The India franchise business is expected to touch USD 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 cent 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 USD 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 per cent of all franchises are by multi-unit franchisees, it added. In this, regional brand dominates with 50 per cent, 34 per cent from a national brand and rest 16 per cent is with the local brands.
Out of this 35 per cent of franchise concepts are F&B brands and Rs 5-10 lakh is the initial investment level for 40 per cent of the franchisees.
Though the Indian franchise market is still nascent, the industry accounts for close to 2 per cent of the national GDP but has created one million jobs.
The global franchise market size reached USD 100.7 billion in 2021-2022 and is expected to grow at a CAGR (Compound Annual Growth Rate) of 9.73 per cent till 2030. “The global franchise market is expected to reach the value of USD 175.9 billion by the end of 2030,” it added.
PTI
