Because after privatisation the govt removed all restrictions on trade and free all the private sectors to do trade in india

Franchising is a method of Privatisation.

Privatisation refers to the transfer of ownership, control, and management of a government-owned enterprise to the private sector. It involves the sale of government-owned assets or the granting of rights to private individuals or companies to operate and manage certain services or businesses. Privatisation aims to increase efficiency, encourage competition, and improve the overall performance of the enterprise.

Franchising, on the other hand, is a business model where a franchisor grants the rights to operate its business under its established brand name and business system to a franchisee. The franchisee pays an initial fee and ongoing royalties in exchange for the rights to use the franchisor's brand, trademarks, and business methods. Franchising allows the franchisor to expand its business rapidly without the need for large capital investments, while the franchisee benefits from operating a proven business model and brand recognition.

Franchising and privatisation are related in the sense that franchising involves the transfer of ownership and control of a business from the franchisor to the franchisee, similar to how privatisation involves the transfer of ownership and control of a government-owned enterprise to the private sector. In both cases, the goal is to improve the overall performance and efficiency of the business.

Franchising can be seen as a form of privatisation because it involves the transfer of ownership and control of a business from the franchisor (who may be a private company) to the franchisee (also a private individual or company). The franchisee becomes the owner and operator of the franchised business, while the franchisor retains ownership of the brand and business system.

In conclusion, franchising is a method of privatisation because it involves the transfer of ownership and control of a business from the franchisor to the franchisee, similar to how privatisation involves the transfer of ownership and control of a government-owned enterprise to the private sector.