{"id":27223,"date":"2021-03-11T12:24:42","date_gmt":"2021-03-11T06:54:42","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=27223"},"modified":"2021-03-11T12:24:43","modified_gmt":"2021-03-11T06:54:43","slug":"benefits-of-starting-a-franchise-business-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/benefits-of-starting-a-franchise-business-in-india\/","title":{"rendered":"Potential Benefits of Starting a Franchise Business in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Franchise based business model\nhas gained immense popularity in India in the past few years. The enormous\ncustomer base and healthy economic structure have made sure the overseas\ncompanies come to India to strengthen their footprint.<\/p>\n\n\n\n<p>India is one of the\nfastest-growing markets in the world today, making franchising a profitable\nbusiness model for aspiring startups and small businesses. India is now ranked\namongst the world\u2019s fastest-growing nation with enormous market size of 5.46\ntrillion (US$ 73. 78 billion) in FY20. India has secured fifth place on account\nof consumer capacity &amp; retail destination as per the government sources.<\/p>\n\n\n\n<p>Meanwhile, from an economic\nstandpoint, India stands second after China. Hence, Franchising in India has\nmany facets. This article would unfold the beneficial aspects of having a\nFranchise business in India<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-starting-a-franchise-business-in-india\/#What_is_a_Franchise_Business\" >What is a Franchise Business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-starting-a-franchise-business-in-india\/#Impact_of_Globalization_on_Franchise_Business_in_India\" >Impact of Globalization on Franchise Business in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-starting-a-franchise-business-in-india\/#Possible_Benefits_of_Having_a_Franchise_Business_in_India\" >Possible Benefits of Having a Franchise Business in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-starting-a-franchise-business-in-india\/#Potential_Areas_where_Franchise_Business_Model_is_Growing_Rapidly\" >Potential Areas where Franchise Business Model is Growing Rapidly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-starting-a-franchise-business-in-india\/#Brief_on_Business_Opportunities_via_Franchise_Business_in_India\" >Brief on Business Opportunities via Franchise Business in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-starting-a-franchise-business-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Franchise_Business\"><\/span>What is a Franchise Business?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a layman term, Franchising refers to a business model where the franchiser issues a license to another party (aka franchisee) to use the franchisor\u2019s IPR viz design, trademark, brands, and trade profile to market the products. Parties intending to start such a business need to agree to the contract (aka <a href=\"https:\/\/corpbiz.io\/franchise-agreement\"><strong>Franchise Agreement<\/strong><\/a>). <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_Globalization_on_Franchise_Business_in_India\"><\/span>Impact of Globalization on Franchise Business in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Globalization &amp; market\nliberalization has ensured the brand awareness among the Indian consumers,\nmaking the importation of overseas brand to India territory a great opportunity\nto the local business. Many off-shore industries consider franchising a\nconducive option to step into the Indian market, which ensures a favorable\nfranchising environment.<\/p>\n\n\n\n<p>Franchising is slowly gaining popularity\nin the retail segment of the Indian market, particularly in the food and\nbeverage industry, which also consolidates restaurant chains and computer\ntraining centers. Through Franchising, companies can leverage India\u2019s vast\nmarket with a degree of control &amp; other conventional forms of\ndistributions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Possible_Benefits_of_Having_a_Franchise_Business_in_India\"><\/span>Possible Benefits of Having a Franchise Business in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are some key benefits that the franchising business model rendered to the startups in India:-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1000\" height=\"276\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Boost-Employment.png\" alt=\"Benefits of Having a Franchise Business in India\" class=\"wp-image-27230\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Boost-Employment.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Boost-Employment-300x83.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/03\/Boost-Employment-768x212.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Boost Employment<\/h3>\n\n\n\n<p>Franchising advocates\nself-employment &amp; is also a prominent job generator. A single franchise\nstore renders employment to 5-30 individuals. <\/p>\n\n\n\n<p>India has secured a second\nposition in the world as far as the franchise market&#8217;s size is concerned.\nCurrently, there are 2 million franchisee outlets and 4,600 operating\nfranchisors operating in India. Total employment in this sector accounts for 14\nmillion and is expected to increase rapidly in upcoming years. <\/p>\n\n\n\n<p>The franchise industry is\nprojected to contribute approx 4% of the GDP of India by 2022. The service-based\nfranchises, which also include food services sectors, are expected to create\nmaximum indirect employment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lower Failure Rate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/h3>\n\n\n\n<p>The franchises possess a low\nfailure rate when contrasted with the startups. &nbsp;Entrepreneurs who are willing to setup a\nbusiness other than franchise needs to pour in more money in activities like\nincorporation, registration, marketing, procurement of raw material and setting\nup infrastructure.<\/p>\n\n\n\n<p>This inherently lures the risk\nof losing the business under unstable financial conditions. But that\u2019s not the\ncase with franchise business as it is easy to set up and attract less funding\nthan the conventional business model. Today franchise-based business model adheres\nto improved efficacy, fewer risk, &amp; low cost over any startups therefore,\nmaking it more profitable to the investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Need Fewer Investments<\/h3>\n\n\n\n<p>Under the franchise contract, a\nfranchisor can diversify the services by synchronizing cost, keeping an eye on\nquality measures, &amp; improved margin. Many global franchisors have already\nentered the Indian market and are now reaping stable revenue from this business\nmodel. <\/p>\n\n\n\n<p>The adoption of this business\nmodel mitigates the requirement for setting up in-house facilities or marketing\nchannel for the franchisee to serve their business objectives. It implies that\nstartups do not necessarily have to procure substantial capital to start a\nbusiness in this particular field.&nbsp;&nbsp;Starting a Franchise Business in\nIndia is a surely a worthwhile option from the investment standpoint. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ensure Long-Term Growth<\/h3>\n\n\n\n<p>To establish a long-term profitable business in India, one has to invest heavily in marketing and branding. However, that\u2019s not the case with the franchising business model. The franchisor bears the pain of promoting their offerings, which inherently helps the franchisee focus on their core competency, translating into a good profit margin and long-term growth for the <strong>startups<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Startup_company\"><strong>[1]<\/strong><\/a><\/sup>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Potential_Areas_where_Franchise_Business_Model_is_Growing_Rapidly\"><\/span>Potential Areas where Franchise Business Model is Growing Rapidly<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The section below enlists the\nsectors that have potential growth for the franchise business model in India:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Healthcare Sector<\/h3>\n\n\n\n<p>The improving lifestyle of\npeople in India has escalated the demand for authentic health services &amp;\nhas resulted in expanding the health care services through franchises. For\ninstance, many leading health care brands have established an extended\nportfolio of state health care clinic in India via their franchises.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Education Sector <\/h3>\n\n\n\n<p>With the level of education\nspreading at a rapid pace in India, industries perceive this as a business\nopportunity as this serves a dual purpose. First, it helps them reap enormous\nprofit, and second, it allows them to educate others with relevant training\nmodules. At present, India is considered one of the fastest-growing markets for\neducation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Food Sector<\/h3>\n\n\n\n<p>When you believe of franchises,\nmost probable the names that burst into your head are all food franchises. This\nbrand acknowledgment can really promote your franchise when starting out your\nbusiness. You get to profit from a built-in customer support and a strong\nreputation that habitually takes years to construct up when you are doing it\nall on yourself.<\/p>\n\n\n\n<p>When customers decide to eat at a food franchise in its place of an original restaurant or caf\u00e9, it is for the reason that they don\u2019t want any surprises. They want to purchase products that they know they will be fond of. A sense of awareness is very striking to a lot of people. They understand knowing what it anticipate from the quality of service, types of food, as well as hours of operation and outline design.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Brief_on_Business_Opportunities_via_Franchise_Business_in_India\"><\/span>Brief on Business Opportunities via Franchise Business in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Getting into a franchise\nbusiness is a profitable opportunity for anyone, as per the expert\u2019s opinion.\nFranchising business offered much-needed stability and contained less risk for\nthe business owners. India is a vast nation; all the global brands intend to\nstep into the Indian market due to unparallel market potential and low labor\ncost, which ensures the long-term benefits for the franchisors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For the most part, India\u2019s economy provides sufficient resilience to every business model, including dealing with franchising business. The government tries every possible measure to sustain stable growth for the GDP. They are also employing the best policies to ensure the development of the new startups regardless of their business nature and structure. This is the primary reason why the franchise business in India is thriving at a rapid pace. <\/p>\n\n\n\n<p>According to some experts, India will likely witness immense growth in the franchising business model in the upcoming years. Many industries linked with the franchise-based system have reaped considerable profit since their inception in India. As an economy, India is the perfect destination for the one who seeks a considerable profit margin from the franchising business model. Globalization is another significant factor that plays a vital role in strengthening the footprint of this business model.\u00a0\u00a0 <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/medplus-franchise-in-india\/\">MedPlus Franchise in India: How it can helps Startup to Grow?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Franchise based business model has gained immense popularity in India in the past few years. The enormous customer base and healthy economic structure have made sure the overseas companies come to India to strengthen their footprint. India is one of the fastest-growing markets in the world today, making franchising a profitable business model for aspiring [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":27228,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1504],"tags":[1593],"acf":{"service_id":"105"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":7450,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27223"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=27223"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27223\/revisions"}],"predecessor-version":[{"id":27240,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/27223\/revisions\/27240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/27228"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=27223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=27223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=27223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}