Empirical Study on Franchise Business in India

Abstract

Indian franchising story has just started and it has a long way to go, India would be able to do so with its huge population, the growing aspirations and prosperity of the middle class, changing lifestyles, growing entrepreneurial culture, and the shifting of gears to small cities and towns. All these factors will lead to the growth of a WIN WIN partnership between the brand and franchisee.Franchising in India is still in its nascent stage. Only 10% of the businesses in India are franchised as compared to 70% in the United States. Education sector which accounts for the maximum portion of the total franchised business in India is only 38% franchised as a sector as a whole. Other sectors like retail, food, healthcare etc. go on similar lines.This report has tried to answer these questions by analysis including depth interviews, data analysis tools and behavioral study of franchisors in Bangalore across the major franchising sectors Education, Retail, Food and Professional Services. A franchisor has to be observant while selecting an appropriate partner for his business.This study is conducted through structured questionnaire with a sample size of 100. The study evaluates franchisor and franchisee relation in every aspect of business and also scope of franchise business in Bangalore. The duration of the study is around 60 days and the results showed that there is rapid growth of franchise business in Bangalore.