Buying a franchise in India – A brilliant Entrepreneurship option in 2023.
In this article, the author will lay down the current scenario of the Franchising business in India. And how franchising is the next big thing in the Indian Entrepreneurship Market. Recently, it has been trending and fast-growing, so most people are preferring to this type of business. Possibilities for growth have been aided by access to capital and a significant influx of competent franchise investors deciding to launch their first businesses.
Introduction
India is the second most populated country with over 1.3 billion people and is said to be the world’s most populous country by 2027. It has also been expected to surpass the economy of united states by 2035, making it the world’s largest economy.
The franchise business has been a shining star in India’s economy and it’s time for the franchise to explore the opportunities in the smaller cities to expand, after the impact they have made in the metropolitan cities. The current state of the franchise business in India is very promising, where the industry is growing at a rapid pace and is expected to reach Rs.7000 crore by 2025. Franchising contributes to nearly 4% of the Indian GDP and employs over 1.5 Million people.
What is Franchising? A franchise is a type of license that grants a franchisee access to a franchisor’s proprietary business Knowledge, process, and trademarks, thus allowing the franchise to sell a product or service under the franchisor’s business name. In exchange for Acquiring a franchise, the franchisee usually pays the Franchisor an initial start-up fee and annual licensing fees. Various fast food companies like Dominos, pizza Hut, Burger King, KFC, Patanjali, Archies, Etc.
Why Franchise in India is Beneficial in 2023.
- Brand Name – Brand Name is one of the key elements needed for a success of a business. Without successful brand name nobody will know who we are, it gets extremely difficult to start from scratch when no one is aware of your business. When you have a pre-established Brand Name it helps you give that instant push and marketing to establish the business in the area. For example, Kalyan Jewellers is an old trusted Jewellery Brand and is famous for its gold jewellery. It has more than 137 stores all over the country.
- Support System – Most Franchise provides a readily available support system that helps them establish, train and compete in the market. They provide training to its employees to maintain the brand name in the new market.
- Customer- there is no Business without customers, to attract customers in any business is a very difficult task. It can be quite a frightening challenge as no one is aware of the business. Creating a customer line is the most difficult and crucial task. With brand names comes their retained customer base. so if you have a franchise of Dominos in a city where there is no Dominos, people will definitely visit the store and the business will definitely be successful.
- Product Development- no matter what market one venture in, that field is forever in the state of evolution. Modification and evolution keep a business running. A pre-established brand that knows the needs and requirements of the customers knows when to and how to maintain through their massive changes.
- Investment- money from investors is more necessary to grow a business. In a franchise business, it is an established brand name, so finding investors was not a problem as they were already aware of the business’s popularity and it can be immensely profitable.
- Marketing- for a new business marketing can be an expensive task. You cannot leave out marketing when starting a new business. For a franchise, it is very easily available as an established brand name the franchisor already possesses sufficient marketing resources.
Recent trends in Franchising
For new franchises starting with a two-wheeler servicing sector will be the most affordable and convenient option. According to a recent study, 30% of customers are willing to spend more for superior service. This shows the significance of the consumer experience when costs are currently rising. To make easy money, choosing the best automotive franchise to own is the best course of action. The franchising sector in India is expected to grow at a compound annual rate of 30% through 2025. This growth will be driven by a number of factors, including an increasing middle class with disposable income, favourable government policies, and raising awareness of the franchising business model.
India currently has more than 10,000 registered franchises and 3.500 active ones, the sector provides ample opportunities for entrepreneurs. The concept of franchising is still new in India but has tremendous growth potential. For investors, it has a low-risk way to enter into a new market. For entrepreneurs, it provides an opportunity to start their own business with the support of an established brand. The Indian government has also established National Franchise Development Centre (NFDC) and Launched Franchise India Brand Show (FIBS). It has a strong trajectory and supportive policies from the government, the franchise business will bring a boom in the country.
Conclusion
Franchising can be a great way for an entrepreneur to get their business up and running quickly with minimal risk. When you franchise, you are essentially buying into an already established brand name and business model which can help you to have the ground running. Overall, franchising is a great option for entrepreneurs to start their own businesses with minimal risk and maximum support.
