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Franchising in India: A rural perspective

Expansion of any business, especially in rural India, involves significant investments of both capital and human resources. The franchising business model is a viable alternative to overcome such challenges. In India, this model currently offers excellent opportunities to new international and local brands entering the market. Franchising is not only a great way to encourage self-employment but also a huge employment generator.

According to Franchise India, franchising has witnessed an impressive growth of around 30-35% over the last four-five years and the overall turnover is estimated at around INR 938 billion. Currently, the sector contributes nearly 1.8% to the Indian GDP and is estimated to contribute to around 4% by 2022.  Even the COVID-19 crisis offers a pool of opportunities for businesses, such as franchise, which are highly capable of making a difference at local level using technology.

This report helps understand the various facets of the franchising business, sector-wise range of key promises that franchising model hopes to deliver and deep dives into few companies and their business models.