Franchise Owned Company Operated. These 4 words might have hit you if you are not aware of its background. But let’s make things simpler for you.
Under this model, private owners invest in the set-up and location while the bigger brand looks after the operations of the location.
For instance, if you are a rich person and you built a movie theatre, then INOX may run the operational cost, and you may sit back and enjoy it while keeping a certain percentage of the profit.
This model is called the Franchise Owned Company Operated Model, otherwise abbreviated as the FOCO Model.
We do realise that Munjya and later Stree 2 came out to be a mammoth success, but only a handful of successful films in the 9th month of the year is not something which theatre owners would desire.
Thus, we need to acknowledge that these are hard times for the theatre owners and it is high time they work on surviving. Bollywood would take more time to rejuvenate and perhaps strengthen its content but PVR INOX may not want to wait that much in order to earn profits or even lessen losses.
Let’s see if INOX expands through this strategy. Because making their own theatres is definitely gonna cost them a big time, which they can’t afford at this time.