Written By: Gouri Ghosh

India's demand for home and office furniture is increasing due to urbanization, increased disposable incomes, and changing lifestyles. Consumers are opting for branded and organized furniture stores compared to unorganized carpentry shops. That is why the best furniture franchise in India are so successful today. Indian consumers trust Godrej, Nilkamal, Pepperfry, and IKEA furniture franchises. These companies offer pre-designed, beautifully crafted, and long-lasting products, along with the feel of entering a well-designed store.

In this blog, we will deconstruct the various investment levels in the furniture franchise business, ranging from small ₹25 lakh studios to large ₹2 crore flagship stores.

The Emergence of Furniture Franchising in India

These reasons are forcing the shift through:

• More individuals are purchasing homes and migrating to cities
• An emerging need for aesthetic, modular, and wooden furniture franchises
• Greater confidence in brands such as Pepperfry, Godrej, Nilkamal, and the IKEA furniture franchise in India
• Facilitated financing and assistance from veteran brands

For budding businessmen and women, this implies one thing: little risk, high reward, and the opportunity to be part of a thriving sector.

Charting the Investment Stages

Let's see what your alternatives look like based on how much you can pay.

Tier 1: Budget Studios (₹20L–₹35L)

Your First Step into the Furniture Franchise Business

If you are a new player in the franchise industry or look to dip your toes in the water with minimal capital risk, Tier 1 budget studios provide a wise entryway to the furniture franchise in India market. These low-capital models are built for lean operations, rapid setup, and relatively quicker return on investment.

Format and Setup

Tier 1 stores are small-sized showrooms, ranging from 300 to 600 sq. ft. They are not designed to showcase complete furniture ranges, but instead experience zones where customers can:

• See individual furniture samples
• Experience material swatches and finishes
• Order digitally (on in-store tablets or brand apps)

It is suitable for brands that adopt the online-to-offline (O2O) model, where consumers shop online and finalize the purchase process offline with the assistance of professional advice.

Ideal Locations

These stores perform best in:

• Tier 2 and Tier 3 cities
• Developing suburbs in urban areas
• High-traffic residential markets
• Standalone stores on neighborhood commercial streets

Due to the compact size, rent and interior expenses are low, making this tier particularly ideal for cities where real estate costs are low and customer demand is increasing.

Popular Brands in This Tier

Some well-known brands in the Indian furniture market provide studio-based franchise models:

• Pepperfry furniture franchise dominates O2O furniture retail.
• Royal Oak furniture franchise (studio format) – With affordable, global-style furniture with pan-India acceptability.
• Urban Ladder light format – A tech-oriented brand with digital-first retail capabilities for smaller installations.

All of these are counted among the best furniture franchises in India, offering robust backend systems, digital solutions, and operational support.

Pros

Low Investment Cost

The cost of the furniture franchise in India for this level typically ranges between ₹20 lakh to ₹35 lakh, varying according to location and brand.

Minimum Overhead

Because store sizes are modest, costs like rent, employee wages, and utilities are low.

Faster Breakeven

With streamlined cost control and brand-driven traffic, the majority of franchisees in this level realize ROI between 12 and 18 months.

Cons

Limited Footfall

Small stores tend to have lower visibility, particularly in highly competitive markets with large-format retailers.

Restricted Display

Because of space limitations, shoppers can't see the entire product assortment in person, which may affect conversion if the staff isn't properly trained.

High Dependence on Digital Sales

A large part of the sales process takes place online, so your store needs to be backed by good tech and skilled people.

Tier 2: Mid-Range Experience Stores (₹40L–₹80L)

A Balanced Investment for Long-Term Growth

If you’re looking to build a solid, scalable retail business with a strong brand name and immersive customer experience, Tier 2 mid-range experience stores offer an ideal middle ground. These formats are larger than compact studios, yet far more affordable than flagship stores.

Format and Store Layout

• Room-sized furniture arrangements (living rooms, bedrooms, dining settings)
• Material experiences and seating demonstrations
• Interior design advice and product bundling

Such a store size enables you to present a handpicked product assortment while framing a lifestyle experience that customers cherish and remember. It also instills greater trust at the time of purchase, particularly for wooden and modular furniture with high prices.

Ideal Locations

These stores fare best in:

• Urban home bases with mid-to-high income households
• High-street shopping districts in metro urban centers
• Malls and lifestyle malls
• Mixed-use commercial districts with consistent pedestrian traffic

Customers within these segments actively look for the best furniture franchise in India products and are willing to spend on function as well as aesthetics for their residence or workplace.

Popular Brands in This Tier

A few reputable brands provide mid-size franchise models that fall within this spending bracket:

• Nilkamal furniture franchise – Legacy brand with strong retail channel and increasing demand in domestic and office segments.
• Royal Oak furniture franchise (medium format) – Provides contemporary designs, modular collections, and an extensive product range.

Best furniture franchise formats such as Evok and Durian – Famous for looks, value, and end-to-end home solutions.

These brands provide a combination of awareness, marketing power, and operational assistance, making your store competitive.

Pros

Equilibrium Investment and Scale

With a furniture franchise price in India between ₹40L and ₹80L, this level enables you to acquire a high-end retail location without the weight of flagship-grade prices.

Brand Marketing Support

Most of the brands in this level undertake national and regional campaign marketing—exposing you to higher visibility, leads, and credibility right from day one.

Higher Conversion Rates

The customers get to touch and feel the product quality, design, and fit. This tends to promote more engagement and higher sales conversion than online-only or mini studio format.

Cons

Requires Skilled Staff

With more customer interactions and larger product displays, you’ll need well-trained sales consultants who understand furniture, design, and customer service.

Moderate Inventory Management

While not as intensive as flagship stores, you’ll still need to manage floor inventory, stock rotation, and warehouse coordination.

Breakeven Period is Longer

Due to higher setup and operational costs compared to studios, expect a breakeven period of 18–24 months depending on your location and sales performance.

Tier 3: Flagship & Premium Format Stores (₹1Cr–₹2Cr+)

Ideal for Ambitious Entrepreneurs Wanting to Create a Market-Leading Furniture Franchise

If you are an established entrepreneur, investor, or business group keen on capturing the premium space in the furniture market, Tier 3 flagship stores provide unparalleled potential. These are large-format, high-investment stores that leverage robust brand identity with rich customer experience. They're not mere stores, they're destination showrooms.

Format and Store Layout

Flagship and luxury format stores usually take 2000 sq. ft.

• Premium high streets
• Luxury retail zones within malls
• Commercial centers within metro cities
• Design-driven and upscale residential neighborhoods

These showrooms provide the entire product experience not furniture for display only, but thematically curated room installations, walk-throughs, and design consultations that enhance the shopping experience. Visitors can experience the entire range, from wooden furniture to modular interiors, office furniture, and high-end home decor.

Optimal Locations

These stores are ideal for:

• Upscale residential areas and gated communities
• Segments with a high concentration of architects, interior designers, and design houses
• High-net-worth consumer segments that value quality, beauty, and brand name

The luxury furniture business model works best when you're in an area where consumers are willing to pay extra for better quality and experience.

Well-known Brands in This Tier

This investment level provides you with the best furniture franchises those  enjoy robust global or premium Indian brand equity:

IKEA furniture franchise in India (pilot and future models): Famous worldwide for mass-scale modular furniture with European design and loyal customer following.

• Stanley Living: Luxury Indian brand emphasizing craftsmanship and high-end furniture.
• Natuzzi: Italian furniture brand providing high-end leather and designer collections of furniture.
• Royal Oak furniture franchise (flagship model): Provides a large-format store with extensive international styles.

These companies are very cautious in selecting franchise partners but provide strong brand equity, training, supply chain assistance, and long-term business development possibilities.

Pros

High Average Bill Value

Premium customers tend to buy full room sets or entire home collections, which result in much more elevated order values compared to budget or mid-range stores.

Premium Clientele

Customer profile consists of upscale homeowners,  design professionals, and institutional customers such as interior companies or corporate offices.

Long-Term Brand Loyalty

Customers who invest in premium furniture tend to stick with brands they trust, making repeat business, referrals, and long-term customer value much stronger.

Cons

High Real Estate and Setup Costs

You’ll need a large space in a prime area, and the fit-out must match the brand's premium positioning. This can be capital-intensive.

Requires Larger Teams and Operational Expertise

Operating a flagship store takes more personnel, in-house designers, customer experience managers, and robust backend coordination.

Longer ROI Timeline

With more capital invested, breakeven typically would take 24 to 36 months. But once they stabilize, these stores tend to produce sizeable and constant revenue.

Conclusion

An Indian furniture franchise provides a golden chance for business owners who want to establish a steady and scalable venture. Whether you're investing for a ₹25L studio or a ₹2Cr flagship, there's a brand and format to fit your dream.

Just keep in mind: the greatest furniture franchise isn't always the largest; it's the franchise that fits your budget, your city, and your ability to follow through. So don't rush it, do your research, and invest accordingly.

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.