HospitalityBizIndia:
Pizza chain, US Pizza, has announced its new innovative franchising model for operations in India. This new model will balance the risk and the reward between the franchisee and franchisor.
Since its inception, US Pizza has chosen the franchise-based business model to expand its Indian operations and business.
Through their extensive research and study, the company has identified a gap in the conventional franchising model, where the franchisor takes royalty from the franchisee at every sale level. In the new franchising model from US Pizza, the franchisee gets an assured share of revenue first, before the franchisor gets his share of royalty. After paying off the franchisee revenue and royalty, the remaining profits are shared equally between both partners. This means the franchisee occupies a higher position in the revenue hierarchy as compared to the franchisor; this is not the case in the conventional model followed by F&B companies, the world over.
Speaking on the occasion, Akbar Khwaja, MD, United Restaurants Ltd said, “With more than 12 years of franchising experience, the company has gained enough knowledge to create this innovative business model. Mainly aiming to break the conservative franchise form of operating, this will make every franchisee a true partner. This new precedent is our way of creating an opportunity for investors to enter the fast food segment.â€