Franchise Industry Statistics – The franchise industry in the recent past has grown exponentially, according to a few stats, the franchise business in the country is at USD 47-48 Billion which is growing at a rate of 30-35% P.a. India is the 2nd largest franchise market globally. 5 years down the line the franchise industry is expected to touch USD 140-150 Billion. Franchise industry statistics 2021 says on average, more than 300 companies start franchising every year. The Indian franchise industry is expected to grow by about USD 140-150 billion. 53% of all franchises are owned by multi-unit franchisees. Currently, in India, there are 4,600 active franchisors across all sectors like Retail, Foodservice, healthcare, business services, Beauty and wellness; technology-led business operating nearly 200,000 outlets. Though the Indian franchise market is still very young, the industry accounts for close to 2% of the national GDP. The job creation is estimated to be to the tune of 1 million in the franchise industry in India.
A high young population also indicates high entrepreneurial energy in the country. This is where a franchise model helps through shared ownership. More entrepreneurs get associated with brands that assure a relatively higher rate of success.
Sectors such as Retail, Food Service and Beauty & wellness, healthcare contribute 60% to the overall franchising industry. The simple math is that the more successful a business is, the more it can grow and the more it can employ. The Indian Foodservice sector has already been termed as an engine for ‘Economic Growth & Development’ for India by the Federation of Indian Chambers of Commerce & Industry (FICCI). The sector officially employs 5.5-6 million people in the country. The organized market or franchisees including large and small format restaurants & cafes in F&B account for 30% of the market. 15% of the F&B employment can be attributed to franchising.
By that statistic, if jobs were to grow proportionately and franchising gets a hold of the larger market and given the overall need to organize the F&B services for reasons of food safety and better tax services enablement, it has a potential to increase employment by 60 million.
An interesting fact to be noted over here is that the most searched job description in India was ‘work from home. One quick Google search can be a testimonial to how much of it is out there. Franchising concepts strengthens the Work from a Home culture that brings many such jobs that primarily include consulting, man and a truck model and also micro franchising that is being done by Uber and OLA kind of large organizations. All of these business models have offshoots in the franchise industry.