Ever dreamed of running your own business in India, but scared of the risks? Franchises are a great way to become your own boss! They give you a ready-made business plan, a well-known brand name and help from the main company. This reduces risk and makes it more likely you’ll be successful.
Thinking about starting a franchise? This blog dives into some of the most profitable franchises in India, across different areas like food & beverage, education, healthcare and more. We’ll look beyond the typical fast food franchises everyone knows and show you a range of exciting businesses with great potential. Keep reading to find your perfect franchise and unlock a world of business opportunities!
Table of Contents
- The Rise of Franchising in India
- India’s Most Profitable Franchises
- Ajay’s Cafe
- EuroKids
- CarzSpa
- McDonalds
- Lakmé Salon
- FirstCry
- DTDC (Courier & Cargo)
- Dr Lal PathLabs
- Delhivery
- Kalyan Jewellers
- Concluding Thoughts
The Rise of Franchising in India
The franchising industry in India has experienced a great boom in recent years, with the market expected to grow at a Compound Annual Growth Rate (CAGR) of around 30%.
As the Indian economy grows, disposable incomes are rising, leading to a growing consumer base with more money to spend. This translates to an increased demand for convenient and reliable products and services, which franchise businesses are good at providing.
Indian consumers, particularly in urban areas, are increasingly attracted to standardised products and services that offer consistent quality and brand recognition. This trend is particularly visible in the growing QSR franchise India market, where established fast-food chains cater to busy lifestyles and changing tastes.
Profitable Franchise Segments
Franchising opportunities exist across a wide range of sectors in India. Here’s a glimpse into some of the most lucrative segments:
Ajay's Cafe
Ajay’s Cafe is famous for its tasty cold coffee and burgers. It has a unique and affordable franchise model. This makes it a good choice for budding entrepreneurs who want to start a QSR franchise in India or a fast food business.
The investment needed to open Ajay’s Cafe franchise is not very high. This makes it possible for many aspiring business owners to start their franchises. Unlike many other franchises, Ajay’s Cafe does not charge any franchise fees or royalties on sales. This means the franchise owner gets to keep more profits. The Ajay’s Cafe team takes care of setting up the entire outlet, making the launch process smooth and easy. All Ajay’s Cafe outlets are profitable and have the shortest payback period.
| Feature | Information |
|---|---|
|
Segment |
QSR (Quick Service Restaurant) |
|
Investment |
Approximately ₹15 lakhs |
|
Space Required |
Min. 400 sq. ft. |
|
Total Stores |
150+ |
Ajay’s Cafe provides complete support to its franchisees. They help in four main areas: before opening, with products, operations/sales/marketing after opening and training/audits. Some key things they do are:
- Assist in choosing the right location and studying if it is a good fit
- Setting up the entire outlet
- Provide guidelines on running the business efficiently
- Train staff and franchise owners (operations, finance, customer service)
- Design the outlet’s branding and identity
- Advertise and promote the new franchise initially
- Offer ongoing support from an expert team for quality, operations, costs etc.
- Regular visits by experienced professionals to improve business standards
The food and beverage industry, especially quick-service restaurants (QSR), is growing fast in India. People want convenient, quick and affordable food options. This sector has many opportunities from big global brands to popular local ones. Many first-time entrepreneurs are choosing Indian QSR franchises like Ajay’s Cafe.
EuroKids
EuroKids is a top name in early childhood education. They offer franchises to open preschools and daycares. EuroKids focuses on creating a nurturing place for high-quality learning for young kids. This makes them popular with parents. It is also a good opportunity for new entrepreneurs.
The preschool industry in India is growing fast at 37% yearly. The total revenue is now Rs. 4,000 crore. Parents are increasingly interested in quality early education for kids. EuroKids offers an affordable model requiring lower investment without compromising on learning quality.
As India’s fastest-growing preschool chain, EuroKids gives 360-degree hand-holding support. This includes training staff, marketing aid, operations guidance and more to ensure the franchise’s success.
| Feature | Information |
|---|---|
|
Segment |
Preschool |
|
Investment |
₹12 to 15 lakhs |
|
Space Required |
Minimum 1500 sq. ft. |
|
Total Stores |
NA |
Their investment amount covers the franchise fee, setting up costs, equipment and running expenses. The exact cost depends on the centre’s size and city location. EuroKids provides full support to franchisees. They give guidelines on the preschool’s design and look to maintain standards. They also provide curriculum materials, teaching aids, toys, books and other essentials needed.
Carzspa Car Detailing
CarzSpa, a leading car care franchise, offers a unique opportunity for car enthusiasts to turn their passion into a business. They specialise in providing high-quality car detailing services, including cleaning, polishing and paint protection. Car detailing is a growing market in India and CarzSpa stands out with its established brand and focus on quality service.
| Feature | Information |
|---|---|
|
Segment |
Car Detailing Studios |
|
Investment |
Approximately ₹18 lakhs |
|
Space Required |
Minimum 2000 sq. ft. |
|
Total Stores |
90 |
CarzSpa too offers a unique model with no franchise fees or royalties. They focus on providing comprehensive support to their franchisees, including training and marketing assistance.
McDonald's
McDonald’s, a well-known fast-food chain, presents an enticing franchise opportunity in India. Since it arrived in 1996, it has expanded nationwide, successfully adapting to Indian tastes with offerings like the Chicken Maharaja and McAloo Tikki burgers.
| Feature | Information |
|---|---|
|
Segment |
Fast Food Franchise |
|
Investment |
Starting at ₹25 lakhs |
|
Space Required |
1500-4000 sq. ft. |
|
Total Stores |
300+ |
However, it’s important to note that McDonald’s is unlike a low-cost cafe franchise in India. It requires some serious capital and experience to jump in. It currently needs to accept new franchise applications in India. McDonald’s franchises in India generate an average annual revenue of ₹2.6 crore, with 20-25% potential profits.
The typical break-even period is 2-3 years. To qualify, applicants must have prior food service experience, a net worth of ₹5 crore, a minimum ₹1.5 crore liquid capital and the willingness to commit for nearly 20 years. Additional capital ranging from ₹6.6 crore to ₹14 crore is needed for setup costs like equipment, training and maintenance. A liquid reserve of ₹5 crore is recommended for contingencies.
Lakmé Salon
For decades, Lakmé has been a leading name in cosmetics, known for its high-quality makeup and skincare products. Entrepreneurs can leverage this brand recognition by opening their own Lakmé Salon franchise. Lakmé Salon offers a promising opportunity for entrepreneurs interested in the beauty and personal care sector.
| Feature | Information |
|---|---|
|
Segment |
Beauty Salon |
|
Investment |
₹50 lakhs onwards |
|
Space Required |
800-1000 sq. ft. |
|
Total Stores |
150 |
Being an established brand that Indian consumers trust and with their proven business model, entrepreneurs can benefit from Lakmé’s expertise and enjoy the support of a successful franchise system.
Important Note: These are estimated investment ranges and payback periods based on publicly available information and can vary depending on factors like brand, location and franchise model. It’s crucial to conduct thorough research before making any investment decisions.
FirstCry
FirstCry is a leading baby and kids products brand started by Mahindra Group in 2010. They sell high-quality products online at affordable prices. In 2011, FirstCry started offering franchises to open their retail stores.
| Feature | Information |
|---|---|
|
Segment |
Baby & Kids Products |
|
Investment |
₹20-30 Lakh |
|
Space Required |
1000 – 2000 sq. ft. |
|
Total Stores |
400+ |
FirstCry is Asia’s largest range of baby and kids products. They sell over 2,000 top brands like Ben10, Disney, Hot Wheels, Pampers, Barbie, Gerber’s and more. The franchise agreement is valid for 5 years and can be renewed later. FirstCry franchise offers a great opportunity for new entrepreneurs. They can benefit from the increasing demand for quality baby products across India.
DTDC Courier
DTDC is a leading name in India’s logistics industry, offering courier and cargo services for individuals and businesses. By becoming a DTDC franchisee, you can be part of this well-established network and tap into the growing demand for reliable delivery solutions.
| Feature | Information |
|---|---|
|
Segment |
Courier & Cargo Services |
|
Investment |
₹50,000 to ₹2 lakhs |
|
Space Required |
Varies depending on location and service options |
|
Total Stores |
Over 570 operating facilities across India |
Entrepreneurs can leverage DTDC’s reputation and customer base to build a successful business and gain access to DTDC’s expansive network, a DTDC franchise can be a good opportunity for entrepreneurs looking to enter the logistics sector.
DTDC Courier and Cargo Ltd., a pioneer in the Indian courier market, offers franchise opportunities with an initial investment starting from INR 50,000 to 2 lakhs. With over 12,000 franchise units, DTDC’s extensive network ensures a broad reach and a strong customer base.
Dr Lal PathLabs
Dr Lal PathLabs, India’s leading diagnostic healthcare chain for over 60 years, offers a unique franchise opportunity for aspiring entrepreneurs. With a comprehensive portfolio of tests spanning nutrition, genetics, biophysics, flow cytometry, cytogenetics, endocrinology, metabolism, molecular diagnostics and oncology, the brand has set unprecedented standards in the diagnostic industry.
| Feature | Information |
|---|---|
|
Segment |
Diagnostic Labs |
|
Investment |
₹3-5 Lakhs to ₹25 Lakh |
|
Space Required |
150-300 sq. ft. to 3,500 sq. ft. |
|
Total Stores |
1800+ |
Dr Lal PathLabs presents two distinct franchise models to cater to diverse investment capabilities and preferences, i.e. Collection Centre Franchise, which facilitates the collection of blood and other samples, which are subsequently sent to the Diagnostic Centre Franchises for testing and generating reports.
Franchise partners are required to pay a royalty or commission ranging from 25% to 30%. By joining the Dr Lal PathLabs franchise network, entrepreneurs can leverage the brand’s six decades of expertise, cutting-edge technology and unwavering commitment to accurate and reliable diagnostics.
Delhivery
Started in 2011, Delhivery quickly became a prominent name in delivery services. It competes with older companies like BlueDart and Gati Ltd. Delhivery offers two kinds of business franchises:
Cosmos: A network that integrates various stores within a compact region, the Cosmos Delhivery franchise specialises in facilitating deliveries to both residential and commercial entities.
Constellation: Tailored for entrepreneurs eager to embark on a journey of freight pick-up and delivery, the Constellation franchise boasts a more expansive reach than its Cosmos counterpart.
| Feature | Information |
|---|---|
|
Segment |
Courier & Delivery |
|
Investment |
₹50K to 5 Lakhs |
|
Space Required |
400-500 sq. ft. |
|
Total Stores |
3000+ |
Delhivery’s service suite is comprehensive, encompassing express parcel transportation, supply chain solutions, cross-border services and PTL & TL freight. Delhivery processes an impressive 10 million orders monthly. Starting a Delhivery franchise doesn’t need much money and could be a great business move.
Kalyan Jewellers
Kalyan Jewellers began in 1993 and was founded by Mr T.S. Kalyanaraman, who has over 45 years in business. They make and sell gold, diamonds and other precious jewellery. They’re big in India, with stores in 21 states and UTs and they also have 30 stores in the Middle East. You can also buy their jewellery online.
| Feature | Information |
|---|---|
|
Segment |
Jewellery |
|
Investment |
₹50 Lakh to ₹1 Crore |
|
Space Required |
1000 – 1500 sq. ft. |
|
Total Stores |
137+ |
In early 2021, Kalyan Jewellers’ profits went up by 54.05%. This means starting a store with them could be very profitable. But, you need to have a strong business background and at least 10 years of experience to open a Kalyan Jewellers store.
Concluding Thoughts…
As the Indian economy continues to flourish, the franchising industry presents a wealth of lucrative opportunities across various segments. From food and beverage to education, retail and services, aspiring entrepreneurs can choose from a diverse range of proven business models and leverage the power of established brands. In this vibrant mix, the fast food business, especially the QSR segment, is showing great promise.
While global giants like McDonald’s have made their mark in the Indian market, homegrown brands like Cafe Ajay’s have emerged as formidable competitors, offering a unique blend of quality, affordability and cultural relevance.
With its innovative menu, commitment to customer satisfaction and robust franchisee support system, Cafe Ajay’s stands out as an ideal choice among food franchise opportunities for those seeking a highly profitable and sustainable investment opportunity in the thriving QSR segment.