Franchising: The ‘mantra’ for successful business

Franchising has grown by leaps 

and 

bounds over the last couple of years in India 

and 

is now seen as one of the best ways to expand businesses

Franchising is one of the three business strategies that a company may use to capture market share. Franchising is a business strategy that is put into practice for attracting and retaining customers. It is a marketing system for creating an image in the minds of the current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy customer needs. Gaurav Marya, chairman, Franchise India Group, says that "Franchising can be seen from two perspectives - the features and benefits associated with them. From a company view point, franchising is a great form of capital generation and a good means to grow your brand. Younger companies, especially in the retail segment, can continue to grow their brand if they properly utilise franchising."

An important aspect which determines the feasibility of any franchising business in a country, relates to the class of consumers it caters to. India is a multiethnic country with the second largest population in the world. Throwing light on this aspect, the franchising industry in India is close to 23-24 billion dollars and according to KPMG India estimates, it is expected to grow four times, between 2012 and 2017. There is scope for the franchising industry to contribute almost 4 per cent of India's GDP in 2017, growing from a current estimated contribution of 1.4 per cent of the GDP. Marya shares that practically, all the sectors, are turning towards implementing the franchising model. "Every single industry, whether it is consumer goods and services, healthcare, retail, education, is looking for franchising and successfully implementing the models into their businesses." The services sector, financial services, courier services, health and wellness and food sectors, is expected to contribute to majority of the growth in franchising in the next half a decade. One of the major positives that has further provided an impetus to franchising in India is allowing Foreign Direct Investment (FDI) in single brand and multi-brand retail.

While the franchise industry is poised to grow over the next couple of years, is there a trend that has been observed wherein, players are largely opting to take on franchising, in order to spread their foot prints? Sanjay Shetty, head of operations, Prince Cuisines, Cream Centre, agrees and says, "Yes, franchising is a great opportunity, if one wishes to expand their business. A single business could take years to establish itself in a city, whereas, if one adopts the franchising model, the business can grow by leaps and bounds, across major metros and tier-II cities and sometimes, even overseas."

Echoing a similar thought, Raghvendra Naidu, owner, Exotic Flavours shares, "There are a lot of positives associated with franchising. To begin with, when starting a franchise, your investment

is taken care of as you know that you are going to implement a tried and tested model, the operational background is in place and is something that has been running for a while. Besides, from an organisational point of view, it is a relief that you are getting associated with a brand and additionally, collaborating with an existing brand saves a lot of time in marketing yourself in the open market, which you would have to do, had you been a single player." 

SWOT ANALYSIS 

Strengths - Capital generation, employment generation

Weakness - Inability to develop and implement successful franchise models

Opportunities - The influx of big brands into Indian soil

Threats - Lack of education and the competition from other countries

FRANCHISING HAS A BRIGHT FUTURE IN INDIA

• ·         The average Indian income is steadily rising and individuals have more purchasing power today.

• ·         Increasing levels of consumer spending, with greater recognition of brand value has given a push to franchising in India.

• ·         Large penetration of the online medium in India is making its population more aware of global trends and brands.

• ·         The internet is also making it easier for international companies to gain an understanding of India's; culture, geography and politics and accordingly rework their models to suit the Indian taste and preferences. 

Source : TOI 

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25 new outlets for The Yellow Chilli by 2015

Celebrity chef Sanjeev Kapoor's The Yellow Chilli restaurant is ready to expand. The target is to start 25 more outlets in the country as well as abroad by next year.

Franchise India, a pioneer in the franchise industry, is facilitating the expansion.

"People who have a passion for food and have previous experience in the industry are welcome to be our franchise. We give them complete support in terms of marketing, product enhancement and upgradations from time to time," Satyaki Mukherjee, Business Development Manager, The Yellow Chilli, said.

The Yellow Chilli started franchising way back in 1998. Currently, the brand operates 26 outlets out of which 24 are franchise-run.

The brand's mission is to be an integral part of the worldwide hospitality industry in providing food lovers a range of scrumptious dishes served impeccably in a high tech atmosphere at down-to-earth prices.

"Franchise India has been instrumental in the expansion of several brands across various industries and categories and I am confident that the franchise opportunity with The Yellow Chilli has a great value proposition, which our company can offer to our business buyers hungry for good opportunities," said Sonya Chowdhry, director, Franchise India Brands Limited.

Franchise India to launch innovative online business platform for facilitating mid-market Business Sale-Purchase deals

Franchise India Brands Pvt. Ltd, a pioneer in the franchising industry, will be launching a new and innovative online business platform for facilitating mid-market Business Sale-Purchase deals. This portal will be a major initiative by the firm to create a seamless and symbiotic online universe for business buyers, sellers and brokers to carry out business deals.

One of the most coveted services provided by the firm is business evaluation, depending upon the assets, liabilities, total income and growth. This provides a comprehensive idea about how profitable is the business, what kind of potential it holds and the future prospects. The portal will facilitate comprehensive services for buying and selling businesses, evaluation and analysis of profitability as well as growth prospects which any respective business can offer.

Commenting on the launch of this new flagship business, Mr Gaurva Marya, Chairman, Franchise India said, “It is difficult to assess the market size of merger acquisition of MSME (micro, small & medium) business units. The online platform will be a revolution. There is ample scope for growth of franchise business in tier-II and III cities.”

According to KPMG India estimates, the franchising industry is expected to quadruple between 2012 and 2017. KPMG in its report has said that there is scope for franchising industry to contribute almost four per cent to the country’s GDP (gross domestic product) in 2017 (assuming six per cent year-on-year GDP growth between 2012 and 2017), growing from a current estimated contribution of 1.4 percent of GDP. Franchise industry is expected to create job opportunities (including both direct and indirect) for an additional 11 million people by 2017.

Enhance your brand with Franchise India

Play Around, one of the known names in the indoor play centre market has signed up with Franchise India Brands Pvt. Ltd. to expand its business network PAN-India in the 5 years.

The brand’s vision is to help children in their overall development and improve their cognitive skills along with physical health. Both factors play an extremely major role in their lives. They aim to provide children with new, innovative and creative ideas for entertainment along with learning. Constant learning is a must for children which can only be provided in a safe and secure environment which is provided by Play Around. Being headquartered in Mumbai, it targets to open another 3 branches by the year end.

The business of kids entertainment has been received with great enthusiasm by parents who are ready to spend extra bucks to help gain their children a good foundation which is must for a good future ahead. Similarly, the concept of play centres has been gripping urban parentage for quite a while and has become one of the hot favourites among them in all metro cities along with tier 2 & tier 3 cities. Play Around boasts of being established in a 5000 sq. ft. Area along with numerous facilities like imported games, Wi-Fi cafeteria, 3-way slides, double twist tube slides, large ball pits, trampolines and a host of other facilities which can make children’s’ lives bliss.

Play Around is aiming to expand its network via the franchise route wherein they will provide ample training in operations and overall management. They will also provide ain in the set up, marketing, operations, sourcing, advertising and promotions. The brand aims to set up its branches in premium residential colonies, near restaurants and malls in order to gain higher footfall.

Mr. Amit Tandon, Chairman, Play Around said,” The deal with Franchise India for expansion is quite important for us as it will facilitate growth opportunity and increase our brand’s awareness nationally. We look forward to it.”

Ms. Sonya Chowdhry, Director, Franchise India Brands Limited said, “Franchise India is always at the helm to provide a reliable platform for numerous brands who wish to expand their business network and operations with the right business opportunities that come their way. We believe in the potential the Play Around holds which can help transform it into a powerful entity in its respective market.”

Pioneers of Franchise Industry in India, Franchise India eyes on Coastal AP Market for growth

Franchise India, Asia’s largest integrated franchise solution company strengthens its base in Andhra Pradesh and forays into Vishakhapatnam.  Offers Business Brokerage, Business Consulting, Valuation Services, Mergers and Acquisitions, Captial services, Real Estate services, Legal Services. Its other premium services include Feasibility, Identification of Business Prospects and Deal Closure etc.

Announcing this in a press note issued in city today, Mr. Sonya Chowdhry, Director, Franchise India Brands Ltd. Said, “The purpose behind creating thi new base is to offer maximum business opportunities to the investors.

With this expansion we will create an awareness regarding all the new offerings and services that will help businesses grow and expand.”

Franchise India is Asia’s largest integrated franchise solution company since 1999, with an absolute authority on Franchising, Licensing, Retailing, Real estate and Marketing. The company has consulted several major brands over these years like HCL, MGF, Quality Walls, Tata, Gitanjali, HSBC, Levis, JK Tyres, Lakme, D’damas, Adidas, Euro Kidz, The Apollo Clinic, Chhabra 555, Kidzee, Motilal Oswal, Rosebys, Next, Welhome and more, through media, advisory and exhibitions.

Franchising business in India is doing well and is expected to witness CAGR of 30 percent over the next 5 years. According to FAI-KPMG franchising report estimates’, the franchising industry is expected to quadruple between 2012 and 2017. This is also expected to create job opportunities (including both direct and indirect) for an additional 11 million people by 2017. Increasing consumption, willingness to spend, growing preference for branded products, global exposure and use of international brands is driving the demand side of franchising,

It has a pan India presence with offices in Delhi, Bangalore, Chennai, Hyderabad, Ahmedabad, Chandigarh, Cochin, Jaipur, Kolkata, Indore, Pune, Mumbai and Guwahari. Besides these it has 16 partner offices.

With its strategically formed divisions, Franchise India has created its own niche as the pioneers of franchise industry and a small business authority.

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All about Franchising

Franchise activity in India has been growing 30 per cent year-on-year in the last five years, with the segment showing a healthy growth of 35 per cent in the last two years. While the franchise market is currently estimated at $25 billion in India, globally it has emerged as a $3.65 trillion market.

Though the segment currently contributes to about just 1 per cent to the nation’s GDP, it is going to contribute more in the coming years, points, Gaurav Marya, chairman of Franchise India. One of the pioneers in the segment, Franchise India has benefited over one lakh business investors through more than 100 shows held both in India and overseas. The company assisted over 800 companies in their franchise search. It encompasses a range of domestic and international portfolio of franchise and retail companies apart from offering Franchise and Retail consulting.    

Marya, started his first business at the age of 16 and over the years has started and sold about 15 other businesses ranging from mobile phones, career advisory, restaurants to entertainment business. At the age of 24, he discovered his real passion in life— Franchising. He interacted with over 25,000 budding entrepreneurs to help them select and meet the challenges of start-up businesses. Over 60 major American brands consulted him for their expansion plans in India. Marya consults companies on the appropriateness of franchising, both domestic and international, as a method to obtain their long-term expansion goals and in the design and development of their franchise systems. He spoke to Metro India in detail and shared his views on the developments, trends and future of the segment.

Marya explains today established product companies are looking at franchisee route to expand their presence to wider geographies. Urban spending is going up. There is a growing demand for financial services, banking and even ATMs. New categories will also emerge in the franchising space in the country. The industry will see a gradual shift from a product oriented activity to services. He adds, “About 75 per cent of the franchising currently is in products category with the remaining 25 per cent being services. This will get equal in the future.”   

He points the segment is getting even more interesting as 30 per cent of the franchise owners are first time owners and 50 per cent of the franchisees have not done any business previously. However the awareness on the opportunities and what to look for in a franchise opportunity is lesser in India compared to the US. In India, the segment needs to get standardised further. There is still a lot to happen in India in this space. With the emergence of entrepreneurial ecosystem, India too is expected to achieve big in the years to come.

When asked what aspects should a franchisor and franchisee look into while evaluating their compatibility to work with each other, he said, “There should be financial, marketing, operational and strategic fit. Though these can help both sides to work together better, it’s important that franchisors should take an active part in handholding and improving franchisee business. Both sides should be able to align their aspirations well.”

Marya said, “India offers a lot of franchise opportunities as more and more American and European brands eye their presence in the country.” Franchise India as an integrated franchise solution company operating since 1999, consulted several major brands such as HCL, MGF, Quality Walls, Tata, Gitanjali, HSBC, Levis, JK Tyres, Lakme, D’damas, Adidas, Euro Kidz, The Apollo Clinic, Chhabra 555, Kidzee, Motilal Oswal, Rosebys, Next and Welhome. “Franchising consultants cannot only bridge the gap between the franchisors and franchisees but can also help improving the awareness of the franchising opportunities and measures to be taken both sides to make such alliances or ventures successful,” Marya adds.

He says, franchise broker community which is growing constantly will become a major group that will influence the growth of franchising in India, particularly in the next 3-4 years.

On Marya’s Franchise India expansion plans, he said, “We would like to penetrate our activities to about 300 cities in India achieving 40-50 growth annually. While we aim to consolidate our presence in Asia, we see big potential in neighbouring countries such as Bangladesh, Sri Lanka and Nepal. We also see growing opportunities in matured markets such as Australia, the United Kingdom and North America. We anticipate one-fourth of our revenues coming from our overseas markets in two years. We will also look at acquisitions if we find any appropriate asset.”          

Source - Metro India 

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