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Retail franchise 2014-06-04

Franchise your growth

The franchising model is no longer limited to leading global QSR chains, but is also becoming popular amongst brands in numerous categories planning a pan India expansion

The franchising industry is playing a key role in the growth of the retail industry with 3,700 franchisors and 1.5 lakh franchisees, generating annual sales of $ 22 billion, or nearly four per cent, of the total turnover of the broader sector.

The key factor that has contributed to the growth of the above business model is the entrepreneurship of the highly educated below the age of 35 years, with nearly three-fourth of the new businesses created from this segment. In addition, a recent report by Franchise India Research highlighted that 350 brands entered this segment in ’13, and appointed partners on a pan India basis.

The emerging opportunities in this segment has also encouraged Lacoste to look for partners, and Rajesh Jain, Director and CEO, Lacoste India, emphasised that it is a suitable model to expand in tier-II and smaller towns on a pan India basis.

A pro-growth model 

The spotlight on the franchising industry has grown over the past decade with the entry of several leading MNC QSR chains, but senior professionals highlighted that this model has been present in the country for many decades, but in an unorganised manner.  And, that’s because a partnership with a well established brand enables an entrepreneur to quickly grow his business as well as suitably leverage a successful business model.

“Brands need to select their franchisees with due care, and we have an appropriate model to achieve the above objective,” said Tanmay Kumar, Director - Business Development, Yum! Brands.

The popularity of this model has also resulted in master franchisees and multi-unit franchisees, which operate several outlets, and enable brands to streamline their expansion plans.

Vasanth Kumar, Executive Director, Max Retail, said, “We are paying greater attention to multi-unit franchisees and cluster franchise network, while expanding.”

Striking a similar view, CK Kumaravel, MD and Co-founder, Naturals Beauty Salon, said, “Multi-unit franchise model provides considerable simplicity while expanding.”

Emerging segments 

The growing sales online has not gone unnoticed by the franchising industry, and in several segments including lifestyle-related products, consumers are increasingly purchasing via the web.

Mahesh Gupta, Chairman, Kent RO Systems, said, “We generate nearly four per cent of sales online, and it has also helped us to expand our target audience.” Retailers also stressed that a viable business model in this segment includes giving the entrepreneur the entire margin for a product, while the franchisor could earn royalty. Clearly, franchising is on the cusp of strong growth.

Comment
anil peter 29, Jun 2013 at 01:01 PM
Hi Anshul, I did use the services in one of the outlets in Blr. Am very impressed with the Service though there was a delay. I am interested in knowing more about setting up one in Blr. Can you please share your contact.- Anil
Narasimha Rao 27, Jul 2013 at 08:19 AM
Hi Anshul,I am interested in starting a mother store and two satellite stores in Bhimavaram (a small rural town in Andhra Pradesh). Could you send me your contact details so that we can discuss in more detail.
tejas 26, Sep 2013 at 05:17 PM
i would like to know more about your franchise , please revert back on my e mail id with the best possible details regarding the above .. thank u .
S.Jilani 30, Sep 2013 at 08:27 AM
Hello,Please send me laundry industry information. I am in Patna and want to start laundry business around Patna.Is it feasible in Bihar.
Karan 06, Oct 2013 at 08:03 AM
Hi Anshul, I am interested in starting up a mother store and two satellite stores in Vadodara or Ahmedabad,with second phase in Nagpur and raipur.pls email me the details and also if we can meet and discuss about it
Amruth 14, Nov 2013 at 06:55 PM
I would like to know more about the business and then ready to invest. Plz share your number.
Gaurav pundir 24, Nov 2013 at 05:44 PM
.greetings ....I would like to know more about this business opportunity. I will be keen to understand the model in detail as I plan to start the franchisee in Mumbai and Delhi. Regards Gaurav
Gopala Raju 16, Sep 2014 at 10:01 AM
Hi, impressed with growth of laundry service, and would like to start in Hyderabad.Can you throw some more details ?
RAKESH SHARMA 15, Nov 2014 at 10:45 AM
Anyone interested in Laundry business,please feel to email the at the below address.
Darshan JAIN 17, Dec 2014 at 02:05 PM
I would like to know more about this project.Please contact me through mail
Jeeva 07, Jan 2015 at 12:35 PM
Please revert back I am interested to do in Kolkata.
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