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Franchising Copy COPY SCRIBD COPY FINAL FRANCHISE MCD
Franchising Copy COPY SCRIBD COPY FINAL FRANCHISE MCD
– The Food & Beverage sector dominates India’s franchise sector. As Franchise Asia reports,
one-third of new food outlets in India are established through franchise systems. Quick Service
Restaurants and fast food outlets are the most popular, pointing to a shift in the pace of
consumer lifestyles. By 2022 it is estimated that the food and beverage industry will have
doubled its workforce, providing plentiful employment within India. The market value of the
food and beverage industry was US$ 26 billion in 2017; this figure is projected to increase to
US$ 46 billion within two years.
– Retail, beauty and healthcare and education are also attractive markets for franchising. The
US is a key player in India’s franchise boom as their brands are identifying the Indian market
as a huge opportunity for expansion. Indians demand products and services of good quality,
which is delivered by US franchises at ease. Simultaneously, India is witnessing huge growth
in entrepreneurial energy and talent. These new entrepreneurs are very receptive to American
franchises. Several foreign companies with strong brands have established a presence in India
through franchising. In the hospitality and food service industries, this has been the preferred
method for starting operations in India.
– The key to the success of international brands within India is an accommodation of the
market. India’s culture is richly diverse, and this is reflected in the population. The needs and
tastes of India’s consumers are unique, and international brands who have adapted their
franchise model specifically to suit the particularities of the Indian market have experienced
notable success. The most successful franchise sectors in India are Food and beverage, Hotels,
Retail, Beauty & Fitness, Health care, Medical services, and education.
Growth of sector
Working on a mix of company-owned and franchisee distribution model can really help in the
long run if franchisee partners are selected carefully. One should be extra cautious in choosing
the right Franchise partner. While there could be many brand specific parameters, a brand
should invest time and energy in pre-screening of the prospective Franchisee.
In addition, the brand should scrutinize the franchisee upon the following parameters:
– Financial Health
– Existing Portfolio
– Industry experience & knowledge.
Above all, it is extremely important to have a like-minded Franchisee partner, who can
understand Brand parameters ad brand DNA and can implement the guidelines without any
compromise.