Vinayak started his first cafe in 2013 at Akurdi, Pune, around a college hub. But diversifying his career from an engineering job to a food business was a huge challenge. He started the first cafe with a fund raised by way of a personal loan. Vinayak decided to take the franchise route for expansion and gave away his first cafe at Akurdi as a franchise in 2016. They provide the raw materials pre-cooked as per their home-grown recipes to the franchise partners. It helps them to maintain the standardisation in quality. Vinayak's company charges a one-time franchise fee that ranges from Rs 3.5 to 4 lakh per outlet. The company also receives royalty from the sales.
Identify the type of franchise model from the case study here.

Business format franchise opportunity

Option 4: Business format franchise opportunity

Business format franchise opportunity is the most accurate description because Vinayak's company offers a comprehensive package:

• The franchisee replicates the entire cafe business format, including recipes, operational processes, and brand identity.
• Vinayak provides pre-cooked ingredients to ensure quality standardization.
• They charge a franchise fee upfront and receive ongoing royalties from sales.

Business format franchise opportunity: This is the most popular form of franchising. In this approach, a company provides a business owner with a proven method for operating a business using the name and trademark of the company. The company usually provides a significant amount of assistance to the business owner in starting and managing the company. The business owner pays a fee or royalty in return. Typically, a company also requires the owner to purchase supplies from the company.

Here's why the other options are not the best fit:

Product franchise business opportunity: This model focuses on selling the franchisor's specific products, but Vinayak's case includes a broader business format, including recipes, operations, and brand identity.
Manufacturing franchise opportunity: This model involves the franchisee producing the franchisor's products according to specific guidelines. While Vinayak provides pre-cooked ingredients, it's not a full manufacturing process.

Business franchise opportunity ventures: These ventures typically require that a business owner purchases and distributes the products for one specific company. The company must provide customers or accounts to the business owner, and in return, the business owner pays a fee or other consideration as compensation. Examples include vending machine routes and distributorships.