Recession Free and High Growth Sectors for Franchising Opportunities
Some sectors within Franchising are Recession Free and High Growth sectors. Read below to know more…
When you have decided to take up franchising as a business option for yourself, it is important for you to learn the best possible options. Apart from the various factors to choose from, that you learnt in our mailers and other posts on this blog, you may benefit by understanding about different industries within franchising that are outdoing others.
If franchising as an industry is growing at 30% year on year in India, below are the industries that are spearheading that growth:
1. Education concepts expected to grow at 30% to 40%
2. Fashion and Lifestyle expected to grow at 27% to 30%
3. Food and Beverage industry expected to grow at around 45%
4. Healthcare and wellness is expected to grow at 25% to 35%
We can broadly mention the range of investments required to set-up a decent franchisee center, for each of the above categories, although specific variations may still exist outside this range.
Education concepts sector: Rs.1 Lakh to Rs. 50 Lakhs (Rs.5 million) [not accounted k-10 school franchise]
Fashion & Lifestyle sector: Rs. 20 Lakhs to Rs. 1 Crore+ (Rs.10 million)
Food & Beverages sector: Rs.10 Lakhs to Rs. 5 Crores+ (Rs.50 million)
Healthcare & Wellness sector: Rs. 30 Lakhs to Rs. 5 Crores+ (Rs. 50 million)
Studies show that the return on investment (ROI) is fastest and highest in the Education sector as the upfront investment needed is relatively low and there can be savings even in the infrastructure and real-estate costs as compared to the other 3 sectors requiring prime properties.
It is more beneficial for a first-timer getting into business to start within the education sector rather than the other options which may not only demand a long-term patience and persistence to see returns, but also may require good expertise & understanding along with passion to successfully run them. Individual preferences do vary and our post on how to choose a franchisee may help you understand the same better.
The above research inputs and insights should help you if are analyzing and planning to take up some franchisee business option.
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