Learn More About Franchise Opportunities in India
What is a franchise?
A franchise is a kind of business in which the owners or franchisors sell the rights to their business logo, name, and model to a third party retail outlet owned by an independent or third party operator called franchisees. If we take the example of some of the top brands like McDonald's, Subway, Kidzee, Ferns N Petals, etc. – it is not possible for a brand to be present everywhere with their core team. Hence franchise model comes in to play where they need to identify individuals or companies who have the money and a passion for their brand/product. They need to provide them with expertise, brand name, training, and software, etc. Market reports over the years are suggesting that this is a successful business model that works both for an individual and an established brand.
Franchise Business in India
In the last quarter of 2017, India’s GDP has grown to 7.2% and this number will reach up to 7.8% in 2019. Franchise business has also contributed a lot to this number. You must have seen that the number of McDonald's, Domino’s Pizza, Pantaloons, etc. have gone higher in the past decade. The reason is “franchise business” and the popularity of these brands. Do you know that India is the 2nd largest franchise market in the world after the US? India has about 4,600 operating franchisers and 1.5 lakh franchisees. So, the franchisee opportunities in India are large – you only need to focus on which industry you want to step in.
Why Franchisee Business Is Better Than A Start-Up?
In the past 5 years, this franchise business has seen a growth of 30-35% per year and the prime reason is that many people belonging to various walks of life are adopting this successful business model. Given the current trend, this industry is expected to grow to at least about USD 140-150 billion. There are reasons behind this rise of franchise business in India. And there are also solid reasons behind opting for a franchise business rather than a start-up. Here are some:
Failure Is Comparatively Low
:One of the basic reasons for adopting a franchise business model is that it is not a start-up. For any start-up business, there needs to be a hefty investment and a big risk. In the case of the franchise business, the business model or the approach of the brand is already known to the customers and that’s why there is a lower rate of failure. If the brand has been accepted well, then only, they will try to think of expanding their business empire by opting for the franchise. And that’s why the franchise business is more like taking the legacy forward.
Brand Is Already Built:
The brand is already known to people and therefore, you don’t need to work from scratch to make people aware of the brand. The logo, name, and products – all are known to people. So, you have a ready pocket of customers. In case of start-ups, at least the first 2 years are usually spent in spreading the name of the brand and its uniqueness. When you buy a franchise, you actually buy a turnkey business that is ready and waiting for you to start.
It’s Ok If You Are Not Creative:
In the case of a start-up business, you need to be innovative and creative. You have to bring something new and be different than the rest in the same industry. Therefore, if you lack that ingenious approach, you probably should not delve into a start-up business. Here, franchise works for you as all you need to do is follow the given manual of business.
Guidance:
In a start-up business, you may or may not get a guidance or support system. But in case of a franchise business, you get a team of experts who trains you about the business, brand guidelines, products, how to deal and train your staffs, how to market, and many other aspects of the daily business activities.
Brand Names That Are the Best Franchise in India as Per Reports of 2018:
| Louis Philippe | Dr. Lal Pathlabs | Monginis |
| Baskin Robbins | Lakme Salon | Bikanerwala |
| Kidzee | Baggit | 3M Car Care |
| Amul | Ferns N Petals | Gold’s Gym |
| KFC | Oyo | Biba |
| Subway | DTDC International | Raymond |
| Apollo Tyres | Angel Broking | Liberty |
