10 Upcoming Franchise Trends to Prepare For In 2017

The franchise industry is expected to grow at a CAGR of 30 per cent, and has the potential to contribute approximately 4 per cent to India’s GDP value by 2017, reaching a market value of USD 50 billion. There are many factors that will contribute to this growth and you should be prepared for. Read on.

- Rajat Wahi

The franchise industry in India has seen a significant growth from USD 13.4 billion in 2012 to approximately USD 24 billion in 2015 – grown at a CAGR of more than 20 per cent. A rapidly evolving environment has led to the industry moving away from a quantity-driven model to a quality-driven one. The franchising business in India is likely to witness more innovations and advancements in its operating model. It could evolve as the most efficient last-mile-to-market business model.The following trends are shaping the Indian franchise industry:

1 Growth of franchise in services

Franchises in the services sector, including consumer services — financial, courier, travel, food services, health and wellness, matrimony, etc. —are expected to contribute majority of the growth in the next 4–5 years. Franchisees in these areas are expected to form about 55 per cent of the total franchises in India by 2017.

2 Franchise for market entry and expansion

Major international companies are expected to adopt the franchise model to enter the Indian markets. Similarly, the already existing international and domestic companies would expand via this model as the government resorts to more liberal investing policies.

3 Franchising in Food and Beverage (F&B) on the rise