The Future of Franchise Consulting in India: Trends and Insights for 2025

India’s franchise industry is poised for significant growth, and as we approach 2025, franchise consulting is becoming an essential area for both aspiring entrepreneurs and established businesses. With an estimated market size expected to reach USD 140-150 billion in the next five years, the landscape offers abundant opportunities for those who understand the intricate dynamics shaping this sector. From evolving consumer behaviour to technological advancements, the trends influencing franchise consulting in India are diverse, and consultants must be agile to keep up with the rapid changes. 1. Explosive Industry Growth: Market Projections and Dynamics The Indian franchise market is experiencing explosive growth, with projections suggesting it will reach USD 140-150 billion by 2025. This growth is a result of various factors, including an expanding middle class, increasing urbanization, and rising disposable incomes. As of now, there are approximately 4,600 active franchisors operating nearly 200,000 franchise outlets across India, with multi-unit franchisees (owners who operate more than one franchise unit) playing a dominant role. This shows a trend of larger franchise systems emerging, which presents a great opportunity for consultants who specialize in guiding these multi-unit franchises on scaling effectively and managing multiple locations. Growth Projections: Market size by 2025: USD 140-150 billion Annual growth rate: 30-35% Franchise outlets: 200,000+ Active franchisors: 4,600+ This expansion highlights a significant need for consulting services that can cater to diverse sectors, identify the right market for expansion, and help businesses navigate the complexities of the Indian market. 2. Dominance of the Foodservice Sector Among all sectors, foodservice remains the dominant player in India’s franchise market. With rapid urbanization and shifting consumer preferences toward convenience, foodservice franchises are expected to account for 30% of the entire franchise market by 2025. This growth is primarily driven by the increasing demand for quick-service restaurants (QSRs), casual dining, and fast-casual formats. Consumers are increasingly turning to branded food outlets that promise consistency, quality, and value for money. Additionally, food delivery services are on the rise, particularly in urban centers, further driving growth for foodservice franchises. Consultants focusing on the foodservice sector have an opportunity to work with brands that are expanding rapidly. This includes helping with site selection, menu development, local market adaptation, supply chain management, and scaling operations efficiently. Key Insights for Consultants in the Foodservice Sector: 30% of the franchise market is expected to be dominated by foodservice A growing demand for QSRs, casual dining, and delivery-only models Rising food delivery services providing franchise opportunities 3. Diversification into Retail, Beauty, Wellness, and Healthcare While foodservice leads, the retail, beauty, wellness, and healthcare sectors are also making a considerable contribution to the franchise market in India. Together, these sectors represent about 60% of the market. The diverse nature of these industries offers franchise consultants numerous opportunities to explore. Retail Franchises: With increasing disposable income, consumers are spending more on branded products, making retail franchises a booming sector. Both physical stores and online retail platforms are growing, and the rise of omnichannel retailing has created new franchise models that consultants need to focus on. Beauty and Wellness: India’s beauty and wellness industry is undergoing a rapid transformation, with rising demand for salons, spas, fitness centers, and wellness products. This sector is expected to see continued growth in the coming years, driven by the youth's increasing focus on health, fitness, and beauty. Healthcare Franchises: The healthcare sector is experiencing a surge in franchising, with diagnostic centers, clinics, gyms, and wellness centers expanding into both urban and rural markets. The increasing health-consciousness of the population, along with a shortage of healthcare providers in smaller towns, has created a fertile ground for healthcare franchises to thrive. Key Insights for Consultants: Retail, beauty, wellness, and healthcare account for 60% of the franchise market Omnichannel retailing and health and wellness are key areas for franchising Healthcare and fitness franchises are growing rapidly, especially in underserved regions 4. Expanding Beyond Metropolitan Cities While the majority of franchise businesses have traditionally been concentrated in metros like Delhi, Mumbai, and Bengaluru, there is now a clear trend toward expansion into Tier 2 and Tier 3 cities. These cities present a significant growth opportunity due to their rising disposable incomes and increasing urbanization. According to recent reports, 60% of the population now resides in rural and semi-urban areas, which are increasingly becoming lucrative markets for franchisors. Consultants will need to guide businesses on how to adapt their franchise models to meet the needs of these regions, which often have different cultural, economic, and social dynamics compared to larger cities. This trend also highlights the need for consultants to help franchises localize their offerings, ranging from product selections to marketing strategies. It’s not just about location expansion but understanding how to adjust the business model for different regional tastes, buying patterns, and local preferences. Key Insights for Consultants: Tier 2 and Tier 3 cities are becoming critical areas for franchise expansion Consultants need to focus on regional market adaptation and understanding local preferences These cities represent a significant share of the emerging consumer base 5. Consumer Behavior: A Focus on Convenience and Affordability Indian consumers are increasingly seeking convenience, affordability, and quality when choosing brands. More than 50% of consumers are attracted to franchises due to the ease and convenience they offer, such as fast service, multiple locations, and a reliable experience. Franchises that offer delivery services, loyalty programs, and fast-casual formats are resonating well with consumers. These preferences are evident in sectors like foodservice, retail, and personal care services, where brands are focusing on providing accessible and consistent experiences to cater to the busy lifestyles of modern consumers. Consultants will need to help franchises understand these changing consumer preferences, incorporating technological solutions to streamline operations and enhance customer satisfaction. Whether it’s through mobile ordering systems, improved customer service training, or loyalty programs, technology will play a critical role in meeting these demands. Key Insights for Consultants: Over 50% of consumers are drawn to franchises for convenience and affordability Increased demand for delivery services, loyalty programs, and fast-casual franchises Consultants must focus on customer experience optimization through technology 6. Technology Integration: Digital Transformation in Franchising The role of technology in franchising has expanded in recent years, and 2025 will see even more significant integration. With advancements in AI, data analytics, cloud-based software, and digital ordering systems, franchisors need to embrace digital tools to remain competitive. Consultants are increasingly being called upon to guide franchises through the process of digital transformation. Whether it’s helping businesses develop customer apps, implement AI-driven inventory management systems, or streamline franchisee operations using cloud-based solutions, technology will be a major growth driver. Key Insights for Consultants: Franchises must adopt AI, data analytics, and cloud-based solutions to scale efficiently The integration of digital platforms for customer engagement, ordering, and loyalty programs is essential Franchisee training on technology adoption will be a key area of focus for consultants Conclusion: The Road Ahead for Franchise Consulting in India The future of franchise consulting in India looks bright, with substantial growth on the horizon. As the franchise market grows to USD 140-150 billion by 2025, there will be a greater need for specialized consultants who can guide brands through the complexities of expansion, consumer behavior shifts, and technological integration. Whether focusing on foodservice, retail, beauty, or healthcare, there is an abundance of opportunity for those prepared to navigate the dynamic and rapidly evolving franchise landscape. For consultants, this means staying ahead of market trends, understanding regional nuances, and leveraging technology to help clients scale successfully. As India continues to diversify and modernize, the role of franchise consultants will be crucial in ensuring businesses not only survive but thrive in this competitive market.