Fake franchisees take a bite out of pizza boom
Bite this. The much sought-after swanky pizza outlet in your neighbourhood flaunting some international restaurant brand may be bogus.
As the global and Indian food chains continue expansion through franchisee route, a lot of them are having a tough time fighting bogus franchisee outlets. The international pizza chain US Pizza is already busy addressing two such cases in Gujarat.
The local franchisee outlets do not seem to have qualms claiming to be part of an international brand even as there are no tie-ups. According to Franchisee Association of India, the number of bogus franchisee outlets is increasing, mainly as expansion by franchise route is on the rise.
“A lot of people launch outlets using names of international or national brands without being associated with them,” says Food Factory Express founder, president and CEO Nandkumaarr Awatramanii. According to him, part of the blame goes to lack of strict franchisee laws. “Unlike other countries, in India there are not very strong franchisee laws which makes existence of such outlets easy,” says Mr Awatramanii.
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