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The Indian economy grew by 8.1% in the last quarter of 2003, thanks to the ongoing reforms and disinvestments. The middle class has never had it so good, with plenty of options and credit available in abundance at a competitive rate. There has been a change in mindset; a flamboyant generation is gradually replacing the debt-cautious. Banks have identified
Franchised operations are becoming more popular in geographically vast and culturally diverse nations like India, as franchising helps to overcome the difficulties posed by having a chain of company owned outlets.
The earliest franchises date back to the Middle Ages when the Catholic Church granted them to tax collectors, who retained a percentage of the money they collected and turned the rest over to the Church. Current franchise operations as we know them are not very old. The boom in franchising did not take place until after the World War II and it has not abated this.
The Franchising Industry received a fillip in during the 1990s due to the opening up of the economy. Since, then, sales from franchised business have grown at an average rate of 20 – 30% compared to an economic growth rate of 6-8%
Today, International franchising in
The Franchising Association of India (www.Fai.co.in) predicts that the introduction and penetration of new technology will create new opportunities for franchises. Mergers and Acquisitions will increase as larger franchisers take over smaller ones. These factors combined with the low rate of franchise failure and considerable return on everybody’s investment, have made franchising a major force in the Indian economy at this point.