BUSINESS ADMINISTRATION IN INDIA

Franchise and Business Administration

Aravindh, A. S., MBA (Finance and Systems)
Ph.D. Scholar, Annamalai University

Abstract

Franchise is becoming popular in India among both new entrants to the business and those who have been in business for generations. For the new entrants is attractive because franchise offers one stop service to setup a new business. The Franchisor company itself sets up all the necessary interior and exterior and also guides them with needed documents and processes for the registration of the business according to existing laws. In this paper, a discussion on licensee-licensor model that still exists is presented. The notions of agents/agencies and chain stores are also briefly discussed. The paper focuses on the intricate business administration steps and relations involved in setting up a franchise in Indian contexts. A minimum guaranteed business will result in franchisee’s prosperity through gradual progress.

Keywords: Franchise, Franchisee, Franchisor, franchise administration, chain stores, licensee-licensor, agency.

Family-owned Business

Family-owned business is the most commonly found model in India. Street corner shops to large corporate businesses may come under this category. While the street-corner shops may not have their own formal trademarks, many family businesses create and use their own trademarks. Family-owned business could include other relatives and/or friends as owners of the business.

When families get divided, the business may be also divided or left to one of the dominant members of the family, with others getting compensation, etc. Recent history of the Ambani family is very significant for an understanding of the processes adopted in dividing family business, and to learn how one part of the original family prospers extremely well, while the other party continues to struggle to survive and prosper.

Street Corner Shops

New businesses, especially street-corner shops, come into existence with individuals’ initiative. A street corner shop may start as a source of livelihood, but soon it could go beyond the street corner function to serve the whole town.

Trademark and Agents

Trademark is an important aspect of Indian businesses. The companies which produce popular consumer goods may or may not open their branches all over the state, etc. They may appoint sellers, often called as agents in the past, who alone would be authorized to sell these goods. Some agents may be appointed as the sole distributors of the goods. Trademark or brand name becomes very important when the product attracts customers in great numbers.

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Aravindh, A. S., MBA (Finance and Systems)
Ph.D. Scholar, Annamalai University
Senior Associate, City Union Bank, Ltd.
asajoelsam@gmail.com

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