India franchises business is expanding tremendously. It has an annual growth that is placed at 35 percent. The statistics show that the size Indian franchise market is worth over 7 billion dollars and it is still growing. The experts have predicted that by 2013 the, the business will be worth $20 billion. Such a business is a dream investment for any investor due to the potential that it possesses.
Franchising can be done for any industry and business owners who use right strategies can reap great dividends without a lot of risk or capital investment. In India, franchise model is employed in leading sectors. This includes sectors like apparel, F&B, entertainment, education, beauty, health and fitness. The other popular India Franchise sectors are hospitality, travel, tourism courier and automotive. Franchising in India has a lot of benefits as the gainers are not only the franchisees and franchisors but it also spurs the growth of the economy. It makes many to get employment opportunities.
Trained professionals
The franchise industry in India is getting more structured and organized in all parts and India has not left behind. There is an evident gap between the franchise industry requirements and the professionals who are trained in franchising. After realizing that there is a need for more professionals, India Franchise Association joined Francorp India which is also involved in Franchise India and Jaipuria Management Institute to develop a course in franchising. Certified Franchise Professionals are meant to prepare professionals who are skillful and have the capability to cater for the requirements of India Franchises.
Before that Franchising was covered as part of marketing or retail management courses. The new program is designed to cater for those intending to join the Indian franchising industry. Those who have been in the industry for sometime are also catered for. This move has raised the bar in the standards of franchising in India.
There are opportunities to engage in business format franchising in India. This format has the franchisors offering a license or selling rights to the franchisees who then use the business strategies of the franchisor. This applies to both services and goods. The investors in India franchises are mostly required to pay a fee in order to get the franchising right. After acquiring these rights, the franchisees pay an agreed percent of the gross sales to their franchisor throughout the time that they will be under contract. In return, the franchisees get privileges including having the rights to sell recognized and proven service or product.
Another benefit is that the franchisees are allowed to use the business practices that are applied by the franchisor. The franchisees are entitled to ongoing support from the franchisor. They are also offered training on how to handle the running of India franchises business and how to operate in the Indian market.
The franchisees are required to meet the quality controls of products and services. The franchisors restrict what will be sold and provide guidelines on how to operate when using the name of the company. They also specify the business location.
