In India, Amul and Domino’s are two very popular brands that operate on the franchise business model. In other sectors, too, numerous brands utilize the franchise model for their operations. However, despite their wide popularity, there is a certain kind of stigma attached to franchising in the country, which is rarely discussed in public. For one, franchising is regarded as a model that does not make use of much creativity and that is better suited to businesses in the food sector. Also, the franchise business model is said to hold limited potential for wealth creation.
It is paradoxical that, while global businesses are making their mark through franchise opportunities in India, many entrepreneurs shy away from being called a “franchisee” or even a franchisor. This gets more paradoxical when it is known that 90% of startups fail in the first five years, and during the same time period, the franchise success rate is from 80% to 90%.
Leading India’s Franchise Evolution
As Ajay Gupta, one of the leading franchisors in India, whose preschool franchise business model and K–12 franchise model are among the most successful ones, explains:
“In my experience, one of the major reasons that people do not want to franchise is that they do not want to be seen as just replicating and implementing a system. Franchising is more like “buying into success” for them, while entrepreneurship is more like “starting from scratch”. I have also seen some franchisors fearing that the model might seem more transactional, rather than visionary.”
Known for providing both the best preschool franchise in India, with the name of Bachpan, and the best CBSE school franchise, with the name of AHPS, Ajay Gupta is not the only voice that advocates for the franchise business model. However, his voice does stand out for aspiring and budding entrepreneurs across India due to the fact that his expert insights come from his firsthand knowledge of building a franchise empire.
Franchise Model: India’s Growth Catalyst
During the conversation, Mr. Gupta further added that franchising is not about making rules or following them. The franchising business is about empowering everyone while everyone stays aligned on a bigger mission. Sometimes called the franchise man of India as well, Mr. Ajay Gupta stated, “The franchise business model democratizes access to entrepreneurship. It is one of its most distinguishing characteristics that even people without MBAs from Ivy League colleges can become entrepreneurs with minimal resources and investment.”
As India moves forward on its journey to become a developed country, the future of franchising looks promising, despite the prevailing stigma. The industry is poised for growth as the economy grows, and it offers both the franchisors and franchise partners an opportunity to leverage.
