Indian franchising story has just started and it has a long
way to go, India would be able to do so with its huge population, the growing
aspirations and prosperity of the middle class, changing lifestyles, growing
entrepreneurial culture, and the shifting of gears to small cities and towns.
All these factors will lead to thegrowth of a WIN WIN partnership between the
brand and franchisee.
Franchising in India is still in its nascent stage. Only 10%
of the businesses in India are franchised as compared to 70% in the United
States. Education sector which accounts for the maximum portion of the total
franchised business in India is only 38% franchised as a sector as a whole.
Other sectors like retail, food, healthcare etc. go on similar lines.
This report has tried to answer these questions by analysis
including depth interviews, data analysis tools and behavioral study of
franchisors in Bangalore across the major franchising sectors Education,
Retail, Food and Professional Services. A franchisor has to be observant while
selecting an appropriate partner for his business.
This study is conducted through structured questionnaire with
a sample size of 100. The study evaluates franchisor and franchisee relation in
every aspect of business and also scope of franchise business in Bangalore. The
duration of the study is around 60 days and the results showed that there is
rapid growth of franchise business in Bangalore.
In this paper I studied about very research paper of
different researcher and I also studied various websites available on the
net.Here I would like to mention two researchers and their papers.
Singh1 and Satish Manwani(December 2013):
They published research paper on”Role of Franchising in the
Growth of Retail Business in India” inInternational Journal of Advance
Research in Computer Science and Management Studies in this research paper
they revels that the Indian market has a great demand for franchising, which
offers great alluring opportunities with great returns to the investors. This
paper explains the concept of franchising and some of the major issues related
to it. The future of franchising seems bright as it being a new business format
in India and increasingly gaining the interest of investors. The objective of
this research is highlight need of the franchising in India and need to
understand Indian franchising regulations. The sectors having great prospects
for franchising business will also be discussed. It also covers some aspects
like advantages and limitations which are important for the Franchisor,
Franchisee, Government and Customers.
2. Prashant Pareek (October 2016):
He published research paper on “A Study on Franchise Model of Leading
Apparel Brands in Ahmedabad and North Gujarat” in Pacific business
Review International Volume 6, Issue 4in this research paper they revels
that the apparel retail industry is one of the most franchised fashion
concepts. The market size, segmentation, retail trends as well as the growth
projections concludes that men’s wear apparel segment observes the maximum
franchise activity. This paper discusses franchise model considerations as well
as its various importances as the franchisors seek operational efficiency along
with visibility and penetration.
Mehta and Rajiv Kaushik (2012):
They published research paper on”A Study on Problems and
Prospects of Franchising Business in Organized Retail Sector” in International Journal of Engineering, Science
and Metallurgyin this research paper they revels thatIndia
presents a large market opportunity due to large number of costumers and
increasing purchasing power. There are significant challenges as well in Indian
retail sector. These challenges includes geographically dispersed population,
complex distribution network, little use of IT systems, limitations of mass
media and existence of counterfeit goods etc. This paper studies the Indian
retail sector opportunities and major concern for the growth of this sector.