Franchise business opportunities in India

July 25, 2017
Godwin Vargheese
 Franchise Business Opportunities in India

Franchise Business Opportunities in India

A new business always entails creating a name and reputation, so that potential customers can identify you as the best choice in your field. However, there are businesses in which customers will be familiar with your brand from day 1. Such endeavours involve being a franchise of famous companies, making sure that you don’t have to worry about branding.

Apart from branding, there are various other advantages of advertising. As an entrepreneur, you also get access to a tried and tested business model, which serves as an excellent learning ground for your entrepreneurial journey. Training and on-boarding of the staff are also generally taken care of by the franchisors so that the franchisee can devote all his attention to running the business. Companies generally have a single franchise in a market territory, hence negating the fear of competition.

Various industries have perfected the art of franchise-based expansion over the years. In the Indian scenario, there are several examples of large businesses running on this model, viz:

Food and beverages

Perhaps the best highlight of successful franchisees is Hardcastle Restaurants Pvt Ltd and Connaught Place Restaurants Pvt Ltd, which have been running operations for McDonald’s in India for almost two decades now. These restaurants handle more than 67 million customers in a year. Notable other examples are Yum Foods (KFC/Pizza Hut/Taco Bell) and Jubilant Foodworks (Dominos Pizza)

Fashion and Apparel

Most large foreign apparel brands carry out their Indian businesses via franchisees. Especially as FDI in retail opens up, numerous brands like Benetton and Diesel are starting to use franchisees to expand in the Indian market. Large Indian brands like Pantaloons, Raymonds and Koutons also have large franchise bases in India (90% of Koutons revenue comes from franchises).


Cultivating positive word-of-mouth and trusted name means everything in the education business. Perhaps this is what has drawn numerous business owners to take up franchises of known institutions across the country. One of the largest players in the sector is NIIT, voted the ‘Franchisor of the Year’ by Franchise India in 2015. The Delhi Public Schools are one of the biggest examples of franchisee-run brands in the formal education sector.


The huge fixed costs involved with setting up and maintaining an automotive showroom have historically incentivized automotive companies to encourage franchising. Franchisees command a large share in the sales and servicing of new as well as refurbished vehicles all across the country.


A unique problem faced by telecom companies in India was to make a uniform standard of service available across the country, especially in rural areas. Local businessmen came to the rescue by opening franchised stores. For example, Vodafone India has close to 4000 ‘Vodafone Mini Stores’ which are owned and operated by franchisees.

While the franchise business has grown rapidly in the past two decades, there is still a huge opportunity. As businesses and customers both strive to bridge the gap between them, a big pot of gold awaits entrepreneurs to start and run a highly successful business.


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