if reliance want to start its trend showroom ,who will buy land and all materials for showroom ?
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Quick Summary
This discussion explores the financial responsibilities when setting up a Reliance Trend showroom. It clarifies that for centralised accounting, the main ownership will procure land and materials. However, for decentralised franchises, the franchisee bears these initial expenses and retains profits. The model also touches upon potential royalty and licence fees, as well as equipment provision, with payroll managed by the owner.
The owner ship buys for all branches as it's accounting is centralised. If it is decentralised, the person who took franchise will buy at at his own expenses and retain profits.
After the company starts its operations, Reliance may ask them royalty + licence fee. Provide equipment for free or owner can buy. Depends upon the customer contract.