Jumbo King, an Indian fast-food franchise, presently having 30 vada pav outlets, is planning to increase the number to 100 very soon! Industry experts predict that there would be franchising boom of Rs. 73,000-crore in the healthcare industry. Apollo Hospitals Group is said to be planning to open 250 ?chain of franchised clinics to capture the Rs 26,000-crore primary healthcare market.? According to trade figures, about 17 per cent of business today is done via franchising all over the world and one new franchise is being opened somewhere in the world every eight minutes! However, speaking of India, only 3 per cent of business here is conducted via franchising!
But this low number should not dissuade international franchisors from foraying into franchising in Indian. The good news is that the Indian franchise industry is said to be growing at the rate of 40 per cent annually!
The most surprising fact about the Indian franchise industry is that 90 percent of 600 franchises presently operating in India are owned by Indians!
Although Indian Government prevents foreign investment in the retail industry this has not dampened the enthusiasm of foreign players in seizing small business opportunity in India. Today India is said to be ?the second most attractive destination for retailers among 30 emerging markets.? Reputed retail chains like Marks & Spenser and McDonalds have entered the Indian market by making different business arrangements with local businessmen! They have either allowed the use of their trade mark for a fee or have allowed the use of their system for a price! What more! McDonalds has even added more spicy food items to its menu to suit the taste of the Indian consumers! This has not only increased the popularity of the fast-food joint among the Indians, it has also helped McDonalds up its profits!
Seeing the success of McDonalds, more and more international players are showing keenness on entering the Indian market. However, to make small business opportunity in India a success, the franchising companies needs to study the market thoroughly and make suitable changes in their products to match the Indian tastes. The franchisors need to decide on the business model they would want to follow. They can either choose ?to appoint a master franchisee for the whole of the country or appoint franchisees around the country independently or through its subsidiary in India, which acts as a master franchise.? The franchisors also need to have knowledge of Indian taxation laws to maximize their profit in India.
In conclusion, one can state that there is ample small business opportunity in India and one simply needs to enter the market with proper planning and research to make one?s franchise a success! For more details please visit www.franchise-plus.com .
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