The Franchising Association of India led a 25-member trade delegation to the United States last month to attend the International Franchise Expo 2008 in Washington from April 11 to April 13.

At the expo, the Indian franchise association held a panel discussion on “Franchising in India.” The panel was focused towards encouraging U.S. franchisors to consider expansion in India. The attendees were given previous issues of Franchising Focus, an association publication as well as useful information for franchising in India.

The panel was moderated by senior franchise professional Sunil Dewan, Lakshmi Narayanan of REBI, Dave Koch of Plave Koch, Smita Joshi of the USCS and Rajeev Manchanda and Dhawal Shah of the Franchising Association of India.

Dewan pointed out the large potential market of franchising in India with as much as 300 million Indians a target audience for international brands.

He said that, because of this, India has to be on the radar of every international expansion initiative. He also pointed out that India has many more potential customers than China.

Koch supported Dewan’s assertion that India is a better market than China, saying that Indians take a more formal approach toward commercial matters.

Manchanda pointed out that India is a very diverse country and that franchisors must provide support to franchisees in helping them cater to this diversity. As an example, he cited McDonald’s which has customized food for Indians. He believes that it is very important to adapt your product offering to suit consumers’ taste buds. He also said that despite all the hurdles related to infrastructure in India, Dominos’ Pizza still manages to deliver pizzas in 30 minutes.

Joshi pointed out that due diligence of a master franchise partner is a must for a successful partnership. The U.S. Commercial Services has seven offices across India, she said, and it is very important to conduct market research and reference checks while entering a new market like India. She believes franchisors should consider appointing regional licensees/franchisees to facilitate the process of entering India.

Real estate agent Narayan pointed out that finding good locations in India continues to be a challenge.

However, he said while the infrastructure is poor, Indians are loyal and smart employees.

In support of India, Shah said that while India does not have any franchise laws, it has a very astute legislation protecting the interests of the franchising community.

In addition to the Franchising Association of India panel discussion, the organization also had a book at the franchising expo to promote franchising in India.

The Franchising Association of India was founded in 2000 and is headed by franchising industry veterans C.Y. Pal and Pramod Khera.
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