arma/pathology lab outlets, petrol pumps, auto dealerships, jewellery, home decor. Then there is the nascent service sector that has health, beauty, hospitality chains like Holiday Inn, dry-cleaning services, HR consulting, security services, hotel management, video and entertainment. Finally, there is education sector: NIIT, Aptech in IT education, Oxford and Cambridge in vocational learning, Hughes network for management etc. Education franchising is estimated to be the biggest sector in India amongst all the four sectors.
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| Franchising enables an early start up, assures continuous upgrades, assures quality and production systems, vendor sourcing and pricing; all of which are tremendous benefits. Strategy inputs come from experts, troubleshooting and training are ongoing arrangements tailored for the business, again a major plus point. Often experienced, turnkey consultants are also available.
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| The fact that franchisee usually kills the independent businessmen, shows the economic superiority of this business model. However for franchisees there are three major downsides: Loss of entrepreneurship through loss of independence in doing and developing business, in pricing, in new product introduction, in hiring etc. It can be expensive, as there has to be compliance to universal standards set by the franchiser. Often the franchiser gets greedy, once the individual unit makes bumper profits.
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In several relationships today, franchisee
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