Franchising booms under retail umbrella
Beneath the umbrella of big brand growth in the country’s retail industry, small businesses are throwing up new opportunities for first-time entrepreneurs, reports Ruchi Hajela.india Updated: Dec 23, 2007 22:23 IST
Beneath the umbrella of big brand growth in the country’s retail industry, small businesses are throwing up new opportunities for first-time entrepreneurs. For those jumping from the world of jobs to business, franchising could be the best option.
From idly stalls and salons to apparel to furniture and IT teaching shops, franchising is becoming an option for expansion for many industries, and this is churning out opportunities for partners. The investment can be as low as Rs. 1.75 lakhs and as high as Rs. 80 lakhs for a restaurant franchise. It is one of the world’s fastest growing and most lucrative industries with a turnover running into an estimated $2 trillion, Dhawal Shah, Deputy Executive Officer, Franchising Association of India, told Hindustan Times.
While IT shops have led the game in India, apparel retail is one of the most hot and happening. Brands like Numero Uno, Blackberry and Greg Norman amongst others are all exploring the franchising opportunity.
Greg Norman recently separated from Reebok and is now looking out for franchisees.
“What we are looking at is 1,000 sq feet area store, which would cost the franchisee an investment of Rs 12-15 lakhs. As a partner, we would offer our products at a 30 per cent retail margin to the franchisee,” Anshu Jindal, Brand Manager, Greg Norman Collection, told HT on the sidelines of the Franchise India 2007 franchise and retail show held in New Delhi this month.
Indian brands like Yo! China has around 35 outlets at present is eyeing around 300 outlets by 2010. Yo! China offers two franchisee models — for restaurants and for food courts.
While a franchisee restaurant can be set up in 2000- 2500 sq ft area, a food court requires only 300-400 sq ft of space.
In terms of investment, one requires to spend around Rs 80 lakhs for restaurant and up to Rs 30 lakhs for a food court stall.