Franchise businesses are joint ventures between franchisee and franchisor. Product sales as per the same idea and name are the highlight of the Franchise business. India has a large business market which is the backbone of the economic stability of the country. The best franchise business in India has been critically analysed in this research.
Discussion
Exploration of Franchise Business Models
| Franchise Business Models | Characteristics |
| Investment Franchise | Minimum involvement by the franchisee in business operations. High requirement for capital |
| Manufacturing Franchise | Local marketing and sales are controlled by the franchiseeMajor focus on better quality control. |
| Busienss format Franchise | Support in marketing from the Franchisor side.Comprehensive brand identity. |
| Product Distribution Franchise | Running a business on the concept of distributorship.Positive focus on distribution efficiency and product quality. |
| Conversion Franchise | Efficient market penetration from the end of Franchisors.Franchising allows business owners to leverage an existing brand and model instead of building from scratch. . |
Table 1: Characteristics of Franchise business models
- Investment Franchise: The investment franchise is considered the most large-scale franchise model which is generally dependent on customer service. Restaurants, resorts, and hotels are examples of investment franchise businesses (O’Neill et al. 2023). Managers are primarily responsible for running the investment franchise business.
- Manufacturing Franchise: The franchisees gain the right from the franchisor to manufacture or sell the products by themselves under the brand name of that franchise. This is one of the most common franchise business models within the beverage and Food Industry. Coca-Cola is an example who is following the manufacturing franchise.
- Business Format Franchise: Business format franchise includes branding, customer service, marketing, and operating procedures. It adopts the overall business model including the rights of selling services or products. The franchisor supports the franchisee in terms of marketing which is the major highlight of the business format franchise.
- Product Distribution Franchise: This franchise model is involved in the distribution of the products of franchisors. Most automotive Companies use this model to run their business (De Rubens et al. 2020). The product distribution franchise business is developed based on the concept of distributorship.
- Conversion Franchise: Conversion franchise refers to the franchise units converted from the independent business. the adaptation of systems, operational processes, and brand of the franchisers are common in this business model. Service-based organisations from different industries are following the conversion franchise model.
Business Landscape of India
The business landscape of India is collaborated powerfully by the combination of knowledge, skills, and resources. The partnership of the business environment in India is associated with management responsibilities and partnerships, especially for-profit sharing. The business environment of India is dynamic and diverse and the market is dependent on a lot of factors. “Foreign Direct Investment” (FDI) is one of those and it is associated with government policies. The Indian government has introduced information on FDI norms in multiple industries such as retail, defence, insurance, and others (Rao and Dhar, 2021). FDI in the Indian business environment is associated with multiple challenges such as bureaucratic regulatory complexity including land acquisition problems.
India is known for its strong business landscape in the Global state. The total amount of revenue from the business market of India was 48.67 million USD in 2022. The annual growth rate is projected to be approximately 8% from 2022 through 2029.
As per the projection, the Indian market volume will be 82.01 million by the year 2029 (Statista, 2024). Marketing studies are always promoted in the business landscape of India for better revenue growth. In-app purchase is one of the most important factors in the business landscape of India which was 12.18 million USD in 2022 (Statista, 2024). All the factors signify that the entrepreneurs have a great opportunity to establish their business in the Indian market
Best Franchise Business in India
Mcdonald’s:
A lot of global organisations are successful in expanding their franchise business within India and McDonald’s is an example of that. McDonald’s offers comprehensive support to establish their business in the Indian market including marketing, training, site selection, and Others. A loyal consumer base is the primary reason behind the strong presence of this franchise in the Indian market. McDonald’s operations in India generated total sales revenue of 22.78 billion Indian rupees in recent years, indicating substantial growth from the 6.8 billion Indian rupees recorded in 2013, as per data from Statista. This factor determines that McDonald’s is successful in establishing their business in the Indian market.
Jawed Habib:
A famous name in the beauty and salon industry in the Indian market. This franchise is one of the most popular organisations among affluent and Middle-Class consumers. Affordable due to services delivered to the consumers is the primary highlight of the business by Jawed Habib. The projected revenue of the hair care market in India could be 3.06 million USD by the end of 2024. The CAGR would be 3.42% from 2024 to 2028 (Statista, 2024). All these factors determine the market growth opportunity for Jawed Habib in the upcoming future.
Mahindra:
Mahindra is also a renowned name in the automotive industry they are operating their business by following the franchise model. The organisation supports their product sales through training, advanced technology, and sourcing. The relation of Mahindra vehicles has been increased up to 700.3k INR per unit in 2022 only in the Indian market. the realisation of Mahindra vehicles could reach up to 739 INR by the end of 2024 (Sun, 2024). This factor highlights the strong presence of Mahindra as a franchise business in the Indian market.
Conclusion
This result is all about the franchise business in the Indian market. An in-depth analysis of the franchise business models has been briefly analysed in this research. Franchisees buy the privilege to sell goods or services using a well-known brand name in a particular market.
FAQs:
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