Best Franchise Business Opportunities in Small Towns of India 2023

on Jun 23, 2023 | 218058 views

Written By: Resham Daswani

Did you know that franchise businesses can give you a better return on your money and help people in small towns find jobs and ways to make earnings?  Yes, you heard that right.  Today our blog will highlight why it could be an excellent opportunity to start a franchise business in small towns in India, the best franchise business in India suitable for small towns, benefits and more.

Our featured franchises are reasonably priced and ideally suited to people in less populous areas because they provide essential goods and services. Franchises ranging from the food and beverage industry to retail and services all have solid track records of success.

Here are some of the benefits that franchise businesses in India offer to small towns.

  • More job and income opportunities for the local population.
  • The generation of income will lead to a spur in economic growth, with the help of which infrastructure, education, healthcare and other facilities can grow.
  • Creating new markets for entrepreneurs by introducing new products and services.
  • Improved lifestyle benefits for people living in small towns.
  • Possible economic growth by attracting new customers to the area.

Best Franchise Businesses in India For Small Towns

Starting a franchise in a small town comes with various advantages like reliability, transparency, no major costs of advertising, can be started at a low to moderate investment and more.

Here are some of the top franchise businesses to start in a small town.

1. Ice Cream Franchises

The concept of an ice cream franchise is a fantastic chance to develop one's entrepreneurial skills and find success in a modern economy like India, where franchising has emerged as one of the most viable company startup possibilities. Rising competition and their rollout across India via franchises are signs of the industry's success.

Business owners in rural areas can benefit greatly from a good ice cream franchise because consumers in these areas have lower disposable incomes and fewer resources. In addition, a modest ice cream shop may be set up in a limited space, and moderate capital expenses.

The best ice cream franchises in India are:

2. Food Truck Franchises

Over the years, food trucks have become an increasingly common dining option. Mobile kitchens, as they are sometimes called, have grown increasingly widespread in India, both in its rural areas and its urban centres.

The younger generation is really enthusiastic about this trend, and after school and college, they may frequently be spotted congregating around food trucks. In terms of investment and risk, this franchise model is another excellent option. Everywhere you go in this city, you may choose from a variety of food truck franchises.

The best food truck franchises in India are:

  • The Arab Knights
  • Wow Omelettes
  • Ranjeeta Enterprises

3. Retail Franchises

India is the fifth largest retail market in the world.  Opening a first-rate brand in a small town where people are less committed to long-term retail can be a game-changer for both your company and the town as a whole.

An easy approach to get your business off the ground is to provide your consumers with everything they need under one roof at reasonable prices. In an effort to better serve its clientele, the company offers goods that are well-suited to their specific requirements.

The best retail franchises in India are

4. Healthcare Franchises

Many of India's smaller cities and towns lack adequate medical facilities and infrastructure. It may be a significant distance for residents to travel to reach a medical facility of adequate quality. Clinics, diagnostic centres, and pharmacies operated by healthcare franchisees can help close this access gap by setting up shops in neighbourhoods where they are needed most.

The need for high-quality medical treatment in India's smaller cities is on the rise as the country's economy and level of living improve. More people are thinking about their health and looking for better medical care options. With their consistent, high-quality care, healthcare franchises are well-positioned to meet this growing need.

The best healthcare franchises in India are:

5. Food Franchises

There may not be a wide variety of restaurants to choose from in smaller cities and towns around India. By introducing food franchises to these locations, a wider range of international and regional cuisines will become available to locals. This variety can appeal to customers with varying tastes and draw new ones who are seeking alternatives to what's available in their immediate vicinity.

Rapid urbanisation and changes in way of life are affecting even the smallest communities in India. People's expectations for food choices rise as their exposure to other cuisines and dining trends increases, be it through media or travel. These evolving tastes can be met by food franchises that bring urban eating options to suburban and rural areas.

The best food franchises in India are:

6. Education Franchises

Education franchises in India's smaller cities and towns work to close the gap between the country's urban and rural educational systems, boost teaching standards, and give residents more say over their own futures and economic prospects.

Moreover, many resources, including money, time, and materials, are needed to establish and maintain a school. The lack of money and other resources is a common problem in smaller communities. It is easier for entrepreneurs and educators to open a school when they have access to the established infrastructure, teaching materials, and resources that are provided by an education franchise.

The best education franchises in India are:

It is important to note that there are various trends that are leading to the growth of franchise opportunities in small towns across India. 

Trends Governing the growth of Franchise Businesses in Small Towns Across India

Several factors have contributed to the expansion of franchises into India's smaller cities. Some of the reasons behind this expansion are as follows:

  1. Increase in Disposable Incomes - Due to reasons such as economic growth, job possibilities, and government efforts, people in India's smaller cities and villages now have more disposable income than ever before. People in these communities are better able to spend their money, which has increased the demand for the branded goods and services offered by franchises.
  2. Change in consumer’s taste and lifestyles - Consumer tastes in small towns have changed as a result of media exposure and exposure to urban lifestyles. Now more than ever, consumers want the reliability and consistency that only well-known brands can provide. Customers who value quality, convenience, and a cutting-edge retail experience flock to franchises because of the reliability and consistency of their preferred brands.
  3. Improvement in Infrastructure - Attracting franchise businesses has been greatly aided by the development of better infrastructure in small towns, such as increased accessibility to roads and electricity and the construction of shopping malls and commercial complexes. These changes make it easier for franchises to enter the market and establish themselves there.
  4. Support provided by the Government of India - The Indian government has implemented several initiatives designed to spur the growth of small companies and entrepreneurial activity in the country's rural areas. Franchises have been encouraged by government programmes like Make in India, Start-Up India, and Stand-Up India to open locations in less populous areas. The establishment of franchises, the acquisition of licences, and the acquisition of financial aid have all been simplified thanks to government help.
  5. Potential to grow in untapped markets - Franchises can find a large, untapped market in India's smaller cities. Since these regions are not as crowded as major cities, they present excellent prospects for business development and growth. Franchisors see these markets as fertile ground for expanding their consumer bases and fostering brand loyalty.
  6. Advances in Technology - Mobile phones and internet access in particular have spread to even the most outlying regions of India. Because of this, franchises may now market and sell their products to clients in even the smallest of communities thanks to the Internet and digital marketing. Technology is being used by franchises to reach more people and run more efficiently.


Franchises and well-known brands are sometimes scarce in small towns. Therefore, franchise businesses can profit from the increased demand for established brands and products.  Also, small towns are sometimes untapped markets and have great potential. 

Thus, for all aspiring entrepreneurs who considering starting a franchise business in India, you can make use of this blog which can guide you on the best franchise businesses in India, the best franchise business to start in a small town in India, latest franchise opportunities in India and more. 

Nevertheless, you can also reach out to us at FranchiseBazar or follow us on our social media platforms on FaceBook, Instagram and Twitter if you want to start a franchise business or are a business owner looking to expand your business in small towns in India.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risks and discretion. FranchiseBAZAR or its Directors, disclaim any liability or risks arising out of any transactions that may take place due to information provided in this blog.




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