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10 Franchise Business in India with minimum Investment

Franchise Business

Franchise business is one of the most common and trusted way to establish your business in a faster manner. In India, many people have adopted franchise business and became successful businessmen. The first question that popups in the mind, while establishing franchises business is which are the best franchises options? Here is post sharing 10 Franchise Business in India with minimum Investment.

What is Franchise Business?

Franchise means branch at different locations where you find the same product and services of the primary brand. It is a business model where you hold the brand name and products for a specific period.

In this model, you need to pay a deposit amount to the parent company and sign a legal paper accepting terms and conditions. You may need to pay part of your profit to the parent company year on year.

A franchise business is a proven model where products and services are known to people and thus the chance of getting success in this model is very high. The cost involved in this business model is low as you need not invest your money for reinventing products or doing marketing of the products. A parent company also helps you in setting up the business.

Let’s discuss the advantages and disadvantages of the Franchise business model.

Advantages of Franchise 

  • You will get readymade products and services. It will save efforts, time and cost.
  • The product and services of the parent company are known to everyone. This reduces your efforts for the marketing of products.
  • It is a well known and established model which is beneficial to parent as well as franchise holder.
  • The risk involved in this type of business model is very less and the success rate is very high.
  • The supply and logistics part up to franchise location is usually maintained by the parent company.
  • The investment required for this model is comparatively low.

 Disadvantages of Franchise

  • You are married to a single company. You can not deal with any other product or services in your store.
  • The influence of the parent company is very high.
  • You need to share a percentage of profits to the parent company as long as you hold the franchise.
  • You are bind by rules and regulations set by the parent company. So, it will not be a completely independent business.

10 Franchise Business in India with minimum Investment

  1. Courrier Franchise 

Courrier franchise is first on the list. It is a low investment business. You require a very small space to start a courier franchise. You can take franchise of popular courier companies such as DTDC, DHL, First Flight, Blue dart, etc.

In the Courrier franchise, you need to roughly invest 1.5 Lakh. You need to pay 10% of turnover as royalty fees.

Apart from domestic, you can also opt for e-commerce courier services while opting for the franchise.

  1. Food Franchise 

The food franchise is a popular and well-known business option. To take a food franchise you need space around 500 Sq.feet. The investment required for this business is high. You can take a franchise of global brands such as Pizza Hut, KFC, McDonald etc. On the other hand, you can also opt for a local brands such as Jumboking, Dosa Plaza etc.

In a food franchise, you need to invest roughly invest 10 Lakh+ as an initial setup fee. You also need to pay profit-sharing percentage with the parent company.

  1. Icecream Parlor Franchise 

The icecream parlor franchise is a very good business option. You require a shop with an approximate size of 300 Sq. feet to start this business. You can go for a franchise of popular ice cream brands such as Amul, Vadilal, Havemore etc. I would recommend opening Amul Icecream parlor where the capital requirement is lower and the success rate is high.

You need to invest approximately 6 Lakh to open Amul Icecream parlor. This includes deposit as well as machine cost. The profit margin on prepacked ice cream is approximate 20%.

  1. Pre-School Franchise 

Pre-School Franchise is next in the list of a franchise business. If you have space and attachment towards kids you can opt for pre-school business. Some of the popular pre-school franchise are KidZee, Kids Gurukul, Bachpan etc.

You will need approximately 12 Lakh as an initial investment to start a pre-school franchise.

  1. Apparel and Clothing

Apparel and Clothing franchise is next in the list of a franchise business. You require a store with an approximate size of 1000 Sq.feet to start this business. You can opt for popular brands such as Jade Blue, First cry, Armani, Tommy Hilfiger etc.

An initial investment of 20 Lakh is required to start Apparel and Clothing store. It is a lucrative business, where you can start earning money from day one.

  1. Footwear 

A footwear store with a franchise is next in the list. Demand for footwear will never end, thus it is a very good business. You will need 500 Sq.feet place to start foot ware business. You can take franchise of popular brands such as Bata, Nike, Adidas, Khadims etc. Minimum capital investment required for this business is 1 lakh.

  1. Ayurvedic or Homeopathic Store Franchise 

Ayurvedic or Homeopathic store franchise is a very good business option. There are may famous ayurvedic brands available in India with a lot of demand. You can opt for a franchise of Dr.Batra, Dabur, Zandu and Patanjali.

I would recommend opting for Patanjali Franchise as you will get exposure to more products with a proven track record. You need to invest 15 Lakh to open Patanjali Franchise.

  1. Personalized Gift Store Franchise 

You can even think of opening a personalized gift store via a franchise business model. Few popular gift store brands are Archies, Hallmark etc. The space required for this business is approximate 500 Sq.Feet. This store can be started with an initial investment of 5 Lakh.

  1. Cosmetics & Beauty Product Store

Cosmetics & Beauty product store is next on the list. Beauty products always remain in demand. You can opt for a franchise of beauty products such as Lakme, L’Orel, Oriflame etc. You need to invest approximately 3 Lakh to start this business.

  1. Optical Store 

Optical Store franchise is the next franchise business option. You require space of 300 Sq.feet to open optical store. You can opt for a franchise of famous brands such as Lenskart, Rayban, Armani etc. You need to invest 5-7 Lakh to open optical store.

Important Points to Consider Before opting for Franchise

You should consider the following important points before opting for Franchise.

(1) Cost and Setup Fee

To start this business, you need to pay initial fees to the parent company. Before starting a franchise it is advisable to get an idea about initial cost and setup fee.

(2) Brand

You need to carefully evaluate the brand where you are planning to associate yourself. The brand should be popular well established and holding good products or services with demand. A good brand will help to get quick success.

(3) Competition 

Competition of brand is also an important factor to check. You should check which all products and services compete with the brand. It will help you to understand the position of the brand and how long the brand can withstand competition.

(4) Terms and Conditions 

You should check the terms and conditions placed by the parent company to offer a franchise. The terms and conditions should be reasonable with minimum legal binding and time period.

(5) Profit-Sharing Percentage 

Another important point to consider is a profit-sharing percentage you need to pay to a parent company regularly. The profit-sharing percentage should be reasonable.

Final Words 

A franchise is a very good business option with a high success rate. You should consider the important points mentioned above while starting a franchise business.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.