Akka Entry India Franchising

8/8/2019 Akka Entry India Franchising

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Entry India, LLCwww.entryindia.com

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Franchising

Business in India

Entry India, LLC

[email protected]




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Target Audience

Small & Medium Enterprises (SMEs)

Start ups, and

Non-Resident Indians (NRIs)

Who want to

Expand their business into India Start a new business in India

Profit from opportunities in India




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Business, Economic and Social Environment

Markets & Growth Prospects

Legal and Regulatory Framework

Special Incentives

What investors consider -1




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Fluidity of capital

Flexibility of the labor pool

Government receptivity to business Information communication technologies

Private sector development infrastructure

Legal systems to protect intellectual property rights

Available scientific and human capital

Cultural propensity to encourage creativity.

What investors consider

Specifics




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India Rising

Most attractive socio-economic & business fundamentals

Market least affected by the global recession

World¶s largest democracy: 1.2 billion population

100 million middle class in 2009 -> 580 million by 2025 ***** World¶s 4th largest economy

Largest English speaking nation in the world




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India Investment Options

Large potential in retail, infra-structure,healthcare, education ««

Invest in Stocks, Bonds, Real Estate «.

Start or expand your existing business toIndia




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India Investment Options-2 If you have a business and want to expand it

to India, consider becoming a Franchisor

If you want to start a new business, consider becoming a Franchisee

NRIs instead of regularly sending money toyour family in India, start a franchise for them




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Why Franchise in India

Franchising is Big Business Globally

Over a million franchised outlets with sales of 2-3 trillion dollars The United States of America is at the forefront of the franchise boom

40 % of retail sale revenues are from franchising

50,000 Malls, 40,000 Supermarkets Franchising has a Huge Growth ahead in India

Relatively New Concept for India Around 1,200 Franchisors in the country (200 are foreign) More than 100,000 franchisees Current market size in India: $10 billion $20 billion by 2013 (30 % Growth Rate)

2% of the total Retail Sales 300 Malls, 1500 Supermarkets

Franchising infrastructure is in place in India




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Premier

Franchising Resources

International Franchising Association (IFA)http://www.franchise.org/

IFA represents all aspects of the franchise community and works toprotect, enhance and promote franchising.

The Franchising Association of Indiahttp://www.fai.co.in/

Provides a one-stop shopping experience for franchising business




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Franchising Defined

Franchising is a method of doing businesswherein a franchiser licenses brand, productand proven methods of doing business to a

franchisee in exchange for a recurringpayment. Various types of support are madeavailable continuously by the franchiser toenable the franchisee to compete and grow.




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Franchisee Advantages

Franchising Reduces Business Risks 90% of start-ups fail in the first year. In a franchised

business, over 90% succeed. Proven business model, recognized brand, customer

acceptance

Established methods and quality

Pre-opening (site selection, financing etc) and operational

assistance: staff, training, advertising Wider market penetration

Relatively low capital investment




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Franchisee Issues

in India

Some Loss of entrepreneurship

loss of independence in doing and developing business, in

pricing, in new product introduction, in hiring etc. Legal and disclosure framework for franchises is not in

place

Real estate markets are somewhat unstructured andunrealistic, making it difficult for start-up ventures to invest.

A franchisor¶s problem may become your problem



Entry India, LLC

www.entryindia.com

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Franchisor Advantages

The franchisor gets easier access to capital for rapidgrowth

The franchisor leverages the franchisee¶s knowledge of

the domestic market & regulations Franchisees are far more motivated to maximize sales

and profits than salaried branch managers.

Franchisees are an important source of new marketing

and product concepts



Entry India, LLC

www.entryindia.com

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Franchisor Issues

Liability of Parties UncertainNo Franchise specific legislation: the liability of either party is

determined by the agreements between them or on the basis of general applicable laws

Possible loss of direct operational control

Possible loss of Intellectual Property



Entry India, LLC

www.entryindia.com

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Franchisee Plan

Research

Get Reports

Attend tradeshows

Evaluate strength of the franchisor

Talk with existing Franchisees

Work in an existing operation

Get professional help in navigating through the paper trail and due diligence

Write a business plan



Entry India, LLC

www.entryindia.com

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Franchisor PlanPhase 1

Market Research

Entry Strategy

Legal &

Disclosuredocuments

Growth Strategy

Business Plan

Phase 2Roll out planLocating the right partner Govt. clearances and approvalsValuations and Negotiations

Phase 3Support Activities

Audits & controlsRoad map for franchise expansion



Entry India, LLC

www.entryindia.com

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Example

Education Franchising India

India is one of the largest markets for education in the world in termsof number of students.

Current Situation 400 active education franchisee owners in India.

Informal and supplementary education has the lion¶s share of education franchising. Professional and vocational skills (Aviation, Hospitality, Hotel

Management, Finishing School, Retail Training, Financial Services,and Insurance are the most franchised followed by IT training.

NIIT, Aptech in IT education, Oxford and Cambridge in vocationallearning, Hughes network for management etc.

Demand-supply mismatch for quality schooling 270 million students by 2020 They will need schools, teachers, training, jobs, housing,

entertainment««.



Entry India, LLC

www.entryindia.com

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Best Way to find Partners

for US based companies

US Department Of Commerce

Golden KeyS

ervicebuyusa.gov/india

Appointments with pre-screened partners

Profile on each Indian company/partner

Post meeting de-briefing

Available in New Delhi, Mumbai, Chennai, Calcutta,Bangalore, Ahmedabad, and Hyderabad.

Payment SME: $700; Large: $2,300



Entry India, LLC

www.entryindia.com

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Notwithstanding the current economic slowdownand certain regulatory issues, the franchising market(specially healthcare and education) has enough

reasons to remain upbeat about its future in India. To succeed

Prepare thoroughly

Focus on Establishing Solid Local Partnerships

Get a legal firm and a CPA who have worked with foreignbusinesses

Track Progress, Enjoy Profit

Summary



Entry India, LLC

www.entryindia.com

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Thank You

Akka Entry India Franchising

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