Benefits of starting franchise in India

Last Updated at: Sep 07, 2020
Benefits of starting a franchise business in India
Recently, starting a franchise salon for selling their beauty products is a good franchise business opportunity in India. They already have more than 150 physical outlets across 40 cities in India. A minimum investment of Rs. 10 lakh with a floor area of 500 Sq.


On 18th May, 2020, Bharti Airtel, the telecom giant, has released its quarterly report for its Home Services segment. The company has said that it’s broadband services has connected 1, 80,000 homes in India through franchise tie-ups across 11 cities. Airtel has thanked its franchise players for expanding its presence and contributing to its YoY (Year-on-Year) growth of 3% as on March,2020.


Franchise based business models have flourished to a great extent in India. The substantial consumer base along with an increase in the purchasing power of people has made sure that global enterprises come to India in order to expand their empire in such a diverse economic scenario.
India is one of the world’s fastest-growing developing markets, and franchising has become a successful business model for many local companies. It is reported that the fifth largest country in terms of consumer capacity and retail destination. In terms of economy, India stands second after China. Therefore, franchising in India has grown many fold.

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 Globalization and market liberalization have brought in brand awareness among the Indian masses, making the importation of foreign brands to Indian shores a great opportunity to the local business. Many foreign companies consider franchising to be a convenient method of entry into the geographically vast and culturally diverse Indian market which in turn offers a very favourable franchising environment.

Franchising in India

Franchising is gaining popularity in the retail segment in India more particularly in the areas of food and beverages industry which also include restaurant chains; consumer goods and computer training centers. Franchising is one way in which a company can take advantage of India’s vast market with a degree of control and other traditional forms of distribution.

Why in India?

Franchising is creating thousands of opportunities for business owners and job seekers and it proves very beneficial for the franchisers for India multi-ethnic country, as it becomes all the more important to understand the trends and the market that governs each religion.

What is franchising? (procedure)

In a nutshell, franchising is a business system where the franchiser grants a license to the franchisee to use the franchisor diverse intellectual property rights namely designs, brands, trademarks, patents and trade secrets along with the franchisor’s reputation, marketing techniques to market the products.

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Franchising in various sectors in India


A rise in the standard of living in India has increased demand for quality health services and has resulted in health care service providers and clinics opening new businesses in the cities through franchises, which is a great benefit for the franchisors. For example, Apollo hospitals have set up a large chain of state health care clinic in India through their franchises.


The increased acceptance of the importance of education by the Indian population and the proven success of education franchising in India has lead to a boom in the amount of business owners wanting to expand their education brands using the franchise roots. India is one of the largest markets for education in the world in terms of number of students offering vast franchising opportunities

Business opportunities via franchising in India

Getting into franchise business is a wonderful opportunity for anyone according to the experts, franchising business is the safest business as it involves minimum investment with more revenue. India being a vast country, all the international brands want to launch their product in India because of the wide market, powerful economy, multilingual culture and low labour cost which will be of great benefit to the franchisors.


On the whole, India is a chosen destination for franchising as it provides everything one needs to flourish. This is one of the primary reasons why franchise business is booming in India. Expert market analysts also have predicted that the franchising opportunities in India will grow rapidly and there will be lots of benefits available to the franchisors. Therefore, franchising in India is of great benefit.

Many MNCs which follow the franchise-based system of business have flourished after their arrival in India. As an economy, India has everything that they seek in order to keep growing at a consistent rate. Globalization is another vital factor which has contributed to this chain of events.