The Future of Franchising

Franchising demands trust, openness, support, consistent behavior & most importantly defined roles from the franchisee & franchisor. According to a study, franchising contributes 20% to global GDP and has been able to attract retail investors in India. Global brands like Mc Donalds, Subway, Reebok, KFC and many more entered the Indian market through the same channel.

Franchise business in India has crossed Rs.15,000/- cr mark and is expected to grow at 30% per annum. Future seems to be bright, especially as the global brands enter retail Indian market. Franchisee number is expected to reach a mark of 4 lakh as the scenario seems to be quite favorable this year. But, we can achieve all this by keeping in mind the real picture of franchise business i.e; success with sustainability.

Franchisees think that franchising is the fastest business with secured returns as compared with their own ventures. Thus, one can't generalize the rate of return in this business. Hence, the franchisee should not assume franchising a safe game to invest.

As studied by Franchise Relationship Institute, both franchisee & franchisor heavily depend upon emotions, myth & gut feel rather than following systems, policies and processes of doing a business. They also studied that youth & women franchisee do perform better in franchising business with a fact that more than one third of franchisee are inconsistent performers in the business.

Thus, one can't say that it is entirely franchisees ability to run business as the responsibility lies with the franchisor as well. Franchisors must ensure that the franchisee is trained on products, marketing activities and all the strategies required to generate revenue. All these trainings should be imparted at the time of sign up as both the parties are passionate to do business & have trust on the brand to take it to zenith.

To conclude, franchising involves the same amount of passion & sincerity from the franchisor & franchisee to ensure long-term & profitable relationship.

About the Author:

Deepanshu Khurana, young and vibrant CEO of i360 Staffing and Training Solutions. He envisions i360 as being the "most preferred vocational training organization". He fully understands the need of getting a strong R&D team, academic delivery and operations team to ensure organizational growth. While ensuring the development of a strong foundation, he also understands the importance of "University Alliances", "Corporate tie-ups" and "Excellent Corporate Training".

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