How can I ESTABLISH A BUSINESS FRANCHISE IN INDIA???

Question

Hi Friends,

I would like to establish a Business Franchise in India. Because it is one of the fastest growing economies in the world, it is a great place to invest. I am currently exploring franchise opportunities that have great market potential.

What actions do I have to take?
Where do I start out and what are the first steps?
What do I have to plave for etc?

If anybody has a any good websites, books, consultancies etc that would be great.

Thanks Friends,

Answer 1

I don't have much insight on the India-specific market, but I am a former franchisee of a company and have done extensive research in the field. These sources may help, to varying degrees:

Franchising Association of India:
http://www.fai.co.in/test/index.php3
Mr. C. Yoginder Pal, Chairman SIG
Veer Nariman Road
Churchgate, Mumbai 400-020, India
Phone: [phone] Fax: [phone]
E-mail Address: [e-mail]

A few general sites:
http://www.infofranchise.in/detail.cfm?IdNotizia=7583&IdSezione=1&strKey=in
http://www.zeromillion.com/business/ib/potential-of-international-franchising-in-india.html

Site listing consultancies that assist w/franchising internationally:
http://www.franchiseintl.com/ListCon.htm

I would highly recommend the following two books, for different reasons:

"From Ice Cream to the Internet", by Scott Shane
Very insightful resource on the challenges of establishing your own franchise.

"The Franchise Ratings Guide: 3000 Franchisees Expose the Best & Worst Franchise Opportunities", by Gary M. Kowalski
A great insight for anyone considering investing in a franchise, the book provides a fantastic and thorough section on the due diligence process that should be followed by any prospective franchisee. This section would also be very relevant to anyone considering establishing a franchise.

As a final bit of advice, if you come across a quote similar to the following, don't believe it. There are many variations to it with different statistics substituted, but not substantiated.

"If you buy a Franchise Business, your chances of success are 94%! THAT'S A FACT, according to a recent Gallup poll. Conversely, it's estimated that only 35% of independent business start-ups survive 5 years."

As it's pervasive, people tend to find it credible; but here's a link to the FTC's website that will back up what I am writing. The found the above quote to be "fraud and a misrepresentation". I would inquire of the source to anyone who quotes similar statistics.

http://www.ftc.gov/opa/1995/09/bexpo.htm


More credible is an in-depth study by Scott Shane, which showed vastly different results. Dr. Shane found that:

“…despite the widespread reach of franchising, surprisingly few companies succeed at franchising. In fact, of the more than 200 new franchise systems established in the United States each year, 25% don’t even make it to their first anniversary, approximately three quarters fail within a decade, and only 15% make it to 17 years.”

Good luck!

Answer 2

hi mate, nice idea, but i think you'll find that no sooner that you have launched YOUR idea, some mug will have already started FRANCHISING a copy of it.

yeah i agree that India has great potential, but like with any other developing nation, the foundations of commercial law aren't quite in place YET! its a case of who knows who and who can give what, you get my drift?

good luck anyway, hope my negative answer hasn't dampened your enthusiasm!

Answer 3

with great caution