Written By: Payal Das

The market for Sportswear franchise in India has witnessed remarkable growth over the past decade. With a growing focus on fitness, rising disposable incomes, and the influence of global sports events, the demand for high-quality sportswear continues to surge. This booming sector brings many lucrative Sports Wear franchise opportunities.

But like any business venture, understanding the financial aspects is essential before taking the plunge. In this guide, we’ll break down the costs, potential returns, and other financial considerations to help you make an informed decision.

Why Invest in a Sportswear Franchise in India?

The Indian sportswear industry is projected to grow at a CAGR of 10-12% by 2025, driven by:

• Increased fitness consciousness
• Expansion of organized retail networks
• E-commerce penetration
• Growing influence of sports leagues like IPL and ISL

Franchising with a reputed sportswear brand can provide you with established brand recognition, marketing support, and a ready customer base.

Factors That Affect The Growth of a Sportswear Franchise in India

The growth of sportswear franchises in India is influenced by several key factors:

• Rising Fitness Awareness: Increasing health consciousness and participation in fitness activities like yoga, running, and gym workouts drive demand.
• Influence of Sports Events: Events like the IPL, ISL, and international tournaments boost sports merchandise sales.
• E-commerce and Omnichannel Presence: Brands with online and offline visibility see faster growth.
• Brand Strength and Marketing: Strong brand recognition and effective marketing campaigns attract more customers.
• Location and Store Experience: High-footfall areas and well-designed stores contribute to better sales performance.
• Economic Conditions: Consumer spending capacity and disposable income levels significantly impact the franchise’s success.

Sportswear franchise cost in India – Initial Investment 

The financial commitment required to start a sportswear franchise varies depending on the brand, location, and store size. 

A. Franchise Fee

• Brands usually charge a one-time franchise fee ranging from ₹10 lakh to ₹50 lakh.
• Established brands like Nike, Adidas, or Puma may have higher fees due to their global reputation.
• Mid-range or emerging brands may offer lower franchise fees, around ₹5 lakh to ₹20 lakh.

B. Infrastructure and Store Setup

• Setting up a retail outlet requires capital for interior design, furniture, fixtures, and signage.
• Expect to spend approximately ₹15 lakh to ₹40 lakh, depending on store size (typically 500 to 1,500 sq. ft.).

C. Inventory and Stock

• Initial inventory investment ranges from ₹10 lakh to ₹30 lakh. Some brands provide inventory on a consignment basis, reducing upfront costs.

D. Working Capital

• Reserve around ₹5 lakh to ₹10 lakh for operational expenses, staff salaries, and other utilities during the first few months.

E. Technology and POS Systems

• Many franchisors mandate the use of their POS (Point of Sale) and inventory management systems, costing around ₹1 lakh to ₹3 lakh.

Recurring Expenses

Once your store is operational, you will incur monthly expenses such as:

• Royalty Fees: Most brands charge a royalty fee ranging from 5% to 15% of your monthly revenue.
• Rent and Utilities: Prime locations in malls or high-footfall areas can cost between ₹1 lakh to ₹5 lakh monthly.
• Staff Salaries: Budget for ₹50,000 to ₹1.5 lakh for a team of 4-6 staff members.
• Marketing and Promotions: Allocate ₹50,000 to ₹2 lakh monthly for local promotions, digital marketing, and offers.

Profit Margins and ROI

The profitability of a sportswear franchise largely depends on location, brand reputation, and effective management. On average, franchise owners can expect:

• Gross Margins: 35% to 50%
• Net Profit Margins: 10% to 20%
• Break-even Period: 1.5 to 3 years

Some top-performing franchise stores can generate monthly revenues between ₹10 lakh to ₹30 lakh, especially in metro cities and high-footfall areas.

Funding Options for Your Sportswear Franchise

If the initial investment feels overwhelming, consider these funding sources:

• Bank Loans: Many banks offer franchise business loans with competitive interest rates.
• NBFCs and Microfinance: Non-Banking Financial Companies offer flexible funding options.
• Government Schemes: Programs like Mudra Yojana and Startup India provide financial support to small businesses.
• Investor Partnerships: Collaborating with an investor can reduce the financial burden.

Additional Considerations Before Starting

• Location Strategy: Choose a high-footfall area like malls, commercial complexes, or near fitness centers.
• Brand Support: Evaluate the franchisor’s support in marketing, training, and operational management.
• Market Research: Study competitor pricing, local demand, and customer preferences.
• Legal and Compliance: Ensure proper licenses and agreements are in place.

Top 10 Sports franchise in India

Some of the most popular and profitable sportswear franchises to consider in India are:

1. Nike: Global leader with a premium brand image.
2. Adidas: Offers multi-segment sportswear catering to all age groups.
3. Puma: Known for trendy and performance-oriented products.
4. Skechers: Popular for comfortable footwear and apparel.
5. Reebok: Strong presence in fitness and gym wear.
6. Decathlon: Offers affordable sports gear with massive store layouts.
7. Under Armour: Known for its innovative performance gear.
8. ASICS: Globally recognized brand focusing on comfort and performance.
9. HRX by Hrithik Roshan: Offers stylish and affordable fitness apparel.
10. Wildcraft: Provides durable and functional sportswear, backpacks, and accessories.

Each brand has unique investment requirements and support structures. Carefully compare before making your decision.

How to Start a Sportswear Franchise in India

Starting a sportswear franchise involves these essential steps:

1. Research and Select a Brand  
   • Evaluate franchise options based on investment capacity, brand reputation, and ROI potential.
2. Contact the Franchisor  
   • Visit the brand’s official website or connect through platforms like FranchiseBAZAR for detailed franchise information.
3. Analyze Location and Budget  
   • Choose a prime location with high footfall, like malls, commercial complexes, or fitness hubs.
4. Sign the Franchise Agreement  
   • After due diligence, sign the contract that outlines the terms of the partnership, including fees, royalties, and operational guidelines.
5. Set Up the Store  
   • Follow the franchisor’s store design standards, including branding, interiors, and technology setup.
6. Hire and Train Staff  
   • Ensure your team receives adequate training provided by the franchisor for customer service and sales management.
7. Launch and Promote  
   • Plan a store launch event and run promotional campaigns both online and offline.

Requirements for Starting a Sportswear Franchise

Eligibility Criteria

• Minimum age of 21 years
• Educational qualification (preferably graduate)
• Prior experience in retail, sales, or business management (preferred but not mandatory)
• Financial capacity to meet the investment requirements

Documents Needed

• Identity Proof: Aadhaar Card, PAN Card, or Passport
• Address Proof: Utility Bill, Rent Agreement, or Property Documents
• Business Registration: GST Certificate, Trade License
• Financial Documents: Bank Statements, ITR (Income Tax Return)
• Franchise Agreement: As per the franchisor’s terms and conditions

Conclusion

Starting a sportswear franchise in India in 2025 presents an exciting opportunity, given the growing fitness culture and evolving consumer preferences. While the initial investment can be significant, the potential for strong profit margins and brand growth makes it a worthwhile venture.

Before proceeding, ensure you perform thorough financial planning, evaluate brand options, and select a location that maximizes your store’s visibility. With the right approach, your sportswear franchise can become a go-to destination for fitness enthusiasts and sports lovers alike.

For further assistance in exploring Sports Garments franchise opportunities, consider consulting with platforms like FranchiseBAZAR. They offer comprehensive support to identify the right franchise fit for your financial goals.

FAQs on Sportswear Franchise in India

Q1. How much investment is needed for a sportswear franchise in India?

Ans: The investment typically ranges from ₹30 lakh to ₹1 crore, depending on the brand and store size.

Q2. How long does it take to break even in a sportswear franchise?

Ans: On average, it takes 1.5 to 3 years to achieve a break-even point.

Q3. Can I get financial support to start a franchise?

Ans: Yes, banks and NBFCs offer business loans, and government schemes like Mudra Yojana can provide funding support.

Q4. Do franchisors provide training and support? 

Ans: Most franchisors offer comprehensive training, operational support, and marketing assistance to franchisees.

Q5. What is the profit margin in a sportswear franchise?

Ans: Gross profit margins are typically 35% to 50%, with net margins ranging from 10% to 20%.

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.