Abstract:
Quoting from Nobel Laureate Professor Muhammad Yunus, it can be said that ‘every Individual is an entrepreneur’, but it is evident that the degree of one being an entrepreneur varies. This is because people thinks, interprets and practices ‘entrepreneurship’ differently and that is why it is rightly said that there are many ‘models’ for Entrepreneurship. Even in today’s modern business place, the idea of getting associated with entrepreneurial activity as a part time business (read finding side income source) is also catching. With these background, when people explored ‘options’ for entrepreneurship, franchising as a route towards entrepreneurship comes in a profound manner because this is considered as an entrepreneurial business option with lesser Investment and risk. Moreover, the events like phenomenal retail boom in India, entry of various international brands in Indian market, increasing number of people with substantial invest-able funds and importantly recognizing the idea of ‘own boss’ give further boost to the ‘Franchising route to Entrepreneurship’. Still, as study says Franchising’ in India as business contribution is still in a nascent stage, it is also true that franchising as an entrepreneurial practice still not much explored and practiced in India. This paper try to put some light on the same line and also put effort to understand associate issues with franchising system in India and how entrepreneurs can exploit Franchising as a viable business option.
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Introduction:
The understanding of entrepreneurship seems to be very interesting because different people think, interpret and practice entrepreneurship in different manners. So the issue ‘what is entrepreneurship or who is an entrepreneur’ has become less relevant, rather ‘what makes entrepreneurs entrepreneurial’ become very purposeful to the entrepreneurship researchers. This issue is addressed by D. Sarasvathy in one of his Harvard Business Review submission as, ‘Entrepreneurs are entrepreneurial, as differentiated from managerial or strategic, because they think effectively; they believe in a yet-to-be made future that can be substantially be shaped by human action’. Traditional start up’s, intrapreneurship or social entrepreneurship what ever may the route the driving mantra for an entrepreneur remain same. Today, encouraged by the same mantra – effective thinking and a yet-to-be made future, people find new routes to experience entrepreneurship. Changing mindset and positive entrepreneurial environment give birth of the new models of ‘entrepreneurial journey’, which are very much relevant and prevalent in the society.
In his article ‘The many models of entrepreneurship’, entrepreneurship thinker Mohan Babu manifested the same and came up with such relevant and prevalent models of entrepreneurship. According to him, the followings are the new ‘entrepreneurship models’ that has emerged in the society.
Consultant model: Mostly common among academicians, corporate executives, IT
Professionals – who have niche domain expertise and gain a ‘brand’ name while working. They find it convenient and lucrative to start consultations using the industry contacts and domain expertise, after retiring from their regular job.
Moonlighting model: This model is common among those who want to practice
Entrepreneurship ‘part-time’ without involving full-time. For example, doctors working for hospitals or clinics as a ‘visiting consultant’. Some professionals take the public speaking or column writing in the same fashion.
Brilliant Idea model: Professionals and other workings may have a “million dollar idea” that has altogether different perspective from the same every day idea. Many times, these people take their new/ innovative idea to the employer with a suggestion to implement it on the job. Sometimes, when the management does not take up the ideas, they adopt the entrepreneurial route if they have strong believed/ faith about it.
Existing business/Franchise model: Sometimes, individuals who do not want to continue in the corporate world decide to start their own venture in a domain they are comfortable. Such ventures may take the form of small businesses or franchises. In the franchise model, the aspiring entrepreneur approaches a corporation (franchisor) and takes on the responsibility of running his business using the brand and marketing support from the enterprise. Though Babu does not mention it, it is also seen that people with surplus capital like to invest to take a franchisee ownership along with an existing job or after retiring a full service life. Now this Franchise model as an entrepreneurial route is extremely interesting because of its certain characteristics like – flexibility of involvement (part time/ full time) as an entrepreneur, unrestricted domain choice irrespective of expertise and significant high success rate compared to start ups. As a result, ‘franchising route to entrepreneurship’ is considered as a highly attractive entrepreneurial proposition and proving its potentiality (if already not proved! at least In India) amongst the entrepreneurs. Hence from an entrepreneur point of view, it become extremely important to understand the franchising system, associate issues with it and to know how they can exploit Franchising as a viable business option.
Understanding Franchising:
Franchising happen when some enterprise develops a proven concept and then transfers the trademark and business know-how to an entrepreneur, termed franchisee. The franchisee usually gets the right for a specific time period and in a specific geographic area for a one time franchisee fee and loyalty. The enterprise, which develops the business concept, is termed as franchisor. The franchisor provides different systems and supports to the franchisee.
Hence in technical terms, franchising is neither an industry nor a business, rather franchising is a method of doing business within a given industry. It is a business partnership and like all business partnerships it involves two parties, the franchisor and the franchisee. The franchisor provides the know-how, training, system and the brand, whereas the franchisee forms the front end and is responsible for managing his business unit. Technically, the ‘Franchising contract’ binds the two parties is the system.
Figure 1: Franchising System and Support Services Model
A Win – Win Proposition:
The most interesting part of franchising system is its win – win propositions between the two parties – franchisors and franchisee. Both the parties engaged in the ‘deal’ can reap substantial benefit from the franchising system. It is said that, a franchisor gets three fold benefits from franchising. Firstly, franchising acts as a distribution model for the franchisor, which helps them to growth rapidly. Secondly, it reduces the set up risk as risk is shared by the franchisee members and thirdly, franchising ultimately.
Helps in brand building and acts as a consumer interface amongst the populace.
Franchising help franchisors to have –
o Greater access to capital
o Better utilization of operating cost
o Presence rapidly both in known and less unknown market places
On the other hand, franchisee also enjoys benefits from franchising. In most of the cases,
Entrepreneurs have limitations in terms of capital, business know-how and have to deal with certain degree of risk. But franchising helps an entrepreneur (franchisee owner) in various aspects like –
o Get an association with an already known trade mark or service mark.
o Lesser investment and degree of risk
o Shorter learning curve
o Economies of scale
o Business System and operation support
o Advertising and promotional support
o Recruitment and training (of the employee) support, etc.
Most common form of Franchising Systems:
Master Franchising System: In master franchising the franchiser grants rights for a particular area to the master franchise for a front-end master franchisee fee. The master franchiser takes the responsibility for appointing further individual franchisees within that area. McDonald's, TGIF, Pizza Hut etc. have adopted this system in India.
Area Development Franchising System: In an area development agreement, the franchiser grants development rights of a particular area to the franchisee in turn for a front-end development fee. The franchisee on his part is responsible for developing a certain number of units within a given period of time. Excel InfoTech EIIT has adopted this unique mode of franchising.
Exclusive Showrooms: In an exclusive showroom the company or the franchiser grants
Exclusive showroom rights to the franchisee with the condition that the franchisee shall stock only his brand of products. The franchisee profits by being given stocks at lesser price than other retail outlets. This system is widely followed by brands like Raymond's, Allen Solly, and ColorPlus.
Successful entrepreneurship through Franchising:
Though India is considered as a country of entrepreneurship, it hardly ever witnessed entrepreneurship at a mass level in any of the form. Franchising also is not an exception for that and the reasons are specific of its context. It was limited to the few people with better ‘information and capital’, and was never able to attract the mass level of the society. But with the course of time the scenario has changed and has accepted by mass level (specially middle, lower middle class) at a much greater extent. People, who are not from very high business background come forward, opt franchising and found it effective. Many people made their best possible future from out of that. The simple proposition of ‘franchising’ and its uniqueness of business proposition play the crucial role and made possible for a mass level of entrepreneurship, yet not complete but just the beginning, thanks to franchising!
On a macro level, the greatest benefit of a ‘franchise system’ is that a large numbers of entrepreneurs in the form of franchisee owners work together to achieve a common goal. The franchisee is a dedicated entrepreneur and not a salaried employee, thus he/she is more likely to show greater commitment dedication, interest and involvement. They are they are intelligent enough to understand as they are working with a tried tested and proven business concept; the chances of failure of the venture reduce significantly.
Reasons that boost the idea of ‘Franchising route to entrepreneurship’:
The following are the primary and major reasons that boost up the idea of ‘Franchising route to entrepreneurship’.
Lesser investment and risk factor:
In franchising the initial investment and risk associated with it is much compared to a start ups. In most of the cases, ordinary start-ups face problem of huge investment, evaluating an opportunity and lack experience about the business know how. Thus they carry a huge risk. While in case of franchising the initial investment is generally lesser, in fact, the investment can be ‘chosen’ by the entrepreneur as per his/ her financial resource is available. Not only that, risk factor also significantly come down as the entrepreneur (owner of the franchisee) get the tested business concept, marketing and sales support, staining and staffing support, other consulting support. These facts actually encourage the people to become an entrepreneur by taking a franchisee ownership.
Proven track record and less failure rate:
Study says, 90% of start-ups fail in the first year itself and those survive, 90% of them fail in the next two years. On the contrary, for a franchised business, the result is completely opposite. In franchised business over 90% ventures are successful. This high success rate usually attracts entrepreneurs, with no experience but with a surplus capital and a will to succeed, to move towards franchising.
‘Wide range of options’ in franchising business:
Franchising as an entrepreneurial option is extremely flexible in nature. Franchising, by its nature and the way it operates in the market offers a wide range of ‘alternatives’ to the Entrepreneur. The entrepreneur can decide his/ her business as per his expertise, interest and resources.
The idea of such ‘alternatives/ options’ comes from different aspects.
o Options for choosing a sector: e.g.: food, education, clothing etc.
o Options for selecting a ‘franchisor brand’ from the chosen sector
o Options for engagement in business: Full time – part time; main business – side business
o Options for ‘investment’: Ranging from thousands to Crores. \
Increase in personal / household invest-able capital:
In the new economy, Indian individuals and households have more surplus capital because of better job opportunity and multiple earning members. And interestingly, unlike earlier, people, become more open to invest their surplus capital for a better return. They look for means of investment and find investment in the form of a franchised business is a better and smarter way to utilize the surplus capital. Again, they realize that the investment in franchised business is somewhat more ‘controllable’ and return are convincing. These help individual/ households to take decision in favour of a franchised business.
Recognizing and believing the idea of ‘own boss’:
These days people became more future conscious and look for job flexibility and freedom. They are now recognizing and believing the idea of ‘own boss’ and became more open to be an entrepreneur. And in many cases, realizing their lack of entrepreneurial experience and resources they decide to have a franchisee ownership and cherish the experience of running own business. This idea is gaining popularity in a rapid way. Depending on cases, they prefer to carry the franchised business either from home or from an outside location. Even the retired individual, housewife community also found this business proposition very convenient and shown keen interest about it.
Again, there are few factors, which play indirect role in emergence of franchised business. These factors can be categorized as - recent retail boom in India, entry of various international brands in Indian market, rapid growth of Indian economy, huge and fast growing consuming class, entrepreneurship revolution etc.
Franchising take in India:
In India, the concept of franchising started around seventies but didn’t get much acceptance till nineties. Traditionally it was limited to few sectors like IT training, clothing and footwear sector etc. Today in India, the acceptability for franchising system is much stronger, which helps franchising in India to touch a new height. It has forayed into all industries from Food and Fuel to health and travel. The franchising trend in India includes – domination of service sector, growth in retail franchising, introduction of many master franchisees by international franchisors etc. Today franchising spread across the country, providing immense opportunity to the entrepreneurs.
Franchising: Facts and figures in India:
There are more than 1200 active franchising systems currently operating in the country which are spread across the different sectors.
More than 50000 franchisees (across the sectors) are involved in the system.
The annual turnover achieved by franchise business in India touches Rs. 12,000 –
13,500 Crores approximately.
The total investment (annually) made by the franchisees is over Rs. 7,000 Crores and
Rapidly growing at the rate of 25-29%.
More than 650,000 people are directly employed by franchised business.
Around 180 foreign franchisors are already existing and operational in India and many are more coming or planning to come shortly.
Variety of franchising formats (retail franchising– non retail franchising / pure
Franchising – management contract franchising – hybrid franchising) are practiced across the sectors.
But even after having these encouraging facts and figures it can be said that, Indian franchising still remains in the nascent stage if compared with the global scenario. The concept of franchising is widely accepted and practiced globally, specially in USA and Western Europe supported by well-structured law, infrastructure and strong business framework.
In US, $1 trillion is estimated as annual sales from franchised outlets where 50 % retail trade is done through franchised outlets only. US franchisors often use franchising mode as a strategy for global expansion.
Franchising across the sectors:
As proven a mode of faster growth option of the business, franchising is found in almost all major sectors. Though, depending on the nature and practice of the sector, some sectors had already started experiencing the franchising revolution while in some sectors it is yet to start. Involvement of various foreign players also plays a key role in this issue. The major sectors which consider ‘franchising’ as a strategic growth vehicle includes beauty salons and supplies, business services, clothing, education & training, food & beverage, retail, travel etc.
Franchising: Different modes:
In practice franchising is found in different modes. Across the sectors, franchise systems offer varying types of units or programs of single type or in combination of more than one. Though the majority of franchise systems come in the form of stand-alone or in-line store, several other mode are also available includes, kiosk, satellite, express etc.
Broadly the major categories are as follows:
o Standard - a stand-alone or in-line store location
o Cart/Kiosk - non-fixed units, generally in malls or other captive market locations
o Express - smaller units, typically with limited services
o Home Office - franchisees may work out their homes
o Institutional Location - based in hospitals, military bases, schools, etc.
o Satellite - unit operates as a satellite or branch office of the system
o Vehicle/Mobile - units that are based out of a vehicle
o Other - a variety of unit-types
Different modes of Franchised Business in India
Source: Annual report by Franchise Association of India
Number of outlets:
The distribution of no of franchisees having by different franchisors is also very interesting. In India, it shows that almost 7% franchisors have more than 500 franchisees (each), which is very convincing figure for a relatively nascent concept.
Analysis of Franchising System:
When franchising is recognized as a viable entrepreneurial option, it becomes extremely important for an entrepreneur to know the technical and operational know-how of it. Typically many issues are associated with any franchise business – ranging from legal contract, financial deals, support system and delivery, relation between the franchisor and franchisee and many others. In US franchise mechanism is quite structured but in India it is not very much structured. As a result, ineffective and inefficient franchise mechanism often causes undesirable consequences for both the parties.
Most of the time franchisees become the ‘sufferer’ because of unstructured franchising mechanism and lack of prior business experience. The major challenge that is faced by Franchisee is the high financial obligations in the form of initial franchise fees, different other permits and insurance, marketing – training – consulting fees, royalty etc. set by the franchisors. Sometime, even after paying all those ‘fees’, control of the conduct of the business remain reserved by the franchisors. Last but not the least, termination or renewal of a franchise contract is often become hazards for the franchisee as franchisors deliberately create many complicacies in the whole process.
Franchisors are also not in the ‘safer’ side all the time. They also face several challenges because of the unstructured franchising mechanism and lack of professional commitment from the franchisee. In most of time ‘challenges’ come in the form of irregularity of payment of advertising – expert consulting and even royalty by the committed time. Resignation of a successful franchisee or clash between two franchisees also results disruption of the franchising distribution in the distribution system laid by the franchisors. Sometime franchisees do involve in different malpractices like providing misleading or misusing information, which badly affect the franchisors in their decision-making.
CSF for a franchising system:
Like all the sectors, franchising sector also has ‘critical success factors’ of its own kind.
Sparkleminds a leading consulting firm in franchising in India conducted a research on the same line and identified such few critical success factors (CSR).
The result of the research is shown in the table below.
Ranking Critical Success Factor
1 A well-established business network
2 Constant new product development
3 Innovative products/ services
4 Quality of franchisees
5 Transparencies
6 Return on investment to franchisees
Table 1: Critical Success Factor for Franchise Business
Source: Annual survey of the Indian Franchise Sector, conducted by Sparkleminds Franchise Catalysts India
Again, in practice it is often found that there is andidea mismatch’ between the franchisor and franchisee causing dispute, conflict and ultimately termination of the contract. To find the ‘reasons behind it’ the same franchise consulting firm conducted one research and identified the most common causes of frictions between the franchisors and franchisee.
The result of the research is shown in the table below.
Ranking Causes of Friction
1 Transparency
2 Training and Support
3 Revenue Sharing
4 Product/ Service Deliveries
Table 2: Most common causes of friction between the franchisee and franchisor
Source: Annual survey of the Indian Franchise Sector, conducted by Sparkleminds Franchise Catalysts
Future of Franchising in India:
India is always considered as a hub for entrepreneurial pool and it is quite interesting to observe that the traditional business acumen among the entrepreneurs has made a shift towards understanding and adopting business in a more scientific manner. And when it comes to science and systems of business, franchised business as a sector is evolving and thriving. Indian business environment is gradually experiencing the changes and now the concept and essence of franchising is permeating into the Indian entrepreneurial mind.
In the past one-decade International franchise brands like Pizza Hut, Mc Donald's, Gold's Gym, Kodak, Subway, Holiday Inn and many others understood the potential of Indian market and enter in the Indian market. Thanks to these brands today international franchising in India is one of the most exciting areas in the franchise industry. Indian brands also do not stay much back from their international counterparts. They are also taking the franchising pathway to success and made significant growth in areas like retail, education, beauty etc. Many new age Indian entrepreneurs has realized the scope of growth in franchising and thus many entrepreneurs already adopted the franchising route to entrepreneurship and many are in different phases of adopting. For these entrepreneurs becoming a national or International franchise seems much easier, safer and profitable than struggling for brand identity while running a small enterprise of their own.
The vast geographical expanse, diverse culture, powerful and growing economy, huge and fast growing consuming class, shifting focus on services from agriculture and manufacturing and acceptance of western concepts by Indian masses, provide excellent franchised business opportunities in India. Again, introduction and penetration of new technologies has added new dimensions in franchising. All these market conditions combined with the low rate of franchise failure and significant return on investment has made a bright future for franchising. It is predicted that in the coming future franchising industry will attain very high growth records. The industry has not yet touched its zenith. Till now only major cities in India has witnessed the growth of Indian Franchising, however as the Indian economy is witnessing new dimensions, more than 30 tier I and 100 tier II cities (towns) of the Indian sub continent is expected to emerge as new markets for franchised business. Both the consumers and entrepreneurs of these small cities now feel the thriving pulse of franchising and are ready to welcome the new shift in the trade and business. Also as the major cities are now on the verge of saturation, best of the brands and corporate companies are finding these small cities as their next hot destination.
Still among all these golden aspects, there are few grey areas as per Indian franchising is concern. The major concern is lack of regularity framework for franchise business. Lack of clear and specific franchising law often results ‘confusion’ in case of any legal dispute between the franchisor and franchisee. Not only that, Indian franchising sector does not have any solid financing mechanism in practice. Even, the skewed real estate market often poses as a threat to the growth of franchising in India.
Conclusion:
The growth of franchising in India is inevitable, because of its unique style of business proposition and presence of several other factors acting as ‘positive’ role concurrently. Entrepreneurs realize this fact and look forward to gain the best from this business option. As a result, the acceptability of ‘franchising’ as a business option has increased. Now people show keen interest in ‘franchising matters’. For them, it is a much flexible business options in terms of - choice of sector, franchisors-, degree of engagement (full time / part time) and even in the amount of investment.
Franchising system has a great impact on the society also. It creates a synergy in the society and unveils a unique kind of win – win – win proposition. The Franchisor wins by having a presence, whereas the franchisee wins by owning a profitable business and the society wins at large by emergence of numerous entrepreneurs and having superior products and services.
Annexure:Franchise List/ Franchise Directory / Franchise Brands
(A) Few upcoming strong Franchisor brands in India:Top Franchises
Business Vertical
Brands (Franchisors)
Beauty Salons & Supplies
Body Spa,
Naturals,
Fitness One India Ltd.,
Shahnaz Husain Group
Business Services
Eureka Forbes Ltd
Clothing
Blackberry,
Peter England,
Raymonds,
Fashion,
Reid & Taylor,
Hakoba Lifestyle LTD,
Design Institute
JDTI
Education & Training
NIIT
APTECH
Veta
British Academy,
Cadd Center,
Career forum
IMS
Florist
Ferns N Petals,
Florista
Food & Beverages
Baskin Robbins,
Swirls
Café Coffee Day
Yo China,
Gift & Greetings
Archies
Presto
Health & Aids Services
Proline Fitness,
Golds Gym
Vaidya Sane Ayurveda Clinic,
Fortis Health World Ltd,
Guardian Pharmacy,
Retail
Asmi,
Refeel
Bally Fabs,
Cartridge World,
Castrol Bike Zone,
Crossword,
D’damas,
Featherlite,
Marshalls,
Nilgiris
School (Play / Nursery)
Eurokids
ABC Montessori,
Bachpan
Fasttrack kids
Kidzee
Travel
Travel Tours,
Prime Travels,
Travel Port,
Via,
Arzoo
Cox and Kings
Properties
Remax
Source:
Manas Garai
Showing posts with label Franchise India. Show all posts
Showing posts with label Franchise India. Show all posts
Friday, April 2, 2010
Monday, March 29, 2010
Top 100 Franchise Business Opportunities In India
ENTREPRENEURS:START A NEW BUSINESS.EXPLORE INDIA'S LIST OF FINEST FRANCHISE BRANDS.
Mar 29, 2010 – A look at the franchising Industry and the Top 100 Brands 2010 from different industries evaluated on the basis of their success, growth and concepts offered has been done by the franchising world magazine by Franchise India. The evaluation seems to have been done seeing the success and growth of the brand and how far they have been successful in retaining their success.A peek into the rankings reveals the following:
Established franchisors: Established franchisors are referred to as Masters of Franchising. These brands have successfully grown over the past 10 years and have contributed greatly to the franchise industry. The survey has listed 30 franchisors representing 30 brands in various sectors of franchising like, Education and pre-school, F&B, Apparel, Florists, Gifts and Greetings, Consumer Durable, Fashion and Accessories, Beauty, Health and Fitness, Automotive, Financial Service, and Bookstore Franchises.
Education Franchise: The most successful sector in the category of established brands is education and pre-school sector. Education franchising is the most established and lucrative franchise segment due growth of literacy rate and also due to the increase in disposable income particularly among the middle classes Moreover, the success of institutes such as Arena Multimedia, Cadd Centre, ICA, Jetking and NIIT show that the job opportunities in animation courses and the dependency on computers make more and more students opt for higher computer and software courses. With English language proving to be essential for job seekers, companies like Veta are the most successful franchises. Pre-schools are also proposed to be the best profit makers. With the increase in working women, the pre-schools are gaining momentum. Eurokids and Kidzee are among the top brands in pre-school category.
F&B:Food Franchise: With more and more people preferring to dine out and celebrate the small moments of life, the F&B is the next prominent category among the established players in franchising. Among the Indian players Sagar Ratna (south Indian cuisine) and Club City (multi specialty chain) are included in the top 30 established companies. Kwality Wall’s (ice-creams), Monginis (bakery chain), Amul (milk products)have also been included in the F&B sector.
Apparel:Garment Franchise: Franchisors in apparel segment have also established themselves successfully. Chhabra 555 leads the Indian wear category. Madura Garments, a readymade apparel chain and Raymonds, renowned textile company also occupy this section. They are followed by branded Western wear Spykar.
Beauty Franchise, Health, and Fitness Brands: Healthy soul rests in healthy body is what all beauty, health and fitness franchisors swear by. This trend has prompted the beauty and fitness brands to establish themselves as successful franchisors. With Indians, getting more beauty and health conscious, this sector provides ample business opportunities to the aspirants. Shahnaz Husain Group and VLCC are top established franchisors in this beauty and fitness category. Thyrocare is a leading established Diagnostic centre, offering franchise opportunity.
Fashion and accessory brands: With the changing preferences, there is a transition of traditional market to being more trendy and contemporary markets. With mostly women and youngsters preferring to endow themselves with jewellery and trendy accessories, this section also occupies our list of top established brands. Tanishq and Titan are the top players in the section.
Besides these, florists, gifts, automotive, financial services, consumer durables and book stores are the dominating established franchise categories. These sectors are also providing ample business opportunities to the aspirants to get associated with the successful franchisors.
Having highlighted the top established franchisors in India the decision for all aspiring entrepreneurs to take up the franchise business is much easier now.
explore the franchise lists that are available online.
So, what are you waiting for? Explore the various opportunities available in India and start franchising.
Mar 29, 2010 – A look at the franchising Industry and the Top 100 Brands 2010 from different industries evaluated on the basis of their success, growth and concepts offered has been done by the franchising world magazine by Franchise India. The evaluation seems to have been done seeing the success and growth of the brand and how far they have been successful in retaining their success.A peek into the rankings reveals the following:
Established franchisors: Established franchisors are referred to as Masters of Franchising. These brands have successfully grown over the past 10 years and have contributed greatly to the franchise industry. The survey has listed 30 franchisors representing 30 brands in various sectors of franchising like, Education and pre-school, F&B, Apparel, Florists, Gifts and Greetings, Consumer Durable, Fashion and Accessories, Beauty, Health and Fitness, Automotive, Financial Service, and Bookstore Franchises.
Education Franchise: The most successful sector in the category of established brands is education and pre-school sector. Education franchising is the most established and lucrative franchise segment due growth of literacy rate and also due to the increase in disposable income particularly among the middle classes Moreover, the success of institutes such as Arena Multimedia, Cadd Centre, ICA, Jetking and NIIT show that the job opportunities in animation courses and the dependency on computers make more and more students opt for higher computer and software courses. With English language proving to be essential for job seekers, companies like Veta are the most successful franchises. Pre-schools are also proposed to be the best profit makers. With the increase in working women, the pre-schools are gaining momentum. Eurokids and Kidzee are among the top brands in pre-school category.
F&B:Food Franchise: With more and more people preferring to dine out and celebrate the small moments of life, the F&B is the next prominent category among the established players in franchising. Among the Indian players Sagar Ratna (south Indian cuisine) and Club City (multi specialty chain) are included in the top 30 established companies. Kwality Wall’s (ice-creams), Monginis (bakery chain), Amul (milk products)have also been included in the F&B sector.
Apparel:Garment Franchise: Franchisors in apparel segment have also established themselves successfully. Chhabra 555 leads the Indian wear category. Madura Garments, a readymade apparel chain and Raymonds, renowned textile company also occupy this section. They are followed by branded Western wear Spykar.
Beauty Franchise, Health, and Fitness Brands: Healthy soul rests in healthy body is what all beauty, health and fitness franchisors swear by. This trend has prompted the beauty and fitness brands to establish themselves as successful franchisors. With Indians, getting more beauty and health conscious, this sector provides ample business opportunities to the aspirants. Shahnaz Husain Group and VLCC are top established franchisors in this beauty and fitness category. Thyrocare is a leading established Diagnostic centre, offering franchise opportunity.
Fashion and accessory brands: With the changing preferences, there is a transition of traditional market to being more trendy and contemporary markets. With mostly women and youngsters preferring to endow themselves with jewellery and trendy accessories, this section also occupies our list of top established brands. Tanishq and Titan are the top players in the section.
Besides these, florists, gifts, automotive, financial services, consumer durables and book stores are the dominating established franchise categories. These sectors are also providing ample business opportunities to the aspirants to get associated with the successful franchisors.
Having highlighted the top established franchisors in India the decision for all aspiring entrepreneurs to take up the franchise business is much easier now.
explore the franchise lists that are available online.
So, what are you waiting for? Explore the various opportunities available in India and start franchising.
Thursday, March 18, 2010
Women Taking On Franchise Opportunities In India
From President to astronomers to actors to doctors to teachers to successful entrepreneurs the fair sex has in all. Women of today has now not only confined to kitchen and domestic jobs, she is now becoming the future of the franchising sector as many marketers are just ogling at the women entrepreneurs as out of the box thinkers and a challenge for the male dominated society.
With India franchising sector growing day by day women entrepreneurs are becoming more active and weaving the stories of success in every field. Women in franchising business have got best opportunities to run business at their own pace and succeed in their own business.
“I have been associated with Avon from last two years and making handsome money in the business. I do not have to give full time to the business. With my all other responsibilities of family I am happy to work for Avon where I am the boss of my own. Thanks to Franchising that has come as a boon for the housewives,” lamented Asha, a housewife.
Presently the young brigade specially women aged between 18 to 45 years have got more potential to do the business and has got control over the buying and purchase decision of the product. However the earning of women in this sector has increased to four fold with the influence of the fellow competitors.
The Indian Franchising sector, which is estimated to be around Rs.10,000 crore is attracting lot of women entrepreneurs. Be it housewife or a professional, women from all walks of life are attracting towards this model of business.
Gaurav Marya, President, Franchise India Holdings believes, “The franchising business is considered to be the best and safest option for the women today. The business gives return from 15 to 20 per cent. The fairer sex is making a consistent move in the business.”
Tupperware, Oriflame, VLCC, Body Care, Talwalkars, NIIT, etc. are some of the franchise companies which is attracting lot of women to start their business. The franchisee doesn’t have to invest huge amount of money in the business. One can also start the business with a minimum investment of Rs.50,000 only. With the government policies becoming liberal for the business more and more women folks are entering this sector.
Source:18. Mar, 2010 by Bhawna Satsangi
With India franchising sector growing day by day women entrepreneurs are becoming more active and weaving the stories of success in every field. Women in franchising business have got best opportunities to run business at their own pace and succeed in their own business.
“I have been associated with Avon from last two years and making handsome money in the business. I do not have to give full time to the business. With my all other responsibilities of family I am happy to work for Avon where I am the boss of my own. Thanks to Franchising that has come as a boon for the housewives,” lamented Asha, a housewife.
Presently the young brigade specially women aged between 18 to 45 years have got more potential to do the business and has got control over the buying and purchase decision of the product. However the earning of women in this sector has increased to four fold with the influence of the fellow competitors.
The Indian Franchising sector, which is estimated to be around Rs.10,000 crore is attracting lot of women entrepreneurs. Be it housewife or a professional, women from all walks of life are attracting towards this model of business.
Gaurav Marya, President, Franchise India Holdings believes, “The franchising business is considered to be the best and safest option for the women today. The business gives return from 15 to 20 per cent. The fairer sex is making a consistent move in the business.”
Tupperware, Oriflame, VLCC, Body Care, Talwalkars, NIIT, etc. are some of the franchise companies which is attracting lot of women to start their business. The franchisee doesn’t have to invest huge amount of money in the business. One can also start the business with a minimum investment of Rs.50,000 only. With the government policies becoming liberal for the business more and more women folks are entering this sector.
Source:18. Mar, 2010 by Bhawna Satsangi
Monday, March 8, 2010
Hospitals take to franchising In India For Their Expansions
Considering the huge investment needed for establishing the necessary healthcare infrastructure in the country,franchising is emerging as a viable option for hospitals to expand to newer geographies.
According to estimates, the healthcare industry in India is short of one million beds and this requires a capital investment of $30 to $40 billion. This is where franchising comes as a model for healthcare franchise to attract investments from non-medical investors.
Apollo Hospitals is one among the pioneers to have sought franchisee model for its clinics. According to Ratan Jalan, former CEO of Apollo Health and Lifestyle and in-charge of the Apollo Clinics, ‘responsible franchising’ is a successful model for developing healthcare infrastructure.
“Careful choice of franchisee and increased involvement of the franchisor, training, technologies and people selection is needed in healthcare more than any other business. Less than 10 per cent of Apollo’s franchisees have any medical background. But they have a passion for healthcare, quality and focus, besides financial resources. Substantial involvement from the part of franchisor, at least in the initial stages is crucial,” he said.
According to Gaurav Marya, president of Franchise India, the franchisee brings in capital, local know-how and entrepreneurial enthusiasm to the business. “Currently, only five per cent of the hospitals in the private sector are franchisee-operated. But the potential is huge as healthcare is a highly capital-intensive business,” he said.
V Vijayakumar, MD of V V Dentistree sees franchising as an option to replicate standardized protocols and practices in smaller towns. The dental chain with six centres in Chennai is looking at having a network of franchisee-operated clinics after it builds up the brand in all the four metros.
However, Dr Amar Agarwal, CMD of Dr Agarwal’s Eye Hospital finds that transferring the vision and ensuring the same-level of quality are major challenges in a franchising model.
According to estimates, the healthcare industry in India is short of one million beds and this requires a capital investment of $30 to $40 billion. This is where franchising comes as a model for healthcare franchise to attract investments from non-medical investors.
Apollo Hospitals is one among the pioneers to have sought franchisee model for its clinics. According to Ratan Jalan, former CEO of Apollo Health and Lifestyle and in-charge of the Apollo Clinics, ‘responsible franchising’ is a successful model for developing healthcare infrastructure.
“Careful choice of franchisee and increased involvement of the franchisor, training, technologies and people selection is needed in healthcare more than any other business. Less than 10 per cent of Apollo’s franchisees have any medical background. But they have a passion for healthcare, quality and focus, besides financial resources. Substantial involvement from the part of franchisor, at least in the initial stages is crucial,” he said.
According to Gaurav Marya, president of Franchise India, the franchisee brings in capital, local know-how and entrepreneurial enthusiasm to the business. “Currently, only five per cent of the hospitals in the private sector are franchisee-operated. But the potential is huge as healthcare is a highly capital-intensive business,” he said.
V Vijayakumar, MD of V V Dentistree sees franchising as an option to replicate standardized protocols and practices in smaller towns. The dental chain with six centres in Chennai is looking at having a network of franchisee-operated clinics after it builds up the brand in all the four metros.
However, Dr Amar Agarwal, CMD of Dr Agarwal’s Eye Hospital finds that transferring the vision and ensuring the same-level of quality are major challenges in a franchising model.
Friday, March 5, 2010
Retailers Treading Carefully on Realty Deals and New Store Costs.
Bangalore, March 3
The first signs of a receding recession is being reflected in retailers getting back their bargaining power in realty deals even though they are still taking a longer time to close.
“Retailers will no longer sign rental agreements at terms which do not make commercial sense,” says Mr Arvind K. Singhal, Chairman, Technopak, a management consultancy firm.
Retailers, who expanded because competition did, have learnt their lesson and therefore will not pay more than what their business model can support. Also, with retailers focusing more sharply on the cost of retail space, real estate deals have again become long and protracted.
For per sq ft efficiency, retailers are now toning down their expansion plans. For instance, food retailer Spencer's rationalised its operations by closing down 150 stores in the last year and opening 35-40 stores because of high rentals and wrong locations.
Similarly, lifestyle retailer The Bombay Store opted for expansion through mid-sized stores instead of larger ones, while consumer durable company TTK Prestige shut down or relocated 50 Smart Kitchen stores. This is in contrast to a situation couple of years ago when retailers would “rush” to occupy any available space, says Mr Farook Mahmood, Managing Director, Silverline Realty, adding, “The situation has changed from realtors' yesterday to retailers' tomorrow.”
Retailers, then, ended up opening stores of wrong sizes, adds Mr Zahir Laliwala, Chief Executive Officer, SportXS, a sports gear retailing outlet. “Mall developers now understand the retailers' profit and loss numbers and they have learnt to keep their cost down and expect return on their investment on the longer period.”
Unlike the pre-slowdown period, when valuations drove retailers' expansion plans, 2010 would see more realism, says Mr Sushil Mantri, Chairman and Managing Director, Mantri Developers, which has two malls in Bangalore.
“Both retailers and developers (mall-owners) have become cautious in their approach... while retailers look at business sustainability, developers assess the retailers' track-record and the value-addition they would bring to their malls.”
Rentals and lease values have gone up by 10 per cent in cities like Mumbai with low inventories. On the other hand, critical retail brands are also demanding that space-owners ship in with them in doing up store interiors, says Mr Gaurav Marya, President, Franchise India Holdings.
Bangalore, March 3
The first signs of a receding recession is being reflected in retailers getting back their bargaining power in realty deals even though they are still taking a longer time to close.
“Retailers will no longer sign rental agreements at terms which do not make commercial sense,” says Mr Arvind K. Singhal, Chairman, Technopak, a management consultancy firm.
Retailers, who expanded because competition did, have learnt their lesson and therefore will not pay more than what their business model can support. Also, with retailers focusing more sharply on the cost of retail space, real estate deals have again become long and protracted.
For per sq ft efficiency, retailers are now toning down their expansion plans. For instance, food retailer Spencer's rationalised its operations by closing down 150 stores in the last year and opening 35-40 stores because of high rentals and wrong locations.
Similarly, lifestyle retailer The Bombay Store opted for expansion through mid-sized stores instead of larger ones, while consumer durable company TTK Prestige shut down or relocated 50 Smart Kitchen stores. This is in contrast to a situation couple of years ago when retailers would “rush” to occupy any available space, says Mr Farook Mahmood, Managing Director, Silverline Realty, adding, “The situation has changed from realtors' yesterday to retailers' tomorrow.”
Retailers, then, ended up opening stores of wrong sizes, adds Mr Zahir Laliwala, Chief Executive Officer, SportXS, a sports gear retailing outlet. “Mall developers now understand the retailers' profit and loss numbers and they have learnt to keep their cost down and expect return on their investment on the longer period.”
Unlike the pre-slowdown period, when valuations drove retailers' expansion plans, 2010 would see more realism, says Mr Sushil Mantri, Chairman and Managing Director, Mantri Developers, which has two malls in Bangalore.
“Both retailers and developers (mall-owners) have become cautious in their approach... while retailers look at business sustainability, developers assess the retailers' track-record and the value-addition they would bring to their malls.”
Rentals and lease values have gone up by 10 per cent in cities like Mumbai with low inventories. On the other hand, critical retail brands are also demanding that space-owners ship in with them in doing up store interiors, says Mr Gaurav Marya, President, Franchise India Holdings.
Bangalore, March 3
Thursday, March 4, 2010
Budget 2010: What it brings to the franchise industry
With most of the market signals remaining positive with Union Budget 2010-11, consumer is happy being at the center stage of consumption story and is in a better position than a year ago. However, challenges remain. Read on to know what is in platter for for the SMEs and franchise industry.
Franchise industry has been looking forward several regulatory as well as policy reforms to facilitates its growth. A positive GST outlook by government and rise in threshold for tax compliances has been seen as a very positive move by the franchise industry. However the long impending demand of abolishing dual taxation on the franchise services has been clearly ignored by the policy makers. Presently both service tax as well as VAT are imposed upon the franchise services which distorts the franchise model completely.Morover service tax on rental proceed further makes deters the profitable feasibility. In all it has been the budget has been moderately favorable for the franchise industry. Gaurav Marya ,President, Franchise India Holding Ltd shares’’ The budget 2010-11 brings a reasonable assortment for small retailers as well as franchisors. While increased income tax exemption limits will certainly boost consumption, imposing service tax on rental property distorts retail business models by making the accessibility of retail spaces precipitously expensive, hence making it unviable to sustain profitably.'
According to D P S Kohli, Chariman, Koutons Retail India Ltd, ‘Overall, it has been a mixed budget for us. New tax slabs and rates have been introduced which would offer 60 per cent relief to the tax payers providing them with greater disposable income. This would provide the necessary boost to consumer’s spending a pre-requisite to unleash the true growth momentum of the retail sector.
In addition, reduction of surcharge on domestic companies that the finance minister has announced is sure to accelerate the expansion plans for the retail players at home. However, industry status continues to delude the retail sector. This is a disappointment since this is the first step towards reforming the sector and organising the highly unorganised sector. The hike in the excise duty is also not favorable for us since this might directly affect the quality of production.
Badrinath, Director, Accretive Global stated that the budget has both the shades of gray and white for the franchise industry he further explains detail implications
The good news
No change in service tax rates and the same continues at 10.3 per cent. The FM in his budget speech states that this proposal is “to maintain the growth momentum and also to bring about a convergence in the rates of tax on goods and services.”
Small businesses stand benefited on account of lower direct tax compliance costs. The threshold for having the accounts audited for tax has been increased from 40 lacs to 60 lacs. Further, small businesses with turnover/receipts lower than 60 lacs can also choose to be covered by the presumptive tax system. The threshold earlier was only 40 lacs.
The frequency of remittance of central excise is extended to quarterly basis from the current scheme of monthly payments for units operating under the SSI Scheme.
As a welcome step, exemption from 4 per cent special additional duty of customs is granted to mobile phones, watches and garments imported in pre-packed condition for retail sale.
The not so good news
The FM has retrospectively amended the provisions relating to levy of service tax on renting of immovable property. The judgment of the Delhi High Court in the case of Home Solutions Retail is negated by making mere renting of immovable property liable to service tax.
Further, much against the industry expectations, the FM has retained the CST at 2 per cent and the base rate of excise is increased from 8 per cent to 10 per cent.
The FM has extended service-tax on health check-up services provided to employees of a business-entity or persons covered under health-insurance-schemes if such payment is made by the business entity or insurance company. This is likely to increase the cost of healthcare services. However, if carefully managed, the franchisee in this sector could claim credits of service tax paid on various input services such as renting of immovable property and franchisee fee which is currently adding to the cost of the operations. This could reduce the net price impact for the end consumer.
As the franchise industry brings with its surge innovative new franchise business models to tap the potential of Indian consumption, it also demands a favorable ecosystem which can be realized by necessary monetary policy reforms.
Franchise industry has been looking forward several regulatory as well as policy reforms to facilitates its growth. A positive GST outlook by government and rise in threshold for tax compliances has been seen as a very positive move by the franchise industry. However the long impending demand of abolishing dual taxation on the franchise services has been clearly ignored by the policy makers. Presently both service tax as well as VAT are imposed upon the franchise services which distorts the franchise model completely.Morover service tax on rental proceed further makes deters the profitable feasibility. In all it has been the budget has been moderately favorable for the franchise industry. Gaurav Marya ,President, Franchise India Holding Ltd shares’’ The budget 2010-11 brings a reasonable assortment for small retailers as well as franchisors. While increased income tax exemption limits will certainly boost consumption, imposing service tax on rental property distorts retail business models by making the accessibility of retail spaces precipitously expensive, hence making it unviable to sustain profitably.'
According to D P S Kohli, Chariman, Koutons Retail India Ltd, ‘Overall, it has been a mixed budget for us. New tax slabs and rates have been introduced which would offer 60 per cent relief to the tax payers providing them with greater disposable income. This would provide the necessary boost to consumer’s spending a pre-requisite to unleash the true growth momentum of the retail sector.
In addition, reduction of surcharge on domestic companies that the finance minister has announced is sure to accelerate the expansion plans for the retail players at home. However, industry status continues to delude the retail sector. This is a disappointment since this is the first step towards reforming the sector and organising the highly unorganised sector. The hike in the excise duty is also not favorable for us since this might directly affect the quality of production.
Badrinath, Director, Accretive Global stated that the budget has both the shades of gray and white for the franchise industry he further explains detail implications
The good news
No change in service tax rates and the same continues at 10.3 per cent. The FM in his budget speech states that this proposal is “to maintain the growth momentum and also to bring about a convergence in the rates of tax on goods and services.”
Small businesses stand benefited on account of lower direct tax compliance costs. The threshold for having the accounts audited for tax has been increased from 40 lacs to 60 lacs. Further, small businesses with turnover/receipts lower than 60 lacs can also choose to be covered by the presumptive tax system. The threshold earlier was only 40 lacs.
The frequency of remittance of central excise is extended to quarterly basis from the current scheme of monthly payments for units operating under the SSI Scheme.
As a welcome step, exemption from 4 per cent special additional duty of customs is granted to mobile phones, watches and garments imported in pre-packed condition for retail sale.
The not so good news
The FM has retrospectively amended the provisions relating to levy of service tax on renting of immovable property. The judgment of the Delhi High Court in the case of Home Solutions Retail is negated by making mere renting of immovable property liable to service tax.
Further, much against the industry expectations, the FM has retained the CST at 2 per cent and the base rate of excise is increased from 8 per cent to 10 per cent.
The FM has extended service-tax on health check-up services provided to employees of a business-entity or persons covered under health-insurance-schemes if such payment is made by the business entity or insurance company. This is likely to increase the cost of healthcare services. However, if carefully managed, the franchisee in this sector could claim credits of service tax paid on various input services such as renting of immovable property and franchisee fee which is currently adding to the cost of the operations. This could reduce the net price impact for the end consumer.
As the franchise industry brings with its surge innovative new franchise business models to tap the potential of Indian consumption, it also demands a favorable ecosystem which can be realized by necessary monetary policy reforms.
Friday, February 26, 2010
India Franchise Industry To Cap $ 14 Billion by 2013
The Indian franchise industry, currently pegged at $8 billion, is bound to reach $14 billion by 2013 on the back of emergence of low-cost franchises, according to Ritu Marya, director of Franchise India Holding Limited.
“In the recent times, there has been an increasing acceptance of the franchise model as a key concept for growth in most of the industries and this trend will continue,” she told mediapersons here on Thursday, adding there are currently about 150,000 registered franchisees (excluding dealers, distributors and agencies) in India.
Franchise India will be holding the 25th edition of FRO Expo 2010, an annual franchise and retail show in Hyderabad from tomorrow (February 26). Spread over two days, the show will see the participation of close to 10,000 franchisers, investors, suppliers, to-be-entrepreneurs and established brands like TTK Prestige, Kwality Walls and Gitanjali Jewels, Marya said.
“The show is designed at making the whole process of starting business simpler for the small business fraternity. We expect about 70 per cent deals between the franchisers and the to-be-entrepreneurs to materialise,” she added.
“In the recent times, there has been an increasing acceptance of the franchise model as a key concept for growth in most of the industries and this trend will continue,” she told mediapersons here on Thursday, adding there are currently about 150,000 registered franchisees (excluding dealers, distributors and agencies) in India.
Franchise India will be holding the 25th edition of FRO Expo 2010, an annual franchise and retail show in Hyderabad from tomorrow (February 26). Spread over two days, the show will see the participation of close to 10,000 franchisers, investors, suppliers, to-be-entrepreneurs and established brands like TTK Prestige, Kwality Walls and Gitanjali Jewels, Marya said.
“The show is designed at making the whole process of starting business simpler for the small business fraternity. We expect about 70 per cent deals between the franchisers and the to-be-entrepreneurs to materialise,” she added.
Thursday, December 31, 2009
Franchising Poised To Explode In Small Format Retail In 2010
Mumbai: Even as retailers shelved their expansion plans last year and struggled to keep company-owned stores running, they figured out a way to multiply their stores and sustain business — through franchising.
Franchise India Holding Ltd, estimates a rise in the adoption of franchise model by small-format retail players in the country since the slowdown last year.
As per its estimates, 85% of all small-format retail business in India now operates on the franchise model.
“Earlier, only 50% of small-box retail companies in India operated through franchise model, while the rest is operated only through company owned stores. This is a very significant growth from what it used to be a year or two ago,” Gaurav Marya, president, Franchise India Holding said.
During the recession, most retailers were starved of capital for expansion. Franchising offered a model to sustain their business.
“That was when we saw the growth in retail and companies that were earlier not franchising started looking at the model,” Marya said.
Brands such as Koutons, Levis, Reebok and Adidas, which were traditionally not franchising, have lately started looking at the model.
So much so, the retail format ratio for most brands now stands at 80% dedicated to franchising and 20% for company run at strategic locations.
According to Franchise India, large-box retailers typically desist from taking the franchise route, although some, like Trent’s Westside chain, are franchised.
Videocon India, which runs two retail formats — Next (electronics chain) and Planet M (music and departmental chain) — is now starting to franchise Planet M, which was earlier being expanded through company-run stores.
Bata India, the largest retailer and manufacturer of footwear in the country with 1,200 stores, is starting its own franchise network to expand retail presence in a few months, Marcelo Villagran, managing director and chief executive officer of the company, had told DNA Money in October. Bata is looking at opening 60 flagship stores every year and tapping the franchise model will help the brand accelerate further in the market that is getting highly competitive.
Cookie Man, the retail chain store owned by Australian Foods Ltd, which runs over 50 stores across India, is looking at reaching a total of 250 stores through franchising in another 5-6 years.
“Not only does the franchisee bring in the capital, but also, the retailers are able to save 4-8% on the point of sales,” Marya of Franchise India said.
Currently, 45% of organised retail sales in India are through franchised outlets.
This is in line with the developed world countries like US and Europe, where these models are well incepted in the business world.
As per Franchise India estimates, the fashion retail industry in the country is pegged at $29 billion and growing at 12% per annum. India is now opening up as a competitive apparel retail market.
The market potential for footwear is 1.1 billion pairs and it is estimated to be a $2 billion sector.
The jewellery market is estimated at $9.7 billion, with gold contributing 98% to retailing. And the industry is touting retail franchising as the best mode of tapping the market’s potential.
Source:Shailaja Sharma / DNA
Friday, January 1, 2010 2:17 IST
Franchise India Holding Ltd, estimates a rise in the adoption of franchise model by small-format retail players in the country since the slowdown last year.
As per its estimates, 85% of all small-format retail business in India now operates on the franchise model.
“Earlier, only 50% of small-box retail companies in India operated through franchise model, while the rest is operated only through company owned stores. This is a very significant growth from what it used to be a year or two ago,” Gaurav Marya, president, Franchise India Holding said.
During the recession, most retailers were starved of capital for expansion. Franchising offered a model to sustain their business.
“That was when we saw the growth in retail and companies that were earlier not franchising started looking at the model,” Marya said.
Brands such as Koutons, Levis, Reebok and Adidas, which were traditionally not franchising, have lately started looking at the model.
So much so, the retail format ratio for most brands now stands at 80% dedicated to franchising and 20% for company run at strategic locations.
According to Franchise India, large-box retailers typically desist from taking the franchise route, although some, like Trent’s Westside chain, are franchised.
Videocon India, which runs two retail formats — Next (electronics chain) and Planet M (music and departmental chain) — is now starting to franchise Planet M, which was earlier being expanded through company-run stores.
Bata India, the largest retailer and manufacturer of footwear in the country with 1,200 stores, is starting its own franchise network to expand retail presence in a few months, Marcelo Villagran, managing director and chief executive officer of the company, had told DNA Money in October. Bata is looking at opening 60 flagship stores every year and tapping the franchise model will help the brand accelerate further in the market that is getting highly competitive.
Cookie Man, the retail chain store owned by Australian Foods Ltd, which runs over 50 stores across India, is looking at reaching a total of 250 stores through franchising in another 5-6 years.
“Not only does the franchisee bring in the capital, but also, the retailers are able to save 4-8% on the point of sales,” Marya of Franchise India said.
Currently, 45% of organised retail sales in India are through franchised outlets.
This is in line with the developed world countries like US and Europe, where these models are well incepted in the business world.
As per Franchise India estimates, the fashion retail industry in the country is pegged at $29 billion and growing at 12% per annum. India is now opening up as a competitive apparel retail market.
The market potential for footwear is 1.1 billion pairs and it is estimated to be a $2 billion sector.
The jewellery market is estimated at $9.7 billion, with gold contributing 98% to retailing. And the industry is touting retail franchising as the best mode of tapping the market’s potential.
Source:Shailaja Sharma / DNA
Friday, January 1, 2010 2:17 IST
Thursday, December 24, 2009
How to Become A Franchise Consultant
If you have been seing the growth of franchising In India and understand that franchising could be a profession that you could embark upon then one of the options to garner a pie in the ever growing franchise industry could be to become a franchise consultant.Once you make the decision to become a franchise consultant, what would be the most efficient process to follow in order to make this happen?
Step 1: Research franchise consulting firms
In order to determine which franchise consulting organization to affiliate with, it is recommended that you investigate several firms. Determine the reputation of each company including how long it has been in operation and also the number and types of franchises it represents.
The company should market for at least several hundred franchises representing a wide variety of services. Additionally, the organization should provide a comprehensive training program as well as continuous support to their franchise consultants.
It is advisable to interview current franchise consultants if possible. Find out their thoughts on the organization.
Step 2: Get your financing in order
It is important to become cognizant of what your cost will be to join the consulting companies that you are investigating.
There is typically a one-time fee to join a consulting company as a franchise consultant. This includes training and ongoing support. The cost usually ranges somewhere between Rs100,000 and Rs 500,000
Also factor in funds that you will need to set up your office. Most franchise consultants operate from their homes, thereby minimizing overhead costs.There are options of using your existing offices also to be a full time franchise consultant and have a exclusive/shared office.
If you don't have the capital readily available, you may need to apply for a loan or for a partial loan. Sometimes franchise organizations can point you in the right direction in obtaining financing.Typically, loans are provided on your individual IT returns and the collaterals you are willing to offer to the bank.
Step 3: Participate in training provided by the consulting organization
Part of your investigation of franchise consulting firms included finding out the type of training and support provided. Once you sign on, you will be attending training sessions that should equip you with all the material and skills that you will need to successfully link franchisees with franchise businesses. Take advantage of all of the training offered.
Step 4: Set up your office
Franchise consultants usually operate out of a home office. Much of the work is done via computer, telephone, and fax machine. For optimum working conditions, an up-to-date computer system is recommended. Also, it is usually advisable to set up a separate telephone line for your business. You will learn all of this in training.
Step 5: Work schedule
Finally, based on your lifestyle and income needs, decide if you will work part-time or full time and then prepare your schedule accordingly. Keep in mind that most of your time will be spent contacting leads, doing phone interviews with franchise candidates, and conducting research to determine the best matches for the franchisees as well as the franchisors.
Amit Nahar is a well known franchise professional who consults with franchise systems and franchise seekers. As an author, public speaker & franchise consultant Amit has educated thousands of people about their options in the franchise industry.He typically specialises in franchise development and consulting for companies seeking to strategize their franchising and building franchise organization. Amit is also the CEO of Sparkleminds. If you have questions or want to become a franchise consultant visit sparkleminds.com.
Step 1: Research franchise consulting firms
In order to determine which franchise consulting organization to affiliate with, it is recommended that you investigate several firms. Determine the reputation of each company including how long it has been in operation and also the number and types of franchises it represents.
The company should market for at least several hundred franchises representing a wide variety of services. Additionally, the organization should provide a comprehensive training program as well as continuous support to their franchise consultants.
It is advisable to interview current franchise consultants if possible. Find out their thoughts on the organization.
Step 2: Get your financing in order
It is important to become cognizant of what your cost will be to join the consulting companies that you are investigating.
There is typically a one-time fee to join a consulting company as a franchise consultant. This includes training and ongoing support. The cost usually ranges somewhere between Rs100,000 and Rs 500,000
Also factor in funds that you will need to set up your office. Most franchise consultants operate from their homes, thereby minimizing overhead costs.There are options of using your existing offices also to be a full time franchise consultant and have a exclusive/shared office.
If you don't have the capital readily available, you may need to apply for a loan or for a partial loan. Sometimes franchise organizations can point you in the right direction in obtaining financing.Typically, loans are provided on your individual IT returns and the collaterals you are willing to offer to the bank.
Step 3: Participate in training provided by the consulting organization
Part of your investigation of franchise consulting firms included finding out the type of training and support provided. Once you sign on, you will be attending training sessions that should equip you with all the material and skills that you will need to successfully link franchisees with franchise businesses. Take advantage of all of the training offered.
Step 4: Set up your office
Franchise consultants usually operate out of a home office. Much of the work is done via computer, telephone, and fax machine. For optimum working conditions, an up-to-date computer system is recommended. Also, it is usually advisable to set up a separate telephone line for your business. You will learn all of this in training.
Step 5: Work schedule
Finally, based on your lifestyle and income needs, decide if you will work part-time or full time and then prepare your schedule accordingly. Keep in mind that most of your time will be spent contacting leads, doing phone interviews with franchise candidates, and conducting research to determine the best matches for the franchisees as well as the franchisors.
Amit Nahar is a well known franchise professional who consults with franchise systems and franchise seekers. As an author, public speaker & franchise consultant Amit has educated thousands of people about their options in the franchise industry.He typically specialises in franchise development and consulting for companies seeking to strategize their franchising and building franchise organization. Amit is also the CEO of Sparkleminds. If you have questions or want to become a franchise consultant visit sparkleminds.com.
Sushmita Sens TEPL To Be India Franchisee For Miss Universe Pageant.
It’s a dream come true!”
The multi-talented diva-esque Sushmita Sen has always believed in wearing many hats and excelling in all that she undertakes. Be it winning the first Miss Universe crown for India, becoming a top-notch Bollywood actor, adopting a baby girl at the age of 24 or establishing a business house way ahead of most of her contemporaries, Sushmita has been a forerunner of sorts.
However, the Ex-Miss Universe’s heart was still pining to attain one particular thing: “I have always maintained that I am what I am because of Miss Universe, and I always wanted to take that association ahead in some way. Due to an array of reasons, it had remained a pipe dream till about 1 ½ months back, when Paula Shugart, president of the Miss Universe Organisation made a fateful call to me, asking if my company Tantra Entertainment Private Limited (TEPL) would like to become the India franchise owner for holding the preliminary to Miss Universe 2010, which also would entrust TEPL the responsibility of holding a national pageant to select Miss Universe India 2010? I have always believed that the universe conspires to give you what you really want, and that too all in good time. Well, I just had an exemplary revelation of the Universe’s way of working. What better an association could I have asked for?” smiles Sushmita, whose company has thus become the India franchise owner for holding the preliminary to Miss Universe 2010. Primarily into feature film production and distribution, TEPL has ventured into the pageant industry with this franchise and calling the national pageant.
Elaborating about this new business venture of hers, Sushmita says “We’ve launched a mother brand called ‘I AM’ – in keeping with my belief that every individual’s journey begins and blossoms forth from these two words, they’re what define you. This mother brand will work in several verticals, which will be disclosed in good time. However, to begin with, we’ve launched the vertical called ‘I AM She’, a refreshing new platform that will select the next Miss India Universe, who will represent India at the global Miss Universe® competition. ‘I AM She’ has found an able sponsor in the Alchemist group, a leading conglomerate in fields such as healthcare, real estate, F&B etc. We’ve also launched the CSR vertical called ‘I AM Foundation’ which will undertake several CSR initiatives, especially with the participation of the girls chosen as finalists for the Miss Universe India pageant. This year, we’ll be working closely with the Cancer Patients Aid Association (CPAA), The Energy and Resources Institute (TERI), Bal Asha Trust, The Research Society and The ANI Foundation.”
Having bagged the franchise, Sushmita has set her sights firmly on having the best of Indian girls/women get a chance to represent the country on the prestigious platform. “I have been closely involved in the process of choosing the perfect girls, and by perfect I do not mean just physically perfect. We’re looking for girls who have a balanced body and mind, a strong set of values, confidence, and intelligence. More so, I want the participants to be highly people-oriented - they should be able to connect with all kinds of people in a genuine way. I’ve been very keen on inducing academically oriented and highly qualified girls in the pageant, because, I want to send out the message that participating in a beauty pageant does not demean your intelligence or stature – if at all, it helps you use your looks and personality for a larger good. Details regarding the pageant, which will be open for girls between 17-27 years of age, and will be held at the historical Jag Mandir in Udaipur on 27th February 2010, can be found on the website www.iam-she.com.”
The multi-talented diva-esque Sushmita Sen has always believed in wearing many hats and excelling in all that she undertakes. Be it winning the first Miss Universe crown for India, becoming a top-notch Bollywood actor, adopting a baby girl at the age of 24 or establishing a business house way ahead of most of her contemporaries, Sushmita has been a forerunner of sorts.
However, the Ex-Miss Universe’s heart was still pining to attain one particular thing: “I have always maintained that I am what I am because of Miss Universe, and I always wanted to take that association ahead in some way. Due to an array of reasons, it had remained a pipe dream till about 1 ½ months back, when Paula Shugart, president of the Miss Universe Organisation made a fateful call to me, asking if my company Tantra Entertainment Private Limited (TEPL) would like to become the India franchise owner for holding the preliminary to Miss Universe 2010, which also would entrust TEPL the responsibility of holding a national pageant to select Miss Universe India 2010? I have always believed that the universe conspires to give you what you really want, and that too all in good time. Well, I just had an exemplary revelation of the Universe’s way of working. What better an association could I have asked for?” smiles Sushmita, whose company has thus become the India franchise owner for holding the preliminary to Miss Universe 2010. Primarily into feature film production and distribution, TEPL has ventured into the pageant industry with this franchise and calling the national pageant.
Elaborating about this new business venture of hers, Sushmita says “We’ve launched a mother brand called ‘I AM’ – in keeping with my belief that every individual’s journey begins and blossoms forth from these two words, they’re what define you. This mother brand will work in several verticals, which will be disclosed in good time. However, to begin with, we’ve launched the vertical called ‘I AM She’, a refreshing new platform that will select the next Miss India Universe, who will represent India at the global Miss Universe® competition. ‘I AM She’ has found an able sponsor in the Alchemist group, a leading conglomerate in fields such as healthcare, real estate, F&B etc. We’ve also launched the CSR vertical called ‘I AM Foundation’ which will undertake several CSR initiatives, especially with the participation of the girls chosen as finalists for the Miss Universe India pageant. This year, we’ll be working closely with the Cancer Patients Aid Association (CPAA), The Energy and Resources Institute (TERI), Bal Asha Trust, The Research Society and The ANI Foundation.”
Having bagged the franchise, Sushmita has set her sights firmly on having the best of Indian girls/women get a chance to represent the country on the prestigious platform. “I have been closely involved in the process of choosing the perfect girls, and by perfect I do not mean just physically perfect. We’re looking for girls who have a balanced body and mind, a strong set of values, confidence, and intelligence. More so, I want the participants to be highly people-oriented - they should be able to connect with all kinds of people in a genuine way. I’ve been very keen on inducing academically oriented and highly qualified girls in the pageant, because, I want to send out the message that participating in a beauty pageant does not demean your intelligence or stature – if at all, it helps you use your looks and personality for a larger good. Details regarding the pageant, which will be open for girls between 17-27 years of age, and will be held at the historical Jag Mandir in Udaipur on 27th February 2010, can be found on the website www.iam-she.com.”
Franchise Expo @ Ahmedabad on 8/9 Jan 2010
Franchise Business seekers in Ahmedabad & the Gujarat region can look forward to the franchise expo at ahmedabad at the grand bhagwati on the 8th & 9th Jan 2010.
Companies seeking franchisees/business partners in ahmedabad and looking to expand their business in the gujarat region can seek this opportunity to interact with more than 5000 serious franchise buyers expected to visit the expo.
Entrepreneurs could look forward to companies in the food, education, retail, services, home based opportunities, low investment option, master franchisees, international franchisees and all kinds of businesses that would be displayed at the event during the 2 days.
You could also catch up with the franchise experts /franchise consultants (www.sparkleminds.com) who would help you choose a business of your choice or help you expand your business through franchising.
Visit us at the franchise expo amdavad for complete franchise solutions.
Companies seeking franchisees/business partners in ahmedabad and looking to expand their business in the gujarat region can seek this opportunity to interact with more than 5000 serious franchise buyers expected to visit the expo.
Entrepreneurs could look forward to companies in the food, education, retail, services, home based opportunities, low investment option, master franchisees, international franchisees and all kinds of businesses that would be displayed at the event during the 2 days.
You could also catch up with the franchise experts /franchise consultants (www.sparkleminds.com) who would help you choose a business of your choice or help you expand your business through franchising.
Visit us at the franchise expo amdavad for complete franchise solutions.
Monday, December 7, 2009
Franchise Business Opportunities In India
India is one country that offers various franchise and business opportunities. In todays cut throat competitive world everyone wants to stay ahead in the race of success and for that majority people have decided to indulge themselves into business.
Seeing todays movement you can say that franchise is one business which is riding high these days and with the entrance of foreign and big players more franchise and business opportunities have popped up. According to the experts, franchise business is the safest business as it involves less investment with more revenue. Thats why more and more people are now moving towards the available franchise opportunities. The franchise business is in boom these days as many big and international food giants are looking for the people who can help them in setting up their outlet in India.
This sudden need has created a lot of franchise and business opportunities for the people and anyone cashing this opportunity now will always be on the profitable side. Indias vast geographical expanse, multilingual culture, strong and powerful economy and also growing middle class all clubbed together provide excellent franchise and business opportunities in India. Franchise business is riding high these days in India and there is a sudden boom in various sectors such as food and beverage, raw materials, power supply, fuel, tourism, services and even commercial ventures.
Recently, United Nations Conference on Trade and Development or widely known as UNCTAD reported that, currently India is comfortably positioned among the top four Asian destinations for foreign direct investment. And by this you can predict that, soon more and more foreign companies will be coming and setting up their base in India. This means more lucrative franchise and business opportunities in India. Another main reason behind this boom is that the cost of hiring an employee in India is much lower than the west, thats why, so much work is outsourced to India and many companies are setting up their operations here.
Thus, if you wish to achieve success and also the revenue then this is the time to hunt and cash on the franchise and business opportunities available in India. For more information on franchise and business opportunities, business opportunities India, franchise companies in India and franchise opportunities India please visit www.sparkleminds.com
Seeing todays movement you can say that franchise is one business which is riding high these days and with the entrance of foreign and big players more franchise and business opportunities have popped up. According to the experts, franchise business is the safest business as it involves less investment with more revenue. Thats why more and more people are now moving towards the available franchise opportunities. The franchise business is in boom these days as many big and international food giants are looking for the people who can help them in setting up their outlet in India.
This sudden need has created a lot of franchise and business opportunities for the people and anyone cashing this opportunity now will always be on the profitable side. Indias vast geographical expanse, multilingual culture, strong and powerful economy and also growing middle class all clubbed together provide excellent franchise and business opportunities in India. Franchise business is riding high these days in India and there is a sudden boom in various sectors such as food and beverage, raw materials, power supply, fuel, tourism, services and even commercial ventures.
Recently, United Nations Conference on Trade and Development or widely known as UNCTAD reported that, currently India is comfortably positioned among the top four Asian destinations for foreign direct investment. And by this you can predict that, soon more and more foreign companies will be coming and setting up their base in India. This means more lucrative franchise and business opportunities in India. Another main reason behind this boom is that the cost of hiring an employee in India is much lower than the west, thats why, so much work is outsourced to India and many companies are setting up their operations here.
Thus, if you wish to achieve success and also the revenue then this is the time to hunt and cash on the franchise and business opportunities available in India. For more information on franchise and business opportunities, business opportunities India, franchise companies in India and franchise opportunities India please visit www.sparkleminds.com
Education Franchise Opportunities In India
India is a land of contradictions and dichotomies and this extends to the area of education as well. We have the IITs and IIMs at one of the scale, and teacher-less schools at the other. After independence, India emphasized developing centers of higher learning. India also retained English as a medium of instruction; this has contributed greatly to its economic growth.
India’s youth, comprising over 50 percent of its population, is referred to as its demographic dividend. A rough statistics in the past year estimates the presence of 367 universities, 18,000 colleges, half-a-million teachers and about 11 million students on the rolls (Source- ibef.org). These figures have since escalated but they throw light on the large Indian education market & the opportunity therein but more importantly it also throws light on the gap between educated population & employable population. Statistics reveal that less than 25% of the graduates are actually employable. It is believed that based on the current and future manpower requirements of the various sectors, there is a huge demand-supply gap in the education space.
This has attracted many players to invest in education and training institutions with the aim of building valuable franchises that can be rapidly scaled up. The core job of these players is to make a candidate employable by training them in the right courses effectively inculcating the need to be abreast of the present & future requirement & acquiring newer & multilevel skills. Coaching classes, Vocational training, IT Training institutes, English speaking classes etc. are a few examples of such entities.
The latest news that India’s education sector is forecasted to increase its IT spending from an estimated $356 million in 2008 to $704 million by 2012, reflecting in a Compounded Annual Growth Rate (CAGR) of 19 percent during 2007-2012, according to the research study by Springboard Research, an IT Market Research industry (Source - Silicon India)
The spin-off benefits that this sector has created is that, along with ensuring quality education & making candidates employable, it has created several entrepreneurs countrywide & that explains the reason as to why franchising is so successful in the education sector.
This has also led to the growth & rise of entrepreneurs who have contributed significantly. Specially, Women Entrepreneurs who have an inherent quality of being very deft in building rapport & look at things from a human angle as well thus are very good in customer service. So, it is not surprising that women tend to launch businesses that are client based or service-oriented.
Source:Surjeet Singh Padma.
India’s youth, comprising over 50 percent of its population, is referred to as its demographic dividend. A rough statistics in the past year estimates the presence of 367 universities, 18,000 colleges, half-a-million teachers and about 11 million students on the rolls (Source- ibef.org). These figures have since escalated but they throw light on the large Indian education market & the opportunity therein but more importantly it also throws light on the gap between educated population & employable population. Statistics reveal that less than 25% of the graduates are actually employable. It is believed that based on the current and future manpower requirements of the various sectors, there is a huge demand-supply gap in the education space.
This has attracted many players to invest in education and training institutions with the aim of building valuable franchises that can be rapidly scaled up. The core job of these players is to make a candidate employable by training them in the right courses effectively inculcating the need to be abreast of the present & future requirement & acquiring newer & multilevel skills. Coaching classes, Vocational training, IT Training institutes, English speaking classes etc. are a few examples of such entities.
The latest news that India’s education sector is forecasted to increase its IT spending from an estimated $356 million in 2008 to $704 million by 2012, reflecting in a Compounded Annual Growth Rate (CAGR) of 19 percent during 2007-2012, according to the research study by Springboard Research, an IT Market Research industry (Source - Silicon India)
The spin-off benefits that this sector has created is that, along with ensuring quality education & making candidates employable, it has created several entrepreneurs countrywide & that explains the reason as to why franchising is so successful in the education sector.
This has also led to the growth & rise of entrepreneurs who have contributed significantly. Specially, Women Entrepreneurs who have an inherent quality of being very deft in building rapport & look at things from a human angle as well thus are very good in customer service. So, it is not surprising that women tend to launch businesses that are client based or service-oriented.
Source:Surjeet Singh Padma.
Friday, December 4, 2009
International Commercial Cleaning Franchise In India
New Zealand's largest commercial cleaning franchise, Crest Commercial Cleaning, has struck up a deal in India which will see it operating in around a dozen cities and employing thousands of people in the next two years.
Since securing the country licence agreement in 2008, Crest Commercial Cleaning (India) Pvt. has employed 300 people in India. It is now on track to expand that to 3000 employees in the next two years, as a growing number of companies in India place more emphasis on hygiene and cleanliness.
"We have established ourselves in this powerhouse economy at an opportune time," says Crest co-owner and spokesperson Grant McLauchlan "As the Indian economy becomes more sophisticated, customers, particularly international corporates, are demanding better hygiene standards.
"Many people tell us that one of the big barriers to doing business in India is hygiene and so we are seeing savvy companies starting to make that a priority," Mr McLauchlan says, on his return from a business trip to India last week.
He says with a 6-9 per cent growth rate and a population of a billion people, India's growth potential is huge.
"The country has developed more of a Western feel in the big cities and there are large shopping malls and office blocks emerging all over the skyline."
"Obviously there is an opportunity for us to maintain these buildings, whether it is the provision of cleaning services or electrical and mechanical maintenance of the infrastructure."
He says cleaning, or housekeeping as it is known in India, is worth around $150 billion per annum but is currently serviced by untrained, poorly resourced contracting companies.
Competition for customers is tough as hundreds of new shopping malls try to attract people through cleaner more hygienic environments for the new middle class, which is relocating to Indian cities.
Mr McLauchlan says Crest is doing well in the Indian market because it is a quality brand, with excellent training programmes in place for staff. The training in India is based on New Zealand standards. Crest New Zealand cleaning staff in New Zealand are required to undertake an NZQA recognised qualification which leads to a National Certificate in Cleaning and Caretaking.
"Training cleaning staff to achieve nationally recognised qualifications makes more sense for commercial cleaners than hiring unskilled staff," he says "Training has a very positive effect on morale, motivation and on the person's ability to carry out cleaning to high standards.
"While New Zealand and India are our focus over the next two years we are looking at expanding into other Asia countries and the Middle East beyond that," he said.
Hence entrepreneurs in India can look forward to a host of international service franchisees lining up in India to offer their services to the indian consumer.
Since securing the country licence agreement in 2008, Crest Commercial Cleaning (India) Pvt. has employed 300 people in India. It is now on track to expand that to 3000 employees in the next two years, as a growing number of companies in India place more emphasis on hygiene and cleanliness.
"We have established ourselves in this powerhouse economy at an opportune time," says Crest co-owner and spokesperson Grant McLauchlan "As the Indian economy becomes more sophisticated, customers, particularly international corporates, are demanding better hygiene standards.
"Many people tell us that one of the big barriers to doing business in India is hygiene and so we are seeing savvy companies starting to make that a priority," Mr McLauchlan says, on his return from a business trip to India last week.
He says with a 6-9 per cent growth rate and a population of a billion people, India's growth potential is huge.
"The country has developed more of a Western feel in the big cities and there are large shopping malls and office blocks emerging all over the skyline."
"Obviously there is an opportunity for us to maintain these buildings, whether it is the provision of cleaning services or electrical and mechanical maintenance of the infrastructure."
He says cleaning, or housekeeping as it is known in India, is worth around $150 billion per annum but is currently serviced by untrained, poorly resourced contracting companies.
Competition for customers is tough as hundreds of new shopping malls try to attract people through cleaner more hygienic environments for the new middle class, which is relocating to Indian cities.
Mr McLauchlan says Crest is doing well in the Indian market because it is a quality brand, with excellent training programmes in place for staff. The training in India is based on New Zealand standards. Crest New Zealand cleaning staff in New Zealand are required to undertake an NZQA recognised qualification which leads to a National Certificate in Cleaning and Caretaking.
"Training cleaning staff to achieve nationally recognised qualifications makes more sense for commercial cleaners than hiring unskilled staff," he says "Training has a very positive effect on morale, motivation and on the person's ability to carry out cleaning to high standards.
"While New Zealand and India are our focus over the next two years we are looking at expanding into other Asia countries and the Middle East beyond that," he said.
Hence entrepreneurs in India can look forward to a host of international service franchisees lining up in India to offer their services to the indian consumer.
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