Become a franchisor in 2023 – Definitions, advantages & disadvantages – A complete guide

Written by Sparkleminds

Want to become a franchisor?  Heard this term many times but wondering, how you can become one.  Here’s a complete guide that will give you a clear definition of a Franchisor, the pros and cons of becoming a franchisor, how to franchise your business in India today, and more about franchising in India.

Who is a Franchisor?

Franchises are agreements whereby one business grants another the right to use its trademark, business model, and other proprietary assets in order to offer its goods and services.

The original company or one that already exists will be the one selling the trademark. The local entrepreneur who invests in these rights is known as a “franchisee,” and the new enterprise is known as a “franchise.”

Understanding What it Means to Become a Franchisor in India

Typically, three payments are made to the franchisor: the initial franchise fee, an annual fee, and a cut of the branch’s revenues. In addition, it can include additional service fees.

There are benefits and drawbacks to being a franchisor, but overall, it is a viable business option, especially for large, established businesses. A franchisor-franchisee relationship is fundamentally that of an advisor and advisee.

Here’s the role of you as a franchisor:

  • The franchisor offers ongoing advice and assistance with basic business decisions including hiring and training employees, opening a storefront, promoting its wares, securing supplies, and so on.
  • The franchisor’s role as a guide does not end once the partnership has been established and mutual success has been achieved.
  • Some franchisors are more vigilant than others in monitoring their franchisees to ensure that they are upholding the standards, quality, and values of the parent company.

Benefits of Franchisor

Now let us understand what are the benefits of a Franchisor in India are.

1. Opportunities for Growth

Franchising is frequently used by multinational corporations to increase their presence in new markets throughout the world by tapping into the expertise of franchisees in those regions.

The franchisor company entrusts the franchisee with the obligation of regional or international expansion and the right to award additional franchises to other businesses.

In exchange for using the franchisor’s tried-and-true business strategy, market dominance, and brand name, the franchisee bears the cost of opening a location and pays royalties to the franchisor.

2. Increased Market Share

Franchising is a great strategy for a business to expand its presence into new markets while also gaining market share with little to no additional investment. Because franchisees are also business owners, they have a vested interest in the success of their locations and must bear the costs associated with running a business, including payroll.

Even if individual franchise locations generate less revenue than they would if they were part of a larger chain, lower operating costs can nevertheless make franchisees more profitable overall.

3. Scalability

Franchise agreements can be tailored for high-volume national expansion or low-volume regional expansion, depending on the company’s needs, resources, and production goals.

4. Additional Revenue Sources

Ongoing royalties paid by franchisees are an extra source of revenue for a franchisor. Depending on the franchise agreement, royalties might comprise a variety of payments beyond the initial starting fee and monthly charge based on a percentage of the franchisee’s gross sales.

Disadvantages of a Franchisor

Every business comes with its own benefits and risks.  Now that we have seen the benefits of becoming a franchisor in India, now it is time to understand the disadvantages.

1. Capital Investment

It takes a substantial time commitment and financial resources to launch a franchise. Developing the business, opening a flagship location, creating legal documents, developing marketing and packaging strategies, and finding and training franchisees are all essential expenses for every franchisor.

2. Risk of Failure

A franchisee may prove to be a bad fit for a number of reasons, such as being irresponsible, difficult to work with, or unable to successfully operate a firm, even if the franchisor has done its due diligence. There are additional possible scenarios in which the franchise loses money. There is still risk involved in investing in a franchise, even if the business model is tried and true.

3. Loss of control

At the outset, franchisees sign contracts promising to adhere to their franchisors’ guidelines regarding training, behavior, and other matters. However, this may not be the case once the novelty has worn off.

Disagreements are inevitable given that franchisees are people with their own views and temperaments; a franchisee could become stubborn or difficult, or they might not be able to implement changes as easily as the franchisor had intended.

4. Legal and Regulatory Costs Can Be Expensive

Legal action may be required if a franchisee refuses to cooperate or otherwise shows to be a bad option; this can be costly and detrimental to a franchisor’s reputation among other franchisees.

In addition, the Franchise Disclosure Document (FDD) and other regulatory documents necessitate the services of an attorney because of state and federal rules regulating franchisees.

Steps to franchise your business in India – Become a Franchisor in 6 easy steps

The best approach to expand your business across all of India is to franchise it. It’s also a fantastic opportunity to supplement your income. Offering a franchise involves entrusting a portion of your business to an unknown individual. That’s why it’s crucial to research the franchisee’s history.

Here are six easy steps to franchise your business in India.

1. Standardization – The term “standardization” refers to the practice of producing identical results consistently. This will ensure that customers at all of the franchise’s locations have the same consistent product flavor.

2. Ensuring a proper distribution network – Since the franchisor needs to ensure consistency across all outlets, it is important to have a proper distribution network, to ensure the same product/services across all outlets.

3. Have a proper support team – The prospective franchisee has to be assisted by a competent team. They will advise the prospective franchisee on the franchise’s history, past achievements, investment requirements, and potential returns.

4. Marketing Strategy – The franchisor should be actively engaged in online activities and have a strong social media presence. The franchisor must set up some funds for marketing the franchise system.

Key Takeaways – Role of a Franchisor in Franchising Business in India,

  • Franchises are agreements whereby one business grants another the right to use its trademark, business model, and other proprietary assets in order to offer its goods and services.
  • Because franchising allows corporations to leverage franchisees’ in-depth familiarity with local markets, it is frequently used by multinationals to increase their presence around the world.
  • A franchisor must allocate funds for research and development, a flagship location, legal document creation, marketing and packaging strategies, franchisee recruitment and training, and operational costs.
  • Franchises are subject to state and federal rules, which necessitate the use of an attorney to create the Franchise Disclosure Document (FDD) and other regulatory documents.
  • Franchisees are typically not protected against their franchisor’s bankruptcy by the terms of the franchise agreement.

Franchise Your Business FAQs

Q.1. How can I become a franchisor of my own business in India?

Once you have analyzed that your business is successful and are looking to expand it across the country, you can become a franchisor of your business with proper planning and strategy in place.

Q.2. Why would a business choose to franchise in India?

Most business owners choose to franchise because it provides rapid growth with less exposure to debt or the need to use equity financing. Since the franchisee is responsible for raising all startup funds for a location, franchising provides a means for businesses to expand without having to put up their own money.

Q.3. When should a business consider the franchising model in India?

Franchises typically only accept businesses that have been established for at least a year and a half. However, that figure may be higher or lower than stated, depending on the sector. In the first two years of operation, franchising can be helpful for some businesses.

Q.4. Is franchising good for small businesses in India?

Franchises have a higher success rate than other company models, but this does not necessarily translate to better profits. Of course, the higher success rate will cost you more in franchise fees. If you don’t have a lot of expertise in the business world, a franchise may be the best option for you.

To Conclude,

Your level of dedication to the franchising process should be the deciding factor in whether or not you take the plunge.

It would be irresponsible for privately held companies to consider not investigating franchising as a growth and expansion option. However, not every company can benefit from franchising as a means of growth. If you’re an entrepreneur thinking of testing out the franchise market, there are a few things you need to know first.

Get in touch with us at Sparkleminds to know how to franchise your business in India.  Our expertise in franchising has helped various businesses to grow domestically and globally.

 59 total views,  2 views today

Benefits of Multi-Unit Franchising Your Business in India

Written by Sparkleminds

Multi-unit franchising is a good way to ensure long-term growth for your business. Read this article to know more about the Multi-unit franchise business model for your business, its long-term benefits, and how to prepare yourself for multi-unit franchising in India.

Entrepreneurs are now looking at multi-unit franchise models as a surefire way to grow their businesses and take advantage of the growing number of investment possibilities. Eventually, these groups become independent business models and stand on their own.

Multi-Unit Franchising in India – A Complete Guide

The franchise business is always growing, and franchisees are always choosing to own more than one company. Multi-unit leasing is a great way for a business to grow quickly and increase its holdings.

Multi-unit franchises are like single-unit franchises in many ways, except that they have more than one store in the same area. Investors who want to operate a multi-unit franchise must invest more money upfront and over time than those who want to operate a single-unit franchise, but they also stand to gain more from having a larger profit margin.

Since it can be hard for a single business owner to be hands-on at each of their different sites, many choose to hire unit managers to oversee the daily operations at each franchise location. The owner will oversee their network of businesses and report back to the franchisor.

Key Takeaways,

  • One franchisee manages many businesses, typically in the same location, which distinguishes multi-unit franchising from the traditional franchise model. In the past few years, the multi-unit model has become more and more common.
  • When growing their holdings, franchise partners must think about several things, such as infrastructure, resources, franchise systems, the desire for growth, and the bond between the franchisee and the franchisor.
  • Traditionally, multi-unit owners run multiple units in the same area. But there have been cases of franchise partnerships that went beyond countries and boundaries.
  • There are many good things about the multi-unit franchise model for both the franchisor and the entity in charge. This makes it more appealing, which is why the multi-unit trend is growing.

Benefits of Multi-unit Franchising in India

1. Stability

You can choose this type if you want a steady sense of growth. Here, you also have a better chance of being successful because you can make money from more than one place and won’t be dependent on the success of just one place.

2. Building Strong Ties

One thing a franchisor wants to do is build trusting relationships with his or her partners. Those who want to stick with a certain brand or service under a franchise will only be able to do so if they have built good relationships with the owner over time.

3. Risk Taking

Because the plan has already been tried and tested at your first franchise, it makes sense to copy it, and isn’t very risky so, the best thing about you is that you don’t have to start from scratch. Also, you already have a standard operating procedure, making it easier to copy the model quickly in a new place in the same area, unless you have the skills and knowledge to go multi-regional.

4. Easy Returns on Investment

If you want to go the multi-unit franchise route, you can finance yourself with little risk. This is because if you have a set franchise model, you have already built up your reputation and are a safe bet to get money from a public or private bank. When someone has run a business before, banks are more likely to give them money because they know they won’t lose it.

5. Growth Overall

This is a kind of model that makes it possible for the company, the franchisor, and the franchisee to all grow at the same time.  For a multi-unit franchise model, a franchisor will always look for someone who can inspire a large group of people, has a track record of being a manager, can work and come up with new ideas under pressure, has a history of success, and knows the market in their area very well.

Here are some factors Franchisors need to consider before expanding their business into multi-level franchises in India.

5 Factors to consider before expanding your portfolio in India

1. Finance

While considering expansion across the country, it is necessary for franchisors to ask themselves:

  • Do I have sufficient cash flow to keep my current business running while growing into multi-units?
  • How can I find the right investors who will finance my growth?  Will banks be ready to fund my growth?

These are basic questions that need to be addressed before considering expanding into multi-units.

2. Resource

When moving to a multi-unit plan, the franchised units that are already open need to keep running at the same level. Franchisors need to make sure they have the right team in place to run the current unit well while they work on growing the business. Getting a business to grow means letting go of control and giving your team the power to run things on their own.

3. Losses

It is common knowledge that franchisors can expect their first unit’s business to go down as they open more units. What needs to be thought about is the size of that dip. A big drop can hurt both businesses and change how entities work with their franchisors.

4. Growth Capacity

Getting bigger just for the sake of getting bigger is not enough. Franchisors must determine how much the market wants the brand, look at the competition, and check how much people want the brand’s products. Multi-unit leasing is not about being vain, and the goal is not to have a lot of units.

5. Infrastructure

It is important to build a strong front of the house at the place, but it is also important to build a strong back of the house. To stay ahead of the curve, franchisees need to make sure they have the right people in the right places. This includes administrative and human resources workers as well as loss prevention teams. In the same way, it’s important to have enough resources. A common mistake is to have too many resources, which can cause the business to lose money.

Single-Unit Franchising Vs Multi-Unit Franchising in India

Most people know most about franchising through single-unit businesses. Under this plan, an investor in a single-unit franchise pays a set fee to get training and business help from the franchise parent company.

In exchange, the entity signs a contract saying that it will follow the company’s brand guidelines and business growth requirements.

Most business owners who choose to franchise do so because it gives them the chance to build brand recognition, use tried-and-true methods, and work with customers who already trust them.

The franchise plan is liked by both experienced business owners and people who have never run a business before because it gives more help than an independent business would.

There are many similarities between single-unit and multi-unit franchise models, but investors will pay less upfront for a single-unit franchise than a multi-unit business.

Multi-unit franchising is based on the idea that the more businesses you own, the more likely you are to get more people, make more sales, save money on operations, and make more money.

Is Multi-Unit Franchising Right for your business in India?

Multi-unit franchising can be a good choice for business owners with a lot of experience, but it has more problems than a single-unit franchise. Keeping this in mind, it’s important to be careful in your quest and make sure you have the skills, money, and time to make the jump.

Still, if everything is in place, running a multi-unit franchise is a great way to grow your business, make more money, and leave a lasting memory.


Q.1. Are there any disadvantages of multi-unit franchising in India?

Every business has certain risks, so the more units you have, the more the risk.  Unless you have experience in leadership it could be more difficult to manage things effectively.  Keeping in mind that you have more than one unit, you need to ensure having sufficient investment as well.

Q.2. What is the advantage of multi-unit franchising for the franchisor?

Multi-unit franchising gives you the chance to build a bigger management team and use them in more than one business. You can also save money on advertising and marketing for all of your sites and make more money by selling more.

In conclusion,

Multi-unit franchising could be a good choice for you if you have the knowledge, experience, and drive to take on challenges. You can build a large business with the help of people, partners, outsourcing, and hard work.

Contact us at Sparkleminds to know how to franchise your business in India right away.

 28 total views,  1 views today

Tourism Industry Trends in India – Here’s Why You should grow your travel and tourism business in 2023.

Written by Sparkleminds

Recent years, and 2022, have seen significant shifts in the tourism industry because of worldwide events. The Indian economy showed resiliency and growth even while the rest of the globe struggled with rising inflation, interest rates, and a cost-of-living crisis.

The combination of fewer income shocks, robust local demand, and helpful government policies helped India achieve this outperformance.

The growth of India’s tourist sector is expected to continue. Travel bans and vaccine mandates may remain in effect for some time while the world continues to deal with the consequences of the COVID-19 epidemic.

However, there is reason to be hopeful about the future of tourism in the region, as the Indian economy has shown resilience and growth, and as popular places like the Maldives have seen outstanding recovery.

About Travel & Tourism Industry in India – Significance & Rising Trends

With so many unique sights to see and a long and illustrious history, this country consistently ranks among the top tourist hotspots in the world.  Because of its unique history and culture, as well as its varied plant and animal life, the country’s tourism business has flourished.

The tourism industry is India’s eighth largest contributor to GDP. In 2018, India’s tourist industry brought in US$247.3 billion, up 6.7% over the previous year, and accounting for 9.2% of the country’s GDP.

Let us see the key factors driving the rise of the tourism industry in India post-Covid-19.

1. Vaccination Drive

Immunisation efforts against COVID-19 in India began on January 16, 2021. The primary objective of the campaign was to provide all citizens with free vaccinations. Nearly 200,000,000 doses of vaccination were given out in the first 18 months of this programme, proving its success. This helped open up the Indian economy and attract tourists.

2. Wellness and Health Travel

India has a very affordable healthcare system with access to top-tier medical professionals and cutting-edge technology. The health and wellness sector in this country has gained international recognition. Bringing together Eastern healthcare philosophy with Western medical competence, India has seen a significant increase in medical tourism.

In May of 2022, the government of India launched two initiatives called “Heal in India” and “Heal by India.” The overarching goal of these initiatives is to fortify India’s traditional medicine sector and elevate the country to the position of a global medical value hub.

3. The Growth of Domestic Travel

Domestic tourism in India saw a huge uptick in the wake of the outbreak. Rising disposable income and a larger working class in India are likely driving this expansion. Leisure travellers have spent more money in the country than business travellers have.

Apart from these, there are some Government initiatives that also helped the growth of the travel and tourism industry in India.  These initiatives include:

  • Swadesh Darshan Scheme – The Ministry of Tourism started this flagship programme in 2014–15. The program’s objective is to maximize India’s potential as a tourist destination by promoting theme-based tourism.
  • NIDHI [National Integrated Database of Hospitality Industry] – is geared towards enabling enterprises via the use of technology. The scope, scale, structure, and capability of the global hospitality industry are the focus of this programme. 
  • E-Tourist Visas – This programme was first introduced by the Indian government in October 2014. The goal of this initiative is to make it easier for visitors from other countries to get tourist visas. As a result of this programme, tourism in the country has increased.
  • Advertising via campaigns – Through its ‘Incredible India’ campaign, the Indian government has encouraged international travel and brought international attention to India’s storied cultural traditions. The campaign’s ultimate goal is to increase foreign interest in visiting India.

Future of Travel & Tourism Industry in India – Why 2023, is the right time to grow your tourism business?

The World Travel & Tourism Council (WTTC) predicts that by 2024, the travel and tourism industry in India would have contributed more to the country’s economy than it did before the pandemic began.

The travel industry can expect a number of new developments in 2023 thanks to the restoration of normalcy and the subsequent increase in tourism.

Travel Trends in 2023 – Here’s What to look out for.

1. Indians will make travel a priority.

In 2023, Indian tourists are expected to spend more than any other nationality. In addition, there are still a lot of people at well-liked tourist destinations, and flights are selling out quickly.

Weekend trips will increase in popularity this year as a means of vacationing. Those between the ages of 23 and 40 are the most likely to indulge during their vacations.

2. Currency fluctuations

Currencies are very volatile because ongoing wars, war hysteria, and pandemics all influence economies. Even with advanced reservations, the fluctuating value of the Indian rupee means that travel expenses can easily derail a traveler’s well-laid-out spending plan.

3. Discounts and special offers can really boost traffic

Before committing to a primary service provider, customers investigate available discounts and special offers. Now that money isn’t just a means of payment but also a commodity to be traded, it’s crucial for travel companies to be listed on the platforms of money service businesses if they want to remain competitive.

4. “Save while you spend” is a way to plan a trip

This option will remain popular.  Travelers have grown accustomed to the concept of “travel now, pay later” during the previous two years. Fear of another pandemic-like crisis prevents most people from spending their savings on vacation, even when they wish to do so.

That’s why it’s reasonable to spread out the cost of a trip across several installments. This way, after using the services, people don’t have to worry about spending all their savings.

5. The demand for travel agencies will rise.

The travel industry is expected to grow as a result of rising demand, although the offline segment (bookings made through traditional travel agents) is expected to grow at a faster rate and capture a larger share of the market.

Travel agencies will need to increase their spending on web technologies to make bookings easier for customers if they want to survive. Largely due to POS solutions and technology, this will allow airlines to concentrate on features like self-service, touchless travel, biometrics, and artificial intelligence.  

Also Read: How the travel market globally is also showing rapid growth and the factors driving this growth.

Key Takeaways,

Despite the operational challenges that were faced by the Travel & Tourism Business in India, post-pandemic, travel is back to where it was before the pandemic. Travelers would be expected to go to all parts of the world, even if that means splurging sometimes.

Planning would seem to be a regular theme.  So, doesn’t it look like a promising opportunity to grow your tourism business in India now?

Tourism Business in India FAQs

Q.1. What is the travel industry growth rate in India?

The travel and tourism industry is expected to generate $18.91 billion by the end of 2023. With a compound annual growth rate (CAGR) of 13.47% from 2023 to 2027, the market is expected to be worth US$31.35bn by that year.

Q.2. What is the future of the travel & tourism business in India?

The travel and tourism sector is becoming more forward-thinking as a result of the incorporation of new travel trends into the sector’s ecology, making travel more accessible to the general people. Most transactions now take place digitally, and most users prefer contactless payment options.

Q.3. What is the future of travel agency business in India?

The travel business will always have to adapt to new trends and a changing environment. Online booking has been a big reason why travel agencies have gained so many customers.

Q.4. Is the travel and tourism business profitable in India?

One of the most profitable companies in the tourism business is a travel agency. At the same time, to grow a business in the market, you need a good plan and other things.

Q.5. Why is it important to grow your tourism business in India in 2023?

It makes up 6.23 percent of the national GDP and 8.78 percent of all jobs in India. Nearly 20 million people now work in the tourism business in India.

To Conclude,

The Indian government has invested much in infrastructure improvements to attract more tourists, and this trend is expected to continue. The FICCI predicts that by 2027, India’s tourism industry will be worth US$ 125 billion.

Contact us at Sparkleminds, if you are one of those successful business owners looking to expand your travel & tourism business in India in 2023.

 59 total views

Fitness Industry in India – Market Size, Latest Trends & Opportunities – Plan to grow your fitness business in India – Now’s the right moment!

Written by Sparkleminds

You are a business owner running a successful Fitness business in India, and now wondering if it is the right time to consider franchising it.  Yes, this is the perfect time to adopt the franchise business model to expand your fitness business in India

Read the article to know more about the fitness industry performance in India, what makes the Fitness Business a profitable opportunity to grow and trend drivers that are setting the market high for business expansion in India.

How Covid Changed the Fitness Business in India?

According to studies, there has been a shift in the way the Indian populace thinks, acts, and lives. There was an almost 60% rise across the board from the 2019 study to the 2020 survey, with 26% of Indians engaging in yoga, 11% in cardiovascular exercise, and 10% in body-weight exercises.

In addition to people’s rising interest in health improvement, the recent epidemic has spurred a rise in accessible, on-demand virtual services. Trained experts are needed to teach, instruct, coach, and consult regardless of how people are enjoying fitness.

Obesity, hypertension, diabetes, cardiovascular disease, and high cholesterol have all seen dramatic increases in recent decades, and this has prompted Indian citizens to pay more attention to their health.

Due to this rising demand, there are now more health clubs, gyms, and fitness centres than ever before, driving up the demand for fitness professionals and the sales of fitness equipment.

Demand for Gyms & Fitness Business in India 2023

Statista reports that only 33 per cent of urban Indians have easy access to a gym. Twenty-five per cent of persons who stated they had never joined a gym or taken a lesson from a fitness teacher began going to the gym for the first time in the first half of 2022.

Nevertheless, all of these numbers point to a growing trend towards health and fitness in India. This information suggests demand for both personal trainers and fitness centres.

These are some factors which will encourage all those fitness business owners out there to grow their fitness business in India right away.

Factors driving the rapid growth of the Fitness Business in India

Several factors point to double-digit growth for India’s wellness or fitness market in the coming years. Let’s see some of these factors.

  1. Use of Technology & other apps – The availability of a wide variety of ways to work out and prioritise health is one of these aspects. Given the industry’s high potential and fragmented market, several investors are stepping forward to make substantial investments. Young people have begun to take health and fitness seriously because of the percolation of information made possible by the proliferation of technology and the meteoric rise in internet usage.
  2. Growing demand for Gym and Fitness Accessories – Because of the worldwide epidemic, more people are inquiring about fitness-related services and goods than ever before. Naturally, in a developing market like India, where new products and services are constantly appearing, shoppers have a greater propensity to buy what they want.
  3. Rise in Disposable Income – Younger generations’ preference for gym memberships as a result of increased disposable income is another developing aspect that can be termed a dominant trend. Young professionals have plenty of discretionary resources to spend on frivolous activities like going to the gym.
  4. Government Push “Make in India Campaign” – The “Make in India” initiative has had a significant impact on the industry because of the Indian government’s emphasis on health and fitness. While Ayurveda, meditation, and yoga have all been part of Indian culture for thousands of years, the demands of a more active and mobile younger generation have led to the development of innovative fitness technologies.

Trends that have shaped the bright future of the Fitness Industry in India

Allied Market Research predicts that by 2027, the global online fitness market will be worth $59.231 million, having grown at a compound annual growth rate (CAGR) of 33.1% between 2017 and 2027. According to the study’s findings, the proliferation of augmented and virtual reality training is another major factor fueling the market’s growth.

As a result, the fitness industry in India is being revolutionized by cutting-edge technology like artificial intelligence (AI), machine learning (ML), and intelligent wearables.

Leading Fitness Industry Trends for 2022

1. The Rise of Digital Technology in the Fitness Sector

Lifestyle changes have ensued after the outbreak. The Indian people have accepted the barricades as the “new normal.” The wellness and fitness business is not immune to the global trend of rapid technological advancements changing industries.

Amazing ideas, insights, and opportunities are springing up in the industry to help it overcome the challenges that have been brought to light. Demand for both online fitness programmes and home gym equipment was driven by COVID-19.

This has led to the emergence of a new demographic of people who value health and wellness.

2. The industry is changing due to technological developments.

With the present level of digitalization, each device provides useful information about progress and helps users keep tabs on their fitness goals in its own unique way. Let’s look at the future of the fitness business and how it will be affected by the technological changes that are already here.

  • Machine Learning – Smart people today are making strides towards a healthier lifestyle by using fitness centres equipped with treadmills, bikes, and other technologically advanced equipment. People recognized a sizable need in the market and set out on a technical journey to enhance health in a way that matched their experiences of inelegance.
  • Wearable Gadgets – Now more than ever, wearable devices are a crucial commodity. People today, however, are keenly aware of their bodies and constantly striving to improve their fitness by monitoring their pulse, heart rate, and number of steps taken.  Wearable exercise gear helps automate chores like rep counting, progress monitoring, macro tracking, heart rate, blood pressure, and other variables affecting active energy, all while increasing user motivation and creating a more disciplined lifestyle.
  • Workouts using AI – Our current period is one of extraordinary innovation. Marketers can provide cutting-edge health and fitness products thanks to AI-powered deployable data. Several systems currently available provide real-time monitoring of exercise progress in conjunction with live trainer instructions and AI-enabled tracking.

Top Trends in India’s Fitness Industry to look out for in 2023.

  1. Biohacking’s Impact on the Health and Performance Industry
  2. Online Exercise Programmes and Hybrid Memberships
  3. Fitness Related Gadgets
  4. Workout with low impact
  5. Outdoor Exercise workouts
  6. Small workout sessions
  7. Mindfulness Training
  8. Group Personalized Training
  9. Hygiene Awareness
  10. Home-based gyms

Fitness Industry in India – FAQs

Q.1. What is the future of the fitness industry in India?

Between 2021 and 2026, IMARC Group predicts the market will expand at a CAGR of 8.6%. There are a lot of variables, such as advancements in technology and the availability of various workout and health-focused options, that point to double-digit growth for the health and fitness market in India soon.

Q.2. What is the scope of the fitness industry in India?

In recent years, India’s fitness business has expanded at an astounding rate. Twenty million people searched for “fitness near me” on Google each month in 2019. In 2020, the Fitness market is expected to generate $2,190 million in revenue from 167 million active consumers.

Q.3. Why is the fitness business growing in India?

While ancient Indian traditions like Ayurveda, meditation, and yoga have contributed to a modern emphasis on health and wellness, the demands of a more mobile and urbanised youth population have prompted the development of novel technological approaches to exercise and wellness.

To Conclude,

People are getting fit in a variety of ways, including working out at home and going to gyms. As customers become more health conscious, demand for fitness centres and related products has risen. There seems to be a fitness studio popping up every day.

The fitness industry is being consolidated by several large multinational corporations, established players, and innovative newcomers from all over the world. It has also spawned novel ways of doing business and generating income.

Indian consumers may now take advantage of a wide range of services and goods that are primarily technology-based thanks to the novel intersection of fitness and digitization.

In addition, individuals are starting to take exercise more seriously as they learn more about its benefits.

All the foregoing suggests that the fitness business in India has a promising future and that its clients will be able to improve their health.  For more details on how to franchise your fitness business in India, you can get in touch with us at Sparkleminds.  Our years of expertise have helped many businesses grow domestically and globally also.

 92 total views,  1 views today

Healthcare Industry – Latest Industry Trends, Stats – The right time to grow your Healthcare Business in India is now!

Written by Sparkleminds

Profound technological advancements, along with the imperative for more cost-efficient care and enhanced health outcomes, are driving a dramatic shift in the healthcare sector.

Recent studies indicate that the healthcare industry will focus on advancing technologies like telemedicine, AI, and remote monitoring devices, as well as the need for increased cybersecurity, in the near future. The use of value-based care has also been noticed by experts.

As a result of these shifts and innovations, the healthcare industry and related fields will have access to new and lucrative consumer markets.

Let us see what are the factors driving the growth of the healthcare industry in India.

Healthcare Industry in 2022

A compound annual growth rate of 23% is being achieved in India’s healthcare sector. India’s healthcare industry is the country’s largest service sector, and it serves the country’s massive population of over 1.3 billion people. The healthcare market in India is expected to reach $372 billion (approximately INR 27, 90,000 crores) by the year 2022.

In the past decade, many groundbreaking movements have emerged. Most significantly influencing healthcare sector disruption and expansion is the convergence of engineering and medicine.

Key Trends of 2022

1. Apps, consumer electronics, and wearables

Patient’s vital signs are tracked in real time via the equipment they wear. Medical gadgets that are implanted (into patients’ bodies) and other devices that are worn on the body are examples of wearables.

These gadgets allow healthcare staff to monitor patient data in real time without leaving their homes.

2. Robotic Surgery

This technique for minimally invasive surgery has only been around for a short while. Robotic-assisted surgery, once reserved for the treatment of the prostate, is now the norm and is rapidly spreading to other areas of medicine and disorders.

3. New 3D Printing Methods

Prototypes, prosthetics, tissue and skin, and even medications can all benefit from this lower production cost.


Eyeglasses are no longer necessary thanks to advances in laser technology that have made eye procedures simple for doctors and cost-effective for patients. Because of the efficacy and safety of this elective treatment, surgeons can treat more patients.

5. Machine Learning & Artificial Intelligence

Artificial intelligence (AI) can handle patient registration, appointment setting, and billing. Artificial intelligence has the ability to evaluate and decode complex data, yielding incredibly powerful data for fast and accurate diagnoses.

Therefore, AI will likely increase accessibility, reduce costs, and free up medical professionals to concentrate on providing quality care to patients.

6. IOT [Internet of Things]

The Internet of Things has revolutionized healthcare by linking together previously separate systems, devices, and items used by people all over the world. These are put to use so that appropriate, timely, and context-aware decisions can be made.

7. Blockchain

Blockchain is a distributed ledger that encrypts data and utilizes other security measures to keep it safe and accessible. Patient records, supply and distribution, and medical investigation are only a few of the areas that benefit from this development.

8. AI-powered voice assistants

In healthcare contexts, speech recognition systems might have features that improve patient care or lessen the burden on clinicians. Information management, medical record keeping, and routine tasks are just some of the uses for voice recognition technology.

9. Remote Care Assistance

Comfort and quality are brought to remote care through the Internet of Things’ ability to swiftly transmit data between various electronic gadgets. Video conferencing, big data, and wearable technology allow for remote patient monitoring and healthcare. This allows doctors to keep tabs on patients from afar and make accurate diagnoses.

10. Telemedicine

Experts agree that telemedicine is here to stay and that COVID-19 has helped speed up its delivery. Some patients even insist on it!

Growth Drivers of the Healthcare Industry in India

The introduction of new technologies has been the primary catalyst for healthcare’s explosive expansion in recent decades. Technology has been the driving force behind many innovative healthcare breakthroughs and underpins the whole healthcare system.

Many technological developments are still in the stages of development. However, the healthcare industry is aware of these advantages and will use the technologies mentioned above.

According to reports by NITI Aayog, Invest India, and the International Business and Economics Forum (IBEF), the industry is expected to expand rapidly in the aftermath of the recent epidemic.

So, what are the primary factors that contribute to expansion?

1. Policy

Budgeting for healthcare in India has increased from 1.2% of GDP to 1.8% of GDP. The healthcare industry in India is increasingly adopting public-private collaboration models. Investment in India’s healthcare sector is being actively pursued by NITI Aayog and Invest India.

2. Diagnostics

India is a major player in the global IVD solutions export market. From its present valuation of USD 1.3 billion, India’s in-vitro diagnostics industry is projected to grow to USD 2 billion by 2026.

3. Medtech

When it comes to cost-effective medical equipment design, India leads the world. The “Make in India” initiative has contributed to the rapid expansion of India’s medical device market, which in 2020 was valued at INR 77,539 crore and is expected to increase at a CAGR of 35% between 2020 and 2025 (IBEF research).

4. Health Insurance

Twenty percent of all non-life insurance premiums are paid for health coverage. It is the second-largest portfolio and has seen premium income growth of nearly 16%.

5. Hospital Infrastructure

Eighty percent of India’s healthcare market is made up of hospitals. From 2017’s $61.8 billion, it is expected to reach $132 billion by 2023, a compound annual growth rate of 16 percent.

In tier-2 and tier-3 cities, a plethora of new hospital construction projects are in the works from major healthcare providers including Apollo Hospitals, Columbia Asia, Manipal Hospitals, Max Healthcare, Medanta, Cloud Nine Hospitals, Park Group, and Narayana Health.

India’s Key Healthcare Trends to look out for in 2023

The pharmaceutical, medical device, and healthcare delivery sectors all saw significant improvements in operational efficiency, growth, and digitalization in 2022, giving healthcare its due significance.

The industry reached new heights in 2022 thanks to Ayushman Bharat’s efforts to increase both accessibility and affordability. India’s tenure as G20 chair in 2023 will pave the way for new opportunities for cooperative expansion in the healthcare sector, complementing the country’s rising domestic innovation.

5 Trends to watch out for in 2023:

1. Prioritizing preventative care

As the prevalence of lifestyle-related disorders rises, so will the demand for preventative diagnostics, early intervention DTX, and over-the-counter (OTC) pharmaceuticals.

2. Digital technology adoption on pace with the West

The digital health industry in India is forecast to expand in 2023 thanks to developments in areas such as ePharmacy, telehealth, and DTx, allowing the country to adapt international best practices to its specific needs.

3. Self-sufficiency for Pharma & MedTech

The PLI scheme and the China plus One Strategy, with their undercurrents of Industry 4.0 and custom R&D for India, are expected to attract billions of dollars in investment to the pharmaceutical and medical device manufacturing sectors in 2023.

4. Future growth of healthcare’s SaaS unicorns

The healthcare SaaS market in India will continue to expand thanks to the country’s thriving startup ecosystem, which is fueling the SaaS revolution, and the progress made in the Digital Health Stack.

5. Expert medical treatment will eventually come ‘home.’

Opportunities for non-traditional healthcare actors in the Home Health Sector will increase as a result of shifting consumer and provider preferences and increased access to and affordability of technological solutions.


The Indian healthcare business is poised for explosive growth in the years ahead. As a result, both healthcare practitioners and those seeking treatment will benefit.  Get in touch with Sparkleminds, to know more about how to grow your Healthcare Business in India.

Don’t forget, now is the right time, grab this opportunity right away.

 46 total views

Complete Guide to Drafting the Perfect Restaurant Franchise Agreement in India

Written by Sparkleminds

There are currently over 3,800 Indian franchisors offering a wide variety of franchise opportunities in the country. Businesses in the food and beverage, academic, retail, health and wellness, and consumer service sectors, among others, often turn to franchising as a means of expansion. One of the largest sectors of the franchise industry is the food service industry and obviously, the search for the perfect restaurant franchise agreement in India sample PDF draft is very high.

Nevertheless, F&B is the largest and fastest growing in the market.  Let us understand Restaurant Franchising in India, how you can draft the perfect Restaurant Franchise Agreement for your business, and all the legalities involved, and create the best food franchise agreement in India for your brand from the best food franchise consultants in India.

Restaurant Franchise Agreement Sample in India

Why do you need a Restaurant Franchise Agreement in India?

In exchange for financial investment, a restaurant might provide another business with the right to utilize its brand, including its name, recipes, design, trademarks, and logo.

Moreover, the agreement specifies the terms and conditions for the franchisee to follow, including those pertaining to the menu, the style and layout, the service, the employees, etc.

Popular Indian brand owners with a sizable client base are pursuing the franchising model, just like their counterparts in the worldwide food industry.

Some of the most well-known Indian franchises are Barbeque Nation, Moti Mahal, Haldiram, Sagar Ratna, and Swagath. These restaurant franchises have established themselves as leaders in India’s food and beverage sector.

Essential Elements of Restaurant Franchising in India

The specifics of franchise agreements vary depending on the company. Nevertheless, these contracts should include the following standard provisions:

1. Scope of the business

The franchise agreement should detail the business, its extent (geographic, temporal, etc.), and the length of the franchise.

Franchise agreements should specify if the business is a fine dining establishment, a cafe chain, a takeaway or fast food restaurant, a pizza shop, a mobile food vendor or a kiosk.

As the agreement’s prologue, this provision is essential since it will be used to determine the parties’ actual intentions.

2. Location

Provision of the franchise location is assigned by the franchisor, using the franchise agreement. The two types of territories are exclusive and non-exclusive.

In an exclusive territory, the franchise cannot sell the products beyond the boundaries specified.  Non-exclusive territory means the franchise can add multiple units within the same territory.

3. Contract Term & Contract Renewal Clause

The duration of a franchise agreement, both during its first term and any subsequent renewal terms, is specified here. A franchisee is granted permission to run the franchised unit during the specified term of the agreement.

The franchisee may, according to the terms and circumstances set forth in the agreement, renew the franchise under its terms and conditions.

4. IPR, Licensing and Confidentiality

The restaurant that is offering the franchise should lay forth the parameters, guidelines, and conditions for the use of IPR. The franchise agreement contains safeguards designed to prevent the franchisee from undermining the brand’s reputation and market value through improper exploitation of the franchisor’s intellectual property.

5. Franchising Fees & Royalty Fees

The franchisee’s initial and ongoing non-refundable franchise fees, as well as any other one-time fees, must be specified. Payment terms, including frequency and method, must also be specified.

It is also important to include royalty clauses that specify the amount (typically expressed as a percentage) of the franchisee’s payment to the franchisor that is non-refundable.

6. Termination Clause

Default and termination provisions for the franchise agreement should also be included in this clause. Defaults such as a major breach of the agreement, a party’s legal inability to implement the agreement, a party’s bankruptcy or insolvency, or a change in the legal or regulatory environment in the country may be grounds for termination.

7. Dispute Resolutions

In the event of a dispute between the franchisor and the franchisee, the parties agree to submit their differences to the court with jurisdiction over their location. In the event of a dispute, the parties should include an arbitration clause outlining the location of the arbitration, the institution that will hear the case, and the procedures to be followed.

Legal Provision to be Included in Restaurant Franchise Agreement in India

There is no overarching law in India that regulates franchising generally. But there are provisions in several Indian companies and industry-specific legislation that can help you out with different parts of running a franchise.

A general principle of good faith and fair dealing is adhered to in place of the absence of any specific requirements for any pre-contract disclosure and any legislative responsibility to offer any information to the potential franchisee under Indian law.

Below are some of the basic cafe franchise agreements and food franchise agreements in India terms and conditions that need to be included.

1. Franchise Agreement Validity and Enforceability

In legal terms, a franchise is a contract between two parties. Therefore, the Indian Contract Act, of 1872 (the “Contract Act”) may apply to franchise agreements depending on the specifics of the deal. The following are some of the requirements for a contract to be valid under the Contract Act:

  • Proposal
  • Offer Acceptance
  • Explicitly permitted by applicable law
  • lawful intent and use;
  • Agreement based on mutual consent;
  • How legally competent the parties are to enter into the agreement;
  • Legality.

For a Franchise Agreement to be enforceable in court, it must comply with the requirements set forth in Section 10 of the Contract Act.

Although the Contract Act does not require a contract to be in writing, it is nonetheless best practice to have a written franchise agreement that specifies the rights and obligations of each party.

2. Protection of IP rights

In most cases, the rights to use a trademark, logo, service mark, or trade dress belong to the franchisor (think McDonald’s or Barista Coffee), and this means that the parties to a franchising agreement must consent to the transfer of these items.

Given the centrality of the intellectual property license to a franchise, intellectual property licensing rules should be carefully considered when drafting a franchise agreement for a food service establishment.

Several laws, including the Trademarks Act of 1999, the Patent Act of 1970, the Design Act of 2000, and the Copyright Act of 1957 address this issue. The franchise agreement’s trademark, patent, design, copyright, etc. are all subject to these laws.

Registration under the Trademark Act safeguards the distinctive symbol used to identify a product or service.

3. Rivalry and unfair business tactics

Production, supply, distribution, storage, acquisition, or control practices that may have considerable adverse effects on competition within India are illegal under the Competition Act, of 2002.

The agreement should be checked for any antitrust or restrictive trade practices that could limit competition in the market and lead to the establishment of a monopoly.

Agreements involving restrictive trade practices in the provision of services or in the production, storage, supply, distribution, or control of commodities are required to be registered with the Director-General under the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969.

The franchise agreement mandates that neither party engage in monopolistic or restrictive behaviour.

4. Responsibility under the Tort Law

Any party to a franchising arrangement (franchisor or franchisee) may be held liable for the other’s (or a third party’s) losses or damages if they breach a duty owed to the franchisee or to the franchisee’s customers.

5. Corporate and tax liabilities

If the franchisor and franchisee are both registered in India as corporations, they must follow all laws and regulations pertaining to corporations in that country, including the Companies Act, 2013.  The company’s directors may be held accountable for their decisions.

6. Consumer Protect Act 2019

The Consumer Protection Act of 2019 provides various protections for consumers against deceptive business practices. Customers have recourse both against the franchisee and the franchisor in the event of a product or service failure.

7. Labour & Property

Real estate and leasehold law play a significant role in the franchising industry. Different labour laws would apply depending on the terms and conditions of the legal connection between franchisor and franchisee regarding franchise business activities.

The franchisees in restaurant franchises are considered independent contractors since they make all the important decisions including who to hire and how much to invest in the business.

8. Arbitration and Conciliation Act, 1996

Any time a disagreement needs to be resolved, the Arbitration and Conciliation Act of 1996 comes into play. If a dispute arises between the Franchisee and the Franchisor, arbitration is an option for resolving the problem.

Also Read: How Sparkleminds can help in solving disputes through Mediation and Arbitration

Types of Restaurant franchise agreements in India

These include:

  1. Master Franchise Agreement
  2. Single Unit Franchise Agreement
  3. Multi-Unit Franchise Agreement
  4. Company-Owned Franchise Agreement

Each of these franchise agreements has a different purpose but will have some common terms applicable to the other party.


Even without corresponding legislative or regulatory reforms, the restaurant franchising industry has grown rapidly over the past three decades. Despite the restaurant franchise industry’s meteoric rise and bright future in India, we lack sector-specific legislation and regulation.

There are no rules governing the establishment and operation of franchise restaurants, so the agreement between the parties must be comprehensive, including provisions from all applicable laws.

The costs and delays associated with protracted litigations can be avoided with the help of a thorough agreement that includes all the relevant clauses in the event of a conflict of interest.

Get in touch with our experts at Sparkleminds to know how to draft a franchise agreement for a restaurant in India.

 84 total views


Written by Sparkleminds

How to Create the Perfect Franchise Pitch Deck to attract potential investors for your business in India?

Overview of a Franchise Pitch Deck for Business Expansion in India

An outstanding Pitch deck is essential for any business owner contemplating growth. The Franchise Pitch deck is vital to getting the funding your business needs to grow. It draws the interest of potential investors, starts a discussion about your business, and increases the likelihood that they will invest in it.

A Franchise Pitch Deck aims to help potential clients learn more about your company.  The slides make it easy to grasp the business and its potential for success, which is important when trying to attract investors.

A Franchise Pitch Deck is a collection of slides that a business owner uses to provide more information about their business. The pitch deck’s content can be assembled using either common software like PowerPoint or more sophisticated techniques.

The Benefit of Pitch Deck to Grow Your Business in India

A Pitch Deck is an executive summary of your firm, its business plan, and its vision, presented in the form of a slide presentation.

Here are some benefits of using a Franchise Pitch Deck.

  • It provides a systematic format for writing a business plan for a startup.
  • Makes a plan for the company’s marketing strategy.
  • The company’s management goal and executive description are outlined in the pitch deck.
  • Investor confidence can only grow with more information.
  • Assists in making the business goal more appealing to a targeted audience of observers and financiers.

One can use a Pitch deck presentation for everything from cold-calling potential investors to delivering a formal pitch. It’s up to the individual business how they’d like to present their proposal.

Investors can learn more about your business or startup through a well-done pitch deck, increasing the likelihood that they’ll invest in your venture. Moreover, Pitch decks are typically presented to prospective clients during in-person or virtual meetings.

Using Pitch Decks helps in faster conversion from potential investors to actual franchise leads.

Contents of a Franchise Pitch Deck

Investors will first learn about a business through the Pitch deck presentation before deciding whether to provide investment. The goal of the businessman is to produce a great pitch deck, which is a vital stage for funding and succeeds in building interest in the eyes of the investor, although investments are not made after only one meeting.

Different investors have different requirements for the Pitch deck. The main points of this presentation will be highlighted in the slides.  So let’s get started.

Slide #1. Business Model

An organization’s business model is a high-level description of how it creates, delivers, and captures value for its stakeholders, whether those stakeholders be investors, customers, or society at large. Building a business model is a strategic move that may also be thought of as an innovation in the way a company does business.

Slide #2. Vision & Mission of the Business

Successful businesses typically have clear goals that the entrepreneur can outline. The company has these explicit aims and purposes:

  • The company’s unique selling proposition.
  • What the company wants to accomplish
  • A company’s operations.
  • Management of the business.

Slide #3. Products & Services of your Business

On the product slide of your presentation, you will showcase the goods or services you are selling. Images of the product from a variety of angles are featured on the slides. In contrast, if you’re selling software, online services, or tools, show off its best features via screenshots.

Slide #4. Market Size

The market potential is a key factor in whether a company can secure financing. Investors may be hesitant to back an entrepreneur whose business serves only a niche market since the ROI could be too low.

Projecting future success is as simple as declaring the size of the market. Potential backers of your pitch deck will appreciate knowing the magnitude of the market. This will show them the potential for expansion in your industry.

Slide #5. Market Competition

The easiest way to inform the investor about the company’s rivals in the market is to use a slide. You should explain in the slide how you’ll beat the competition.

This slide will detail the historical funding raised by each rival and the valuation at which they were raised. This could aid the company in negotiating the terms of the agreement or progressing with a potential investment by giving it a sense of how much other companies are paying.

Slide #6. Leadership Team

In a presentation to potential investors, the slide detailing the team’s backing is among the most crucial. The investor is interested in learning about the people with whom they will be working and what sets them apart as a group.

The members of the leadership team should be depicted on the team slide for optimal presentation. The team’s slide should include each member’s accomplishments.

Slide #7. Goals & Financial Forecasting

Financial projection is the practice of making predictions about a company’s financial status in the future. One of the most crucial parts of a pitch deck is the company’s financial projections and the forecasts that go along with it.

Providing a description of the event and an expected date of completion helps investors prepare for it. Milestone is a component of a business plan’s financial forecasts.

Slide #8. Working Capital Requirement

The Working Capital requirement, or the amount of money the business needs to have on hand to pay expenses while it is getting started, is estimated in the Use of Funds section.

Key Takeaways – Here’s how a perfect Franchise Pitch Deck can win over Potential Investors

No matter how great your business idea is, if your pitch isn’t spot-on, you probably won’t be able to attract investors. Having an investor interested enough in your business to sit through your complete presentation is impossible without a solid pitch.

That’s why you need a well-thought-out plan and properly prepared messaging to include everything your investors want to hear in your pitch. If you manage to pull this off, you’ll be miles ahead of the competition and have far better chances of attracting investors.

Your 5 objectives should include:

  1. Show that your business is low-risk – You’ll have a stronger argument if you use your presentation to show why you’re a safer bet. This will show potential backers that your idea has merit and can succeed. You may set yourself apart from the immediate competitors and increase your chances of receiving an investment if you present yourself as competent, credible, and feasible in your pitch.
  2. Get your investors to have trust in you – No potential investor will glance at your business plan and automatically believe in you as the one who can make it a success. You should instead convince them that you can successfully capitalize on this opening. Start by compiling a thorough record of your past experiences, highlighting the ways in which you’ve already demonstrated the fundamental abilities needed for this position.
  3. Show them your vision to draw their attention – Successful businesspeople are experts at rallying others to their cause. Investors will be swept away by your enthusiasm if you’ve poured it into your pitch.
  4. Forecasting the ROI – Highlight the exciting potential and how far you all may go with the help of your target market data and business ideas. Be prepared to back up your assertions with evidence and give yourself a reasonable amount of time to complete the tasks you’ve set for yourself.
  5. Excel your communication skills – Communicating your company idea clearly and concisely so that your audience can grasp it is the key to a successful pitch.

Franchise Pitch Deck FAQs

Q.1 Why is a franchise pitch deck important for business growth in India?

An investor’s first impression of your company is formed by your pitch. This is your time to pitch your business to potential investors and convince them to put money into your venture. Your business presentation needs to be crisp, to the point, and convincing.

Q.2. What is the most important part of a franchise business pitch?

The story you convey, and the relevance of your work are the most crucial aspects of your pitch.

Q.3. How to create a successful pitch deck for your business in India?

Knowing your product or service inside and out and your audience inside and out can give you the confidence you need to present a winning pitch. You should also demonstrate that you have conducted market research and provide ample justification for your product’s requirements.


A powerful Franchise Pitch Deck can get you the right investors to franchise your business in India.  If our blog has been useful in providing you with insights into using a franchise pitch deck, you can speak to our consultants at Sparkleminds who can guide you on various services associated with franchising your business in India.  Call us right away!

 46 total views

Creating the Exclusive Distributorship Agreement Format for Your Business – Here’s what you need to Know

Written by Sparkleminds

When a company creates a product, it must find buyers for it. It’s possible that a well-established business can sell directly to consumers, but there are other scenarios in which the company doesn’t have the know-how to successfully market and sell its wares to either consumers or other businesses.

If this is the case, it will team up with a distributor already established in the desired market.

For this reason, it will need to enter into a legal agreement with the distributor that will govern their relationship, explicitly explain the parameters of their cooperation, and authorize the distributor to market and sell the products.

In short, this legal contract between the business owner and the distributor is the Distributorship agreement in India.

Distributorship Agreement Format in India

Now that we have shared what the distributorship agreement format in India should look like, let us dive deep into its contents, benefits, and why it is a crucial document when a business owner decides to expand his business in India using a distributor.

Basic Contents of a Distributorship Agreement Format in India

Companies can grow and get access to new markets with the help of a solid distribution arrangement. In addition, the distribution agreement gives the business owner the flexibility to set the terms and sales goals for the product as you see fit.

12 Crucial Contents of the distributorship agreement are:

1. Territory

The clause should outline the areas where the distributor can promote and sell the product. The distributor may argue that, with the supplier’s approval, the territory’s boundaries may be expanded or contracted.

2.  Roles of the Business Owner & Distributor are to be laid out in the agreement

This is the most crucial element of the agreement since it lays out the specific duties and responsibilities of each party.

The role of the business owner includes:
  • Bring in the agreed-upon items.
  • Offer any and all product education, technical support, and information that may be required.
  • Keep to the agreed-upon schedules for delivery.
  • Make room in your budget for marketing or advertising costs.
  • If the distributor needs more information, provide it to them.
  • Paying on time
The role of the Distributor includes:
  • Always have enough stock on hand.
  • Reduced anticipation during shopping.
  • Sales, responsibility, and client satisfaction targets should be created.
  • Distributors are also responsible for meeting sales objectives, running sales campaigns, completing the necessary documentation, and providing follow-up customer care.

3.  Contract Duration

This section should include information about the duration of the Agreement, its effective date, the date it will expire, and whether or not it will be renewed.

4.  Confidentiality

The clause should specify how the distributor may put the IP to use. It should also restrict the distributor’s capacity to disclose confidential information.

5.  Marketing Activities

Product promotion could fall under the purview of the distributor, the manufacturer, or both. If the distributor is also responsible for advertising the goods, the manufacturer or supplier may place restrictions on the advertising channels, methods, and guidelines the distributor may employ.

6.  Keeping the business owner updated with the necessary reports

The manufacturer may request periodic reports from the Distributor regarding sales, inventory, advertising, and other aspects of the Agreement. This is of the utmost importance in situations when the distributor receives a commission or the supplier is obligated to buy back unsold inventory.

7.  Payment details

Whether the distributor will be paid a sales commission or will make a profit after buying in bulk and reselling is one of the most crucial parts of any distribution agreement.

What happens to unsold stock and whether or not the distributor is required to sell the items at a minimum or maximum price are also details that should be mentioned in the contract.

8.  Degree of training for the distributor

Many technology products have clauses that outline who is responsible for providing client training and support, as well as how much training and support the manufacturer will provide to the distributor.

9.  Forecasting

The manufacturer has the same obligations as the distributor regarding meeting sales targets. On rare occasions, the distributor may be required to make a minimum purchase of the goods.

Predictions will be supplied at intervals specified in the contract to serve as the basis for these minimum standards.

10.  Trademark License

The distributor’s rights to use intellectual property like trademarks and brand names must be specified.

Otherwise, the distributor runs the danger of legal action if it uses the trademark without the owner’s authorization. Since the manufacturer does not want the distributor to claim ownership of the trademark, he must be careful when and how he grants the distributor this power.

11.  Competition

The distributor may be prohibited from selling the supplier’s products, selling similar things from the same supplier, or competing with the supplier during and after the term of the agreement (though this provision is optional).

This is more common with one-of-a-kind items than with those that come in dozens or even hundreds of different styles.

12.  Termination Clause

One or both parties may need to terminate the Agreement at some point, thus it is important to spell out the conditions under which this can be done, as well as the consequences of doing so.

Must Read: How SolaX signed a 100 MW distribution agreement with Solaris Techno India.

Importance of Distributorship Agreement in India

  • Clarity on Sales Targets – The sales target assigned to the distributor is a fundamental part of any distribution agreement. You may rest easy knowing that your distributor will put out maximum effort to sell your goods and meet your predetermined quota if you establish this goal in advance. Legally guaranteeing your share of the distributor’s profits is a huge step towards achieving your business goals.
  • Low Risk – By outsourcing the distribution of your goods, you absolve yourself of a large portion of the dangers inherent in running a business. Once a distributor takes on a product, it is their duty to sell it. This potential source of trouble can be avoided with a well-crafted distributor agreement.
  • Business Expansion Possibility – A solid distribution agreement can help you secure representation in areas where you wouldn’t be able to do so on your own. This broadens the potential customer base for your goods, both domestically and internationally. Because distributors typically base their decisions to take up these products on the terms stated in the agreement, establishing this relationship of networks and distributors for your business requires a proper Distributor agreement.

Distributorship Agreement Format FAQs

Q.1. what is the difference between a distributorship agreement and a franchise agreement in India?

Under the provisions of the franchise agreement, the franchisee is authorized and encouraged to make use of the franchisor’s trademarks and brand name in the course of conducting business as usual.  In the case of a Distributorship agreement, a distributor may not use the company’s trademarked name in connection with the distribution of the company’s products. Instead, the wholesaler conducts its business under its own name. It acts as a distributor, albeit it does not represent the manufacturer in any way.

Q.2. what are the types of distribution agreement formats in India?

Exclusive distribution agreement, non-exclusive distribution agreement, wholesale agreement, commission distribution agreement, and developer distribution agreement are five types of formats in India.


We’ve researched everything there is to know about distributor agreements in this article, and it’s clear that doing business through distributors is a low-risk, cost-effective way to break into developing foreign markets.

Make sure you have a well-defined formal distribution agreement in place before moving forward with a distribution deal. Although entering into a distribution deal can be exciting and fruitful, it’s important to weigh all of your options before making a final decision.

Now that you have read this, you should feel confident in your ability to create an effective distributor agreement, and with Sparkleminds by your side, you won’t even have to lift a finger!

 74 total views

Franchise Your Restaurant Business in India – A Complete Guide to Successful Franchising

Written by Sparkleminds

When a restaurant is doing well and the owner is making a profit, the next logical move is to open additional locations. Due to a lack of available time and capital, many owners of successful restaurants want to grow their businesses through the franchise model.

If you’re one of those restaurant owners looking to grow your restaurant business in India, one option is to open a franchise restaurant. In this model, you, the franchisor, grant the franchisee a license to use your trademark, business model, and processes in exchange for a fee.

Here is a step-to-step guide, with some very important tips which can help you expand your restaurant business with the franchising model.

Franchise Your Restaurant Business in India in 10 Simple Steps

Most people believe that opening a restaurant franchise is a lengthy and difficult venture. However, this is far from the truth. Franchising a restaurant takes time and work, but it is not any more difficult than any other type of business expansion.

Here are ten easy steps to follow if you’re thinking about expanding your restaurant business into the world of franchise restaurants.

Step #1: Analyzing Your Current Business Model

You need to take a comprehensive look at your business before you go out and find investors and distribute your Franchise Restaurant License. Ask Yourself:

  • Is your idea scalable? Here are the most crucial aspects you must ask.
  • Is it possible to systematize and standardize? Franchised businesses often fail because their outlets don’t live up to the same quality standards as the parent company.

If the Franchise Outlets are unsuccessful, the Brand Name could be tarnished. Additionally, the present method of doing business must yield a profit. Consider the five-year franchise return and the first-year cash flow cost structure.

Structure cost generally includes:

  • Initial setting up cost
  • Infrastructural developments costs
  • Inventory required
  • Marketing plans
  • Technology required
  • HR

Step #2: Having an Efficient Process in Place

If your idea can be replicated successfully, you’ll need to set up a reliable and effective procedure to guarantee uniformity between locations.

The most important ones are-

  • Reporting and Monitoring of Sales
  • Inventory Management System
  • Logistics Planning and Control
  • Management of Suppliers
  • Controlling Compensation and Bonuses
  • Staff Development

Keeping track of the finances of several different Franchise Restaurants is no easy feat. Because of this, the use of Franchise Management software is useful in fixing the problem.

Step #3: Registration of the Trademark & Logo

Giving someone a franchise for your restaurant means they can use “Your” trademark and logo. Thus, the most crucial, yet frequently disregarded, step in franchising your restaurant is registering your brand’s logo and securing a trademark.

When considering opening a chain of restaurants, trademark registration is crucial. Franchisors should register their intellectual property to safeguard it from a fraudulent Franchisee.

Step #4: Estimation of costs involved

After settling on the procedures, you’ll need to calculate how much money and time will be needed to get your Franchise Restaurant up and running. The best restaurant franchise models have been successful because they have accurately predicted costs and have reduced food costs wherever possible.

All possible categories of costs should be accounted for. Divide the initial investment based on the concept of your restaurant.  Some of the costs estimated are:

  • Infrastructure – Location, interiors, electricity, furniture, and branding.
  • Licensing & Establishment Costs – GST registration, VAT, and any other licenses.
  • Franchise Fee & Royalty Charges
  • Working Capital at least for a few months.

Step #5: Cash Flow and Financial Forecasting

Think about the Cash Flow and Financial Projections based on your restaurant’s history and present sales. The franchisor needs to calculate a cash flow for expected profits by multiplying the daily order volume by the typical order value.

Additionally, the franchisor should calculate a 12-month projection of the franchise’s average growth rate. In addition, please forecast earnings over the first five years/franchise duration.

Step #6: Create a Brand Profile

Create a Brand Profile to help you connect with your Franchisees on a deeper level. You have to be in the ballpark to compete with the best Indian restaurant chains. The brand’s intended direction should be outlined in these papers.

In addition to the store’s opening date and location, it should explain the brand’s mission and briefly describe the goods and services to be sold.

You should also detail the pre- and post-opening assistance you’ll be offering the restaurant franchise. This will allow you to establish a standard for your brand.

When you franchise your restaurant, there is a risk that you won’t be able to maintain the same high standards that made the original location successful. Avoid this by instilling a culture of brand loyalty from the get-go.

Step #7: Franchise Agreement

Since there are no rules that apply solely to the restaurant franchising industry, it is crucial that the franchisor and franchisee have a legally binding contract.

Payment, strategy, duration, timing, royalties, and franchisor support should all be spelled out in the Agreement. After a business is established, Franchise Restaurants can stop paying the royalty.

Step #8: Training of the Staff

Staff training is crucial to ensuring consistent quality with the original Franchise Restaurants. The franchisor is responsible for teaching everyone from the head chef to the dishwashers.

New hire orientation and training should be completed well in advance of the Franchise Outlet’s grand launch.

When opening a new location, it is common practice for successful franchises to hire a small number of staff one month in advance and then send them to observe and learn from the operations of current locations.

Some franchises even use the original location’s staff to help train the new franchisees.

Step #9: Advertising and Marketing

The franchisor can either assist the franchisee in marketing and advertising by including it in the original plan or by helping the franchisee understand the market and execute marketing efforts on their behalf in the early stages.

Providing franchisees with detailed Brand Guidelines to follow is crucial.

Define in detail the responsibilities of the individual Franchise Outlets, such as maintaining a social media presence, registering with restaurant review sites, etc. To guarantee uniformity in all locations, remember to supply menu templates, logos, and other Brand-specific items.

Step #10: Assistance & Support

What assistance the franchisor will provide should be spelled out in detail. Some franchisors just provide help with things like setting up shop and running it, while others also provide things like raw supplies and training.

In order to avoid misunderstandings in the future, it is important to include support in the Agreement.

It’s not easy to build on the reputation of a well-established eatery. Among the many difficulties encountered at each tier is the constant struggle to keep the quality of the food and service consistently high.

Also Read: Here’s how you can expand your tea cafe business in India.

Franchise Your Restaurant Business in India – FAQs

Q.1. what are the three-must have things to expand your restaurant franchise in India?

A profitable business model, an easily replicable model, and protection of your brand are very important before you franchise a restaurant business in India.

Q.2. Is it profitable to franchise my restaurant business in India?

The Indian food industry is booming over the years and is expected to show continued growth.  This is because of the rise in disposable incomes of households and people eating out.  So if you are a restaurant business owner, this is the right time to franchise your restaurant business.



Franchising especially in the Food & Beverage Industry to open new restaurants is becoming increasingly common. Several well-known companies, both large and small, are using franchising to spread their name over the globe. 

Therefore, we hope our article has been useful to you as you plan to expand your restaurant business in India.  Contact Sparkleminds for more details on franchising your business in India.

 81 total views

5 Common Mistakes to Avoid When Franchising a Business in India

Written by Sparkleminds

Franchising is a fantastic strategy for expanding a successful business. However, problems may arise if you franchise your business too soon or if you choose the wrong lead who isn’t a good fit for your brand.

Simply said, these are merely two of the most typical franchisee blunders. In addition, failing to think about which business structure can promote the expansion of your franchise business can lead to the collapse of your franchise.

This article will help you avoid these typical mistakes in franchising and keep your business running smoothly.

5 Mistakes You Can Avoid in Franchising Business in India

Mistake #1: Franchising when your business is not ready to franchise

The most common mistake made by business owners when franchising is to do it too soon. When things are going well financially and you have a consistent stream of revenue coming in, franchising your business may seem like a great idea.

It’s important to wait until your company has reached full maturity before expanding into franchising. When this happens, growth and income for your company slow down.

2 things to look out for to know if your business is mature enough to franchise:

  • Has a sound operations system in place, which works well with your business model
  • Sufficient capital

There are certain expenses you’ll incur as a franchisor that you should plan for. Expenses like these may include:

  • costs associated with having manuals and contracts drafted by attorneys;
  • spending money on franchisee training;
  • Marketing materials designed to help you expand your business.

These preliminary costs may be recouped from franchisees. However, you will still require a financial investment to launch your franchise.

Apart from sufficient capital, there are a few things to think about before committing to a franchise.

  • You need to make sure there’s a sizable market for your company’s wares. Sales volatility during the past few years is a red flag that your business model isn’t quite ready to be franchised.
  • It’s also a good idea to think about whether or not any potential investors might be interested in purchasing a stake in your company. Franchises allow other business owners to invest in and operate under the same brand.
  • Franchisees are responsible for the day-to-day management of a location, while you benefit from a cut of the revenues and the licensing costs. Potential franchisees may not be interested in signing on the dotted line if they see little to no outside investment interest in your company.

Mistake #2:  Proper SOPs

Having thorough and well-written Standard Operating Procedures (SOPs) for every aspect of your business will help ensure that things keep running smoothly even if something goes wrong.

Here are some suggestions for incorporating a SOP into your company’s operations.

Typical examples of standard operating procedures are:

  • methods of selection and instruction
  • Standards for client care
  • Methods of New Product Creation
  • Guidelines for Business Procedures

Having documented company SOPs in place can save time and effort in the long run by establishing standards across all locations and clarifying roles and responsibilities for all employees.

Mistake #3:  Recruiting inappropriate investors

Franchisees play an important role in promoting your business. This is because a franchisee will promote and sell your company’s products or services under your company’s name.

Therefore, it is important to carefully select franchisees to represent your brand, as the wrong ones could hurt your company’s image.

If you want to find a franchisee who is a good fit for your franchise business, you need to give yourself enough time to implement a comprehensive advertising strategy.

In addition, once you have a pool of applicants to choose from, you need to create selection criteria to evaluate each candidate.

It’s important to ask both franchise-specific and more general questions of potential franchisees during the interview process. A franchisee’s qualifications and expertise in the franchise industry are crucial to the success of a new firm, but other attributes, such as drive and dedication, are just as important.

An extensive interview procedure is preferred by some franchise owners. However, some franchise businesses give prospective owners a taste of what it’s like to work in the field. Thus, the prospective franchisee can experience the franchise in action before committing to it.

Mistake #4: Not having a business plan in place

It is crucial for every business, but especially so for those thinking about franchising, to have a well-thought-out plan for the future.

You may lack the direction to keep your franchise firm on track and secure its success without a well-thought-out business plan.

Contents of the business plan should include:

  • Target audience / market
  • Marketing strategy
  • Financial forecasting

Mistake #5:  Without understanding franchising costs

It’s important to receive an exact estimate of the franchising cost when preparing to expand your business into franchises.

And bear in mind that there are other expenses to think about. To properly plan and budget for a company expansion, it is recommended that you seek the advice of professionals in the field.

Examples of franchising costs are:

  • License fees
  • Inventory costs
  • Marketing and advertising expenses
  • Insurance costs

Risks of Franchising Your Business in India

Successful business owners often consider franchising as a means of growth. Franchises have pros and cons just like any other company model.

Until you weigh the benefits and drawbacks of franchising in light of your specific business, you cannot say with any certainty whether or not it is the appropriate choice.

In most cases, this calls for the assistance of a franchise advisor or consultant; however, before making contact with these professionals, you should familiarize yourself with the primary benefits and drawbacks of franchising.

Here are some risks of franchising in India.

1. Capital outlay.

Investing a specific sum into a franchise is necessary. There will be outlays for developing the model, writing the operations manual, creating the training manual, drafting the franchise agreement, and beginning marketing, sales, and employee recruitment.

2.  Reduced authority over franchisees.

Franchisees are autonomous enterprises, even though your franchise is a well-proven system. Franchisees are not like regular employees in that they can be ordered around.

3.  Core community weakness.

Franchisees are far more difficult to motivate than salaried employees to cooperate for the good of the system and the business as a whole.

4.  Innovation obstacles.

Franchises make it more difficult to experiment with new ideas than independently owned businesses.

Also Read: Disadvantages of franchising your business in India.

Key Takeaways,

There are several positive outcomes for your company that might result from a franchise agreement. However, if you’re not careful, you can make one of the classic franchising blunders.

If you’re considering franchising your company, it’s important to take these steps first.

  • Your company has reached full maturity;
  • Your franchise’s expansion can be aided by the legal framework you’ve set up;
  • You are careful in selecting the best candidates for your franchise.


Q.1.  When is the right time to franchise my business in India?

There is no definite moment to turn your business into a franchise. Consult with knowledgeable professionals like franchise consultants if you’re thinking about starting a franchise of your business in India.


In conclusion, there are a number of typical blunders that entrepreneurs make when they decide to franchise their company.

If you’re considering franchising your business, it’s crucial that you think through these pitfalls so that you can avoid them and put yourself up for success.  Get in touch with us at Sparkleminds, to know about how to give a franchise of your business in India.

 80 total views