Food franchise in India

Become a part of the Booming Indian Franchise Sector today

Food and beverages is an ever growing business which is why franchising is very popular these days. It is profitable for international brands as well as small businesses as it increase brand awareness among consumers. Casual restaurants, Quick Service Restaurants, Lounge and Fine-dining franchises have been proven to be rewarding for new investors in the past year.

A study has revealed that more than one third of new food outlets are operated through the franchise system world-wide, however in India the franchise sector is nascent which is why India has an unparalleled potential in terms of franchising business opportunities. Indian laws don’t require the franchisors to be registered under a regulatory body hence any brand can establish its franchise system in India.

The lack of franchise specific laws in India has made the Indian franchising sector extremely flexible, the laws also don’t mandate the franchisor or the franchisee to sign non-disclosure agreements and give the parties freedom to negotiate their terms. The system also accommodates the setup of franchise advisory companies making the process easy and practical.

Various regulations like The Completion Act aims to ensure that tie-in arrangements, exclusive supply and distribution agreements and resale price maintenance do not inhibit competition in the marketplace which is why the franchise industry experienced a 35% year-on-year growth, and about 4,050 new brands adopted the franchising model.

Indian franchising is developing its own trends, domestic businesses are modernising their production to cater to the larger demand and have started becoming franchisors to gain larger incomes while international businesses franchise through company ownership (establishing offices and helping in franchise set up through their investments) or joint ventures (creating a new entity and allocating the master franchising to this entity).

Acquiring a franchise is easier than it ever was, investors can acquire a single unit franchise, a multi-unit franchise or a master franchise according to their budgets and enjoy various perks through expansion strategy companies like Brands and Branches.

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