COCO Franchise Model – Company Owned Company Operated Franchise

Check this blog to know in detail about COCO Franchise Model.

The franchise business models are among the best choices for a franchisee and a franchisor.

Establishing franchisees in different geographies leads to brand expansion and economic growth and also creates employment.

Many brands operate successfully in various sectors and work via franchise business models.

COCO Franchise Model - Company Owned Company Operated Franchise

Know about Franchise Business Models

Franchising is business operations operated or owned by the same third-party procuring the license from the leading Company, allowing the licensee to start using the brand name, licensor products, and various operational procedures.

Many brands use franchise models to mark their presence in the industry and market their shares in this fast-paced world.

Let us know about the various benefits you can avail yourself for franchising to the brands:

  • Higher investment return
  • Rapid expansion due to well-known brand name
  • Reduced operational and capital expenditure
  • Penetrating new geographies by engaging in partnerships with the natives
  • Low risk of exiting
  • Enhancing brand presence and value

What is COCO Model?

The Company initiates operations with the Company Operated and Company Owned business model, also known as COCO.

Still, once the brand becomes successful and well-established, the venture enters into the franchise model to reduce capital cost operational cost and increase the ROI via brand value created by the Company.

COCO is the abbreviated form of a Company-owned Company operated franchise system.

The model here refers to the corporation responsible for managing and owning the enterprise in a particular location.

The corporation is held accountable for all spending on the operational expenditure of the business.

The COCO franchise model is the best for the corporation because of the below-listed features:

  • Many franchisors keep searching for a corporation to provide a franchise for a fee as the location has excellent potential. But the lack of options left them secluded, and they took the initiative and started independently.
  • Individuals or corporations can start working if their ideas are unique or have a loophole in a market that they can fill. The initial stores are called COCO.
  • If the franchisors have great money and are in no mood to share it with anyone.
  • It is a common phenomenon for various franchisors to start their flagship store as it makes it possible to set up the complete infrastructure to explore future options and experience the ambiance of the outlet.

All the Company owned outlets are the perfect examples of COCO and exist across the sectors.

The COCO business model has flourished well in every industry, from computers to fashion to jewellery.

Advantages of the COCO Franchise Model

Various benefits of starting a COCO Business Model are –

  • The COCO business model showcases the product range and outlets to prospective franchisees and their clients.
  • The corporation enjoys all the money earned as no channel partner is involved.
  • It also helps the Company in the expansion plans to reach out to unconquered lands.

The COCO model works quite well often, especially when the Company is into consumer durable or hospitality for business investment.

Also, at the COCO, franchise ventures run better than any other franchise model. The franchisor operates the COCO franchise model, and the franchise partner owns a stake in the brand.

The franchise partner receives a guaranteed return on his investment and does not have to work daily; investment is the only thing required from the partner.

COCO offers the franchisees a fixed return for investing in unique opportunities from a well-loved and established brand.

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How does the COCO Business Model work?

The main advantage of the COCO business model is that every procedure outlined is followed closely, and there is no false commitment.

The client receives first-hand experience with the Company. The COCO model allows the brand owner to offer the same branch offerings.

These owners never wish to make any wrong promises to their clients and do not like any deviation or experimentation from their product definition or predefined model.

USP of COCO Franchise Model

The COCO model is devised so that a particular revenue should be earned regularly, so the store remains self-sustained.

The location factor here becomes crucial as the rent in premium locations is usually high.

There is often a situation when profits are not coming through, and the brand has to run the business, or the brand will earn a bad name on outlet closure.

For COCO models, the outlets are often looked after by the staff trained at the brand headquarters.

The brand handles hardware, fixtures, furniture, infrastructure, renovation, interior, operation costs, etc.

In the COCO franchise model, the franchise partner is only concerned about the money he is investing as he receives guaranteed returns but no say in any other operational activities.

The COCO model opens many branches in other cities to expand into different geographies. A few of its examples are Lenskart, Big Bazar, D-mart, Reliance Jio Mart, Relaxo, etc.

Example of a COCO Franchise Brand: Relaxo

Two brothers, Ramesh Kumar Dua and Mukund Lal Dua, started their footwear business in 1976, known by the name of Relaxo, and is one of the leading footwear companies in the country.

The brand has eight manufacturing units and is headquartered in Delhi. Relaxo is known to be producing six lakh pairs every day.

As the years pass, Relaxo has launched many sub-brands under its portfolio, like Relaxo Hawaii, Schoolmate, Flite, Sparx, and the Bahamas.

The footwear industry ranges from about Rs 55,000 crores now, and the organized brands are Rs 10,000 crores, and Relaxo has 20% of the market share.

The brand has more than 250 stores in India, and all of its stores follow the Company owned and Company operated business model. The brand plans to go out for franchising models to expand their presence in the market.

Relaxo brand already has a strong presence in Maharashtra. Nowadays, they are also exporting their footwear to Gulf countries.

Relaxo is selling their franchise through us; check details of the Relaxo Franchise here.

The brand also sells its products through other online marketplaces like Snapdeal, Amazon, Flipkart & its website.

The online store is bringing 5% of the business to the brand, while the online marketplace Flipkart sells most of the footwear.

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COCO Franchise Model – Conclusion

The COCO business model allows franchisee partners to own a business, but they do not have to worry.

In most scenarios, the parent company looks for the franchisee partner and signs a trust bond, offering a guaranteed profit and ROI.

Only calculated risk is involved. Being the oldest business model, COCO still has a firm grip on the market.


Comments( 35 )

  1. I have a prime location in the heart of Jalandhar (Punjab) having carpet area more than 800 sq. Feet and I am interested in COCO franchise model

    Waiting for positive reply

  2. I have spsce 450 sqft, including mezannine floor, ground floor, Kolkata location at the Central area.. Want to give it on rent as COCO MODEL

    1. Dear Sir,

      Thanks for sharing your interest. You can connect with us on this number – 9987242416

  3. Dear Team

    With reference to above stated subject I would like to notify you with my property available for renting which is suitable for Corporate and retail

    Location- Sangli, Maharashtra 416416
    Location Coordinates – 16.853684380835922, 74.5803041457131

    Property Description:
    7 floored commercial building with availability of showrooms, office units located in heart of city with parking access

    Unit to be Rented Details:
    Super Builtup- 2500 sq ft
    Carpet Area – 1950 sq ft
    Ground Floor with 5 stairs
    Showrrom Height- 14ft

    Following are attached details drawings and photos of the project

    Similar property of First and Second floor are also available for renting

    Hoping to hear from you soon

  4. I have space of15*30= 450 sqft. , in main market location of Haridwar . Want to start a COCO MODEL business.
    Please help me in connecting with the companies.
    Hoping to hear from you soon

  5. I have Commercial property in main market location of Abulane Meerut Cantt, Uttar Pradesh. Carpet area around 1100 soft ground floor. I want to start a COCO model business.

    1. Dear Sir, I hope our team has provided you with proper options, thanks for your valuable time.

  6. Hello,
    I have commercial space of 750 sqfeet on main road. Central Patna. Looking for Coco model franchisee.

    1. Dear Sir, I hope our team has provided you with proper options, thanks for your valuable time.

  7. I have spsce 500 sqft, ground floor, Bhopal location at the Hamidia Road Nadra Bus Stand. Want to give it on rent as COCO MODEL

    1. Dear Sir,

      Please connect with us on this number – 9987242416, We will help you immediately.

  8. Interested for Coco model , having covered space 2100 square feet (30×70) at village kui-Bhamlada) Dunera, Pathankot -Dalhosie Road(Boarder of Himachal, Chamba distt, ) and Basohli, Distt kathua (Jammu) M/WhatsApp -98148-75161

    1. Dear Sir,

      Please connect with us on this number – 9987242416, We will help you immediately.

  9. Respected Authority,
    We are near to completion our Own food court. It is located at National Highway no 08 , Mogar near Anand. ( Ahemdbad Mumbai Highway) near Amul Choclate plant. We are interested in COCO Model. ( Purely Lease Model ). Kindly back to us.

    1. Dear Sir,

      Please connect with us on this number – 9987242416, We will help you immediately.

  10. Dear Team,

    I have a commercial property In Gwalior Madhya Pradesh in market. I am looking to rent out to the Brands as COCO model or banks or NBFC’s.
    Ground Floor– 3000 sqft carpet area
    First Floor– 3500 sqft carpet area

    Could you please connect me on 9673024428

  11. I have a prime location in the heart of Abulane, Meerut (Uttar Pradesh) having carpet area more than 900sq. Feet and I am interested in COCO franchise model

  12. I have a commercial property In Lucknow Uttar Pradesh opposite to new High Court building. I am looking to rent out to the Brands as COCO model or banks or NBFC’s.
    Ground Floor– 2200 sqft
    First Floor– 2200 sqft
    Basement- 2200 sqft

  13. Hi team,

    I have 1100+sft commercial space on nh9 main Rd of Hyderabad, could you suggest any coco business ?


  14. have a commercial property In vijayapur Karnataka opposite to new beside Croma and zudio building. I am looking to rent out to the Brands as COCO model or banks or NBFC’s.
    Ground Floor– 2200 sqft
    First Floor– 2400 sqft

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