CADD CENTRE Franchise Proposal
Key Points Of The Presentation 1. 2. 3. 4. 5. 6.
Defining Franchising. Eligibility of Franchisee. 5 Questions to be asked to yourself. Why Buy a Franchise? Benefits of Taking Franchise. Financial Feasibility.
October 22, 2008
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Defining Franchising • Payment of Initial Fees. • Right to use trademark, service-mark or trade name. • Marketing Plan, significant assistance or community of interest. • “It is a legal business arrangement governed and created by a contract, under which the franchisor (owner/supplier) sells to a franchisee (retailer/buyer) the right to sell certain goods and/or services of the supplier under specific agreed upon3 October 22, 2008
Eligibility of Franchisee • Experience of at least 2 yrs in education field. • Or should be an engineering student with work experience. • Must have a space of about 1000 to 1200 sqft. • Should have an investment capacity of 8 to 10 lakhs. October 22, 2008
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5 Questions to be Asked to Yourself? • How much of a team-player you are? • Can you accept the directions from others and play the role of follower to get my business rolling? • How do you feel about sharing your profits with someone who has not made a direct cash investment in your business? • Do you know what it takes to run your own business even under the protection of a franchise system? October 22, 2008 • How many hours are you willing to devote5
Why Buy a Franchise? • • • • •
Less Risk Less Time Less Effort Less Money Centralised National Advertising • Operating Procedures • Quality Control October 22, 2008 Standards
• Protection • Training • Written Standards and Procedures • National Name recognition • Low rate of Failure of Business
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Why should you join hands with CADD Centre? • Strategic Business tie up with major Software Companies • Introduction of new courses at regular intervals • Start to End Industry Specific courses • Free training for all your staff • World class course material • Training and certification of technical staff by ITA • Free guidance for technical, marketing and sales activities • Internationally recognized Certificate • Only International CAD Training Institution in India • The largest Corporate Training Company in India7 October 22, 2008
What you get as CADD Centre's Franchise Partner? • • • •
CADD Centre's Brand name and Logo Software at subsidised pricing International quality course material Internationally valid certification for students • Technical & marketing support using our expertise developed over 19 years in the business • A long term business relationship with a highly reputed company
October 22, 2008
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What CADD Centre expects from a Franchise Partner? • Good management skills • Commitment to customer satisfaction • Drive to succeed • Sound financial background with good working capital • Capability to successfully manage our training business in the region October 22, 2008
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What is CADD Centre's Franchise Arrangement? An arrangement where your efforts are directly proportional to your profits. A good chance to enter into the Information Technology industry with minimum risk.
October 22, 2008
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October 22, 2008
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What are the courses offered by CADD Centre? • • • • • • • •
Civil CADD Mechanical CADD Electrical CADD Architectural CADD Project Planning and Management Interior Architecture & Design Modeling & Animation Garment & fashion Design
October 22, 2008
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Who is the target segment for our training business? • • • •
Computer Aided Design Project Management Modelling & Animation Corporate Sector - Engineering Industries, Architectural Concerns & Interior Designers
October 22, 2008
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Computer Aided Design • • • • • • • • • • • •
Government Departments Utilities Oil Companies Archeologists Engineering & Diploma Students Engineers Architects Diploma Holders Manufacturing Companies Construction Companies Draftsmen Map Companies
October 22, 2008
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Project Management • • • • • • • • • •
Project Managers Project Leaders in IT Construction Engineers Maintenance Engineers Event Managers Senior Software Professionals Planning, Scheduling Engineers MBA Holders MBA Aspirants Engineers aspiring to work in Project Companies
October 22, 2008
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Modelling & Animation • • • • • • • • • • •
Marcom Executives Art Directors TV Title artists Advertisement and layout designers Housewives School children Arts and Science graduates Diploma holders Graphic designers Animators DTP Operators
October 22, 2008
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National and International Network CADD Centre, the leader in Computer Aided Design Training with over 19 years of experience, took the franchising route for its expansion during late 1995. The initiative started to expand its operations, became so successful and viable; today it has the largest network of over 250 centers in India and abroad. CADD Centre is looking for entrepreneurs to establish CADD Centre at unrepresented locations in India and abroad.
October 22, 2008
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National Network • • • • • • • • • •
Andhra Pradesh Gujarat Haryana Jammu Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra New Delhi & NCR
October 22, 2008
• • • • • • • •
Orissa Pondicherry Punjab Rajasthan Tamil Nadu Uttar Pradesh Uttrakhand West Bengal
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International Network • • • • • • • •
Bahrain Bangladesh Dubai Malaysia Nigeria Oman Qatar Sri Lanka
October 22, 2008
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Financial Feasibility Schedule of Project Cost Particulars
Cost
Fixed Assets Hardware (Computers 6)
180000.00
Software
200000.00
Interior
100000.00
Furniture
100000.00
Teaching Aids & Emergency Lights Printer
Total Capital Cost
6,000
Air Conditioner
60,000
UPS
24,000
A
Building Rent or Cost Annual Franchise Fees (plus Service Tax) Total
B
Total Project Outlay
A+B
October 22, 2008
35,000
705,000
40,000 168,480
150,000
18480
208,480
913,480 20
Project Cost • It is the one time investment which you have to made within 60 days i.e., 2 months after signing the MOU.
October 22, 2008
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Monthly Expenses Monthly Expenses Particulars 1
Rent
2
Staff Welfare
3000
3
Pantry
3000
4
Conveyance
3000
5
Printing
2000
6
Office Maintenance
2000
7
Postage
3000
8
Telephones
3000
9
Stationery
2000
10
Electricity
4000
11
Avertisement
20000
12
Salary
25000
13
Emergency
Total October 22, 2008
Cost 25000
5000
100000 22
Contd… • This is the regular expense which you have to made. • This expense can vary from Rs. 50,000 to 1,50,000.
October 22, 2008
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Monthly Repayment Schedule Monthly Repayment Schedule Total Capital Investment Interest (3 yrs @ 10% flat) Total Capital + Interest
1300000 390000 1690000
Assuming a Payback Period of 3 yrs * Monthly Repayment * Monthly Commitment
** Total commitment per month
46944 100000
146944 (Actual required income for each month)
* Monthly repayment is the amount which you have to earn every month * monthly commitment is the amount which you need to spend every month ** Approx. 1,50,000 required to be earn every month for running the business.
October 22, 2008
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Monthly Income Schedule Monthly Income Schedule
courses
no. of students
fees
amount
foundation level
10
5500
55000
diploma level
10
13000
130000
professional level
5
18000
90000
master diploma level
3
35000
105000
10
12000
120000
individual courses
Income
500000
Note: Here service tax is not added.
October 22, 2008
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Cash Flow Cash Flow Projection (1st Year) Income
amount
no. of months
total income
500000
10
5000000
less:
gross profit:
cost of books (10%)
500000
4500000
expenses
amount
no. of months
total expense
100000
10
1000000
net profit:
October 22, 2008
3500000
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CADD Centre At A Glance • • • • • • • • • • •
Concept : CAD training centre Business. Established : 1988. Franchising Commenced : 1995. Number of Centres : 250 plus. Network Spread Across : 8 countries. Investment Required : Rs. 8,00,000 to Rs. 10,00,000. Space Required : 1000 – 1800 square feet. Agreement Terms : 3 year (franchisee optional renewal). Countries Offered : UAE, Kuwait, Saudi Arabia, Singapore, Malaysia, Philippines, UK, Australia, Vietnam, Sudan, Bhutan, Nepal, and all English speaking countries. Qualifications Required : Qualified individuals and existing training centres with at least 2 yrs of experience. Business Model : Annual fee.
October 22, 2008
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Franchising is a method of distributing goods or services – a unique selling concept that fits hand-inglove with our highly mobile, service-intensive society. October 22, 2008
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For Taking Franchisee contact: Vivek Kumar Manager – Franchise Development CADD Centre Training Services Pvt. Ltd. Phone: +91-9793677554 E-mail:
[email protected] October 22, 2008
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