentation is the only difference.

Page no = 93

·         In our case, appropriate broadband network (for data & video- conference traffic), would become 3p’s responsibility must pay for the traffic they generate calling- party-pays (cpp) principal. Depends upon no of franchisees.

Page no = 94

·         Initially, we will need to “sub-contract” this function to a solicitor’s’ firm, for the first ¾ yrs.

Page no =95

·         How will franchisee account for TDS/ profession TAX? As a part of his income tax return? In that case client would have to issue ““cheques” in Franchisee’s name? See p=86.

·         For a long time to come, we may not need a “Regional Office” we should be able to handle 30/40 franchisees, directly from MAROL.

Page no =98

·         If, all of our franchisee can conduct their day-to day operations ONLY THRU our OES (central server located at MAROL), then there is no question of “daily updates”! We must have ALL INFO / data about ALL franchisees in rea-time.

Page no = 111

·         thru OES, we should come to KNOW, whet her franchisee is meeting his targets OES may need to be modified.

Page no = 120

·         Which countries employ a large no pf Indian Executives? & why?

Page no = 139

·         Read “Quo Uadis “report which I submitted to L&T chairman in 1987.

·         Val-in our library.

·         This is what I mean by franchisees, conducting their every operation, only thru our OES.

Page no = 140

·         For all practical purpose, would be no difference between the working of a 3p office-based consultant a (own) residence based “remote” consultants a pune based franchisee. In real time 03/01/2002

Page no = 141

·         About us job search / Resume search / Affiliates.

·         Our plan to automate all “partner programs

Page no = 142

·         On our website, we plan to create / maintain, complete “history “of each & every client co. all transactions with that client (Janam Kundli) this can certainly franchisees.

·         That is us! Our”products”are expensive indeed!!

·         In our case, avoid this at all cost! We might have appointed one client’s employee with another client! We most certainly, don’t want them to find out!

Page no = 143

·         We plan to achieve this with our Intranet launched in feb.2002.

Page no = 144

·         OES will do this.   Company master terms with OES, there will be no need for any manual report. The KEY.

·         Short list standard ACTIVITY Times. This too will be done, once we up load OES on own website.

Page no = 145

·         OES enforces this our OES has a provision for reporting “variances” of “activity times”

·         OUR Module 1 Resume Database (Member + non-mem lovers) is actually “Material supplies” to our franchisees.

·         Of course, our franchisees will log in to module 1 (like any of our consultants)

·         Not in our case! MAROL must remain the “HUB/ switch”. NO traffine (voice / data / image / text) can bypass, MAROL! OUR usp is to keep “clients” & “suppliers” ignorant of each other.soures of our databases must always be secret.

Page no = 146

·         Our franchisee will add value by “prelim. Interviewing”( in case of local candidates ) & organizing interviews & follow-up with both client & candidates & undertaking client requirements. Hardly any, in our case. 


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