Indian Franchising Opportunities- the growing market
What is Indian Franchising? How Does it Differ from American Franchising?
When most people think of franchising, they think of the same businesses being consistently shared - golden arches, Coca-Cola, McDonalds. However, this isn't the case in India. The definition of franchising varies from country to country across the globe and there are a variety of different business types that can be franchised instead. In India there are many forms of "Franchise" which includes B2B zonal franchises and B2C franchisees as well as master franchisee agreements.
A Relatively New Phenomenon in India
In the world today, franchising is growing at an extremely fast pace and India is no exception. It's a relatively new phenomenon in India and has grown significantly with the country's economic boom. In fact, franchising has been such a heavy contributor to this economic expansion that the government of India established its own Franchise India Council (FIC) in 2012 which encourages the sharing of business models and best practices between the franchisors. The council also holds seminars and workshops to encourage corporations to adopt franchising as well as hold roundtables with ministers and other members of parliament to promote this evergrowing business model. The council has also taken an active role in creating new policies to help the growth of franchising and help it become more widely accepted.
The Good News for Entrepreneurs
With franchising rapidly growing in India, there are many opportunities for entrepreneurs looking to expand their businesses or even start up a new one. The number of franchisees steadily growing year after year, especially as corporations see the benefits of this fast-growing business model. The concept is simple - business owners give another party rights to use their trade name and offer the same products and services that they do. Many businesses choose to outsource their services in order to expand their company or even make it easier for them to focus on running the business and growing it.
5 Reasons Why Franchising is Growing in India
There are many reasons why franchising is growing in India, however here are a few of the most prominent reasons:
India's current economic boom leading to more wealthy people with more money to invest. With a population of over a billion people, India has an abundance of potential customers for any interested business owner. Legal agreements that ensure that both parties involved are protected so there are no issues with ownership or miscommunication.
The Indian franchise market is expected to grow exponentially in the coming years, especially with the mass exposure the Indian economy has received. The current trend is to continue developing India's Information Technology sector and give more support to its technology franchises. India's main goal is to decrease unemployment throughout the country which they hope will be achieved through technological development.
Businesses that have seen this growth and potential in franchising are not willing to miss out on this opportunity and are investing more than ever before on business ventures such as restaurants, medical clinics, retail boutiques, and many more. Even foreign businesses have taken note of this expanding market and have started investing in India's franchising industry as well.
The Foreseable Future for Franchising in India
There is no doubt that franchising will keep growing in India and become more popular as the country's population continues to rise, the government continues to implement policies to encourage economic growth, and more businesses start considering franchising as an option. There are already many positive signs of this trend occurring as recent studies have shown an increase of franchisees in developed areas like Delhi, Kolkata, Mumbai, Pune and Bangalore. These areas are seen to be the future for expansion especially with their high population density and immense support from franchisees.
Many international corporations have already taken a step ahead towards this future by establishing their business models here in India. The world has already started to notice the economy in India and its potential as a new business frontier. This is a prime opportunity for any entrepreneur looking to expand their business or even start one from scratch here in India as the market shows no signs of slowing down.
Indian Franchising Opportunities
If you are an entrepreneur looking to get your own business going or you are interested in franchising opportunities then India might be the place for you. With an ever-expanding population and economy which has shown no signs of slowing down, India could be just what you need to help your business grow. Currently, many international businesses have taken note of this and have started to invest here creating a demand for franchises across many different industries. With over a billion people, there are plenty of potential customers for any business owner looking to expand their product.
There are currently many different types of franchising models which you can consider when setting up your business. Many franchisors have helped to build their brand name from scratch through the use of master franchisees or individual franchises. Other more popular ones are B2B zones and B2C franchises. Some companies also offer both and some even allow you to run your business as both - a master franchisee and individual franchisee for different products and services.
How to Choose a Franchise in India
With all of the choices there are when it comes to franchises in India, you have to take many things into consideration before choosing one for your business. There are many things you will have to think about when choosing your business including if you want to open a restaurant, retail shop, or even run a medical clinic which all require different business models and come with their own sets of pros and cons. You have many options such as individual franchises or master franchisees for any given product or service. You should also consider the company's previous success rate and its reputation among others before making your final decision on what franchise is best for you.
Franchising in India - An Investment?
Many people might think that franchising can be an expensive investment, but the reality is that it can benefit your business more than any other option out there. There are many different factors which make franchising such a great investment, here are a few:
Financial - As mentioned before, you will receive equity in your company as well as profit sharing and royalties if you become an owner of a franchise. You will also have access to the franchisor's resources which include an established business model with valuable information and better negotiating power with suppliers and other perks. Marketing - Many companies with franchises use their marketing strategies to benefit all of their franchisees simultaneously.
Conclusion
Franchising is no longer just a risky and difficult step for new entrepreneurs to take. With the right business strategy in India, you can start your own business or work for one which offers many benefits while remaining low risk. As the Indian economy continues to expand and more companies are looking towards franchising as an opportunity, franchises will continue to grow in popularity here in the country.