Franchise Business Investment Opportunity

There are various big players offering the best franchise business investment opportunity in India. All you have to do is select the best and lucrative one from the lot. People nowadays are more inclined towards having their own business as it not only provides more profit but also you are your own boss. And on the other side various companies also get the chance to set up base in India. In short, both are on the beneficial side. And if you are looking for the best franchise business investment opportunity then you have spotted the right page.

Many international and corporate giants stationed abroad always look for the opportunities to kick start their franchising business in India. Among all India is the chosen destination as it provides everything one need to flourish and this is the reason why franchising business is flourishing in India. If you wish to select the best franchise business investment opportunity in India then Franchise Plus is there for you. Franchise Plus is the one of the leading magazines providing latest information on the franchising opportunities in India.

Moreover, Franchise Plus is one magazine that only informs about the best franchise business investment opportunity but also provides updated information and news about Indian franchisees, Indian franchisors, and business opportunities in India, franchise information, franchises in India and even franchise companies in India. In short you name it and Franchise Plus provides it all. Cashing over the franchise business investment opportunity means you are securing your future for further benefits.

These days, whether it is a big foreign company or a domestic company everyone is strategizing their own franchise concept. And this strategy making is spreading and developing at a phenomenal rate. Everyone wants to stay ahead in the business that's why they have started offering the best franchise business investment opportunities to the people. Seeing this sudden popularity of franchising business many sectors have witnessed a massive change and those sectors are aviation industry, telecommunication, real estate, infrastructure, or even finance market.

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Restaurant Franchises - From Fast Food Outlet to Up-Market Cuisine

Many different types of restaurant franchises are to be found on our high streets and in our shopping malls. There are fast-casual outlets, where made-to-order sandwiches, panini, salads and desserts are prepared, catering for the busy office, factory or construction worker or shopper. Cheap and cheerful fast food outlets are always plentiful, offering burgers, kebabs, fried chicken or pizza for those on a budget or in a rush. There are specialist coffee houses, offering an array of freshly brewed coffees from around the world, along with a tempting selection of muffins, cookies and cakes. Then there are restaurant franchises offering more substantial and up-market cuisine, often specialising in food from a particular country such as China, Italy or Japan. Although still reasonably priced, a meal at such an outlet will cost more than at other restaurant franchises, with marketing strategies directed principally at white collar workers and premises often sited near government complexes, universities and hospitals.

Restaurant franchisors enter into franchise agreements, which grant franchisees the exclusive right to develop and operate businesses at certain locations. Initial franchise fees are recognized as revenue when all material services and conditions required to be performed by the head office have been substantially completed, which is generally when the restaurant opens. Franchisees are required to pay royalties to the head office, based on a percentage of gross sales as reported through the franchisees' point of sales systems. The royalties are recognized as revenue in the period corresponding to the sales reporting period. Typically, weekly reports on sales at each franchise location are received by the head office and revenue is calculated directly from those reports. Franchisees are usually required to contribute to an advertising fund, typically at a rate of up to 2% of total franchisee gross sales.

Restaurant franchises market their menus primarily through targeted local store marketing efforts, mail drops, media advertising, and print campaigns. The franchising company relies on the cash deposits from franchise sales as well as royalty fees from existing restaurant franchises to support the expenses of the business. Revenue is derived from the sale of franchises, from royalties paid by franchisees and from the sale of food and drinks at the franchised restaurants. Revenues can be increased by adding new company-owned restaurants, selling new franchises and expanding the range and consumption of food and beverage products sold.

The unprecedented economic conditions of 2008 have resulted in a significant reduction in the sales of new restaurant franchises and many companies have had to reduce corporate overheads. The ability of the smaller franchises to fund their operations will depend on the length of time of the current economic downturn, future performance and the ability to successfully implement business and growth strategies. However, food related businesses tend to hold up well in a recession, especially those at the bargain end, and there is every reason to be optimistic that this trend will continue.

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Restaurant Franchising in India

It is widely reported that restaurant franchising in India is growing at the rate of 35-38 per cent each year with a market size of 7.2 billion US dollars. This figure is expected to reach 20 billion US dollars by the year 2013. In total, there are approximately 1,200 active franchise concepts in India and more than 100,000 franchisees. There are in the region of 200 restaurant franchising concepts across the country. Other important sectors using the franchising business model are beauty salons and cosmetics, business services, education, retailing, travel and tourism.

According to a survey carried out by Franchise India Holdings Ltd (FIHL), there are currently over 400 brand franchisors of which seventy per cent were concentrated in Delhi, followed by Western India with 386 brands, with the majority being from Mumbai and Gujarat. 250 brands were in the south, with the majority in Bangalore and Chennai and 58 brands in the eastern region, the majority being concentrated in Kolkata.

The survey finally gives the Indian restaurant franchising sector the recognition it has long deserved. The study also reveals that more than 30 per cent of new food outlets which are springing up in almost every city across India are through the franchise system. Such is the rate of growth, that restaurant franchises now account for an estimated 17% share of food and beverages in the commercial sector. Three-quarters of these are of Indian origin and the rest are international. The report makes for revealing reading with regard to the growth of the Indian economy and the food consumer market, and also its potential for any future expansion. The report states that 51 per cent of the consumer wallet share is dedicated to food (54 per cent in rural area and 42 in urban areas). The swift pace of growth and apparent success of the restaurant franchise sector is encouraging many restaurant owners and existing food companies throughout the country to look to increase their brand in terms of franchisees across the country.

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