Indian Franchise Report 2012

'Indian Franchise Report 2012', is a pioneering effort on part of Franchise India Holdings Limited to bring to the forefront a decade long journey of the franchise business concept, the changing investment patterns and business insight leading to a paradigm shift in the Indian business ecosystem. The Indian franchise industry stands at a staggering USD 15 Billion mark, and is expected to touch USD 34 billion by 2015. The Indian franchise eco-system today comprises of over 3700 franchisors supported by over 2,00,000 franchisees. The participation by females as front runner in this format still holds a low spot with only 26 per cent of the franchisees being lead by women.

The franchise industry is young and dynamic and what's even more stimulating is the extremely young business class that is ridding this growth journey forward- 69 per cent of the franchisees in India are in the age group of 18 to 35 years. With more easily disposable income at hand, this young class of investors is only going to grow more aggressive and take upon bigger opportunities in the coming decade. Another major trend is the growing clout of professionals entering the business space via franchising. Over 85 per cent of the franchises hold a graduation or UG/PG degree.

The report delivers deep insight into the best performing franchise sectors based on the expansion blueprints of top brands, current growth rate and over all sector's performance these are top franchisable sectors:

• Education
• Health, Beauty and Wellness
• Food and Beverages
• Retail Franchising
• Consumer Services

The franchise industry is largely close knit and integrated, which is expected to grow at an average rate of 28 per cent throughout the next decade. But one of the major factors influencing this growth will eventually not be the consumer or the economic under current but the business relation between the franchisor and franchisee. The few major trends that have come out, as a result of this detailed research, franchise satisfaction survey, which is a cumulative effort to judge the effectiveness and efficiency the present day franchisor-franchisee relationship is that a large majority, i.e. 72 per cent franchisee would recommend their franchise business to prospective franchisees, but at the same time over 41 per cent feel that the toughest time for them was the initial setup, as the support provided by franchisor wasn't adequate enough.

Moreover, leaving aside a few gaps in training initiatives, audit and financial support the Indian investor is happy and content with the franchise business environment which fairs higher that the satisfaction levels of SMEs operating in manufacturing and consumer service businesses, as over 90 per cent of the franchisees if given an opportunity and adequate funding would want to opt to invest in more than one franchise business format. Overall the report aims to incorporate trends in the industry, as well as brings forward a study of the overall franchisor-franchisee relation, as these are factors governing growth and change around the franchise business format.