Agricultural franchising is relatively new in India. There is an increase in franchising of business in agriculture sector in recent years. In this, the Agri-input sector is major contributor of the agribusiness sector. It plays a crucial role in boosting agricultural productivity and ensuring global food security. In this sector, the franchise model has become a significant business strategy, providing a platform for distributing agricultural inputs like seeds, fertilizers, pesticides, machinery, and other essential resources. This research investigates the agricultural franchising sector in India, focusing on the Agri-input sector. The study specifically evaluates the effectiveness of the franchise model in Agri-input sector in Jamnagar and Rajkot districts of Gujarat. By surveying 200 farmers and 8 franchisees over three months, the research aims to provide insights into customer satisfaction, operational challenges, socio-economic characteristics, and profitability of franchise-based Agri-input distribution systems. Key findings indicate that most customers were male, aged 31-50, with secondary education or below, and extensive farming experience. The majority are small and marginal farmers with an annual family income between Rs 1,00,000 and Rs 5,00,000. Satisfaction levels are high for product quality but lower for pricing and availability. Influential factors in choosing a franchisee include product quality, pricing, credit availability, and franchisee reputation. Franchisees face significant operational challenges such as inadequate storage, high inventory costs, financial constraints, and seasonal variations, yet report moderate profitability driven by customer loyalty and sales volume. To enhance the franchise model's effectiveness, recommendations include improving local marketing, optimizing inventory management, and providing excellent customer service for franchisees, along with comprehensive training programs and increased marketing support from franchisors. Addressing these challenges can bolster the model's viability and sustainability in the Agri-input sector

Agricultural franchising, Agri-input sector, Franchise model, Operational challenges, Franchise operations

The study on the “Effectiveness of the franchise model in the Agri-input sector” focused on 200 farmers and 8 franchisees in Jamnagar and Rajkot districts of Gujarat state, over three months. The research aimed to understand socio-economic characteristics, choice factors, operational challenges, and profitability of the franchise model. Key findings revealed that all surveyed customers were male, with most having secondary education. Small and marginal farmers formed the largest customer groups.. Product quality, pricing, and credit availability were the top factors influencing franchisee choice. Franchisees faced challenges such as inadequate storage, high inventory costs, financial constraints, and seasonal variations. Key operational challenges included manpower shortages, equipment availability, insufficient training, transportation issues, and regulatory delays. Profitability analysis showed moderate net profit margins for most franchisees and many franchisees reported lower than expected profitability. Customer loyalty, sales volume, and advertising were critical profitability factors. The study suggests that franchisees should enhance local marketing efforts and improve customer service. Franchisors should increase marketing support and offer comprehensive training programs to address skill gaps and operational challenges, thereby improving the overall effectiveness and sustainability of the franchise model in the Agri-input sector

Kashyap B. Sojitra and Mehul G. Thakkar (2024). Effectiveness of the Franchise Model in the Agri-input Sector. Biological Forum – An International Journal, 16(9): 22-28