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Franchise models in India
Same word — franchise — very different risk and control profiles. Know which structure you are being offered.
When a brand says “we are offering a franchise,” ask which operating and ownership model they mean.
FOFO
Franchise Owned, Franchise Operated
You invest, you run the outlet day to day. The most common path for independent franchisees.
FOCO
Franchise Owned, Company Operated
You invest; the brand operates. Rarer, more passive — heavily dependent on operator honesty and systems.
COCO
Company Owned, Company Operated
Brand-owned outlet. Useful benchmark: strong brands prove economics on COCO before selling FOFO rights.
MASTER
Master franchise
Large-territory rights; may include sub-franchising. Higher capital and complexity.
AREA
Area development
Open multiple outlets in a region on a schedule. Multi-unit growth if you can fund the pipeline.
Pin these down
- Who employs staff?
- Who controls pricing and suppliers?
- Is territory exclusive — on a map?
- Exit and transfer rules?
Educational only. Full disclaimer.