Franchising in India

by FMS Franchise February 23, 2011May 30, 2023 | Case Studies

2 minutes

Vadodara: The franchise sector in the country has demanded industry status from the Government of India. Office-bearers of the Indian Franchise Association (IFA), a non-profit organization representing the sector, said this on Friday on the sidelines of Business Opportunities Show 2011 which was organized jointly by IFA and Franchise India with the support of the Ministry of Micro Small and Medium Enterprises (MSME).

“Unlike the United States, where the franchise sector counts for 45 percent of its GDP, in India the sector counts for only three or four percent of GDP. We are demanding industry status for the sector as it is growing at 30 to 35 percent annually,” the business head of IFA Mohit Ganglani told TOI.

“The industry is presently valued at US $ 10 billion in India and is expected to touch US $ 20 billion by 2030,” said Ganglani, adding that if GOI provides industry status to the sector there will not be any flaws as there will be proper guidelines in place.

“This would safeguard the interest of investors as there would be guidelines for proper non-disclosure agreements between the franchise holders and the investors. At the same time, with industry status, there will be value addition which will attract big brands to enter the Indian market,” said Ganglani, adding that IFA is taking up the matter with ministries of commerce and MSME.

IFA, which has 150 direct and 10,000 indirect members, is planning to organize business opportunity shows in 31 cities this year to generate awareness about the franchise sector.

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