Profitable Franchise Business Opportunities For First Time Investors
Written by Deepak Sah August 01, 2021
Are you looking to start your own business? Starting a business is a big decision and it is filled with lots of emotions and stress.There are many questions that run in our mind like
How to start from zero levels?
How to target an audience?
How to manage the business?
How to manage the operation? And many more thoughts.
Currently Franchise business is the most demanded business and many people are starting their entrepreneurial journey through franchise business. As per the data, 35% of franchise buyers are first-time buyers or we can call them entrepreneurs. In India, we can see that in the last few years a large number of people are entering into entrepreneurship and many among them start their journey with buying a franchise business. The main reason is that in the franchise business there is a lot that is prepared for things like good branding, good marketing resources, and training opportunities. and the risk factor is also less. There is less risk than starting a new business from scratch.
Women are not behind when we talk about buying franchises in India. As per the data, 26% of franchise buyers are women.
India is the 2nd biggest franchise market after the USA. In the last 20 years franchise business in India took a pace and India became a global hotspot for a franchise business.
Benefits of opting for franchise business
In comparison to the startup business franchises have proven to be more successful. When you open a franchise you have a support system from the start. The risk involved in a startup business is much more than that of a franchise. The risk factor is considerably much less in the franchise. When it comes to opening a franchise franchisors aim to protect their brand awareness by providing continual support to the franchises. While entering into business multiple options are available to the individual. The options available are whether to start a new startup business or to open an existing franchise. The decisions can be made depending on various factors. But it is always a better and more secure option to open a franchise because of
The low failure rate in comparison to new startups in a franchise business
A tested business model in a franchise business
National and International Brand recognition in a franchise business
High return, Good profits in a franchise business
Better brand awareness in a franchise business
Better equipment and supplies in a franchise business
Good marketing strategy in a franchise business.
Franchise business has always done well when we look back into the past. When the economy was booming and all markets were performing perfectly then demand franchise business was also at a peak due to fear of missing the best opportunity in the market and now when our economy was completely shaken by COVID 19 then also the demand of franchise business is at peak because many people lost their jobs , the unemployment rate in India was increasing day by day in COVID.Now new waves of COVID19 are still creating the threat of losing jobs in the market. Many people lost their jobs and lack of other earning opportunities forced people to look for franchise business,one of the good performing sectors even in the pandemic. Lots of brands not only handled the pandemic but also expanded in different cities in this Pandemic.
Best profitable franchise business Ideas
1. Health care-related franchise businesses: The healthcare industry consists of hospitals, pharmacies, medical equipment, medical devices, and medical insurances. The health care sector is growing at a rapid pace. The market size is $193.83 billion and is expected to reach $ 372 billion by 2022. The hospital industry contributes around 80% of the total healthcare sector and it is growing with a CAGR of 16-17% . Medical tourism is also growing at a good pace and is expected to reach $8-9 billion by 2022. The diagnostics industry almost contributes 25% in this segment. Health insurance also contributes around 15% to this segment. Recently our Finance Minister allocated around 64,180 crores in the next 6 years to strengthen the healthcare sector in the Budget. The plan is to open new healthcare institutions and to support the existing healthcare institutes. The government also announced an expenditure of 35000 crores for the COVID19 vaccine in 2021-2022. This will directly help the vaccine manufacturers in India. There is a huge demand for healthcare products and services in India due to the Covid pandemic and the demand for healthcare products will never end which makes this business recession-proof.
2. Agriculture-related franchise business: Agriculture is considered the backbone of the Indian economy. The contribution of the agricultural sector raised from 17.8% ( 2019-2020) to 19.9 % ( 2020-2021) in India’s GDP . After 17 years the share of the agriculture sector in Indian GDP is around 20%. This shows us how the agriculture sector is growing even in pandemics and contributed in the growth of the agriculture franchise business. When we talk about franchise business ,people only talk about food franchises ,pre-school franchises,automobiles etc but an evolution in the agricultural sector took place that is agriculture franchise business . Many government and private companies came to reform agricultural sector and to attract more people towards this one of the important sector by starting agriculture franchise business. One should start a profitable agriculture franchise in this pandemic because there is much scope of this business in India. Maximum companies depend on the agricultural sector,food and beverages industry completely depends on agricultural sector ,that means this agriculture franchise business is going to get lots of business and the contribution of agricultural sector in GDP is quite impressive . Another strong reason for buying an agriculture franchise business is that it is going to be modernized and the production is predicted to be doubled in the coming years. .There is going to be an increase in demand in India and the world as well. Export is going to increase in the upcoming 10 years.
3. Courier, delivery, and logistics franchise business: This lockdown boosted the demand of courier, logistics, and delivery franchises in India. Due to lockdown pharmacies, food restaurants and many other started looking for delivery partners to increase their reach and to survive in this pandemic. This helped many couriers, logistics, and delivery franchise companies to enter in the market. The Indian courier market is growing with a growth rate of 25% and it is creating a new opportunity for entrepreneurs and other people.We all know that how e-commerce is growing rapidly in India.In last few years e-commerce has expanded at a good pace and this helped in the growth of courier , logistics and delivery franchise in India . There is a prediction that some giant companies will enter into e-commerce in upcoming year and they will definitely depend on the existing courier,logistics and delivery franchise in India to deliver their product. Lockdown pushed many retail businesses to go online. And many retail businesses are using the online delivery mode to promote social distancing in COVID19.This decision of going online helped courier, logistics and delivery franchises to grow in India and this is bringing lots of business.
4. Automobile service-related franchise business: The main reason for the growth of the Automotive servicing franchises during a slowdown is a change in customers' preference. Now customers are choosing used cars over new cars. In fact the market for second-hand cars is at its peak in India.. A large number of players entered into this market and started selling used cars and they are getting a good response from the customers. As per the data, the market for used cars marked 4 million sales in 2019 -2020, which is 1,2 times more than the sale of the new cars.
The craze of buying a used car has contributed a lot in the growth of the automotive servicing franchise. Many automotive servicing franchises came into the market to give hassle-free service to the customers. Another reason for the growth of automotive servicing franchises in India is technology up-gradation. The introduction of the BS-VI engine and the introduction of electric vehicles became a challenge for some garages and workshops. They don’t have relevant skills for these and this makes them unreliable. This gave an opportunity for multi-brand automotive servicing franchises in India to grow and cater the needs of the customers.As per the data customers generally, close their relationship with authorized service centers after the expiry of the warranty.They start looking for flexible and alternative options. And around 65% of customers switch from authorized service centers in search of pocket-friendly service centers.The price charged by these multi-brand service centers is around 40% less than the price charged by authorized service centers. And this factor not only attracted the customers it also attracted the Insurance companies as well. You will not get the business only from customers, you will also get business from the insurance companies as well.
5. Edtech franchise business: While some sectors were fighting for survival in a pandemic, Edtech was growing in a pandemic.In fact, edtech collected around 2 Billion in funding in a pandemic, average CAGR is around 64% supported by 10 million users and it is expected to be around 30 billion in market size by 2030. Due to the increase in cases of Covid in India, the government imposed a lockdown as a result all colleges, coachings and schools were closed and it contributed to the growth of online learning. The future of Edtech looks bright because people are adapting to the change. When all the syllabus, teaching plans became irrelevant due to the wave of COVID19, another positive wave of Edtech came as a savior and transformed traditional teaching.
6. Cloud kitchen franchise business: COVID19 has affected the food and beverages sector very badly, Many businesses came to an end and many were about to close. Then Cloud Kitchen came as a new trend. Now people don’t go to the food, food comes to them.As per the data, there will be a growth of food deliveries in the coming 5 years and as a result, many people are opting for cloud kitchens As per the data Cloud kitchens are going to dominate India’s food -tech industry. The number of cloud kitchens in India is going to increase at a rate of 50-60% . The market size of cloud kitchen in 2019 was $ 400 million in 2019 and now it is expected to reach around $ 3 billion industry by 2024. This is going to be the future and most demanded franchise opportunity because our next generation is going to be digital completely.
Best profitable franchise opportunities and franchise costs :
FranchiseBazar: It is estimated that there are over 10,000+ franchise opportunities in the organized format seeking Franchises across India. 1000’s of new businesses are transforming themselves into organized franchise businesses in India. Several global brands are also looking at appointing franchises in India. This means millions of entrepreneurs across all cities, towns, and villages of India are going to buy new franchise business opportunities. Here is your opportunity to play a vital role in enabling new opportunities for the new India. Being the nation’s #1 Franchise Consultants network, undoubtedly they have been the pioneers of connecting clients to their desired brand or area of interest.
Space requirement: Less than 250 Sq.ft
Investment required : 2 lakh - 5 lakh
Dava Discount - It is a division of RAJNISH WELLNESS LIMITED already a BSE listed company, which is entering into an online pharmacy. Along with providing quality Branded Medicines at a flat 25% discounted price, customer satisfaction is the major social cause of our business.Due to the high cost of medicines, it has become impossible for some sections of the population to afford even normal medication which sometimes becomes fatal for patients. So, to avoid such a case Dava Discount provides all branded medicines at a flat 25% less on MRP. They continuously seek to expand their network and believe in providing the best price in the industry.
Industry - Pharma
Investment -10 lakh - 15 lakh
Outlets-15 + all across India
Voylla-Fashion jewelry: Incepted in 2013, Voylla is India’s largest fashion jewelry destination with a robust online presence and an expansive retail footprint of 150+ Stores across India. Voylla has successfully introduced the concept of high-quality, flawlessly crafted jewelry at affordable price points – a feat that remains unmatched in an increasingly busy segment. Voylla takes pride in its commitment to rare and traditional art, crafts, and narratives, creating contemporary accessories for its discerning patron. Voylla the only brand with a versatile line of jewelry, perfect sartorial companions to every woman and man.
Industry: Fashion jewelry
Investment: 7.5 lakh to 20 lakh
Outlets : 120 + all across India
Antal international network: It is one of the leading global recruitment companies in the world.It is present in more than 35 countries in the world . Antal International has been around the globe for nearly 23 years now, incorporated and headquartered in London. With a global coverage across Europe, Russia, China, India, Africa, Japan, and S. America, Antal is positioned to service the needs of global corporations with ease. Antal has rapidly grown across the globe, penetrating and having a major presence in all key talent markets, including strategically important developing markets, enabling us to become a leading global recruitment and search specialist in each of our specialized areas of expertise.
Investment required -10lakh and 20 lakh
Outlets- 130+ offices all across the world
Twinto- It was founded in the year 2016, is a start-up company providing cleaning services. Their company is based in Chennai and has its presence pan India. They have a vibrant workforce with 100+ trained employees and a dedicated Quality Team. They are the only company in this industry that not only has invented its own machine but also services the customers only using in-house tools. In no time, they have scaled up to 100+ trained employees and a dedicated quality team that believes in nothing but the best.
Investment: 5 Lakh- 10 lakh
Pepperfry: It is one of the largest online furniture and decor companies.It is Mumbai based firm with 1.2 lakh products on their website.It is one of the largest omnichannel footprints present in India and has 70+ studious in 28 cities.Now as per the COO and co-founder of Pepperfry Ashis Shah “ Pepperfry is expected to be in the unicorn club soon”.He said “ we are in the process of making a change in the company structure . Hopefully we should be a billion-dollar business very soon. Our IPO value will be in that range”
Industry - Furniture Industry
Investment - 15 lakh - 40 lakh ( Depending on type of store)
Outlets - 70+ across India
SpeedForce: It is one of the leading two-wheeler servicing franchise businesses in India. It has a chain of its branches all over India. They provide innovative repair and maintenance services for any two-wheeler. They had a wide range of trustworthy services like pick up and drop facility, on-road breakdown support, insurance support, Annual Maintenance Contracts, warranty program on spare parts, and lubricants. They are bringing a revolution in servicing two-wheelers. With well-equipped two-wheeler service stations and skilful mechanics, They provide quality services with excellent packages that are intended to offer you great maintenance and saving. SpeedForce is a one-stop solution for all two-wheeler needs. They are committed to making your ride safe.
Industry: Automotive service franchise
Investment: 7.5 lakh to 10 lakh
Outlets : 125+ across India
Moo Chuu India: It started in Thailand in 2014. Currently, it has active operations in around 12 countries. With its unique customization concept and strong branding, it is poised to become the leading chain of flip-flop footwear in India. It was introduced in India in November 2018 and Moo chuu India holds the rights for distribution and retail sales of Moo Chuu Footwear in India. The major USP of its flip flops is that they can be customized based on customer choice of sole and strap color. Besides customization, Moo Chuu India flipflops are highly durable, waterproof, allergy-free, comfortable, anti-slippery and also, they are made of recycled synthetic rubber. Moo Chuu is India's only customized flip flop brand which makes light, strong, durable, waterproof, customizable, comfortable and 100% waterproof flip flops. It works with the unique concept of designing one's flip flops by selecting the style, sole, strap and size according to one's unique taste. Through this, Moo Chuu can cater to a wide variety of customer needs and preferences.
Investment- 10 lakh - 15 lakh
Chop-Shop: "The Hippest Barbershops in India''. Chop Shop is a North American-owned male grooming brand & chain of upmarket Barbershops that draws inspiration from New York in the 20’s and delivers exceptional North American quality grooming services. Premium Hot Towel Shaves, killer haircuts, rejuvenating facials & awesome locally sourced fresh coffee. Chop Shop is the only Barbershop brand in India to have GBBA Level 3 UK Certified Barbers. The Chop Shop was founded in 2018 by Martin Prihoda and their wife Tonia Clark, along with Co-founders Kenneth D'Souza and Chris Downer.
Investment :40 - 50 lakh
Space - 1000-2000 sq feet.
Soiltech:It is one of the leading Agri equipment manufacturing brands. The world-class quality of Soiltech farm equipment makes the brand farmers' first choice in India and abroad. Headquartered in India, the brand has an existence in over 100 other countries. With more than three decades of experience in manufacturing tradition and trading in the farming and agricultural industries, Soiltech has become synonymous with quality farm and agricultural equipment.
Industry-Dealers and distributors
Investment- 10 lakh-15 lakh
Franchise fees - 50,000 - 1 lakh
Outlets - 150 + outlets across India
These are the Most promising brands to invest in in 2021 and if you are planning to join hands with these franchise opportunities, you can visit franchiseBazar and you can also select other opportunities listed on the website and can select according to your investment plan and can get guidance from industry experts.
Written by: Resham Daswani
Businesses dealing with the food industry in India...