The franchisee finds that after all it is a legitimate way of expanding markets with few of the attendant headaches that accompany a manufacturing business for instance. Moreover, the franchiser may invest significantly in training and infrastructure.

"The business of franchisee is different from the business of retailing," points out Viren Ahuja, director, Benchmark, a marketing consultancy. "Both franchiser and franchisee must ensure that their expectations of each other are realistic."

What most franchisors look for is the location that the franchisee is offering. A well-situated outlet is a prime consideration for the franchiser to agree to a deal with the franchisee. "Size of the place is not necessarilyimportant. For an Archies or Reebok outlet, a vast floorspace is not required," says Ahuja.

Foreign brands may have flooded the Indian market but not all have fared well, he says. On the other hand, Indian brands like Cambridge shirts, Weekender garments and Titan watches have opened numerous franchisees successfully.

In any case, the performance of many a franchise may well fall short of many a franchisee's expectations if these are unrealistic. A franchisee wanting easy money may find that the minimum that is required to do business is an awareness of the local market conditions. The negotiation iself depends on what each side brings to the table. "A strong brand can demand better terms. A weak brand will offer better terms to the franchisee." Most brands will ask for paid up stocks, place and interiors from the franchisee.

Since franchised brands sell at a constant MRP (differences in local taxes are absorbed) for the entire country, retailing is at uniform rates all over the country resulting insome instant familiarity with a franchisee store's contents. A franchiser also offers, apart from brand name and uniform prices, a certain level of know-how, expertise, promotion and healthy margins.

In return, it expects that business partners such as the franchisee will spare them the bother of dealing with lease arrangements and running the business at the retail end. "It is critical that the owner spends time on the business rather than leave it to managers," emphasises Ahuja.

Usually the period of the contract is for five years and the company gets to ascertain what is selling and what is not. A franchisee, too, may not want to continue beyond that and the franchiser may be wary of possible neglect that may ensue.

A brand owner may then look for motivation and information shared by its various franchisees, a data-base of customers and promotional events at the retail point that are organised by the franchisee witht he help of the company.

One word of caution that Ahuja offers to would-befranchisees, when dealing with international brands through agents: be sure to look closely at the legal documents so that trademark rights are not clouded in any way. Is the trademark registered under local law and in whose name? Take a look at a copy of the trademark registration certificate so that down the line you do not have to deal with the fact that all your investments were for a lame duck.