5 Franchise Business Ideas That Could Pick Up Pace This Decade
The trends in the franchise world always contain relevant takeaways. Sometimes these pointers can help understand what’s next in the Indian franchise market. The new franchise business ideas suggested by the changing trends could open up great avenues for entrepreneurs and improve the franchise economy of our nation. We’ll look at 5 such ideas here that hold a promising future in the current decade.
Understanding the Indian franchise industry
In India, the franchise market is growing at a fantastic rate. The reason for this can be the fact that India is being recognized as a prime target for many MNCs looking to expand internationally. The urban locales have now become filled with popular brand-named outlets. It’s just an indication of where the franchise sector in India is heading. In the upcoming decade, with a combination of infrastructural development and public demand, specific sectors will replace old ones, and new models will be functional.
Analyzing the franchise market in India, it’s easy to spot that franchises that tried to imitate a western concept completely have done poorly. On the contrary, franchise business ideas that have taken care to Indianise their product and their process have received better results. Coming up with a new concept or model always comes with certain risks. The way entrepreneurs have tackled this was by finding another boosting factor that compensates for the lack of an existing business model. For example, if a business’s objectives align with national ones or with government-sponsored programs, that may give them an edge in some sort of way. This is not mandatory, but having a unique factor that owners can use to their advantage is wise.
5 franchise categories worth looking into this decade
Franchise business ideas are numerous, so selecting a few is not easy. Here’s a list of what we think holds the most potential.
One of the main perks of owning and running a franchise is the brand value it brings along. In certain types of franchises like salons, once a brand’s worth gets established firmly, the challenge reduces to a large extent. Customer loyalty is also one of the benefits associated with owning a salon franchise. The break-even time is also reasonable, making salon franchises a top choice among young entrepreneurs. The initial phase, where the branding has to be established, is challenging. But keeping the quality of services offered excellent and consistent and having a skilled staff can greatly help franchise wonders in this category.
Real estate franchises
Real estate is always an outstanding category to target. However, it can be slightly tricky to get hold of because many factors affect your success, including when you choose to enter the market. The real estate market in India will experience an expansion. So, this decade is the right time to enter the real estate game for franchisors. Real estate requires low to moderate investments, and the break-even time is one of the lowest among multiple sectors. Hence, this is expected to become even more prominent this decade due to soaring property costs and rising demand for affordable housing.
This category feels slightly neglected because India hasn’t seen any significant breakthroughs in this sector for quite some time. Franchise business ideas related to fitness could be a huge hit, especially with the greater emphasis on working out because of millennial and gen-z populations. This sector is also in desperate need of revamping. We have not seen any fresh concepts in the last couple of years. So, this decade might be the time when fitness franchises become popular. The demand for fitness accessories has been soaring for a couple of years. Functional and sleek athleisure, gym wear, and other fitness paraphernalia could see great profits in the post-pandemic era.
This type of franchise is almost unshakable, especially in India. With this sector, there are more likely to be transformations in the operational conditions, but never the complete dying out of a particular model. Cloud kitchens will be more widespread in the upcoming years, and a greater focus on aesthetics will become a norm. When done right, a food franchise can be one of India’s best franchise business ideas. Cafes focusing on one particular item, like pizzas only, or restaurants based around noodles, for example, are likely to gain popularity. Branding has become even more critical in this sector now as people look for USPs. People operating in this space can earn from the dine-in business and home deliveries.
The logistics industry is expanding at a striking rate. This sector was one of the few that remained completely profitable even during covid. In fact, post-pandemic logistics franchises have shown immense growth and still hold a lot of potential. The government’s additional focus on infrastructure and GST will be beneficial in this sector. Logistics can cover a plethora of things like transportation, warehousing, supply chain management, and distribution. With online ordering on the rise, the need for packing and shipping will only increase in this decade. So, for anyone looking for the right franchise business ideas, logistics can easily make it to the top 3 in the list.
The Indian franchise market is slowly gearing up, and the 5 sectors we’ve detailed here will be the ones generating the maximum profits. When the combination of timing and a great product hits the market, gains happen quickly. The timing for these industries is right currently, and working on delivering a valuable product is the only thing new owners need to focus on. Picking the best one of all these franchise business ideas is not difficult. However, proper execution is what will be the deciding metric for success.