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% over the past five years and is expected to maintain this rate of growth over the next two years, with the market value reaching US5140 billion to US5180 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.
Law stated – 14 April 2026
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.
Law stated – 14 April 2026
Disclaimer: This update is for general information purposes only. It does not purport to provide comprehensive legal or other advice. The publisher and the contributors accept no responsibility for losses that may arise from reliance upon information contained in these publications.
