Written By: Shivani Kumari

A master franchise is a business arrangement within the franchising model. In this setup, a franchisor, which is the original company owning a successful business concept, grants exclusive rights for a particular geographic region to a single entity or individual known as the master franchisee or sub-franchisor.

Our blog will take you through the top 7 master franchises in India in 2023, the benefits associated with owning a master franchise in India and how the master franchise model works.

Let’s Start!

Top 7 Master Franchises to Invest in 2023

1.     Domino’s Pizza

Domino’s Pizza is one of the most Famous and Renowned Pizza chains in the country. It is one of the most Prominent Fast Food Franchise Businesses in India.

Domino’s also worked on understanding Indian taste buds and offered various Localized menus, which gives Domino’s a competitive advantage in the market.

2.    Subway

Subway, the world's largest and most popular sandwich chain, has redefined the fast-food industry with its commitment to freshness, customization, and healthier options. Since its inception in 1965, Subway has grown into a global phenomenon, serving millions of satisfied customers every day.

Subway continuously innovates its menu to keep up with changing consumer preferences. Alongside its classic sandwiches, it offers wraps, salads, breakfast options, and a range of beverages. Vegetarian and vegan choices have also been integrated to cater to the growing demand for plant-based options.

Subway's enduring appeal lies in its dedication to fresh ingredients, customization, and a commitment to healthier fast-food choices. Its global reach, menu diversity, and community engagement make it a beloved brand around the world, ensuring Subway's place as a leading player in the fast-food industry.

3.   Starbucks

Starbucks' journey from a small Seattle coffeehouse to a global coffee giant is a testament to its dedication to quality, community engagement, and the coffee experience. Starbucks has not only elevated the coffee culture but has also become a symbol of the "third place" where people can connect, work, and savour a cup of their favourite brew.

Starbucks has redefined coffee customization. Customers can choose from an extensive menu of espresso-based beverages, teas, cold brews, and handcrafted speciality drinks. The iconic "Starbucks experience" is about catering to individual tastes and preferences, with a myriad of milk choices, syrups, and toppings available.

Starbucks stores are designed to offer a warm and inviting atmosphere, often referred to as the "third place" between home and work. Comfortable seating, free Wi-Fi, and a relaxing ambience have made Starbucks a popular spot for meetings, work, or simply unwinding with a good book.

4.     FabIndia

FabIndia, founded in 1960, has become a symbol of India's rich heritage and craftsmanship in the realm of fashion and lifestyle. This iconic Indian retail brand has made it its mission to promote traditional Indian art forms, empower rural artisans, and bring authentic Indian products to a global audience.

FabIndia's journey began with a simple yet powerful vision - to preserve, promote, and celebrate India's traditional craftsmanship and textile heritage. The brand is dedicated to showcasing the diversity of India's cultural tapestry through its products.

FabIndia stands as a remarkable brand that not only celebrates India's heritage but actively contributes to its preservation and evolution. Through its commitment to handcrafted excellence, sustainability, and community engagement, FabIndia has become a beacon of ethical and authentic retail in the world of fashion and lifestyle.

5.     Lenskart

Lenskart, India's leading eyewear brand, has emerged as a trailblazer in the eyewear industry, offering innovative solutions and a vast selection of eyeglasses, sunglasses, and contact lenses. Founded in 2010 by Peyush Bansal, Lenskart has revolutionized the way Indians shop for eyewear, combining cutting-edge technology with a customer-centric approach.

The journey of Lenskart began with a vision to provide affordable and high-quality eyewear to millions of Indians. Peyush Bansal, an engineer and entrepreneur, recognized the challenges faced by customers in accessing the right eyewear solutions, and he set out to address this gap.

Lenskart's journey from a digital disruptor to a comprehensive eyewear solution provider is a testament to its commitment to innovation, affordability, and customer-centricity. The brand has not only reshaped the eyewear industry in India but also become a symbol of accessible and stylish eyewear for customers of all backgrounds and needs.

6. FirstCry

FirstCry is India's largest online shopping platform dedicated to all things baby and kids. Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry has established itself as a trusted destination for parents and caregivers, offering an extensive range of products, expert advice, and a seamless shopping experience.

FirstCry's journey from a visionary startup to India's largest online platform for baby and kids' products is a testament to its dedication to parents and caregivers. By offering a diverse range of high-quality products, expert guidance, and a customer-centric approach, FirstCry has become an essential part of the parenting journey, ensuring that children receive the best care and products at every stage of their development.

7.  KFC

KFC's journey began in Corbin, Kentucky, where Colonel Sanders began selling his unique blend of "Original Recipe" fried chicken at a roadside service station.

The Colonel's vision was simple: to offer a consistently high-quality, flavorful chicken meal that would satisfy every customer.

KFC's journey from a small roadside eatery to a global fast-food powerhouse is a testament to the enduring appeal of its delicious fried chicken and Colonel Sanders' vision. With its commitment to quality and flavor, KFC continues to delight customers worldwide, ensuring that every bite remains "finger-lickin' good."

Master Franchise in India – Here’s All You Need to Know

• Franchisor: This is the original company that has developed a proven and Established business model and wants to expand by allowing others to replicate it under their brand.

• Master Franchisee (Sub-Franchisor): The master franchisee is given the authority to operate and develop multiple franchise units within a specified area. They take on the role of an intermediary between the franchisor and individual franchisees in their designated region.

• Individual Franchisees: These are entrepreneurs or business operators who buy into the franchise system. They benefit from using the established brand, receiving support and resources provided by the franchisor, as well as guidance from the master franchisee.

The master franchisee typically receives a share of the franchise fees and royalties collected from the individual franchisees operating within their territory in exchange for their services. This allows them to generate income not only from their own franchise units but also from the growth of the entire franchise network within their region.

Master franchise arrangements are often utilized in international expansion efforts, especially when a franchisor lacks the knowledge or resources to manage operations in diverse countries. The master franchisee acts as a local expert, facilitating the brand's entry into new markets by navigating cultural and regulatory differences.

 Benefits Associated with A Master Franchise in India

• Exclusivity and Geographic Control: The first and foremost benefit of a master franchise is the exclusive territorial rights granted to the master franchisee. They have the authority to operate and develop multiple franchise units within their designated geographic area. This exclusivity allows for greater control and strategic planning within the territory.
• Revenue Streams: A master franchisee has multiple revenue streams. They can earn income not only from their own franchise units within the territory but also from franchise fees and ongoing royalties collected from individual franchisees operating there. This diversified income structure can lead to higher revenue potential.
• Local Expertise: Master franchisees often possess deep knowledge of the local market, including cultural nuances, consumer preferences, and regulatory requirements. This local expertise is invaluable when it comes to adapting the franchise concept to the specific needs of the region.
• Faster Expansion: For franchisors, master franchise agreements accelerate expansion efforts. By partnering with master franchisees, they can penetrate new markets more rapidly and efficiently, leveraging the master franchisee's resources and commitment to local growth.
• Reduced Administrative Burden: Master franchisees assume many responsibilities typically handled by the franchisor. This includes recruiting, training, and supporting individual franchisees, as well as overseeing day-to-day operations. This reduces the administrative burden on the franchisor and allows them to focus on broader brand development.
• Shared Risk: While there are upfront costs associated with becoming a master franchisee, the shared risk model can be less financially burdensome than trying to establish a brand independently. By partnering with a well-established franchisor, the master franchisee benefits from the franchisor's reputation and support.
• Collaborative Support: Master franchisees receive extensive support from the franchisor. This support encompasses training, marketing, operational guidance, and ongoing assistance. This collaboration ensures that the franchise concept is executed consistently and effectively throughout the territory.
• Scalability: Master franchises are scalable. As the master franchisee successfully develops and manages more franchise units within their territory, they can continue to expand, either within the same territory or by acquiring additional territories, creating further growth opportunities.
• Global Expansion: In the case of international master franchises, this model facilitates global expansion. It enables franchisors to enter foreign markets with the assistance of master franchisees who understand the local market intricacies, thereby minimizing the challenges associated with international business operations.

In summary, a master franchise presents a win-win scenario for both franchisors and master franchisees. Franchisors can efficiently expand their brand's footprint, while master franchisees benefit from exclusive rights, diversified income streams, and the opportunity to leverage their local expertise for business success. This collaborative approach to franchising is a powerful tool for achieving sustainable growth.

FAQs

Q1: How does a master franchise differ from a regular franchise?

In a regular franchise, individual franchisees operate single units under the guidance and support of the franchisor. In contrast, a master franchisee is granted broader rights to oversee and expand the franchise concept within a specified territory. They recruit, train, and support individual franchisees in their area, essentially functioning as a sub-franchisor.

Q2: What are the benefits of owning a master franchise in India?

Owning a master franchise in India can offer several advantages, including:

The potential for significant revenue from franchise fees and royalties.

The ability to tap into a successful business model with established brand recognition.

Opportunities for diversification and expansion within your designated territory.

Leveraging the support and resources of both the franchisor and individual franchisees.

Q3: How do I select the right franchisor for a master franchise in India?

Selecting the right franchisor is crucial. Consider factors such as the franchisor's reputation, financial stability, the attractiveness of their business concept in the Indian market, and the support they offer. Conduct thorough due diligence and seek legal advice before signing any agreements.

Conclusion

Master franchise arrangements have proven to be effective in the Indian market, especially for international brands looking to establish a presence in the country. These arrangements allow for a localized approach, adapting business models to cater to the diverse and dynamic Indian market. Additionally, they help franchisors navigate the complexities of regulatory compliance, cultural nuances, and regional variations.

However, it is crucial for both franchisors and master franchisees to stay informed about evolving legal and regulatory requirements in India, which can impact the franchising landscape. Compliance with local laws and regulations is essential to ensure the longevity and success of master franchise operations.

Master franchises continue to be a promising way for businesses to expand and thrive in the Indian market in 2023. Entrepreneurs in India have opportunities to leverage this model for business growth, while international brands can use it as a strategic entry point into the Indian market, provided they remain adaptable and attuned to the changing business environment.

Contact us at FranchiseBazar to learn more about how to start a master franchise anywhere in India.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risks and discretion. FranchiseBAZAR or its Directors, disclaim any liability or risks arising out of any transactions that may take place due to information provided in this blog.