TO ASSESS THE SCOPE OF FRANCHISE BUSINESS: A YOUNG ENTERPRENEUR'S PERSPECTIVE

Abstract

Franchising is the practice of using another firm's successful business model. Franchising, where an entrepreneur replicates a brand's per-unit business model by giving a fee and a share in the revenue, is also favoured by companies across sectors. Franchising in India is estimated to be worth $22 billion (about INR 1. 2 lakh crore) and is growing at 30% annually, according to data from Franchise India. "There is a lot of entrepreneurial appetite in the country and people have money to invest. This project is undertaken to study the buying behaviour of young entrepreneurs of Delhi in the Franchise market i.e. what series of steps do they follow before taking the big decision of buying a brand and also to explore the factors that decide the satisfaction level of a franchisee holder. The study also tries to explore the skills and expertise required to run the Franchise business smoothly. For the research problem relevant information was gathered & a questionnaire was formulated. The survey was initiated and the data were collected from the target group. This study will try to provide more insights into the area of Franchise business and what’s the take of young entrepreneurs of Delhi-NCR on Franchise business. India offers lot of potential for the franchising community & expected to reach US$ 20 billion by 2013. Franchising is still an emerging trend in India as only 10% of the businesses in India are franchised as compared to 70% in the United States. Education sector which accounts for the maximum portion of the total franchised business in India is only 38% franchised as a sector as a whole. Other sectors like retail, food, healthcare etc. go on similar lines. The major findings of this study are that franchise is considered as the easiest way to start a business by our respondents. Existence of established brand, well set up infrastructure, lower risk and higher growth opportunities attracts the young entrepreneurs to opt for franchise business instead of starting their own. Food and beverages is the most famous franchise business among our respondent followed by education/training and apparels franchise business. A franchisee expects a lot of support from its franchisor. To name a few, marketing support, operational support, active communication, and existing infrastructure, which a franchisee demands from its franchisor. Delhi School of Management, DTU Page VIII Skills required for the franchisee to achieve success in the franchise business include the management skills, technical skills and networking skills. Expertise required to run the franchise venture in a smooth way includes the financial fitness, risk taking capabilities, profit oriented and the analytical abilities of a person.