India is an attractive market for American and European franchisors. Demand for U.S. and other western countries’ brands are strong in telecom, retail, education, garments and apparel, specialized food services, entertainment, courier (package delivery) services, stationery and gift shops, healthcare, fitness and personal grooming clinics.
Indian companies with strong brand recognition have created successful examples of franchise success in India There is Archie’s for giftware, MRF for automotive tires, NIIT for computer training schools and Apollo Hospitals for healthcare. While growing at double-digit rates, franchising still accounts for under 5 percent of total retail sales in India. Some reports suggest that the number of franchisees this country of over 1 billion people is under 50,000.
Many overseas companies have established a presence in India through franchising. In the hospitality and food service industries, this has been the preferred method for starting operations. Success stories include: Hertz, Avis and Budget car rental; Radisson, Best Western and Quality Inn hotels; Kentucky Fried Chicken, Domino’s Pizza, TGI Friday’s, Ruby Tuesday, Subway, and Baskin Robbins for food.
