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Franchise System for Broadband Distribution

- Franchise System Specification
- Franchisee Requirements
- Product Overview












































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Who We Are:

In this document, we (the franchisor, TrueiNet Networks) have provided you (the potential
franchisee) with the appropriate level of information to better understand our franchisee
requirements and our IT products and services.

We believe that with this information and follow up discussions with ourselves, both parties will be
better positioned to assess the potential of a franchisor franchisee relationship.


Corporate Overview

TrueiNet Networks, based in Thane, Maharashtra, India was founded on an idea of excellence. We
are one of the leading providers of internet & networking solutions in India. Since its
Communication Division was established, TrueiNet Networks has re-enforced its investment in
Partnering with Major ISPs in India to provide Internet access for home, telecommuters, and SME
users.

The heart of TrueiNet Networks brand is its value - Energy, Dedication, and Discipline. TrueiNet
Networks was started as an organization, is to inspire the next generation to become
entrepreneur. We are passionate to develop people.


Our vision

To be rated as most ethical organization & to be rated in top 1000 fortune companies in 2020.


Our mission

Passion & Desire to develop people Desire to make a difference.



Via our capability of Research & Development equipped with network experts with experience in
this field, TrueiNet is determined to pursue the leading-edge position of the industry and to provide
our current and future customers with the best quality of networking & internet solutions. In the
past few years TrueiNet Networks has been dedicated in developing and offering comprehensive
solutions for Broadband, Internet leased line, and VPN solutions to meet the growing demands of
varying Internet market segments.













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The product lines include following series:
- Internet Leased Lines
- Broadband Distribution
- LIVE Streaming
- International Private Leased Circuit (IPLC)
- MPLS VPN, Layer 2 and 3
- Global International MPLS VPN
- IDC (Data Centre) for Co-location, Dedicated Server and Managed Services.
- Indoor structured cabling
- Outdoor cabling
- Wireless Point to point
- Wireless Point to multi point
- Wireless Indoor access
- VOIP
- PRI lines
- ERP Solutions
- Tally Solutions
- Thin clients









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Franchisee Eligibility Criteria:

The following guidelines are recommendations based on our experience of what key
attributes and skills are required to deliver business success. They are not, however,
mandatory requirements:

Education: Graduate, Engineer, Management.

Experience: minimum of 2 year's experience in any industry, or in running or
Managing business, or in selling broadband or internet leased line.

Character: individuals with a flair for business and a passion for people with Ethics.


Location Requirements:

The Location should be located at an Area of high potential for internet usage. The office
should be located on the ground floor or first floor. The server room may be in the office or
at the terrace of the building.

The facility should have a clear carpet area of between 100-300 ft
2
(or more for a prominent
location) and should be equipped with the following:
1. Office area for administration and Customer counseling.
2. Stable power with minimum 1.5 kW.
3. At least two telephone/Mobile lines.
4. Exclusive e-mail account for centre operations.


Staffing Requirements:

1. One Marketing executive
2. One Networking Engineer

Financial Requirements:

As the franchisee you should have the capacity to invest approximately 1 - 3 lakhs
(dependent on location and existing infrastructure). This investment will be the following
(approximations only):


Working capital: Rs. 40,000.




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TrueiNet Networks Commitment:

We will provide comprehensive and industry leading guidance to the franchisee in
establishing and managing your business. At a minimum, this will include support in the
following areas:

1. Organizational set-up.
2. Marketing strategy.
3. Capacity planning.
4. Manpower training - technical and sales.
5. Manpower planning - specialized training on demand.
6. Location selection and design layout.
7. Space planning.
8. Hardware & software purchase.
9. Bandwidth Management Software Training & Support

Technical and Staffing Requirements:

Staff Training:
The preferred location to conduct your staff training is at our local headquarters in
Palghar, Thane. This will help to get a good perspective of our organization and an
understanding of the brand.

On-line Training:
In addition to the 'on-site' training, we are proud to offer regular scheduled, and on-
request, on-line training sessions.

Duration of support from TrueiNet Networks:
We will support the franchisee both in terms of technical, marketing and sales
expertise, as long as the partnership exists. Our franchisor franchisee contract has
been developed to ensure a longstanding business relationship.

Marketing:
All promotional activities such as advertisements in daily newspapers, popular
magazines, local television channels, banners, hoardings, distribution of pamphlets,
etc. is to be handled by the franchisee.

When your franchise has been established as a provider of outstanding quality and
customer service, sales will start to grow quickly through word-of-mouth rather than
any other media. We strongly believe that every Customer will become the best
marketing tool we have.


In addition, as your franchisor, we will:
1. Routinely introduce alternative advanced marketing strategies to improve your
sales.
2. Train your franchise team in effective marketing, advertising and selling.

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Business Financial Assessment:

Hypothetical Income statement:
A low investment start-up cost is paramount in ensuring your franchise becomes profitable at
the earliest opportunity. One such scenario is shown below. With a start-up investment of Rs
2,64,000 (Initial setup cost, Equipments, etc.) it is possible for the franchise to be profitable by
month 12 based on a monthly average throughput of 100 Customers.

What your Client Income Statement Could Look Like
One time Investment

Income (+) Rs 100000
Server Rs 20000
Hypothetical Monthly (average)
Income per 100-150 connections
Rs 1,00,000
Switches Rs 3000
Cables Rs 5000 Running cost (-) Rs 42000
Wireless Base Station Rs 190000 Leased line (10 mbps) Rs 30000
Ups / Backup Rs 17000
Bandwidth Management
Software
Rs 2000
Leased line (10 mbps)
1 month Advance
Rs 30000 Staff Rs 5000
Rent Rs 5000

Total Investment Rs 265000
Potential Monthly
Earnings(=)
Rs 58000


Where you can do the cost cutting and Increase your profit?

You can save Approx. 50000 to 60000 of your one time investments, If you can acquire
terrace of the top most building of your town (Height of the building should be such that you
can have bird eye view of the whole city)

You can initially save Bandwidth cost upto Rs.10000 monthly if you have start with 4mbps
Leased line instead of 10mbps.

You can initially save staff (Network Engineer) cost Approx. Rs.5000 monthly if you have
partner / brother / friend and increase your earnings up to Rs.5000.

You can save Rent Approx. 5000 monthly if you have owned premises for operating and
increase your earnings up to Rs.5000.


You may charge your customer an Installation Fee Approx. Rs.3000 to Home user and
Rs.5000 to Business User. From this amount you can get handsome returns on your
investments apart from the monthly earnings.

For e.g. Income from Installation Charge
80 Home users x 3000 = 2,40,000
20 Business users x 5000 = 1,00,000
Total Installation Fees Received = 3,40,000
Installation (CPE) Avg. Cost is Approx. 2000 per Client x 100 = 2,00,000
Final Earnings on Installation: 1,40,000

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Preliminary Franchise Viability Assessment

The purpose of this section is to jointly assess the viability of introducing your business into the
TrueiNet Networks franchise network with our unique experience. Please spend some quality
time completing this form. This will assist both parties in assessing the potential of introducing
our franchise in your area. To ensure a fast turnaround, please complete this document and
return by e-mail to info@trueinet.com


About You



Full Name:



Educational Qualifications:



Age:



Home Address:



Telephone (mobile):



Telephone (Skype):



e-mail Address:



Work Experience (years):



Business Experience (years):



Current Employment:

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% Time to be spent on Franchise:



Investment Capacity (Lakhs):



Reasons for wanting to become a TrueiNet Networks Franchise:






Additional Personal Information:
e.g. goals or expectations (personal or financial) from the franchise business.

Year 1 (turnover, profit, quarterly cash flow):
Year 2 (turnover, profit, quarterly cash flow);
Year 3 (turnover, profit, quarterly cash flow):

Personal Motivations:



About Your Area



Location:



Catchments population:



Number of industries/ companies:



Number of colleges / universities:



Number of Home:





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About the Franchise Location


Preferred location for franchise:
(inc. full address if available)

Is a location already available (Y/N):



If yes, available floor space (ft
2
):


If yes, is the premises owned / leased:





Choice of Franchise



Why you chose TrueiNet Networks?



Did you consider any other franchisor?
(Name, reasons for this not going
ahead)



















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Appendix 2: 10 Ways to Optimize your Franchise Start-up

Owning a franchise is not a quick and easy way to get rich. It takes time, effort and a lot of hard
work. This is the same irrespective of the nature of your start-up business. The benefits of
franchising, however, are that no re-invention is required. The brand has already been established
and you benefit from the support, marketing, established products, services and systems of the
franchisor organization.

The decision to buy a franchise is not one that should be taken without extensive consideration,
although the key to success is about following some straightforward steps:

1. Select a franchise business that you feel passionate about.

This does not just apply to a franchise but to any business whether you are an employee
or the business owner. If you are passionate about you do, this will flow into your
products and services, the customers and ultimately the bottom line profit. Understand
what is important to you. It will be easier to evaluate the business opportunity and know
whether it is right for you.

2. Select the right franchisor for you.
This has to do with choosing an established company with a proven track record and
great reputation, even better if they belong to one of the national franchise organisations.
Ensure that the business is run in accordance with franchising best practices. Make sure
the business is profitable.

3. Assess the competition, the location & the business viability.
Is this an industry where there is growth? Ensure that the marketplace is not saturated
with similar industry-types. It helps if demand (for the product or service) outstrips
supply. Location is paramount. You may have the best franchise, with the best product or
service, with the best customer support, but that all counts for nothing if your location is
sub-optimal.

4. Develop a business plan.
Every profitable business has one. If nothing else it helps you develop your ideas and
sense of what is important to get the business to be viable. Most start-up companies are
too optimistic in their forecasts. A business plan puts some realism into your ideas. I
know you dont like the thought of writing one. But there are plenty of templates out
there to choose from.

5. Get the right team and train them.
Without the right team on-board in your new franchise you are doomed to failure. Ensure
that each person understands the values of the brand. Make sure that everyone is

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working towards the same goals. The appropriate training is important. Not just in the
franchise system itself, but in the specific area that each person is operating.

6. Maintain a great franchisee franchisor relationship.
Most breakdowns in franchisee franchisor relationships boil down to poor
communication between the two parties. Ensure from day one you understand each
others expectations. Dont just assume, find out! Communication must be both ways and
at regular intervals. Use your franchisors experience to good use.

7. Optimize your income statement and monitor your cash flow.
One to avoid I hear you say. No way. Optimizing your income statement and
understanding its sensitivities to things like products costs, day-to-day expenses,
numbers of customers, etc. can be great fun. OK, well it could just save your business.