Written By: Gouri Ghosh

Franchising is one of the smartest ways for beginners in India to start a business. Here, new owners can get to join an already established brand. The franchises give training, support, and a tested business model to the franchisees, thereby lowering the risks and making the startup easier. In this context, franchises for beginners in India are becoming extremely popular since more people believe in big brands. With India's economy on the growth track, 2025 is an excellent time to consider franchise ownership. Now is a great time for those looking at food, fitness, or retail sectors because of increasing demands in these areas.

How entrepreneurs or beginners are stepping into these franchise?

• Research Local Market Demand: Make sure there is a genuine demand for your chosen franchise in your local market before entering. Knowing the local trend will help you make a proper decision.
• Speak with existing franchise owners: Talk to operating franchisees to get firsthand, valuable information on what it's like to run.
• Evaluate Ongoing Costs: Review all your costs like rent and salaries, and variables, like marketing and inventory.
• Review of brand's repute: There would be customer reviews and reputation of the brand across India in order to achieve a strong and trustworthy presence.

Best Franchises For Beginners To Own in India 2025

When someone is looking for a profitable franchise for beginners in India, there have been several brands that have a strong market presence, established customer trust, and proven business models. Their ongoing support and scalability make them ideal choices for new franchise owners.

McDonald's

The fast food giant McDonald's has built its name on consistent high-quality cuisine and friendly service.. They have a good market in India, hence a huge number of customers. It also gives proper support to its franchisees.

• Category: QSR.
• Franchise Fee: ₹30 lakh to ₹50 lakh.
• Initial Investment: ₹1 crore to ₹1.5 crore, which depends on the location.
• Liquid Cash Requirement: ₹50 lakh to ₹70 lakh.
• Royalty Fee: Approximately 4-6% of gross sales.
• Availability of financing: With partner banks under McDonald's, some financing opportunities are available.

7-Eleven

7-Eleven is a good  brand for selling daily necessities and snacks. The brand has wide acceptability and hence is excellent for busy locations in India. 

• Category: Retail
• Franchise Fee: ₹10 lakh to ₹25 lakh
• Initial Investment: ₹50 lakh to ₹70 lakh
• Royalty Fee: 5% to 7% of monthly sales.
• Financing Available: It is possible through different banking partners and schemes.

Taco Bell

 Taco Bell is a high street fast food brand that has Mexican inspired menu, especially appealing to the younger generation of consumers. The brand has been gaining presence in India and focuses on quick service meals for local taste.

• Category: Fast-food/QSR.
• Franchise Fee: ₹20 lakh to ₹30 lakh.
• Initial Investment: ₹70 lakh to ₹1 crore.
• Liquid Cash Requirement: ₹35 lakh to ₹50 lakh.
• Royalty Fee: 5% to 6% of monthly sales.
• Availability of Finance: Partner Banks offer financing

Anytime Fitness

It is one of the gym brands all around the world with a facility for 24/7 fitness. People in this health-conscious region have now taken it on a much higher scale where they just get flexibility to work. This is made possible so that the fitness enthusiasts might be able to enjoy flexibility and not be caught in the complexities of accessing a gym through a member's card that is either misplaced or expired.

• Category: Health and fitness.
• Initial investment: depends on the area, this will be ₹ 1-2 crores
• Liquid Cash Requirement: ₹ 50 lakh – 75 Lakhs.
• Royalty Fee: 7% to 8% of monthly sales.
• Financing Availability: Financing available through banks and private lending partners.

Subway

Subway is the best known sandwich shop across the Indian market; Subway sandwich offers healthy and fresh customizing sandwiches and various healthier alternatives. Model that's quite easy to maintain for newer franchises as it attracts all potential franchises who will venture their businesses in profitable business that they can maintain from this sector.

• Category: Fast-food/QSR.
• Franchise Fee: ₹10 lakh to ₹25 lakh.
• Initial Investment: ₹50 lakh to ₹80 lakh.
• Royalty Fee: 8% of monthly sales.
• Availability of Financing Subway offers financing through collaboration with many third-party banks.

Dunkin'

Dunkin delivers fast food with high-quality drinks and snacks.. This is the reason it is extremely popular among the coffee lovers.

• Category: Food and beverage.
• Franchise Fee: ₹25 lakh to ₹40 lakh.
• Initial Investment: ₹1 crore to ₹1.5 crore.
• Liquid Cash Requirement: ₹50 lakh to ₹70 lakh.
• Royalty Fee: 5% per month.
• Finance is available through Dunkin' partner finance institutions.

Kumon

Kumon is The biggest reading and math coaching company in the world that serves young children.For an education-related business and in a rising market where people are really looking at acquiring tutoring for their wards, Kumon's is very apt at this very stage.

• Category: Education/tuition
• Franchise Fee : ₹5 lakh- ₹15 lakh
• Initial Investment: ₹15 lakh - ₹25 lakh.
• Liquid Cash requirement: ₹5 lakh to ₹10 lakh.
• Royalty Fee: 10 percent of every sale made within a month.
• Financing: Via banks and financing companies.

What is the cost beginners will have to pay for opening a franchise?

To start a franchise, you need to understand such key costs as liquid capital, total investment, and franchise fees. Liquid capital is the minimum amount to ensure you can cover the daily expenses. Total investment includes setup costs, location, equipment, and inventory. Franchise fees refer to the payment made towards using the brand and obtaining support. Moreover, requirements for net worth are part of the process of screening the financial stability of any applicant.

• Minimum Working Capital: This is cash for everyday expenses. This will keep the business rolling.
• Total Investment: This is the total cost to start including setting up the location, buying equipment, and stock inventory.
• Franchise Fee: This is the advance payment you make to the franchisor for using the brand, training, and support.
• Net Worth Requirement: Franchisors require a certain amount of net worth to ensure you have the financial stability to run the business.

Understanding the Laws Regarding Franchise Ownership in India _ What Beginners Should Note Before Investing In A Franchise

For the protection of investment and smooth business functioning in India, there are major legal aspects concerning franchises that need to be understood. Franchise agreements, intellectual property rights, and licensing issues constitute significant concerns that revolve around a business setup.

• Franchise Contract: It deals with the duration of the franchise and its renewal features. Understanding these before signing is very important.
• Intellectual Property Rights: Protecting the brand and logo becomes vital. A franchisor allows a franchisee to use its intellectual property rights.
• Licensing: Franchisors must have the essential licenses to operate. These include health, safety, and local business permits, depending on the business. . 

Franchise Ownership: Key Factors of Success and Challenges with Franchise Ownership

Success Factors:

• Good Location: Higher the footfall or access a location provides, more it is going to sell. Higher is the exposure too.
• Compliance to Guidelines of Franchisor: It assures consistency and high quality in the business.
• Good Marketing: Proper Marketing done locally along with what franchisor is offering

Challenges:

• Initial Setup Challenges: Permits and equipment to start a business are very time-consuming and costly.
• Finding and Training Employees: One has to find the best, most reliable employees for proper performance.
• Local Competition: Fighting with local businesses or even other franchises in a city can impact sales and market share.

Unlocking the Franchise Boom: Market  growth in India

Indian franchise markets are very promising for the future, which has great growth potential sectors like food & beverage, fitness, and education. As one of the significant industries, food is expected to reach $1.2 trillion by 2025 with momentum powered by urbanization and change in consumer behavior.

Similarly, the fitness industry is also going to reach more than $2 billion by 2025 due to health and wellness among Indians.

Education franchise is also gaining popularity as far as tutoring and online learning is concerned. In addition, the increase in digitalization and convenience-based models has made 2025 a very good year for new players looking to venture into India's most profitable franchise options.

Conclusion

Start franchising in India with Franchisebazar; it's a great business opportunity especially for first timers. When done the right way, you can jump into the food, fitness, or education sectors, and reap the benefits of these highly booming sectors. But after careful research, knowing all costs, market demand, and franchise support will lead to success. Choose wisely and your franchise journey might be that ticket to long-term growth and financial success.

FAQs

Is Franchise Easy to Start?

Starting a franchise is both thrilling and overwhelming. While a franchise brings you a well-crafted business model, you would need to understand the business model, qualify in financial aspects, and also know about the everyday workings.

What are the essential elements of a profitable franchise?

There are three elements to achieving success as a franchisee. A proper choice of a franchise aligning with your interest and talent should be chosen so it aligns well in your local market. System application through the franchisor has ensured consistency and quality across various locations.

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 risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.