What Are The Advantages And Disadvantages Of Franchising

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Franchising is a method of doing business where we have a franchisor that trains and shares his intellectual property with the franchisees that will be running the business as their own but under the guidance as well as the brand name of the franchisor and they pay him a cut of the profits
Some well-known franchisers of today are McDonalds and KFC. Franchising in India wasn’t popular in the 1990 but now India had showed that she is one of the profitable destinations for a foreign franchisor and the widespread of KFC and dominos proves that franchising is now a home for millions and millions of people …. Franchising is a very important way for companies to grow and it also helps the franchisee giving them support and
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And all of these are creating new jobs opportunities and changing a lot of the citizen’s lifestyles especially of the middle class that is growing with a better income.
Even though franchising has been in India for decades but the growth rate has only skyrocketed during the last few years. There are already more than 600 franchising deals and brands in India and most of them are American like pizza hut, Kodak, KFC, UPS ….
Some of the advantages of franchising in India and some of the reasons behind all these foreign brands wanting in aside from India’s huge market and growing demand in the 3 sectors of economy are, first of all the lo capital requirements due to the fact that some of the Indian franchisees can finance the businesses on their own and that way the franchisors will grow their brands without putting a lot of money on the line. In second the diversity of India that plays a huge role as well as the size and geography of India. We can’t not mention the fact that Indian businessman like to have control over what they own and pass it on to their heirs which is why it is safe to assume that the business will stay running and in the family for a lot of coming generations. Finally one of the factors of attraction is that Indians use English on a daily basis and we can say that it is their second language and that means that the relationship between the franchisor
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