Thursday, February 23, 2017
India has no franchise law; Some nations have stringent franchise laws
Friday, 02 December, 2016, 08 : 00 AM [IST]
Lucy Fernandes, Mumbai
India is one of the countries that does not have a franchise law of its own, and the countries that have laws governing the franchising business are, to a large extent, detailed and restrict any malpractice in the franchising business relationship.
This was stated by Vijay Widge, franchise consultant and contractor, in a seminar titled How to franchise your bakery business successfully. It took place on the opening day of the 11th essay of Bakery Business.
The three-day event, held on MMRDA Grounds in Bandra Kurla Complex, was organised by Hospitality First. The inaugural speech was delivered by Pradeep Gopalan, director, Hospitality First.
He said, “This is another inspiring journey which brings a highly performing solutions, latest innovations in bakery manufacturing, technology and revolutionary ingredients that will shape and drive the future of the industry.”
“In all, there are 200 leading national leading and international exhibitors at the show. We are expecting a footfall of 10,500 visitors over the three days,” Gopalan stated.
He added that second seminar would be on the live in-store bakery concept, which is focused on developing a franchise model, franchisee recruitment and value addition for new projects, challenges and opportunities, etc.
F&B segment growing
Widge said, “The current size of the Indian food industry stands at Rs2,47,680 crore per annum. It is expected to grown at 11 percent to touch a staggering Rs4,08,040 crore by 2018.”
He added that quick service restaurants (QSR) and the casual dine-in format account for nearly75 percent of the total chain, while cafes make up 12 percent. Finedining outlets, pubsand lounges comprise the rest.
“The food and beverage segment has witnessed tremendous growth in the last few year. It has been growing by 35-40 percent, owing to the favourable demographics of the country and the willingness of consumers to spend more,” Widge stated.
“The segment is growing rapidly based on the franchise format and is expected to witness significant growth in the near future. The per capita consumption of bakery product in India is one or two kg per annum. This is much lower than the developed countries, where consumption is between 10kg and 50kg per annum,” he added.
“The proliferation of modern supermarket chains across India has greatly helped in leveraging innovation in the bakery products, because consumers who shop in modern stores expect greater variety and convenience,” Widge said.
He added, “Today,over nine per cent of the franchisees in India are under the age of 30. The figure is 43 percent in the case of new recruits. In India, the average age of franchise buyers is around 48 years.”
“About 30 percent of the franchisors are veterans and people who have retired from professional careers. The franchise sector today offers opportunities to build your own brand by becoming a franchisor,” Widge said.
The presentation touched upon points like development of a franchise model and market support.
Widge stated, “For me, franchisee is a marriage.If it is a marriage, we must ensure that we take care of it like a partner and not like a dealer. Everything will be easy if franchisee is making money out of business.”
He added, “There are two area of expertise - selection and recruitment of the right franchisees and management and operational fulfillment of both the parties for the success of franchise system.”
Shailesh Ashar, partner,Pascati (one of the exhibitors), said, “This is thefirst time we are attending this event. It is a platform to expand our business.”
Mamta Bafna, a visitor, said, “I am attending this event for two years.Ithas provided us with exciting knowledge about the latest trends and technology for every kind of bread and bakery items.”
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