The Most Profitable Franchise Business in India: An Insider’s Guide

on Feb 18, 2023 | 133945 views

The franchise business has seen massive growth in India in recent years. Entrepreneurs are taking advantage of multinational companies in India by taking their franchises. The franchises MNCs like Oyo, Make My Trip, KFC, and Burger King have contributed to the profits made by these entrepreneurs.

India has observed a 30-35% growth over the past five years in the franchise business. The global turnover of the franchise business is approximately INR 938 billion. It contributes to around 4% Indian GDP.

India has a great scope for franchise business in India because it has the fastest-growing economy. This sector has also provided employment opportunities for around 1.5 million people in India.

What are the most profitable franchise business sectors in India?

India has helped many entrepreneurs start their business journey by providing franchise business opportunities in various sectors.

The five most profitable franchise businesses are:

  • Beauty and Wellness franchise- Indians are ready to pamper themselves in salons and spas. They are also willing to get premium gym memberships to stay fit. It has given a significant boost to the beauty and wellness industry. Some of the most popular beauty and wellness franchises are:
  1. Jawed Habib's hair and salon
  2. Affinity Salon
  3. Looks Unisex Salon
  4. Shahnaz Husain Group
  • Food & Beverage franchise- The options in food and beverages has increased in India due to globalisation. It has led to an increase in fast-food and Indian food chains across India. Some of the most profitable food and beverages franchise are:
  1. Subway
  2. KFC
  3. Pind Balluchi
  4. Kake Di Hatti
  5. Bikanervala
  • Retail Fashion Franchise- There has been a high demand for fashionable clothes, footwear, bags and accessories around India. The market has led to great profit returns. Some of the best retail fashion franchises in India are:
  1. Puma
  2. FabIndia
  3. Bata
  4. Liberty Shoes
  • Retail Jewellery Franchise- Demand for gold and diamond jewellery has always been massive in India due to the long festivities and wedding season. Investment in gold has always been considered the safest option for high-profit returns. Some of the most profitable retail jewellery franchises are
  1.  Malabar Gold & Diamonds
  2. Tanishq
  3. Kalyan Jewellers
  4. Gitanjali Jewellers
  • Healthcare and Diagnostic Franchise- Different prominent medical corporations are opening their franchises to the market. This industry provides different services and products to select from, like diagnostic centres, retail pharmacies, and other medical services. Some of the most renowned establishments are
  1. Thyrocare
  2. Apollo Diagnostics
  3. Dr Lal Pathlabs
  4. Lifecare Diagnostics

     

Some franchises have set their mark in India and are gaining high returns. What are the highest profit-making franchises in India?

India has opened its doors to franchise businesses that have given high profits in return. Some of the most profitable business franchises in India are:

  • Subway- The franchise is known for its satisfying subs that are healthy. It serves high-quality sandwiches at an affordable price which has boosted the number of its loyal customers.

Initial investment: INR 50-90 lakhs

Franchise outlets in India: More than 500

Profit margin: up to 10%

  • Jawed Habib’s beauty and hair limited- The salon was established by Jawed Habib to transform haircuts into a style statement.

Initial investment: INR 20-30 lakhs

Franchise outlets in India: Approximately 875

Profit margin: 20%

  • InXpress Deliveries- They have a global collaboration for pick-up and delivery of couriers with exclusive facilities. They offer affordable prices for their service.

Initial investment: INR 5-7 lakhs

Franchise outlets in India: around 50

Profit margin: 20%

  • Lenskart- Lenskart provides the best eyeglasses with a personalised optometrist appointment. They have expanded to online service also and total eyewear solutions.

Initial investment: INR 30-50 lakhs

Franchise outlet in India: more than 330

Profit margin: 25-30%

  • Eurokids Playschools- Eurokids has a reputation for being one of the best playschools. It is a full-fledged and well-equipped preschool with a large number of customers.

Initial investment: INR 10-20 lakhs

Franchise outlet in India: more than 1000

Profit margin: 50%

 

What are the most profitable franchises in Bangalore?

Bangalore is one of the fastest developing countries, with various franchise business opportunities. The most profitable franchises in Bangalore are

  • Tumble dry- It is the fastest-growing laundry and dry-cleans franchise. Tumble dry is an e-commerce company whose motto is to provide solutions for your laundry problems.
  • Giani’s- Giani’s is one of the oldest ice cream parlours in India. From selling rabri, faluda and mango shakes across Delhi, they have opened many stores selling different kinds of ice cream all over India.
  • Pepperfry- Pepperfry started as an online store selling furniture and home decor. They have studios and offline stores all over India.

       See more: Top 10 franchises in Bangalore.

What are the most profitable franchises in Tamil Nadu?

The most profitable franchises in Tamil Nadu are

  • KFC- Kfc is a fast-food chain specialising in fried chicken made with their special herbs and spices. They have also started keeping various vegetarian options.
  • Recruiting Hub franchise- It is a B2B online recruitment marketplace which is driven by AI. The employees and recruiters are connected by an algorithm, through a single contract and fill vacancies fast.
  • Fries and Burger franchise: These cafes provide healthy food while you create happy memories.  They also provide reading spaces to their customers.

       See more: Top 10 franchises in Tamil Nadu.

 

What are the most profitable franchises in Mumbai?

The most profitable franchises in Mumbai are

  • Phixman- It is the most profitable franchise that fixes smartphones, laptops and tablets with advanced technology. It provides pick-up and delivery of your products in just a say.
  • Me-n-Moms- It is a one-stop baby shop in India which provides all the products needed by babies and new moms. They also have online stores for hassle-free and comfortable shopping.
  • Frozen bottles- These offer quality thick shakes to their customers. They also provide training to other franchise outlets so that the shakes match the quality of the original shop.

See more: Top 10 food franchises in Mumbai.

 

Is the franchise business proving to be a shining star in India?

India has a huge population and many franchise opportunities are available for Indians to explore. You are given a chance to fulfil your entrepreneurial dream by investing in a franchise business, with minimal risk.

According to the Times of India article, the franchise business in India is proving to be a shining star and they should be further explored in small cities also. The franchise business has been a boon to the Indian economy and will continue to grow in the coming years. Thus buying a franchise has been an advantageous profit-making source for new entrepreneurs also.

 

How can you promote your business into a Franchise Business model?

You can elevate your business in a franchise business model by following these steps

  • You should have good leadership qualities. A franchisor needs to guide the franchisee in running the business.
  • the franchisor needs to have a vision so that he can achieve them.
  • Be a reliable system so that the franchisee knows that he will yield profits after investing in the brand.
  • Have communication and be transparent with the franchisee. Share the success with all the team members.

 

Frequently Asked Questions

What are the most necessary cost factors to keep in mind while investing in a franchise?

Ans. Three important cost factors to keep in mind while buying a franchise are

  • Capital or start-up expenditure
  • Recurring costs
  • Return on Investments or ROI

What is the success rate of franchises in India?

Ans. The success rate of starting a franchise business is much higher than a start-up. The success rate of franchise business is 85% and the Indian economy is creating various opportunities for franchises to enter the market.

What are the pros of starting a franchise business?

Ans. You should keep in mind that there are several advantages to starting a franchise business.

  • Loyal customer base
  • Recognised brand
  • Training and workshops
  • Low risk is involved
  • High profitability
  • Proven business model

What are the reasons for the growth of the franchise market in India?

Ans. The reasons for the growth of franchise business in India are

  • The franchise is already a recognised brand and this reduces the chances of failure. The initial defects are already taken care of by the brand and the solution has been provided to run the business without problems.
  • India has a huge population due to which there is a rise in the demand for products and services. This offers great opportunities for the franchise business to bloom.
  • Many big brands have customised their services and products according to the market demand. With the amount of disposable income that the middle class has, they are ready to spend it on branded products.
  • New and young entrepreneurs are choosing to start a franchise rather than their start-up for their first business experience. The franchises are a tried and tested model and provide minimal risk and almost immediate benefits.

Conclusion

India is a vast country with great demand for products and services. It has a huge market for franchise opportunities in different sectors. Investing in a franchise has a greater chance of profit return than a start-up making it safe for new entrepreneurs.

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