Thursday, December 26, 2013

IHT(Foster Kids Pre School) Join hand With Franchise Mart India


Foster kids Pre-School born with the desire to nurture the children and lay a healthy foundation for a learned society. It is a noble initiative of IHT Group. And now it has emerged as one of the best play school in India.Said Mr Manoj Business Head

IHT India is an ISO 9001:2008 certified, professionally managed, public limited company delivering education in different fields of Information Technology like hardware, networking, software, accounting, management education and spoken English training. We have a wealth of experience more than a decade for innovating new Teaching Techniques during managing IHT & expanding education systems.

As per our Confidence and experience we want to expand our business with PAN India level, currently we have joined hand with Franchise mart India Pvt Ltd with its experience ,company look forward for our business expansion, we will have great franchise business ahead with Franchise Mart,Said Mr Manoj Business Head

Foster kids is managed by professional team, comprising of people with rich experience and broad knowledge in domain of Early Childhood Education and Management. Foster Kids offers Business Association for Play School and Child care services to individuals, entrepreneurs and existing preschools across India and abroad. The success of the associate is ensured, through complete guidance to set-up, start and manage the Preschool.

IHT Network is an ISO 9001:2008 certified Public Limited Company having more than 125 Centres across 18 States of India and 36 Centres in Nigeria.
Requirement For Play School Franchisee

As our franchise business partner, you can be a part of our inspiring journey, where we develop creative pedagogy, technology and tools to impart world-class early childhood education.
To become franchisee of Foster Kids, there is minimum requirement of infrastructure which depend upon the model you choose and availability of space at the site. There is some basic infra required. To start Foster Kids School, one has to have 1500 sq ft to 3000 sq ft area at accessible & strategic location. One typical school should have.

– Excellent model of infrastructure which is child friendly, Area should be 1000 to 3000 sq. Ft or more on the ground floor.
– There should be at least three class room of size 200-250 sq ft.
– One class room of size 200-250 sq ft equipped with flat TV or LCD projector
– The Head Mistress room should be of approx 80-120sq.ft.
– Reception area should be wider enough for proper sitting arrangement of visitors.
– Activity Area should be full of bunch of toys and environment should be designed where kids can safely explore and learn.
– Sufficient playing space where kids can experience multi-sensory activities in a safe, protected area.
– Clean and spacious toilet & wash room facility.



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3. Mahindra expansion of multi-brand car service business opportunities in india


4. Winyasa Vastra Bhandara ready to expand franchise in india

5. Tesco readies India’s first foreign investment

Tuesday, December 24, 2013

Is McDonald’s Still a Solid Dividend Stock in franchise market?


Franchise Blog:Over the past decade, McDonald’s has achieved enormous success for franchise in india. Investors have seen the stock steadily rise as earnings and dividend payments grew at a double-digit pace. However, the company has suffered slowing growth over the past couple of years. The stagnant stock price since the beginning of 2012 is reason for concern. The most recent dividend increase was just 5.2%, well below the 10-year average. Is McDonald’s still a solid dividend stock, or should investors look elsewhere?

A look back

The structure and scale of McDonald’s allows the company to maintain spectacular margins. About 80% of locations are franchised,and McDonald’s collects high-margin rent/fees from the franchisees. About a third of its revenue is derived from franchisees, and most of that is pure profit. Last year McDonald’s had a net income margin of 20%, earning about $5.5 billion on $27.6 billion of revenue.

Over the past decade, McDonald’s has grown its earnings at an annualized rate of roughly 18.5%. Dividends have grown even faster, increasing at a 24.5% annualized rate. It’s tempting to simply assume that this kind of growth will continue into the future, especially given McDonald’s wide economic moat.

However, it’s important to understand exactly how McDonald’s has achieved this exceptional growth. There was revenue growth, sure, but most of the heavy lifting was done via margin expansion. Net income margin grew from just 8.6% in 2003 to 20% last year, accounting for a majority of the decade’s earnings growth. The dividend was boosted by both this margin expansion as well as a rise in the payout ratio, which grew from 33.9% in 2003 to 53.6% last year.

This kind of expansion cannot be repeated in the next decade. Margins are likely about as high as they’ll go, which leaves revenue growth as the main driver of earnings and dividend growth going forward.

Reasonable expectations

McDonald’s is no longer a growth stock, and the next decade will look very different than the last decade for the company. There’s still plenty of room to grow, particularly in international markets. China and India alone have a combined population of about 2.5 billion people, and McDonald’s currently has just a small share of these markets.

Growth will have to be slow and methodical, however, in order to maintain the balance between company-owned and franchised locations, and to ensure that the stores will be successful. Competition from local firms represents a real threat in international markets.

Realistically, revenue should grow somewhere in the mid-single digits going forward. A few percent from new store openings, coupled with a few percent from same-store sales growth, leads to this estimate. If margins remain flat, then earnings will also grow at roughly this rate. Earnings-per-share growth will be a few percentage points higher due to share buybacks, and 7% to 9% annual EPS growth seems like a reasonable estimate.

Dividends should grow at about the same rate as EPS, as I don’t expect the payout ratio to grow too far beyond where it is today. With a current yield around 3.33%, high-single-digit dividend growth is more than enough to make McDonald’s an attractive dividend stock.

Comeback stories and competition

After dominating the U.S. fast-food market for years, McDonald’s is facing renewed competition from its longtime rivals. Wendy’s has seen its stock more than double since late 2012 as its turnaround efforts have shown progress. After selling the Arby’s franchise in 2011, the company is focusing on revitalizing the Wendy’s brand. Differentiating itself via premium offerings seems to be working, with sandwiches that feature a pretzel bun performing well. The company is also remodeling many of its stores, introducing a more modern look and feel. Stores that were remodeled in 2012 have seen, on average, a 20% jump in sales, which is an encouraging trend.

Burger King Worldwide is also working on a turnaround effort, and the results so far are equally impressive. The company is introducing new premium items like a chicken Parmesan sandwich as well as low-cost items such as the $1 french fry burger in an attempt to appeal to consumers across the board. In September, the company introduced Satisfries, a healthier version of french fries. Compared to McDonald’s fries, Satisfries have 40% less fat and 30% fewer calories. Like Wendy’s, Burger King is remodeling many of its stores, and so far it’s seeing a 10% to 15% sales boost.

While McDonald’s is in an entirely different league than Wendy’s and Burger King right now, these two companies are making progress toward becoming more profitable and competitive. Continued success could pressure McDonald’s lofty margins, but scale gives the company a considerable advantage.

The bottom line
McDonald’s cannot repeat the margin expansion of the past decade, but its wide moat and international growth prospects give the company plenty of room to continue steadily growing earnings. With a 3.33% yield and high-single-digit dividend growth expected, McDonald’s offers an attractive investment for those looking for dividend growth.

more trusted dividend stocks
Dividend stocks can make you rich. It’s as simple as that. While they don’t garner the notoriety of high-flying growth stocks, they’re also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill.

Monday, December 23, 2013

How to find the right franchise?


It’s a buyer’s market when it comes to finding a franchise, so there is every opportunity to ask all the right questions and find a franchise that fits your lifestyle.

Rod Young, chairman of franchise consultants and lawyers DC Strategy Group, says Australia has the highest concentration of franchises in the world.

“There are about 1100 franchise systems in Australia . . . that’s four times the number of franchise systems per head of population than the United States, which is the home of franchising,” Young says.

He says it is important buyers do their research into franchise systems that are stable and successful. Potential franchisees should look at the length of time the franchise has been established, the number of franchises in the network and how many have closed. They should also look at the banks’ lending criteria for individual franchise systems.

“If you can find one that’s well established, has been franchising for five to 10 years, and hasn’t closed any franchise units, you’re starting to look at a group of elite Franchise Business opportunities in INDIA,” Young says.

A question many buyers consider is whether to buy business-to-business or business-to-consumer franchises. This can have a significant impact on the style of business to choose.
The general manager of franchise recruitment at Bakers Delight, Gerry Gerrard, says one of the most important qualities of a person seeking a business-to-consumer franchise is that they enjoy dealing with the public.

“You’re in retail, and you need to enjoy being a retailer. You have to be happy and passionate dealing with the public.” Gerrard says the most successful franchisees become strongly connected with the community.
Another benefit of the business-to-consumer model is that the potential franchisee will already be familiar with the brand and know they’re a good fit.

“The individual has been in the consumer space, they know the brand, have experienced the brand. If the franchise was selling juice and you weren’t into it, you probably wouldn’t make the call to the franchiser in the first place,” he says.

Another benefit of retail is that it’s usually in a high-traffic location and the business-to-consumer model is more predictable.

“We find the site and we make sure it matches our criteria within the shopping centre or high street to make sure it brings the traffic flow in the right demographic,” he says.
In contrast, the business-to-business model of franchise often requires franchisees to build their own base for business.

The chief executive of print, design and website solutions franchise Snap, Stephen Edwards, says this can be one of the benefits to the business-to-business model.

“Business-to-business is a bit more relationship based. You get more value for the product and service that you’re selling. You get a lot more repetitive business because it creates an ongoing rather than one-off relationship,” Edwards says.

“We also find in business-to-business that the average order value is higher – a lot higher in most cases.”
Edwards says the greatest benefit of the business-to-business model is that the franchises tend to operate only at regular business hours on weekdays – never on weekends.

“Like any business you can work longer than that but on the whole that’s the benefit – work-life balance.”
Young’s top five considerations before seeking a franchise are:

1. How much capital are you prepared to risk – risk, not borrow, or invest – in putting into a business?
2. Is the franchise within 20 minutes of your home? One of the most telling features of a successful franchise is being part of the community – plus you save time communing.
3. During which hours of the day or week are you prepared to attend to your business? This will start to dictate between the business-to-business versus the business-to-consumer model.
4. How many employees are you comfortable employing? Do you want to be a sole operator or have a business where you could end up employing 15 or 20 staff?
5. What sort of return on capital do you want to make?
Young says once you have set your criteria based on the above questions, you can seek a franchise that will match your lifestyle and requirements.


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2. Burger King to Debut Across India

3. Benefits of the Franchise Business Model In India

4. How Franchising Works In The World

5. Is McDonald’s Still a Solid Dividend Stock in franchise market?