Indian retail market to reach $535 bn by 2013: Report

New Delhi, Nov 26 (IANS) India’s retail market is expected to reach $535 billion by 2013, says a report on fashion and lifestyle franchises released here Thursday. “With anticipated $30 billion fresh investment over the next five years, modern retail will show impressive compound annual growth rate of 40 percent,” said the Fashion and Lifestyle Franchise Report 2009-10.

“With this growth rate, the market is expected to reach $535 billion by 2013,” added the report compiled by Franchise India Holding Ltd, a franchise solutions provider. “The growth of organised retail will be driven by the franchise model in future,” said company president Gaurav Marya while releasing the report at the two-day Franchise India summit on retail trade that began here Thursday.

“In fact, that is the reason that many big companies going into retail mode are adopting it,” Marya said, adding that he expected business deals worth Rs.150 crore would be struck at the summit. About 250 firms including 30 foreign brands are participating. India’s franchise segment is growing at 38 percent annually with the market size, currently valued at $7.2 billion, expected to reach $20 billion by 2013, the report said.

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Jury Nails Francorp Founder on All Counts, Including Fraud

Don Boroian, president of Francorp, testifies in January about buying franchises from new franchisor creation Palm Tree Computers. source/YouTube

MIAMI – On Friday, October 9, just prior to midnight, a Miami jury reached a verdict in favor of five South Beach master franchisees on all nine counts against Donald Boroian and his Francorp  development firm. The claims included fraud, conspiracy, unfair and deceptive practices, negligent misrepresentation, and violations of state laws.  Robert Einhorn, Zarco Einhorn Salkowski & Brito, representing the franchisees said it was a total victory. “We are gratified that the jury held Donald Boroian and Francorp responsible for their deceptive and fraudulent business practices in this case.”

But the verdict could extend beyond those findings. Einhorn asserts that the jury’s decision sends a clear message to  Francorp and other franchise “packaging houses” that they will be held accountable for the preparation of false and misleading franchise documents for their clients, and that these franchising consultants cannot engage in the unauthorized practice of law. Although the unauthorized practice of law issue wasn’t a separate claim in the case, he said it was evidence that supported the negligence and the unfair and deceptive trade practices act claims.  He added, “So, there’s no official finding on it but it could be assumed that the jury concluded that by entering its verdict on everything claimed.”

In summarizing the litigation, Einhorn previously stated, "Don Boroian and his company completely stepped out of the role of being a franchise consultant to become his client's partner, her joint venturer and her legal counsel. They actively participated in a scheme to defraud my clients." South Beach’s principal, Carol (Meyers) Brothers, brought the concept to Francorp to develop its franchising program. Boroian first met Brothers in 1978, when she brought her first concept, Pop-In-Maid Service, to him, a company she later took into bankruptcy. 

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