Wednesday, February 13, 2008
Though franchising is a phenomenon that is in operation in India for several decades, it has suddenly become a very trendy business formula. With the advent of global players in the arena the whole perception of the business has changed. Businessmen have now awakened to the potential of the concept and want to exploit it to reap benefits. These Franchisors in India, are the new breed of entrepreneur who want to own a business but want to minimize the risk factor. Therefore they opt for the safer option then the traditional business, the franchise business.
Bata shoe chain established in the sixties is one of the oldest franchisors in India. The franchise opportunities have increased with the growth in the service sector. India has no specific law for franchising and it comes under the broad category of transfer of technology. There are many areas of the law that affect this franchisor-franchisee relationship. Intellectual property, competition, property, taxation, labor, and exchange control regulations influence franchising to some extent.
Franchisees in India are an upcoming and a popular concept and are refining and evolving themselves to attain a more organized state. The Indian franchisors are more concentrated in IT education sector with NIIT and APTECH being the torchbearers. The other sector is the food or hospitality industry, which is popular with Franchisors in India, as a lucrative option. The international franchisers as compared to their Indian counterparts are more organized and have very defined formulas and believe in strict adherence to their systems. The Indian franchisers are a bit more flexible and try to adapt to the region they are serving.
The Indian government permits international franchisers to charge up to 1% for domestic sales and 2% on exports for using the brand name or trademark of the franchiser, incase there is no technology transfer. The government has a specific formula for calculating royalties that must be strictly followed before remitting funds out of India by the foreign franchise company. If the royalties or the lump sum fees are more than the limits the company should have the approval of Foreign Investment Promotion Board.
Anybody can exploit a Franchise opportunity in India, with a bit of planning and prudent thought. Franchise plus is a bi monthly magazines that informs the reader about the latest trends, opportunities available and different franchise companies in India. Visit the site www.franchise-plus.com to gain more knowledge and to subscribe to this useful magazine franchise plus.
Bata shoe chain established in the sixties is one of the oldest franchisors in India. The franchise opportunities have increased with the growth in the service sector. India has no specific law for franchising and it comes under the broad category of transfer of technology. There are many areas of the law that affect this franchisor-franchisee relationship. Intellectual property, competition, property, taxation, labor, and exchange control regulations influence franchising to some extent.
Franchisees in India are an upcoming and a popular concept and are refining and evolving themselves to attain a more organized state. The Indian franchisors are more concentrated in IT education sector with NIIT and APTECH being the torchbearers. The other sector is the food or hospitality industry, which is popular with Franchisors in India, as a lucrative option. The international franchisers as compared to their Indian counterparts are more organized and have very defined formulas and believe in strict adherence to their systems. The Indian franchisers are a bit more flexible and try to adapt to the region they are serving.
The Indian government permits international franchisers to charge up to 1% for domestic sales and 2% on exports for using the brand name or trademark of the franchiser, incase there is no technology transfer. The government has a specific formula for calculating royalties that must be strictly followed before remitting funds out of India by the foreign franchise company. If the royalties or the lump sum fees are more than the limits the company should have the approval of Foreign Investment Promotion Board.
Anybody can exploit a Franchise opportunity in India, with a bit of planning and prudent thought. Franchise plus is a bi monthly magazines that informs the reader about the latest trends, opportunities available and different franchise companies in India. Visit the site www.franchise-plus.com to gain more knowledge and to subscribe to this useful magazine franchise plus.
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