The franchise industry in India has been witnessing significant growth, with over 300 new franchise companies starting up every year. According to industry statistics for 2021, the Indian franchise market is projected to grow to approximately USD 140-150 billion. Multi-unit franchisees account for 53% of all franchises in the country.
The franchise business model has become a popular choice for brands looking to expand their operations in India, and there are numerous low-cost franchise opportunities available in the market. With its large consumer base, India offers immense potential for profitable franchise businesses, benefiting both franchisors and franchisees.
Currently, there are around 4,600 active franchisors operating across various sectors in India.
Many successful entrepreneurs have opted for the franchise model, which has enabled them to achieve their business goals and build thriving enterprises.
If you're wondering which franchises offer the most profitable returns, you may find it helpful to explore the 12 most profitable franchise options available in India, as outlined in our post.
What is a Franchise Business?
Best Low Cost Franchise Business Opportunities in India
Top 12 Profitable Franchise Business Opportunities in India
- Tumbledry
- Subway
- Giani’s
- Jawed Habib Hair and Beauty Ltd.
- InXpress
- DTDC Courier And Cargo Ltd.
- Lenskart
- FabIndia
- Pepperfry
- Kake di Hatti
- EuroKids
- Affinity Salon
What is a Franchise Business?
Ever wondered why there are so many foreign brands in the Indian market? The answer is franchise business. It is one of the primary channels through which international businesses and brands have gained strength in the Indian market.
A franchise business is a type of business model in which an individual or company (known as the franchisor) grants the rights to use their business name, products, and services to another individual or company (known as the franchisee) in exchange for a fee and ongoing royalties.
The profits of owning and selling a franchise go both ways; the franchisor and franchisee reap benefits. 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 this model, 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.
There is a rumour that the franchise model requires huge investment. Let's clear this misconception. Franchising is the most profitable and feasible form of business opportunity; one just needs to know how to obtain a franchise. You can easily start a franchise for INR 1 lakh.
Best Low Cost Franchise Business Opportunities in India
Here are listed some of the most profitable Franchise Business Opportunities in India (Under INR 10 Lakhs):
| Franchise Business | Franchise Brands | |
|---|---|---|
| 1. | Courier & delivery | InXpress, Delhivery, Shadowfax, Pick Me Express, King Worldwide |
| 2. | Pre-School | Wow Kidz, DPS Global Playschool, Kidzee, Hello Kids, Shemrock, Bachpan, Maple Bear |
| 3. | Wraps & rolls | Kathi Junction, RollaCosta, Kathi Express |
| 4. | Salon | Louis Unisex Salon, Studio99, Studio11, Green Trends, Shahnaz Hussain |
| 5. | Gifting | Ferns N Petals, Oyegifts, GetDistributors Gift Shopee, Red Moments |
| 6. | Ice cream | Amul, Giani’s, Gelato Vinto, Teddy, Baskin-Robbins, Kwality Wall's |
| 7. | Electric vehicle | Gayatri Electric Vehicle, Hero Electric, Okinawa Scooters, Evolet India, Pure EV |
| 8. | Juice & shakes | Lounge London Shakes, Juice Lounge, Smoothie Factory, Lassi Corner, Crazy Crush, Juice Maker |
| 9. | Language schools | The British Institute and English Pillars |
| 10. | Pharmacy | Care Pharmacy, Sanjivani, Sanjivani, SastaSundar, Genmart Generic, Apollo Pharmacy, Medplus, Medzone |
| 11. | Furniture and Home Decor | Pepperfry, Duroflex, Notion, Marshalls, Insta Decor, Atom Interiors |
Profitable Franchise to apply for:
| Franchise | Application | Category |
|---|---|---|
| 7th Heaven | Apply Here | Bakery & Cafe |
| Biggies Burger | Apply Here | Burger Chain |
| Chicago Pizza | Apply Here | Pizza Chain |
| Let's Transform Salon | Apply Here | Beauty & Wellness |
| Internet Marketing School | Apply Here | Digital Marketing Institute |
| Frozen Bottle | Apply Here | Beverages & Cafe |
| Moti Mahal | Apply Here | Restaurant |
| Pepperfry | Apply Here | Furniture |
Top 12 Profitable Franchise Business Opportunities in India
Tumbledry
| Franchise Business | Tumbledry Dry Clean & Laundry Service |
|---|---|
| Industry | Laundry & Dry Cleaning |
| Founded in | 2019 |
| Investment | INR 25 Lakhs |
| Franchise Units | More than 500 |
| Apply to Tumbledry's Franchise | Click Here |
Recognized among the "Top 10 Retail Start-Ups-2021" by CEO Insights, Tumbledry is the largest laundry and dry clean chain in India with 250+ stores across 75+ cities. Started by veteran industry experts with 25+ years of experience across reputed organizations like Airtel, Britannia and Reliance, Tumbledry is an e-commerce organization founded with a mission to solve the laundry woes of half a billion urban Indians.
Laundry is a latent problem that has been begging for the right solution for a very long time. To solve this problem, Tumbledry is opening live laundry stores, providing world-class services, within every 3km radius in urban India. Store operations are completely integrated with the customer mobile apps. Tumbledry stores also offer dry cleaning, shoe cleaning, shoe repair, bag cleaning, bag repair and carpet cleaning services along with laundry services.
Ankana Bhowmik
Subway
| Franchise Business | Subway |
|---|---|
| Industry | Food and Beverages (Fast Food) |
| Founded in | 1965 |
| Investment | INR 54-90 Lakhs |
| Franchise Units | More than 600 |
| Apply to Subway's Franchise | Click Here |
Subway is the largest sub-sandwich chain in the world. Subway was started by Fred DeLucea in 1965 to help pay his college tuition fees. Subway's mission is to provide service of the highest quality to its customers at affordable prices, something that every brand abides by nowadays.
Today, Subway is one of the few mainstream fast food joints that thrive on the promotion of a range of healthy food options. With salads and endless sandwich combinations on a variety of bread such as whole wheat, multigrain, and gluten-free variants, Subway has created a loyal customer base in the process. Today it is recognised in the Beverages and Food segment as one of the best franchise businesses in India.
Vibhavari Madki
Giani’s
| Franchise Business | Giani's |
|---|---|
| Industry | Food and Beverages (Desserts and Ice creams) |
| Founded in | 1956 |
| Investment | INR 10-20 Lakhs |
| Franchise Units | 135+ |
| Apply to Giani's Franchise | Click Here |
Giani’s is one of the oldest ice cream parlors in India. It was founded by Giani Gurcharan Singh 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. Giani's has become unstoppable since then.
Giani’s went on to launch several company-owned and franchise outlets in Northern India and experienced big returns on its investment. Today, It is among the best franchises to own in India that offer huge returns on a relatively small investment in the Beverages and Food segment.
Sarika Anand
Jawed Habib Hair and Beauty Ltd.
| Franchise Business | Jawed Habib Hair and Beauty Ltd. |
|---|---|
| Industry | Beauty and Wellness |
| Founded in | 2006 |
| Investment | INR 20-30 Lakhs |
| Franchise Units | 875 (approximately) |
| Apply to Jawed Habib Hair and Beauty's Franchise | Click Here |
'Jawed Habib' is a hair grooming and wellness brand founded by Jawed Habib. Jawed comes from a family of barbers; thus, haircutting was not new to him. His grandfather was the barber of famous dignitaries such as 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 and wanted to establish his brand nationwide. He succeeded in his entrepreneurial endeavors and also played a crucial role in changing the paradigmatic view of a barber. Jawed transformed the image of an ordinary barber into that of a glamorous hairdresser.
Pooja Uniyal
InXpress
| Franchise Business | InXpress |
|---|---|
| Industry | Courier and Delivery |
| Founded in | 1999 |
| Investment | INR 9 Lakhs |
| Franchise Units | 500+ Globally |
| Apply to InXpress's Franchise | Click Here |
InXpress has partnerships with world-class carriers that handle pick-ups and deliveries. InXpress determines the right carrier and service option for customers' requirements at economical prices. The brand gives entrepreneurs the setup to build a flexible business with the support of a global franchise system and is also among the low-cost franchise businesses.
Souvik Dey
DTDC Courier And Cargo Ltd.
| Franchise Business | DTDC Courier and Cargo Ltd. |
|---|---|
| Industry | Courier and Delivery |
| Founded in | 1990 |
| Investment | INR 50k - 2 Lakhs |
| Franchise Units | 1000+ |
| Apply to DTDC's Franchise | Click Here |
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 over 1000 franchise units in India today bringing in a wonderful franchise business opportunity for the enthusiasts out there. DTDC pioneered the franchise-based model in the express industry and is still deemed as the company with the top franchise opportunities.
Lenskart
| Franchise Business | Lenskart |
|---|---|
| Industry | Eyewear |
| Founded in | 2010 |
| Investment | INR 30-35 Lakhs |
| Franchise Units | 500+ |
| Apply to Lenskart's Franchise | Click Here |
Lenskart is one of the fastest-growing eyewear brands in India. It operates both online and offline. Lenskart was founded by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi as an online portal for contact lenses in 2010. In 2011, eyeglasses and sunglasses were also added to the range. The brand didn’t stop there and ventured into launching offline stores to expand its retail footprint.
As of now, the expansion plan is focused on increasing the number of offline outlets to 500 from the existing 330 outlets. With the demand for vision correction that Lenskart brings to the scene, the company is thus aiming to be one with the highest profit franchises.
Pratyusha Srivastava
FabIndia
| Franchise Business | FabIndia |
|---|---|
| Industry | Retail (Fashion) |
| Founded in | 1960 |
| Investment | INR 40-50 Lakhs |
| Franchise Units | Approximately 175+ |
| Apply to FabIndia's Franchise | Click Here |
FabIndia was founded by John Bissell in 1960 and has become a household name today. It is loved by all age groups alike. FabIndia has crossed the INR 1,000 crore sales mark to become the largest retail apparel brand in India; it is significantly ahead of competitors like Zara and Levi’s India. The brand stays true to its original essence of embracing and propagating Indian culture through apparel and other products. FabIndia has been adding new categories of products consistently.
Pooja Uniyal
Pepperfry
| Franchise Business | Pepperfry |
|---|---|
| Industry | Furniture and Home Decor |
| Founded in | 2011 |
| Investment | INR 15-40 Lakhs |
| Franchise Units | 30+ |
| Apply to Pepperfry's Franchise | Click Here |
Established in 2011, Pepperfry is headquartered in Mumbai, Maharashtra as an online furniture business that operates 60+ physical stores or Pepperfry studios spread across 28+ cities along with operating as an online ecommerce store. The company launched its Franchisee Program in September 2017 and is currently operating 20+ FOFO Studios across many Indian cities including Bengaluru, Mysore, Hubbali, Indore, Goa, Lucknow, and more.
Kake di Hatti
| Franchise Business | Kake di Hatti |
|---|---|
| Industry | Food and Beverage |
| Founded in | 1942 |
| Investment | INR 20-30 Lakhs |
| Franchise Units | 10-20 |
| Apply to Kake di Hatti's Franchise | Click Here |
Kake di Hatti is an inter-generational restaurant that has been running successfully for more than seven decades. It began as a small shop in Old Delhi’s Chandni Chowk in 1942 and soon turned into a household name. Kake di Hatti has garnered loyal customers due to its high-quality eatables. Kake di Hatti gives out franchise licenses only after ensuring that the franchise owner will be able to maintain the high-quality standards that the restaurant is known for.
EuroKids
| Franchise Business | EuroKids |
|---|---|
| Industry | Pre-school Education |
| Founded in | 2001 |
| Investment | INR 10-20 Lakhs |
| Franchise Units | 1000+ |
| Apply to EuroKids' Franchise | Click Here |
EuroKids is one of the most prominent pre-school chains in India and is also grown to be among the best franchises with low investment. It was founded by Prajodh Rajan and Vikas Phadnis in 2001, and it was their ‘child first’ ideology that led to the success of 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 pre-school centres 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 minds. It endeavours to fully utilize this growth by investing INR 500 crores in setting up nearly 2,000 more schools in many more cities.
The preschool sector in India has witnessed steady growth over the years and is expected to grow at a compound rate of approximately 32% in the next 3-4 years.
Pooja Uniyal
Affinity Salon
| Franchise Business | Affinity Salon |
|---|---|
| Industry | Beauty and Wellness |
| Founded in | 1992 |
| Investment | INR 30-50 Lakhs |
| Franchise Units | - |
| Apply to Affinity Salon's Franchise | Click Here |
Vishal Sharma founded the Affinity Salon group in 1992. Sophisticated and experienced staff coupled with luxurious, upmarket interiors and an international range of beauty products distinguish 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 unisex salon franchise has set a benchmark for delivering global standards of hair care and beauty services in the country. Affinity Salon has seen steady growth and maintains nearly one hundred outlets in India. It plans to expand its outreach to many other Indian cities due to the increasing demand for unisex salons.
In conclusion, the franchise industry in India is booming, and there are numerous profitable franchise opportunities available for aspiring entrepreneurs. However, before investing in any franchise, it is essential to conduct thorough research and due diligence to ensure that you make an informed decision. By selecting the right franchise and following a proven business model, you can enjoy financial stability and success in your entrepreneurial journey. So, if you have the passion and drive to succeed, start exploring the exciting world of franchising today!
FAQs
What is a franchise?
A franchise is one such business, which is authorized to allow others, known as "franchisors" to distribute their products and services. Franchise businesses are generally larger businesses/companies empowering their franchisors with numerous business opportunities. In technical terms, the term 'franchise' means the contract that binds the franchisor and the franchisee.
How much does a franchise cost?
When it comes to setting up a franchise in India, one can look for a range between Rs. 1 lakh to 10 lakhs, which he/she would need in order to set up a franchise. If you are wondering about low-cost franchises, then you can easily set them up by investing under Rs 2 lakhs. However, a majority of these franchises would be typically home-based. Some of them can be mobile but would be limited to small-scale operations.
What is franchising?
Franchising is the process of marketing and distribution of products and services for a brand/franchise. Franchising includes 2 levels of people:
- A franchisor
- A franchisee
Which franchise is the most profitable?
There are numerous franchises in India and around the world that are quite profitable. However, profitability varies from time to time. In the current market scenario, the most profitable ones are:
- Tumbledry
- Subway
- Giani’s
- Jawed Habib Hair and Beauty Ltd.
- InXpress
- DTDC Courier And Cargo Ltd.
- Lenskart
- FabIndia
- Pepperfry
- Kake di Hatti
- EuroKids
- Affinity Salon
- Dr. Lal Pathlabs
- Amul
Which franchise business can I start with INR 20 lakhs in India?
Rs 20 lakhs can be a good amount of money to start with a franchise business in India. There is a wide range of sectors that you check with for the same including the trading sector, service sector, and more.
Which are the profitable sectors for franchise business in India?
Profitable sectors for franchise business in India are:
- Retail
- Food Service
- Beauty & Wellness
- Healthcare
How is the growth of franchise industry in India?
The Franchise industry in India is valued at $47 billion. It is expected to reach 140 billion in 2027.
