Four Fatal reasons for franchising in India

   2022-02-02       12        Law
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Obhan & Associates is a reputed, skilled, and professionally managed law firm

This is the place to know about franchising in India. Though franchising business has existed for centuries and now flourishing in developed countries, it is not so popular in India. It is because of many reasons that include the centuries-old laws governing its operations. Also, as per the existing Indian laws, the foreign franchisor does not need to register with any Indian regulatory or professional body for establishing the franchise system. Nevertheless, many franchises like McDonald's, KFC, Subway, and others are doing good business in India even with so many drawbacks. Even with the rapid influx of the FDI or foreign direct investment in India that crossed 80,000 million dollars in 2020-2021, there is no steep rise in the franchising business in India.  

 

So, let's check out the reasons responsible for the franchising in India not flourishing even with its huge potential of 1.38 billion population and rapid economic growth. 

 

Four reasons for franchising in India is not up to the level of other developed countries



1.    Finance for the franchise

 

Finance is a critical reason as any franchisor will seriously look into it, especially abroad. Therefore, franchi

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Obhan & Associates is a reputed, skilled, and professionally managed law firm that was established in 2007. The Firm offers end-to-end services in the fields of Intellectual Property law and Corporate law with the goal of aiding and assisting its clients at every stage and is recognized as one of India’s leading firms.


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