Active learning ideas
Franchising is a popular growth strategy where an established business (franchisor) grants the rights to its business model and brand to another person (franchisee). In the CBSE Class 12 curriculum, this is studied as a way for enterprises to expand rapidly with lower capital investment. For the franchisee, it offers a 'business in a box' with a proven track record.
Activity 01
One student acts as a franchisor of a successful tea brand, and the other as a potential franchisee. They must negotiate terms like the franchise fee, royalty percentage, and training support.
What is franchising and how does it facilitate rapid growth?
Activity 02
Groups research three different franchise opportunities available in India (e.g., a salon, a preschool, and a food outlet) and compare their initial investment and requirements.
How does a standard franchise agreement work?
Activity 03
Divide the class to debate whether a successful local bakery should expand by opening its own branches or by offering franchises. Focus on control vs. speed of growth.
What are the pros and cons for the franchisor and franchisee?
A few notes on teaching this unit
Watch Out for These Misconceptions
The franchisee owns the brand.
The franchisee only has the 'right to use' the brand for a specific period. Active learning through 'Contract Analysis' helps students understand the legal boundaries of the relationship.
Franchising is a guaranteed way to make a profit.
Success depends on location, management, and market demand. Case studies of failed franchise outlets help students see the risks involved for the franchisee.
Methods used in this brief