The retail brands these days are much valued and the banks should consider the fact that giving a loan to a franchisee is much safer, he said.
The average ticket-size of franchise loans is around Rs 5-lakh to Rs 5-crore depending on the type of business or franchise rights, Marya said.
Financing franchise business is safer than financing start-ups as 80 per cent of start-up companies die in the first five years, whereas 90 per cent of franchisees survive that period. The Government should also ease borrowing for franchise players interested in opening outlets for international players in India, he said, adding it should also abolish service tax currently levied on transportation, rent and commission.