The Indian franchise industry is valued at around Rs 800 billion and is expected to continue growing in the coming years at a rate of 30 to 35% per annum
New Delhi: The India franchise business is expected to touch $140-150 billion in the next five years, helped by growth in the number of franchise opportunities and an increase in consumer spending, said a report.
The Indian franchise industry is valued at around Rs 800 billion and is expected to continue growing in the coming years at a rate of 30 to 35% per annum, said a report titled ‘FranCast Whitepaper on Franchise Forecast 2023-24’.
Presently “India is the second largest franchise market globally. Five years from now the franchise industry is looking to touch $140-150 billion”, the report added.
Currently, in India, there are 4,600 active franchisors across all sectors operating nearly 2 lakh outlets.
More than 300 companies are starting franchising every year and 53% of all franchises are by multi-unit franchisees, it added.
In this, regional brand dominates with 50%, 34% from a national brand and rest 16% is with the local brands.
Out of this 35% of franchise concepts are F&B brands and Rs 5-10 lakh is the initial investment level for 40% of the franchisees
Though the Indian franchise market is still nascent, the industry accounts for close to 2% of the national GDP but has created one million jobs.
The global franchise market size reached $100.7 billion in 2021-2022 and is expected to grow at a CAGR (Compound Annual Growth Rate) of 9.73% till 2030.
“The global franchise market is expected to reach the value of $175.9 billion by the end of 2030,” it added.
