No matter what challenges may seem, if these brands are staunch towards their franchising partners and prepared to aid them in growth by providing them with appropriate training, assistance for marketing initiation and audits, operational support then these hurdles can be overcome. Hence these brands should promote more master franchise india prospects.

1. The Franchising
challenges
forecast for
international
Brands analysis

2. • Two decades old Franchising has always appealed the international
investors in India. Master franchising is a boom in franchise
business with remarkable brands offering its master franchise to
upcoming business entities
• Master Franchise prospects in India is exceptionally profitable
business not only for expansion and growth but also for great
turnover.
• As the famous phrase goes “Every coin has two sides” Franchising
industry too has its own set of challenges that every international
franchisor should foresee.

3. Lack of Precise Location Supply
• Finding the right location to set up franchises is the key challenge
faced in India. It is estimated that in India there are around 570
malls out of which about 230 are profitable and within these malls
there are several problem of availability even at premium rates.
Political clout and contacts are sought to secure a good location.

4. Under – Capitalization
• Many businesses go into loss due to the lack of proper funding and
undercapitalization. Usually this phenomenon is faced by the
businesses during the initial years of their operations. The cost of
setting up and supporting new franchisees outstrips the revenues
and royalties. Several new franchisors fall into this vicious
circumstances because of they begin with just enough capital to set
up the business and small marketing budget to start recruiting
franchisees but not sufficient to sustain the franchisor through their
growth curve.

5. Recruitment of right
Franchisee and on-board staff
• The strategic success of the business and franchise is directly
related to the quality of the franchisee on-board. It is not only
important to find the people with the right qualifications and financial
muscle but also extremely important to find the people having right
intent and mirroring the strategic objectives of the parent company.
Also it is important to understand the talent required to run the
business on day-to-day basis. Employees represent the brand and
reflect the brand identity, hence the right people is extremely
important. One of the major challenges faced by franchisors globally
is the availability of the right staff and the skills available to take the
brand on the right track.

6. Lack of Legislation:
• India does not have specific laws governing the franchise industry.
As a result franchising in India is governed by a series of laws. This
increases the complexity of transactions being conducted. This also
leads to ambiguities in conducting business. For example: a
franchisor world envisages a certain issue as the franchisee’s
responsibility under one law while the franchisee would assume
otherwise based on a different law.

7. Managing pilot operations
• Global brands generally select for pilot franchising prospect as a
trial model to evaluate whether the goods and services will be able
to reap a response in the industry. As Mike Hanrahan Managing
Director of Maid2Clean truly quotes, “Ability to run a pilot system for
the network is a challenge in the Indian market. We are seeking
articulate, tenacious and hardworking area developer investors for
India.”

8. Business Ethics
• While selecting the right business partners in India, the brand look
for amicable interpersonal, social skills and influencing. Extensive
business policies and analysis at various levels impact the business
prospects. Cathal Kiely, Managing Director, UTime Fitness adds
“There are no country wide standards and regulations in India.
There is a lack of skilled trainers here.”

9. • No matter what challenges may seem, if these brands are staunch
towards their franchising partners and prepared to aid them in
growth by providing them with appropriate training, assistance for
marketing initiation and audits, operational support then these
hurdles can be overcome. Hence these brands should promote
more master franchise India prospects.

10. Want to learn franchising challenges forecast for international brands
analysis ? Please visit our webpage at:
http://www.franglobal.com/transaction.php
Contact Us: +91-0129-4223300
Mail Us: franglobalbrands@franchiseindia.net