Franchising In India: Opportunities Galore

Economic Times:

In India, not much is commonly known about franchising as a concept. In fact, it’s an industry that is estimated to be as large as Rs 10,000 crore in size. It is estimated that there are around 600 franchisers spread across education, retailing, hospitality and healthcare in India. That translates to over 40,000 franchisees. The business has grown impressively in terms of size and stature. Investments made by the franchisees has been well in excess of Rs 5,000 crore and the industry employs more than 3 lakh people who are employed directly by the franchised businesses.

The potential in the business has been a huge trigger which explains the levels of optimism prevailing. The numbers tell a story – franchising accounts for a third of all retail sales in the UK while the corresponding figure is 40-50% in the US. By contrast, franchising in India accounts for just 2% of total retail sales. It is interesting to note that it is 3% for China and a much healthier 12% for South Africa. More.