Franchise business has massive potential in India reported by Franchising Association of India (FAI). It is estimated that the industry is expanding at an annual rate of 30 percent and beyond. Within short span of time, the franchise industry will definitely equates to US $ 50 billion. India’s socioeconomic development is immensely supported by franchising. The industry is sunshine sector, has consistently displayed its flexibility by generating unexpected revenue and this trend is probably carried in forthcoming years. A recent survey done by India government, for instance, indicated an encouraging future for both franchisor and franchisees in the next five years. The government has focused on franchise industry; involve it in the five year plan to explore more business opportunities.
In fact, Franchising is emerged as major job creator able to offer opportunities for franchise owners and employees in India as well as global locations. In India franchising provide products and services in approximately 250 categories including education and training, food and drinks, clothing, retail, health and fitness, IT services, automotive, business services, jewellery and entertainment. Franchising is considered as small business because it is majorly dominated by small scale industries in earlier years. But actually at present plenty of national and global corporations had made entry into the market, adding value to the industry.
Despite of economic troubles in India, the franchise market has exceeding its horizons continuously, remain strong and making roads for development. To add more, increasing urbanization, digitization and demand for international brands have supporting franchise industry’s growth and development. In 2016, franchising has made an exception leap by generating whooping US $ 20 billion revenue. Small, medium and large enterprises are working actively and adopted franchise business to expand products and services visibility. Technological advancement has turned the tables; new concepts are incorporated extensively to penetrate market more effectively. Both franchisor and franchisee can earn huge profits by capitalizing on coming opportunities.