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The potential of International Franchising in India

Written by: Dhawal Shah

Article Overview: The Indian economy grew by 6-7% in the 2005, thanks to continued reforms The middle class has never had it so good, with plenty of options and credit available in abundance at a competitive rate. There has been a change in mindset; a flamboyant generation is gradually replacing the debt-cautious.

The potential of International Franchising in India

Banks have identified India as the fastest growing retail market. Banks and financial institutions have disbursed loans of over Rs. 100,000 crore (USD 20 Billion).Franchised operations are becoming more popular in geographically vast and culturally diverse nations like India, as franchising helps to overcome the difficulties posed by having a chain of company owned outlets.

The earliest franchises date back to the Middle Ages when the Catholic Church granted them to tax collectors, who retained a percentage of the money they collected and turned the rest over to the Church. Current franchise operations as we know them are not very old. The boom in franchising did not take place until after the World War II and it has not abated this.

The Franchising Industry received a fillip in during the 1990s due to the opening up of the economy. Since, then, sales from franchised business have grown at an average rate of 20 – 30% compared to an economic growth rate of 6-8%

Today, International franchising in India is one of the most exciting areas in the franchise industry. TODAY, GLOBETROTTERS ARE MORE LIKELY TO DO THEIR SHOPPING IN FRANCHISED STORES. GLOBAL FRANCHISE ORGANISATIONS LIKE PIZZA HUT, MARKS AND SPENCER, MCDONALDS, SUBWAY, HP, HOLIDAY INN, MEDICINE SHOPPE, MARRYBROWN, DOMINOS, GOLD’S GYM, KODAK, KENTUCKY FRIED CHICKEN ARE BULLISH ON THE POTENTIAL OF FRANCHISING IN INDIA and have started their franchise operations. It is advisable for international companies wishing to make a presence in India , to divide India into different zones and appoint master franchisees for each of them or they can also opt for a national master franchisee

India is a self-governing and competitive territory for doing business. Franchise companies enjoy economies in scale. India also has a vibrant, vigorous and vivacious media, a pool of high skilled and technologically sophisticated labour, an independent and impartial judiciary and a robust legal infrastructure. Based on the successful companies that have enjoyed financial gain since the silent franchise boom during the 1990s, the future of franchising is positive.

We, at Way2Franchisepredict that the introduction and penetration of new technology will create new opportunities for franchises. Mergers and Acquisitions will increase as larger franchisers take over smaller ones. These factors combined with the low rate of franchise failure and considerable return on everybody’s investment, have made franchising a major force in the Indian economy at this point.

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INTRESTED IN - Hi Shesagiri here form India. Can you mail me the details to shesagiri@consultant.com, Would be interested in doing the business. We got rich Quality cashew nuts here in India and many more .Lets discuss and move forward.
Re: How do we market to 2 Billion people in China? - Kevin is right - nothing beats actually walking and talking with your potential customers... But Shri - I get where you are coming from too. The beautiful thing is that there are companies that specialize in helping you gather and discuss potential opportunities without leaving your home town. if you really want to start researching doing business in another country....utilize an organization like TIAW.org The International Alliance for Women. This is a global network. You can find contacts, business brokers and business owners who would be more than happy to help you.... There are many others too, consultants who specialize in helping North American companies go into China etc.. You just have to think outside the box and be prepared to share your ideas freely.... Good luck!
Re: Re Franchise etc - [quote="bmueller47":e0j0nu4t]Can you see a shift of various types of franchises? What I am thinking about is that today it is more difficult to create franchises, that has great appeal. More and more people want to have their business, but no interference of someone else.[/quote:e0j0nu4t] Not sure what you mean exactly but it is certain that more and more people want to have their own business but not more and more people know what they really want to do, or how to do it. And that's what franchising is all about. Franchising is not for an entrepreneur. An entrepreneur will do his own thing. People who buy franchises want a turn key business, with a proven model. Franchising in the US had never been that good. I don't have the exact numbers in mind but I know for sure that franchising is growing more and more as people are getting more and more aware of this business model.
Re: Looking to outsource my sales - Let me know if you would like to outsource it to India ??
Re: Hello From Mayur (Addon Solutions - Software Development) - Welcome to the club. Are you from India?


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