Case Studies

Designing Beheshti Carpet’s Dealership (Franchise) Structure: From Expansion to Standardization

Beheshti Carpet, one of the most reputable brands in Iran’s carpet industry, faced a critical challenge during its expansion journey: growing sales channels without incurring the heavy costs of opening and managing new physical branches.

Launching physical stores across different regions was becoming less viable due to high costs such as rent, space setup, and human resource management.

At this point, Platinum Agency stepped in as a strategic partner to design and develop a standardized franchise (dealership) structure that would allow for rapid, low-cost network expansion. This structure not only enabled the brand to extend its reach but also ensured consistent brand image and quality through clear operational and financial guidelines.

Challenges of Expanding Physical Branches

1. High setup and management costs

Establishing a new physical branch required significant investment — from leasing and outfitting the space to hiring and managing staff. These costs made fast, large-scale growth almost impossible.

2. Operational and HR complexities

Directly managing multiple branches across various cities required complex infrastructure and large teams. HR issues, staff training, and day-to-day coordination placed a heavy burden on the central management team.

3. Risk of brand reputation damage without oversight

Each branch operated under the Beheshti Carpet name, meaning any service failure could harm the brand’s reputation. Without a standardized monitoring system, customer experiences across branches risked becoming inconsistent.

Comparison: Direct Branches vs. Dealerships (Franchises)

Criteria	Direct Branch (Brand-Owned)	Dealership (Franchise)
Setup Costs	Very high (rent, full equipment, HR costs)	Lower, most costs borne by the franchisee
HR Management	Fully managed by the brand	Managed by the franchisee under brand supervision
Growth Speed	Slow and limited	Faster, enabling expansion across multiple cities
Brand Risk	Low (full control by the brand)	Medium (requires strict standards and monitoring)
Profitability for Brand	Direct but costly	Indirect, with lower fixed costs
Marketing Flexibility	Limited to brand policies	Within brand framework, but with franchisee involvement

Platinum’s Solution: Franchise Model Design

Defining Three Levels of Collaboration

Platinum designed a three-tier collaboration model to help Beheshti Carpet expand its sales channels effectively:

Brand-Owned Branches:
Fully managed by the brand, with all staff hired and trained directly by Beheshti Carpet.
Franchises (Dealerships):
Independently owned but operating under the mother brand’s framework. Staff training provided by the brand, while financial and HR management handled by the franchisee.
Retailers (e.g., Shahr-e-Farsh):
Retailers only sell Beheshti Carpet products without participating in training or marketing processes.

Collaboration Type	Ownership	Training Responsibility	Financial Model	Marketing Freedom
Brand-Owned Branch	Brand	Fully by the brand	Full funding by the brand, no initial buy-in	Limited to brand policies
Franchise (Dealership)	Independent franchisee	Initial training by brand, execution by franchisee	Purchase from brand + defined profit margin	Under brand supervision
Retailer	Independent retailer	No obligation by brand	Direct purchase with negotiated margin	Almost free, but within brand guidelines

Financial Model and Profit Sharing

After analyzing factory production costs and market dynamics, Platinum developed a fair profit-sharing model:

Base prices were calculated directly from factory costs.
Profit margins were defined to ensure sustainability for both the brand and the franchisee/retailer, motivating all parties to grow sales.

This approach enabled network expansion with minimal fixed costs and maximum financial synergy.

Standards and Monitoring

Staff Training for Branches and Dealerships

Maintaining consistent customer experience was a top priority. Platinum created a continuous training system:

Brand-Owned Branches: Full training provided and managed by the central brand team.
Franchises: Initial training handled by the brand, while day-to-day management remained with the franchisee.
Retailers: Only received products without any training obligations.

Advertising Policies and Brand Consistency

To prevent harm to brand image, Platinum established clear advertising policies:

Franchises were not allowed to launch independent campaigns (billboards, digital ads, etc.) without approval from the mother brand.
All messaging had to align strictly with Beheshti Carpet’s tone and brand identity.
Any deviation could result in warnings or even a reduction in franchise rights.

Periodic Monitoring and Scoring System

Platinum designed a monitoring and scoring framework executed on a monthly and quarterly basis:

Metrics included service quality, adherence to standards, and customer feedback.
Underperforming franchises risked losing their dealership rights.
High-performing franchises could graduate to higher levels, such as becoming official brand-owned branches.

Results of Implementing the Franchise Structure

Within just 18 months, Beheshti Carpet achieved impressive milestones through the franchise model designed by Platinum:

30 New Dealerships in 18 Months

The brand expanded its sales network by opening 30 active dealerships in various cities across the country.

3 New Brand-Owned Branches

In addition to the dealerships, three new brand-owned branches were established to serve as central hubs and reference points for other dealerships.

Sales Growth Without a Significant Rise in Fixed Costs

Thanks to this model, Beheshti Carpet increased sales without a dramatic increase in fixed costs such as rent, equipment, or direct HR expenses.

Conclusion

The design and implementation of the franchise model marked a turning point in Beheshti Carpet’s growth journey.
Platinum successfully developed operational, financial, and monitoring frameworks that ensured mutual benefit for both the brand and its franchisees.

The result was sustainable sales growth and a rapidly expanding distribution network, achieved without the heavy financial burden typically associated with large-scale physical expansion.

This case study demonstrates how strategic structuring and standardization can empower brands to scale efficiently while maintaining quality and brand integrity.