India is a country with the largest youth population in the world and the third-largest consumer in the market, globally. Varied industries, ranging from automobiles, beauty, fast food, education, and wellness, postal and delivery, fashion, and healthcare are vying to enter and expand in the Indian market. We can say that India is like one mega-market for major international and national businesses. Franchise business is one of the models which many brands have opted to expand itself.
Since the franchise business is rapidly expanding like the speed of light in the business world. It helps both: the franchisee and the franchisor in achieving their individual goals. One could say, that it’s a total business opportunity for entrepreneurs and startups out there. And many successful entrepreneurs have opted for the franchise model instead of getting along with cringe business ideas.
What is a Franchise Business?
We wonder that there are so many foreign brands who have literally expanded in the market too fast. To say, franchise business is one of the primary ways via which so many brands have gained strength in the market. The process involves franchisor (franchise brand), who provides franchisee (franchise outlet owner) with the conceptual, structural, legal, and training support in exchange with an upfront start-up fee along with royalty charges.
The profits of owning and selling a franchise go both ways, for both, the franchisor and franchisee. The basic process to it is, that once the franchisee gets access to the brand’s loyal consumer base, creative support, legal counsel, and training support; the franchisor can further expand the business in untapped markets, thereby increasing the market share and revenues.
Before stepping into it, it’s essential that investors and businesses thoroughly research their potential business partners before signing the dotted line. For investors, it is probably safer to stick to established names and brands.
Although, it’s a rumor that franchise business requires a huge amount of investment. Let me clear this huge misconception of yours; Franchising is the most profitable and feasible form of business opportunity. One can easily start a franchise starting from 1 lakh and may also range up to 1 Crore.
Top Franchise Business Ideas Under 10 Lakhs:
|Franchise Business||Franchise Brands|
|1.||Courier & delivery||Inxpress|
|2.||Pre-School||Wow Kidz, DPS Global Playschool|
|3.||Wraps & Rolls||Kathi Junction, Rollacosta, Kathi Express|
|4.||Salon||Louis Unisex Salon, Studio99|
|5.||Gifting||Ferns n Petals|
|6.||Ice-Cream||Giani’s, Gelato Vinto, Teddy|
|7.||Electric Vehicle||Gayatri Electric Vehicle|
|8.||Juice & Shakes||Lounge London Shakes, Juice Lounge|
|9.||Language Schools||The British Institute, English Pillars|
|10.||Pharmacy||Care Pharmacy, Sanjivani|
Let’s take a look at some of the most profitable franchise business opportunities in India:
Top 10 Profitable Franchise Business Opportunities in India
- Founded in: 1965
- Industry: Food & Beverages (Fast Food)
- Investment: INR 54-90 lacs
- Franchise Units: More than 500
Subway as we all know the largest sub sandwich chain in the world. Started by Fred DeLucea in 1965, to help pay his college tuition. The main aim of the restaurant was to provide service of the highest quality to its customers at affordable prices: something that every brand abides nowadays. Today, it is one of the few mainstream fast food joints that thrives on promoting their range of healthy food options. With their salads, endless sandwich combinations on a variety of bread, including whole wheat, multigrain, gluten-free options, Subway has created a very loyal audience of its own.
- Founded in: 1956
- Industry: Food and Beverages (Desserts and Ice Creams)
- Investment: INR 10-20 lacs
- Franchise Units: 50+ (approximately)
Giani’s is one of the oldest and most loved ice cream parlors in India. It was founded by Giani Gurcharan Singh back in 1956. When he launched Giani di Hatti amidst the bazaars of Chandni Chowk, Old Delhi; It only had rabri faluda and mango shake which won countless hearts at that time. And from then on, it's unstoppable. Giani’s went frontline and launched several company-owned and franchise outlets in northern India and experienced big returns on its investment. Despite some economic downfalls, it will probably remain one of the go-to ice cream parlors for families across India.
3. Jawed Habib Hair and Beauty Ltd.
- Founded in: 2000
- Industry: Beauty and Wellness
- Investment: INR 20-30 lakhs
- Franchise Units: 875 (approximately)
Jawed Habib is a hair grooming and wellness brand that was founded by Jawed Habib himself. He came from a family of barbers, and thus, haircutting was not new to him. His grandfather was the barber of famous dignitaries like Lord Mountbatten and Pandit Jawaharlal Nehru. Following the legacy, Jawed’s father was appointed as the official hairstylist of Rashtrapati Bhawan. But, Jawed Habib had different plans for his life and he really wanted to establish his brand nationwide. After all, he succeeded in his entrepreneurial endeavors and he also played a crucial role in changing the paradigmatic view of a barber and helped shift it to that of a more glamorous hairdresser.
4. Affinity Salon
- Founded in: 1992
- Industry: Beauty & Wellness
- Investment: INR 30-50 lacs
- Franchise Units: 100 (approximately)
Vishal Sharma founded the Affinity Salon group in the year 1992. Sophisticated and experienced staff is coupled with luxurious and upmarket interiors and an international range of beauty products is what distinguishes Affinity Salon from its competitors. The brand has also secured a place among the Top 100 Best Salons of the World in the Salon Red Book. The Franchise has set a benchmark for delivering global standards of hair care and beauty services in the country for both the sexes. Affinity Salon has also witnessed steady growth and has reached nearly one hundred stores in the country. They further plan to expand its outreach in many other cities, primarily due to the increasing demand of unisex salons in these areas.
- Founded in: 2011
- Industry: Courier & Delivery
- Investment: INR 5 Lakhs
- Franchise Units:20-50
InXpress has partnerships with world-class carriers that handle the pick-ups and deliveries on behalf of customers. The local InXpress shipping specialist works to determine the right carrier and service option for the requirements of customers at great prices. The famous brand gives the opportunity for entrepreneurs to build a flexible business with the support of a global franchise system. This scalable franchise opportunity gives a business doorway so that you can build to suit your lifestyle choices.
6. DTDC Courier And Cargo Ltd.
- Founded in: 1990
- Industry: Courier and Delivery
- Investment: INR 50,000 – 2,00,000
- Franchise Units: 1000+
Subhashish Chakraborty is the Founder, Chairman, and Managing Director of DTDC Courier and Cargo Ltd. The brand came into being in 1990, in Bangalore and has reached over 1000 franchise units in India today. DTDC pioneered the franchise-based model in the Express industry. DTDC along with their immense structural and training have supported investors and businesses.
- Founded in: 2010
- Industry: Eyewear
- Investment: INR 30-35 lakhs
- Franchise Units: 330+ (approximately)
LensKart is one of the fastest-growing portals for eyewear in India and that too both online and offline. It was founded by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi as an online portal for contact lenses, in 2010. Later in 2011, eyeglasses and sunglasses were also added to the range. Then also the brand didn’t stop, it then ventured into launching offline stores to expand its retail footprint and thus, reached a wider audience. As of now, the expansion plan is focused on increasing the number of offline outlets to 500 from an existing 330 outlets. Eyewear has become a lucrative industry to enter into and LensKart is the biggest success story and brand in the same.
- Founded in: 1960
- Industry: Retail (Fashion)
- Investment: INR 40-50 lacs
- Franchise Units: 175+ (approximately)
FabIndia was founded by John Bissell in 1960 and now it has become a household name today, loved by all age groups alike. It was first launched with the sale of home furnishings before expanding to domestic retail in 1976. In the last decade, FabIndia has crossed the INR 1,000 crore sales mark to become the largest retail apparel brand in the nation, significantly ahead of its competitors like Zara and Levi’s India. The brand is true to its original essence of embracing and propagating Indian culture through apparel and other products. FabIndia has been adding new categories of products to expanding their range as well.
9. Kake Di Hatti
- Founded in: 1942
- Industry: Food and Beverage
- Investment: INR 20-30 lacs
- Franchise Units: Less than 10
Kake di Hatti is an intergenerational restaurant venture that has been running successfully for more than seven decades. It began as a small shop in Old Delhi’s Chandni Chowk in 1942( where every food businesses starts in Delhi) and soon it turned into a household name. Due to its consistent quality, Kake di Hatti has created a loyal and niche customers for itself. It distinguishes itself from other North Indian restaurants and never stopped maintaining its quality. The company usually gives out franchise licenses only after ensuring that the franchise owner will be able to maintain the high-quality standards that it has maintained so far.
- Founded in: 2001
- Industry: Preschool education
- Investment: INR 10-20 Lakhs
- Franchise Units: 1000+
EuroKids is one of the most prominent preschool chains in India. It was founded by Prajodh Rajan and Vikas Phadnis in 2001, and it was their ‘child first’ ideology that led to the success of the brand name ‘EuroKids.’ EuroKids has come a long way, from being a publishing company to a full-fledged playschool chain that parents nationwide have bestowed their trust in. With over 1000 preschool centers in more than 350 cities across India, Nepal, and Bangladesh, the brand has created a stellar reputation for itself as a perfect place for nurturing young children. They endeavor to fully utilize this growth by investing 500 crores by setting up nearly 2,000 more schools in many more cities.
The preschool sector in India has witnessed a steady growth over the years and continues to grow at a compound rate of approximately 32% in the next 3-4 years.
Since India is the largest consumer market and one of the expanding market too, there are ten thousand options that investors and entrepreneurs can establish a successful franchise business. With that, not only you get a business opportunity to excel but this makes India quite welcoming for both domestic and international franchise brands. Remember, buying and opening a franchise outlet is a massive investment and will require hard work, patience, creativity, and commitment from you.
Besides, the most profitable franchise businesses have a proven formula of success and a unique concept with various formats, and substantial pieces of training; with an assurance of high returns within low investments.
Franchise Business in India - FAQS
How profitable is Franchise business in India?
Investing in starting a franchise business with the subway is the most profitable business option. To take franchising from the Subway you need to invest a minimum amount of Rs. 25 lakhs with a minimum 300 Sq. Ft.
What is the most profitable franchise to own in India?
10 Profitable Franchise Business Opportunities in India for Young Entrepreneurs:
- Jawed Habib Hair & Beauty Ltd.
- Affinity Salon
- DTDC Courier and Cargo Ltd.
- Kake Di Hatti
Which franchise business can I start with 20 lakhs in India?
- Catering - 20 Lakhs.
- Consultancy - 15 Lakhs.
- E-commerce - 5 lakhs.
- Ad media - 8 Lakhs.
- Maintenance work - 15 lakhs.
- Education - 25–50 Lakhs.
- Food Packing and marketing - 7.5 Lakhs.
- Tourism - 5 Lakhs.