Franchising in the world dates back to around the 1850s when Isaac Singer, who made improvements to an existing model of the sewing machine wanted to increase the distribution of his sewing machines. This was among the first franchising efforts in the United States. A later example of franchising was John S Pemberton’s successful franchising of Coca-Cola. Since then, franchising has come a long way. International brands like Dominos pizza, Pizza Hunt, Subway, West Side, and Barista have given out franchises in order to conduct business easily all over the word. Today, franchising works best for those businesses which have geographic appeal are relatively easy and inexpensive to operate and which are built around a unique and unusual concept India has comes a long way from the traditional method of conducting business. Since 1990, there has been a massive change in the way business is handled here. In the past decade international brands in various sectors like KFC, McDonald’s, Holiday Inn, Gold’s Gym Marks & Spencer and others have transformed the business trends in India. It is thanks to these brands today that international franchising in India is one of the most exciting areas in the franchise industry. Sectors like Retail Food and beverage Education, Health, Beauty, Tourism and many other services are booming in the Indian franchise market. It has been predicted that introduction and penetration of new technologies will create new opportunities for franchise. All these market conditions combined with the low rate of franchise failure and significant return on investment have made franchising a major strength in current Indian economy. Along with this, many Indian brands are making headway throughout the world in sectors like Ayurveda (Indian traditional medicine like Herbal combinations). The future of franchising in India is highly promising. Since its beginning in the early 90s, the franchise industry has grown in leaps and bounds in the Indian sub continent and there is much more to explore. According to reports for the past five years the Indian franchise market has recorded a steady growth of 30 to 35% per annum. Also, the annual turnover of the Indian franchise industry soared to 3.3 billion USD and is projected to soar higher in the coming years. There are four fast growing sectors in Indian Franchising namely Telecom, Retail, Food and Education. In the Indian Telecom Sector there has been a wave of expansion in every Indian telecom company. Telecom franchises have come up in India and they are projected to thrive well with the reports of user numbers touching 250 million by the end of 2007 and 500 million by the end of the year 2010. The franchise business in India and internationally is definitely booming and effort to tap into the potential prospects offered by this sector is the Times of India Group’s Initiative of the Tomes Franchise Expo. Putting forth the right platform for entrepreneurs, SMEs, franchises, franchisors, financial institutions and public to interact with each other and explore latent franchising avenues.
Timbor Cuicine – A typical case – set up in India
Timbor Cuicine a renowned modular kitchen brand in the Rs 1,200 crore Industry growing at 30% p.a is an international manufacturer, marketer & retailer of modular Kitchens with a state of the art Italian technology manufacturing unit and a pan India presence through 63 exclusive kitchen stores. All Timber products conform to American and European designs and standards and are synonymous with quality workability, functionality and durability. The Timber trade partnership program (TBA) franchise model is a robust and a unique offering with a minimum 500-1000 sq ft space requirements and a one time investment ranging from 5 – 10 lakhs. There is no franchisee or start up fees, no investment in stocks or inventories, zero exit cost and a payback period of as less as 6-9 months proof of which is the testimony of the existing trade partners. Ideally a Timber Cuicine franchises can establish the business any where India including cities already covered. The company’s simple and user friendly online sign, sales, estimation and installation program makes the entire process very convenient even for players from outside the modular kitchen trade.