US-based global franchise consultant major Francorp International is foraying into the estimated 3.3-billion dollar Indian franchise market
NEW DELHI: US-based global franchise consultant major Francorp International is foraying into the estimated 3.3-billion dollar Indian franchise market and is aiming to bring in 100 odd companies into the country by end of 2009, through the franchise model.
The company, which has a 40 per cent share in the US franchise consultancy market, has formed a strategic partnership and licensing arrangement with the Franchise India Holdings Ltd (FIHL) and hopes to achieve a turnover of five million dollar in India within the next three years.
The new partnership company -- Francorp India -- has already started discussions with Francorp's global client base of 2,000 companies for introducing a range of new franchise ventures in India.
"India is one of the most exciting markets and we are hopeful of introducing new franchise ventures in diverse sectors, including fast food and restaurant business, apparel and accessories retail, hospitality management, home solutions, cleaning services and so on," Francorp International President Ramon Vinay said here.
He said among the firms who have shown interest in venturing into India under the franchise partnership are US-based kids cooking school chain Viva La Chef, gourmet sandwich specialty chain Jimmy Jones, Dubai-based Heritage for Henna and juice bar chain Forty Fruity, Egyptian cafe chain Cilantro Cafe and Costa Rican service firm Husband for Hire.
"We are looking at securing a turnover of five million dollar from consultancy revenue within three years from now. I would not be surprised if by end of next year we are able to bring in around 100 of our clients into India," Vinay said.
Francorp's client base globally include American Express, Du Pont, Kodak, Ford Motor Company, Hall Mark cards, Shell Oil and KFC among others.
The new partnership company -- Francorp India -- would start with offices in four cities, including Delhi, Mumbai, Bangalore and Chandigarh.
"Besides bringing their clients into India, we are also looking at giving our 300 odd clients a network in the global franchise market," Franchise India Holdings Ltd President Gaurav Marya said.
He said the company would start a programme to promote the Indian franchise market among US corporations.
"We would also be bringing a delegation from the US to India soon and also send our consultants to train with Francorp in their Chicago head office," Marya added.
Asked about the viability of franchising model on account of the prevailing global downturn, Vinay said: "Franchising has also proved to be shockproof as it has advantages like economies of scale, investment in training and research of location and backing of big corporations."
Vinay and Marya said big retailers in India are more likely to adopt the franchise route as the slowdown in economy has led to erosion of alternative sources of capital, which the business houses earlier used to tap.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}