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Franchises

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CHAPTER 1: FRANCHISE INDUSTRY

KPMG in India carried out a survey of Franchisors and Franchisees to solicit their perspectives on outlook for growth and how overall dynamics between Franchisor and Franchisee community is shaping up. The results of the survey have been broadly categorized under the following heads

* Growth drivers for Franchising in India

* Franchise Operating Models

* Franchisee Satisfaction

* Franchisee Support & Relationship Management

* Challenges in Franchising

* Conflict Management

Growth drivers of franchising in India
India, with its large population has always been a consumption story and will continue to remain so for the years to come. Burgeoning consumer class with an increasing appetite for consumption is considered as the biggest growth driver, both by franchisors and franchisees. Increase in entrepreneurial drive coupled with risk taking abilities has steered a number of people, especially those with no-specific business background, take a plunge into franchising based business models. Franchising as a business model has achieved stability over the course of time, giving new entrepreneurs increased confidence on the success of their ventures. Besides these, availability of investments and increased investment capability has also been a key factor driving the growth of the industry, especially when investment support from franchisors is minimal.

Businessmen predominantly choose franchising route as it helps increase the scale of operations while reducing the time to market. This also aids in brand building process through value creation. Franchising imparts uniformity of product / service offering thereby leading to increased standards and quality. This is mainly the reason for franchisors not willing to customize their offerings for various franchisees, an aspect which

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