Vietnamese coffee and tea chain Three O’Clock has officially entered the Indian market through an international franchise agreement signed with FranGlobal on Tuesday.

The deal grants FranGlobal exclusive rights to develop Three O’Clock across four South Asian countries--India, Nepal, Sri Lanka, and Bangladesh, aiming to open at least 100 stores over the next decade.

FranGlobal is the international business extension of Asia's leading franchising solutions firm - Franchise India Holdings Limited.

FranGlobal Chairman Gaurav Marya expressed confidence in the brand’s appeal, citing the growing demand for cold beverages among the Indian subcontinent’s youth, who make up 50 percent of the 1.9 billion population. 

While traditionally known for hot tea, South Asia is gradually embracing coffee, creating a promising market for Three O’Clock’s diverse menu, aesthetic spaces, and premium packaging.

The first Three O’Clock store in India is scheduled to open in May this year, targeting major cities such as Bangalore, Chennai, Hyderabad, Mumbai, and Delhi.

Expansion plans include strategic locations like shopping malls and airports, with a focus on refining products and training during the first year.

Founded in Ho Chi Minh City in 2016, Three O’Clock currently operates 10 outlets with 24/7 service.

Founder and CEO Thuan Nguyen called the expansion a strategic step to elevate Vietnam’s coffee brand on the global stage.

Vietnam has made strides in franchising, with many international brands entering its domestic market.

However, expanding local brands internationally remains challenging due to limited professional infrastructure and expertise in packaging and promoting franchises globally.

Industry leaders like Nguyen Phi Van, chairwoman of Go Global Holdings, anticipated that by 2025, several Vietnamese brands will secure international franchise deals, contributing significantly to the national GDP.

Franchising is seen as a key solution to adding value to Vietnam’s agricultural exports, particularly in coffee. 

While Vietnam ranks second globally in coffee exports, building strong, sustainable brands capable of attracting international investors remains a challenge for small and medium enterprises, she said.

According to Technavio, the global franchise industry was valued at $2.92 trillion in 2023 and is expected to grow by 9.58 percent annually, reaching $4.38 trillion by 2027. 

In developed markets such as the U.S., Canada, Australia, and Asian nations like South Korea, China, the Philippines, and Malaysia, franchising contributes 3-10 percent to national GDP.

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