1. Franchising Business in India
Entry India, LLC
Entry India, LLC

2. Target Audience Who want to Small & Medium Enterprises (SMEs)
Start ups, and
Non-Resident Indians (NRIs)
Who want to
Expand their business into India
Start a new business in India
Profit from opportunities in India
Entry India, LLC

3. What investors consider -1
Business, Economic and Social Environment
Markets & Growth Prospects
Legal and Regulatory Framework
Special Incentives
Entry India, LLC

4. What investors consider Specifics
Fluidity of capital
Flexibility of the labor pool
Government receptivity to business
Information communication technologies
Private sector development infrastructure
Legal systems to protect intellectual property rights
Available scientific and human capital
Cultural propensity to encourage creativity.
Entry India, LLC

5. India Rising Most attractive socio-economic & business fundamentals
Market least affected by the global recession
World’s largest democracy: 1.2 billion population
100 million middle class in > 580 million by 2025 *****
World’s 4th largest economy
Largest English speaking nation in the world
Entry India, LLC

6. India Investment Options
Large potential in retail, infra-structure, healthcare, education ……
Invest in Stocks, Bonds, Real Estate ….
Start or expand your existing business to India
Entry India, LLC

7. India Investment Options-2
If you have a business and want to expand it to India, consider becoming a Franchisor
If you want to start a new business, consider becoming a Franchisee
NRIs instead of regularly sending money to your family in India, start a franchise for them
Entry India, LLC

8. Why Franchise in India Franchising infrastructure is in place in India
Franchising is Big Business Globally
Over a million franchised outlets with sales of 2-3 trillion dollars
The United States of America is at the forefront of the franchise boom
40 % of retail sale revenues are from franchising
50,000 Malls, 40,000 Supermarkets
Franchising has a Huge Growth ahead in India
Relatively New Concept for India
Around 1,200 Franchisors in the country (200 are foreign)
More than 100,000 franchisees
Current market size in India: $10 billion
$20 billion by (30 % Growth Rate)
2% of the total Retail Sales
300 Malls, 1500 Supermarkets
Franchising infrastructure is in place in India
Entry India, LLC

9. Premier Franchising Resources
International Franchising Association (IFA)
IFA represents all aspects of the franchise community and works to protect, enhance and promote franchising.
The Franchising Association of India
Provides a one-stop shopping experience for franchising business
Entry India, LLC

10. Franchising Defined
Franchising is a method of doing business wherein a franchiser licenses brand, product and proven methods of doing business to a franchisee in exchange for a recurring payment. Various types of support are made available continuously by the franchiser to enable the franchisee to compete and grow.
Entry India, LLC

11. Franchisee Advantages
Franchising Reduces Business Risks
90% of start-ups fail in the first year. In a franchised business, over 90% succeed.
Proven business model, recognized brand, customer acceptance
Established methods and quality
Pre-opening (site selection, financing etc) and operational assistance: staff, training, advertising
Wider market penetration
Relatively low capital investment
Entry India, LLC

12. Franchisee Issues in India
Some Loss of entrepreneurship
loss of independence in doing and developing business, in pricing, in new product introduction, in hiring etc.
Legal and disclosure framework for franchises is not in place
Real estate markets are somewhat unstructured and unrealistic, making it difficult for start-up ventures to invest.
A franchisor’s problem may become your problem
Entry India, LLC

13. Franchisor Advantages
The franchisor gets easier access to capital for rapid growth
The franchisor leverages the franchisee’s knowledge of the domestic market & regulations
Franchisees are far more motivated to maximize sales and profits than salaried branch managers.
Franchisees are an important source of new marketing and product concepts
Entry India, LLC

14. Franchisor Issues
Liability of Parties Uncertain No Franchise specific legislation: the liability of either party is determined by the agreements between them or on the basis of general applicable laws
Possible loss of direct operational control
Possible loss of Intellectual Property
Entry India, LLC

15. Franchisee Plan Research Write a business plan Get Reports
Attend tradeshows
Evaluate strength of the franchisor
Talk with existing Franchisees
Work in an existing operation
Get professional help in navigating through the paper trail and due diligence
Write a business plan
Entry India, LLC

16. Franchisor Plan Phase 2 Phase 1 Roll out plan Market Research
Locating the right partner
Govt. clearances and approvals
Valuations and Negotiations
Phase 1
Market Research
Entry Strategy
Legal & Disclosure documents
Growth Strategy
Business Plan
Phase 3
Support Activities
Audits & controls
Road map for franchise expansion
Entry India, LLC

17. Growth Sectors in India
Retail, Telecom, Education, Healthcare are fastest growing
Automotive, IT, Beauty, Tourism are fast catching up
Entry India, LLC

18. Example Education Franchising India
India is one of the largest markets for education in the world in terms of number of students.
Current Situation
400 active education franchisee owners in India.
Informal and supplementary education has the lion’s share of education franchising.
Professional and vocational skills (Aviation, Hospitality, Hotel Management, Finishing School, Retail Training, Financial Services, and Insurance are the most franchised followed by IT training.
NIIT, Aptech in IT education, Oxford and Cambridge in vocational learning, Hughes network for management etc.
Demand-supply mismatch for quality schooling
270 million students by 2020
They will need schools, teachers, training, jobs, housing, entertainment…….
Entry India, LLC

19. Best Way to find Partners for US based companies
US Department Of Commerce
Golden Key Service
buyusa.gov/india
Appointments with pre-screened partners
Profile on each Indian company/partner
Post meeting de-briefing
Available in New Delhi, Mumbai, Chennai, Calcutta, Bangalore, Ahmedabad, and Hyderabad.
Payment SME: $700; Large: $2,300
Entry India, LLC

20. Summary
Notwithstanding the current economic slowdown and certain regulatory issues, the franchising market (specially healthcare and education) has enough reasons to remain upbeat about its future in India.
To succeed
Prepare thoroughly
Focus on Establishing Solid Local Partnerships
Get a legal firm and a CPA who have worked with foreign businesses
Track Progress, Enjoy Profit
Entry India, LLC

21. Thank You
Entry India, LLC