List of Most Profitable Franchises In India

Introduction

All thanks to a large population and diversity, India has a huge consumer base. Considering the same, international players use the franchising business to increase their market share and brand awareness in India. By building outlets and making investments in the Indian market, the majority of global businesses hope to increase their earnings through franchise business in India.

Some of the best franchises in India are flourishing rapidly. But why? This is because every local and international company chooses the vast and crowded Indian market. The Indian market offers a tremendous growth opportunity, even for newbie franchises. The franchise business model is successful because it generates money for both the franchisee and the franchisor.

The franchisor takes a royalty, an initial start-up fee, and a continuing profit share. In return, they help the franchisee with training, organizational structure, and legal tasks. Most importantly, they give the franchisee a high-value brand name to associate with. This way, the franchisor gets to enter previously untouched regions while handling a ready-made, profitable business model. 

Why is a Franchise Business profitable?

According to stats, the Indian economy’s franchise turnover is Rs 938 billion, which has increased by over 35% in the past five years. Low-cost franchise opportunities in businesses were successful even during the pandemic. They reduced operational risks and ensured that supplies were available even in isolated and rural locations.

A fundamental principle of franchising is that before signing a franchise agreement, the franchisor and franchisee should investigate each other’s expectations and business models. The franchise company concept is helpful if you’re looking for workable business options. You can launch your business with as little as Rs 1-5 lakh investment. At an agreeable cost and certain terms and conditions, the franchise business model allows you to own any global brand.

List Of Most Profitable Franchises in India

1. Amul

One of the most well-known and prosperous businesses in India is Amul. It is the biggest indigenous brand in India. Amul was founded as a cooperative society by Tribhuvandas Patel in 1946, and it began franchising in 2000. It is one of India’s top franchises In India, which provides a fantastic chance to launch a successful business with little capital. It quickly became one of the best franchise businesses in India. It now has more than 2500 franchise locations around the world.

To open an Amul Railway Parlor or Amul Kiosk, you need a minimum of 100-150 square feet of space plus an investment amount of Rs 2- 2.5 lakh. Additionally, for an Amul ice cream parlor, the required space is 300 square feet, and the initial investment is Rs 5 lakh.

2. Lakmé

Lakmé is among the best franchises In India and a household name in the beauty industry. It was founded in 1952 by  J.R.D. Tata and his wife, Simone Tata. Lakmé offers high-quality cosmetics at incredibly low prices. Hindustan Unilever Limited is the owner of this Indian cosmetics company. 

You require a 500-square-foot outlet and an initial investment of Rs 25 lakh to start a Lakmé franchise. You can also start its beauty parlor or sell cosmetics. The brand has branches in more than 150 locations. It also offers business training and beautification tips to scale your business.

3. Bikanervala

Bikanervala is renowned for its snacks and sweets. Lala Bikaji established the business in 1926, with its headquarters in Bikaner, Rajasthan. In India, the firm operates from more than 100 locations. Bikanervala wants to expand and popularize its national franchise network through its vast array of snacks, namkeens, and sweets.

You would require an investment of Rs 12 lakh and an outlet space of 1200-2000 square feet to launch a Bikanervala franchise. The total investment may be 1-5 crores, depending on inflation and local prices.

4. Fabindia

John Bissell established the Indian retail business Fabindia in 1960. It sells clothing, textile, furniture, and other ethnic goods made by rural Indian artisans. Through its goods, the company seeks to promote Indian culture and heritage. You would require an initial expenditure of Rs 40 lakh and an outlet size of 3000 square feet to open a Fabindia store. It has more than 300 shops in India and 14 outlets abroad.

5. Patanjali Ayurved

Patanjali Ayurveda, sometimes known as Patanjali, is a worldwide corporation. Its headquarters are in Haridwar, India. Baba Ramdev and Acharya Balkrishna founded it in 2006.

The brand touts the health advantages of its herbal and Ayurvedic goods. It has expanded its operations into food and beauty products and has quickly captured a significant portion of the FMCG industry. Patanjali is completely private and is listed on the BSE and NSE markets.

You may launch a Patanjali franchise with a budget of around Rs 7 lakh and an outlet size of roughly 500 square feet.

6. Dominos

The famous American restaurant franchise Domino’s Pizza was established in Michigan in 1961. The business is situated in Domino’s Farm Office Park in Ann Arbor, Michigan, and is run by CEO Richard Allison. It is the biggest pizza delivery network, with branches in more than 15,000 locations worldwide.

The initial expenditure required to operate a Domino’s restaurant ranges from Rs 65 lakh to Rs 2 crore. The franchise must be set up in a 1500-square-foot area or more. Depending on the type/size of the outlet, the investment size may change. The business offers complete training for staff and managers. The company also retains the right to alter the franchise’s offerings at any moment.

7. KFC

KFC (Kentucky Fried Chicken) is an American corporation with its headquarters in Louisville, Kentucky. Like its name, the company specializes in fried chicken and provides a range of other chicken dishes. In 140 countries, KFC branches have a presence in more than 20,000 locations. More than 400 of the company’s stores are located in India, where it first entered the market in 1995.

A KFC franchise is more expensive than several other fast-food businesses. You will need a suitable location of 1000–1500 square feet and an investment of 1-2 crore. It is one of the most sought-after franchises as it offers a quick return on your investment.

8. McDonald’s

McDonald’s is one of India’s most well-known and loved fast-food franchises. The business has been functioning in the nation for more than 20 years and has branches in all major cities. A McDonald’s franchise might be a fantastic choice for company owners who want to launch their venture and gain hefty profits.

The ownership of a McDonald’s franchise in India has several benefits. The brand is well-known and has a solid reputation, making a lot of customers flock to the restaurant. McDonald’s offers training and assistance to assist you in running your business. Also, McDonald’s has substantial marketing and advertising budget that will aid in promoting your restaurant.

Conclusion

A franchise business is a well-established concept that offers high profitability. It is also low-risk as it has advantages like brand awareness, franchisor training, etc. Before investing in any franchise opportunity, conduct thorough research on the brand and the current market conditions.

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