Franchising in the market
How widespread is franchising in your jurisdiction, In which sectors is franchising common, Are there any economic or regulatory issues in the market that are more or less hospitable to franchising or make it economically viable in your jurisdiction?
With a population of approximately 1.42 billion people, India has one of the biggest franchise
markets in the world. Several studies estimate that the market has been growing at a rate of
over 30 per cent over the past five years and is expected to maintain this rate of growth over
the next two years, with estimates of the market value reaching US$140 billion to US$150
billion.
In India, franchising is common in the food and beverages, hotels, healthcare and wellness,
and education sectors.
India does not have any franchise-specific laws or bodies to regulate franchise businesses
and franchise agreements are mostly contractual in nature. Currently, there are no perceived
regulatory or economic issues that are likely to impede the growth of franchises in India.
Associations
Are there any national or local franchise associations? what is their role in franchising’ including any impact on laws or regulations? Are there any rules of conduct or membership requirements?
Yes, there are several privately run franchising associations in India, membership of which
is voluntary. The Indian Franchise Association and the Franchising Association of India are
two such associations.
These associations primarily provide a platform for stakeholders to network and discuss
issues facing the industry. Certain associations also assist stakeholders with finance-raising,
market insights and business solutions.
Generally, each association has its own code of conduct or by-laws for its members.
