India has captured third place in the consumption of products and services worldwide. With more than 1.4 billion consumers, India has become of the best markets in the world. If you are an international brand, this is the right time to introduce your franchise opportunities in India. Beauty, education, automobiles, wellness, fashion, and medicine are some of the most demanding products in the Indian market.
Business analysts and experts believe that despite the boom in franchising models, India still has untapped franchising models within the industry. This means that the franchising business is set to grow even faster in the next decade. Since India is a hot market for franchise business, both the franchisor and the franchisee can utilize the market for their business goals. Here are some major types of franchises that can be top-performing franchise models in India.
Manufacturing Franchise
This type of franchise allows franchisees to produce the same products with legal authority and promote it in a specific market as per the owner’s authorization. The franchisees will also get benefited from brand advertisements in national broadcasts and other mediums of promotion. The food and beverage industry is an example of such a type of franchise model. With the latest manufacturing technologies and strategies, manufacturing industries in India keep booming to meet the demands. There is a great demand for this type of franchise in India as India is a country with the second largest population in the world.
Product Franchise
Product franchises are different from manufacturing franchises because this type of franchise permits franchisees to use contracts to adopt the distribution of the products. It looks like a supplier-dealer model in which franchisees distribute the products of franchisor. However, franchisees will have the right to sue the brand name of franchisor. Product franchise businesses usually deal in the products such as vending machines, car spare parts, equipment, etc. Currently, there is a vast demand in India for product franchise opportunities since 72.2 percent of the total population in India reside in rural areas. Even remote villages in India have retailers to serve the residents. Product franchises will have tremendous opportunities to explore all over India.
Business Format Franchise
Most Indian franchisees use this type of franchise opportunity. In this franchise, the business franchisers give the rights to franchisees a proper business structure that is made by the franchisor. From the franchisor, a franchisee will get appropriate training to keep the business going. The franchisor is also liable to provide products and raw materials whenever necessary. Industries such as retail, fitness, business services, fast food, and restaurants are some examples of business format franchises. Indians will have opportunities to consume products from global brands. This is a good opportunity for international brands that need to enter into Indian markets.
Investment Franchise
Investment franchise needs a massive amount of investment. It functions in two ways: 1. the franchisees usually invest money and engage their management team and 2. The franchisor operates the business and produces a return on its investment and capital gain on exit. As the fastest developing country, India is gradually becoming an international investment hub. An international franchisor may utilize this opportunity to attract investments.
Benefits of an investment franchise
- It provides a more stable and reliable income than that of a business.
- Your investment is handled by an experienced and knowledgeable team that can deliver strong support to franchisee.
- It can provide a faster return on investment because of investing in established business models
- With lower risk, it is a replicable model and a faster scale.
Job Franchise
Usually, this is a low-cost franchise that can be handled by persons who like to start a small business on their own. Within a specific trade or industry, a franchisee can sell products or services. The franchisee should purchase minimal equipment and limited stock. Sometimes With the support of a vehicle, a franchisee can provide the services to the customers. In this type of franchise, there are several types such as travel agency franchise, coffee van, garden care service, drain cleaning, commercial and domestic cleaning, cell phone accessories and repair, real estate service, shipping service, event planning, etc. With Indian business aspirants that are looking for business opportunities, this franchise model will succeed in the long run.
Conversion Franchise
Conversion franchising transforms pre-existing, independently-owned companies into members of a standardized business network. Profitability and Scalability can be enhanced since potential franchisees already have a physical location, regular customers, and business.
Benefits of conversion franchise
- It is a streamlined process as compared to starting a new business.
- It is a good opportunity for companies that want to perform well in the big market.
- With lower capital requirements, it is easy to start because the necessary infrastructure is already created with a professional team.
Some of the industries that widely use conversion franchising methods are professional services companies, real-estate brokers, home services, like electricians, air conditioning, and so on.
Conclusion
The types of franchise models given above can provide lucrative deals for franchisees and franchisors. However, the Indian market is open to all types of franchises. Small and big companies can open their franchises in India not only to get royalty fees but also to establish their brand in other countries situated near India. Whether you are a franchisee or a franchiser, you need to investigate every aspect of the franchise opportunities before you start or introduce them. You may also create a new type of franchise model if you want to be a trendsetter in introducing new franchise business opportunities.
