written by | October 11, 2021

Franchise Business in India: Advantages and Disadvantages

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Table of Content


Franchises aided businesses are looking to expand their imprint in India, as well as contribute to the country's economic development by creating additional jobs. One of the reasons why individuals are interested in starting a franchise business in India is because of this.

One of the options that brands have embraced for expansion in India is the franchise business. There are several low cost franchise options available in India.

For the most successful franchise firms, India is a mega-market. In the country, the franchise system is quickly developing. It aids both the franchisee and the franchisor in reaching their respective objectives. Instead of dealing with unproven business concepts, many successful entrepreneurs have turned to the franchising model. 

Did you know?

In India, the franchising industry grows at a rate of 30-35% a year and is estimated to reach ₹7.61 lakh crores by 2024. With nearly 2 lakh outlets operated by almost 1.7 lakh franchisees, India has already become the second-largest franchise market globally, after the US.

Franchise Businesses in India

Have you ever wondered why the Indian market has so many international brands? Franchise business is the answer. It is one of the most important routes via which multinational companies and brands have established themselves in the Indian market. In exchange for an upfront start-up fee and royalty payments, a franchisor gives the franchisee conceptual, structural, legal, and training-related support.

The revenues from owning and selling a franchise benefit both the franchisor and the franchisee. The franchisor can further develop the business in new regions, boosting market share and revenues after the franchisee has access to the brand's loyal consumer base, creative help, legal guidance, and training support.

Before entering this model, investors and enterprises must properly investigate their potential business partners before signing the signed line. Sticking with well-known names and brands is definitely safer for investors.

There is a claim that the franchise concept necessitates a significant financial commitment. Let's dispel this misunderstanding. The most profitable and viable kind of business opportunity is franchising; all one has to know is how to get a franchise.

Also Read: Complete Guide To Starting A Barbeque Nation Franchise

Advantages of Franchise Business

The following are some of the benefits of starting a franchise business-

  1. Training and technical know-how
  2. Rapid expansion
  3. Lower operating cost
  4. Less risk for franchisee
  5. Branding
  6. Easy access to capital

Disadvantages of Franchise Business

The disadvantages of the franchise business include-

  1. Costly investment
  2. Strict operation guidelines
  3. Percentage sharing of profit with parent company
  4. Limited exit strategy
  5. More control of the parent company

Top Franchise in India

Some of the top franchises in India are given below-

Lenskart

Lenskart is one of India's fastest-growing eyewear companies. It has both an online and an offline presence. This company provides optical lenses, sunglasses, eyeglasses, and frames to people of all ages and is considered one of the fastest-growing businesses in the world. Lenskart is striving to be one of the greatest profit franchises because of the need for vision correction that it provides to the market. They provide a wide range of options, making them the first choice of consumers seeking any type of optical or lens. They founded this business to provide individuals with an affordable vision. Another interesting feature of Lenskart is that they provide a specific program for women who want to open a franchise.

Investment required for taking the franchise - 30-35 Lakhs approximately

Giani 

Giani's is one of India's oldest ice cream shops. It was started in 1956 and served rabri, mango shake, and faluda through which it won a lot of hearts. Since then, Giani's has grown at an unstoppable pace.

Giani's went on to open several company-owned and franchise shops across Northern India, reaping significant profits.

Investment required for the franchise- 10 Lakhs to 20 Lakhs

DTDC Courier and Cargo Ltd.

It is one of India's most popular and dependable courier businesses, having been founded in 1990. In India, it has approximately 5800 successful channel partners. They are one of India's fastest-growing logistics and distribution sectors, providing both local and international services. In the express sector, DTDC was the first to introduce the franchise-based model, and it is currently regarded as the firm with the best franchise potential.

Investment required for the franchise- 50,000 to ₹2 Lakhs

Domino’s

It is one of the most well-known pizza franchises in India, with over 500 locations around the nation. It was founded in 1960 and has since grown to become the largest and most well-known pizza delivery business. 

It is available in over 120 locations across India, and it is owned by Jubilant Food Works Limited; thus, if you want to have a franchise, you must be a partner with them. To get a franchise, you'll need a minimum of 1500 square feet of space and a minimum investment of 30 lakhs.

The main advantage of this franchise is that it is a well-known brand with a popular taste; hence, there are excellent prospects of generating a profit. Several elements contribute to the success of this company enterprise, including the tried-and-true business model, continual product enhancements, and strategic processes. 

Patanjali

For the past few years, it has established itself as a reliable and popular Indian brand. Herbal and Ayurvedic products were the company's original product lines. After achieving remarkable success in this arena, Patanjali extended its company into other sectors, including beauty goods, health care, personal care, food items, and much more. In the FMCG market, it has become one of the most value-added items. 

Minimum space area requirement- 500 Sq ft of space

Investment required- minimum 7 Lakhs

You may make a lot of money by getting a franchise since it has grown into a dependable and cost-effective brand in only a few years.

Subway

With over 44,700 franchisees in the most popular sandwich chain, Subway is the world's largest fast-food and sandwich brand. Subway began operations in India in 2001 and now has a chain of over 650 stores spread over more than 70 cities. This figure refers to the company's franchisees worldwide, not simply in India. Simplicity, a well-designed business model, great marketing, supply chain management, a value-driven business operation, and comprehensive back-end assistance for franchisees have all contributed to this brand's success.

Investment required - ₹25 Lakhs

Archies

As a well-known brand that sells greeting cards, personalised presents, artwork, and other similar items, this firm has a network of over 500 national and international locations. Since 1979, its products have won the hearts of millions of people.

They feature a wide selection of one-of-a-kind presents for anniversaries, birthdays, mother's day, valentine's day, farewells, and other special events. As a result, opening an Archies store may be a successful company for you because it does not require a large number of employees and can be started with a floor area of 500 square feet.

For an inventory, design, music, and other similar accessories, an investment of roughly 12 lakhs is required. You may make substantial money from it every month, between 25% and 30%.

As a result, if you enjoy the arts and are creative, this might be an excellent franchise opportunity for you, as you can demonstrate your creativity while also providing people with a terrific gift-giving option.

Bikanervala

It is a well-known Indian brand for sweets, Indian cuisine, snacks, biscuits, and other items. They provide high-quality cuisine with incredible flavour, which is why they have 85 locations in India and 26 abroad. The flavour, quality, and hygiene of this brand are well-known.

Because they already have a high brand value in the market, it might be a terrific platform for you to earn a lot of money. The main advantage of buying a franchise is that you can be guaranteed quality because their products are not adulterated.

Space Required- At least 1200 to 2000 sq ft (Owned or rented)

Cost Required- 30 to 40 Lakhs

Also Read: How to start a Mio Amore franchise in India?

Cafe Coffee Day

You've probably heard about Café Coffee Day, especially if you enjoy coffee. This firm is believed to be Asia's largest coffee company, with a 140-year history. Sienna and Celesta is the machine's name, which makes people happy with something hot and unique; therefore, the tagline is "A lot can happen over coffee."

Do you wish to make people happy by offering delicious coffee as well? Its franchise is straightforward and easy to obtain; all you need is an 10 lakh investment and a space of 1000-1500 sq ft.

They would give you their coffee maker equipment, which is designed with cutting-edge technology, and allow you to prepare coffee or tea by just pushing a one-touch button.

Other Top Franchises in India

Apart from the above-given franchise in India, there are several other popular franchise businesses in India. Some of these are Jockey, Amul Scoop, Firstcry, Lakme Business, KFC, etc.

Conclusion

Given the current marketing trend in the country, starting a franchise business is a fantastic option. One of the nicest aspects is that the parent company offers you a service in which they promote your company for you. We hope the article gives you the relevant information regarding the franchise business in India, the advantages and disadvantages of it as well as the top franchise in India.

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FAQs

Q: Which are some of the top franchises in India?

Ans:

Some of the top franchises in India include Patanjali, Dominos, Cafe Coffee day, Firstcry, KFC, Jockey, etc

Q: What is the cost involved in opening a franchisee of Bikanervala?

Ans:

Approximately 30 to 40 Lakhs of investment is required for opening a franchise of Bikanervala.

Q: List some of the benefits of owning a franchise business?

Ans:

The following are some of the benefits of starting a franchise business-

  1. Training and technical know-how
  2. Rapid Expansion
  3. Lower operating cost
  4. Less Risk for franchisee
  5. Branding
  6. Easy access to capital

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.