Types of Franchise Business

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Major types of Franchise Business in India

The four major types of franchises that are available in India are the product franchises, the business franchise ventures, the manufacturing franchises, and the business format franchises.

Product franchises

The product franchises are ones where the manufacturer uses the franchise contract to decide the ways in which the franchisee will be distributing the products.

An example of such a franchise would be one where a retail establishment procures the franchise to distribute cakes. In these cases the franchise will be able to use the trademark and brand name of the manufacturer in order to sell or distribute the cakes.

The store owner will be paying the manufacturing company a certain amount of previously agreed fee or come to an agreement regarding the purchase of a minimum amount of inventory for selling to the customers.

A major benefit of this sort of franchise is that the franchisee is also able to call on the experience of the franchisor in addition to the brand name.

Manufacturing franchises

In these cases the franchises are allowed to make the products with license and also market them by using the name and trademark of the original company. They can also use national advertising to market the manufactured product.

The company that originally owns the product is provided a franchise fee and also a certain payment for the units sold.

The later payment is not a common feature and has to be included with all the necessary specifics in the contract. A major example of this type of franchise is the food and beverage industry.

Business franchise ventures

The business franchise ventures are instances where the franchisee buys and sells the products from the franchisor. In these cases the franchisors normally provide franchisees a client base, which they need to maintain.

A major example of such types of franchise is vending machine. With vending machines the franchisee buys them from the franchisor and is consequently responsible for servicing and selling them. They also get their share from the proceeds.

Business format franchise

This is the most preferred form of franchise in India. Here the franchisee gets a successful business model that is backed by a popular brand and product. The brand owner provides the required training and help for establishing the business. The franchisor also provides the supplies and receives a royalty fee from the franchisee.

The franchisor also provides the franchisee raw materials and products and this is done on a frequent basis to make sure that the latter’s quality of service stays the same. Major examples of such a franchise type are the fast food chains.

Types of Franchise Business by Investment

Franchise business under INR 5000

Majority of the franchise business opportunities available in India in this price category are available in the travel and leisure segment. Several opportunities are also provided in the information technology sector as well as necessary services like education for kids.

Following are the major examples in this regard:

PC Indian Express
It is a web based provider of travel and utility solutions. In order to be a channel and distribution partner of the organization should have a small residential or commercial space from where the services can be offered. Following are its contact details:

Partha Ghosh-09903712171(Business Partner)
13/344 Lokenath Market, Jagatpurbazar, Baguiati, Kolkata-700059

Bookiashh.com owned by Kiashh Multiservices Private Limited, is offering franchise opportunities for a registration cost of INR 5000.

Jodiyanmatrimony.com is also offering state or district franchise opportunities for INR 5000.

Pan India Leisure and Holidays
Pan India Leisure and Holidays is also offering similar opportunities. Following are some of the basic necessities in this case:
  • Operational professional space of at least 300 square feet
  • The premises should also have arrangements for a sign board that can be seen clearly
  • Premises should ideally be owned
  • The office should have a telephone line, computer with internet facilities, and a fax line
  • If it is a lease, the term should at least be a year
  • Staff should be recruited from the travel industry and they should know about CRS and tours
  • Premises should preferably be on the ground floor and face the road
India Grid
India Grid, a business service provider, is offering franchise opportunities at INR 5000. The investment is inclusive of franchise fees, fixtures and furniture, equipments, and marketing and advertising. The franchisees are provided a training program as well as hardware and software support.

Franchise business under INR 10,000

Once again, the information technology related opportunities rule the roost when it comes to franchise opportunities available under INR 10 thousand.

SK Enterprises
SK Enterprises is offering franchise opportunity for an amount between INR 10 thousand and INR 50 thousand. The required space is 50 square meter. www.srsdatacenter.com is offering similar opportunities but the investor should have good contacts in the area where they are operating.

Realbiz Info Services Private Limited
Realbiz Info Services Private Limited and www.citiesbazaar.com are providing franchise opportunities for an amount within INR 10 thousand and 50 thousand with no definite requirements for space. Similar opportunities are also being provided by Bhartiya Chetana Avam Prakashan.

Franchise business under INR 50,000

As far as franchise opportunities for less than INR 50 thousand are concerned, there are plenty of sectors like sports, consultancy, and management services.

Aero Sports
Aero Sports is offering franchise opportunities within INR 50,000 and INR 2 lakh and the required space is 100 square meter.

Royal Consultancy
Royal Consultancy is also providing franchise rights within the same range but the required space is 200 square meter.

Resource Management Group
Resource Management Group is offering rights to franchise for an amount between INR 50 thousand and INR 2 lakh. The necessary area is 10 square feet.

Other types of Franchise Business

Franchise business from home

The following table lists some of the home based franchise opportunities available in India:

Brand name Area needed Investment needed in INR
Daily Dump 1000 square meter 2 lakh – 5 lakh
Sparket Marketing Private Limited 50 square meter 2 lakh – 5 lakh
UWL - 5 lakh – 10 lakh
Mega Guest Rooms 1400 square feet 2 lakh – 5 lakh

Following are some other companies that are offering home based franchise opportunities:
  • Sundaybiz
  • Vasu Endeavor
  • Beehive Datasoft
  • Shreyoshree

Online franchise business in India

In the last couple of years online franchise business opportunities have increased in India thanks to the growing penetration of internet in India, especially the urban areas.

Yet another factor in favor of this phenomenon is that with online business it can be done from any place and at any time as per the convenience of the owner.

The following table shows the various web based franchise business opportunities available presently:

Brand name Area needed Investment needed in INR
Made-from-india.com 700 square feet 10 thousand – 50 thousand
Estate99.com - 50 lakh – 1 crore
RGS Marketers - 10 thousand – 50 thousand
Webolusion - 10 thousand – 50 thousand
Axial Web Solutions - 2 lakh – 5 lakh
Nirmal World 1000 square feet 5 lakh – 10 lakh
Webdigitalmarketing - 10 thousand – 50 thousand
Mac Websoft 400 to 3000 square feet -

Some other companies that are offering online franchise opportunities in India can be enumerated as below:
  • WSI Digital Marketing
  • Money Appraisal
  • Anglo Info
  • Apex Education Private Limited
  • Bans Techno Solutions Private Limited
  • Sio365
  • Qi Limited
  • My Video Talk

IT business franchise opportunities in India

Internet penetration in India has increased significantly in the last couple of years and it has progressed to become an integral component of everyday life for many families and organizations.

This has also brought greater opportunities for specialists and experts in this area and this is reflected in the number of IT companies offering their franchise rights. It is expected that with increasing internet usage and awareness in the rural and semi urban areas these companies will only flourish in the future.

The following table enumerates the various opportunities available for franchising in the IT sector:

Brand name Area needed Investment needed in INR
Inspire Networks 100 to 200 square feet 2 lakh – 5 lakh
Clublaptop 150 to 200 square feet 5 lakh – 10 lakh
Orange Soft World Private Limited 100 to 500 square feet 10 lakh – 20 lakh
Intelliob Technologies (p) Limited 100 square meter 10 thousand – 50 thousand
Aadara Technologies 200 square meter 50 thousand – 2 lakh
The Planet Infosoft 50 square meter 10 thousand – 50 thousand
Web Softech India 100 to 500 square meter 10 thousand – 50 thousand
Think Technology Services - 50 thousand – 2 lakh
Satmac Infosys Limited 500 square meter 2 lakh – 5 lakh
PIK (Portals in Kerala) Group 250 square meter 10 thousand – 50 thousand
Excellence Outsourcing Private Limited 200 square meter 10 thousand – 50 thousand
Neon Broadband 250 to 1500 square meter 5 lakh – 10 lakh
World Phone Internet Services Limited 200 to 500 square meter 10 thousand – 50 thousand
Web Care India 50 to 250 square meter 10 thousand – 50 thousand
Infolithic Technologies 500 to 3000 square meter 5 lakh – 10 lakh
Bhardwaj Network.com 200 square meter 10 thousand – 50 thousand

Franchise business for women in India

Franchise business opportunities for women in India are highly preferred by independent minded and educated women who are looking to earn and contribute to their family or improve their lifestyles.

It is expected that with increasing levels of education and awareness among rural and semi urban women about their rights and prospects will only create for more such eager individuals.

Following are some of the major franchise business opportunities for women in India:
  • Beauty sector
  • Home based sector
  • Pre school and play school sector
  • Toy and book rentals
  • Fitness centers and gym

Last Updated on 11/06/2012