Written By: Payal Das

Starting a business franchise under 25 lakhs is an exciting journey, but it can be daunting to navigate the risks, finances, and operations alone. That’s where franchising comes in—a tried-and-tested business model that allows you to benefit from an established brand's reputation and support system. 

If you're looking to start a franchise in India without breaking the bank, you're in luck! This guide will walk you through the top 10 franchise under 25 lakhs in 2025, ensuring a promising start to your entrepreneurial journey.

Why Franchising?

Franchising offers a golden middle ground for aspiring entrepreneurs:

• Lower Risk: The business model is already proven to work.
• Brand Recognition: Customers are already familiar with the brand.
• Support System: Training, marketing, and operational support are usually provided by the franchisor.

For those with a budget for franchise under 25 lakhs or less, these opportunities blend affordability with profitability.

Top 10 Franchise Under 25 Lakhs in India in 2025

1. Kathi Junction

Category: Food & Beverage

• Investment: ₹15–₹20 lakhs
• Franchise Fee: ₹4–₹5 lakhs
• Royalty: 4–5%

Kathi Junction is a low investment franchise under 25 lakhs that specializes in Indian-style wraps and rolls, catering to the fast-food crowd. Known for their quick service and authentic flavors, they are a favorite among millennials and families. Franchisees receive training, inventory support, and operational guidance, making it an attractive option for first-time entrepreneurs.

Why Choose Kathi Junction?

• Low operational costs.
• Simple menu with high-profit margins.

2. Tumbledry

Category: Laundry & Dry Cleaning

• Investment: ₹20–₹25 lakhs
• Franchise Fee: ₹5 lakhs
• Royalty: 10%

Tumbledry is a tech-driven laundry chain franchise under 25 lakhs in India offering doorstep services. With India’s growing urban population, professional laundry services are on the rise. Tumbledry’s franchise program provides end-to-end support, from setting up the outlet to marketing strategies.

Highlights:

• Minimal staff required.
• High demand in cities and tier-2 towns.

3. FirstCry

Category: Baby Products & Toys

• Investment: ₹20–₹25 lakhs
• Franchise Fee: ₹5–₹6 lakhs
• Royalty: 4–6%

India’s baby care market is booming, and FirstCry is one of the best franchise opportunities. Their wide range of baby products, clothing, and toys make it a one-stop shop for parents. The brand provides marketing support and ensures a steady supply chain to franchisees.

Key Benefits:

• Established brand with high customer loyalty.
• Ideal for locations near residential areas or malls.

4. Lenskart 

Category: Eyewear

• Investment: ₹20–₹25 lakhs
• Franchise Fee: ₹2–₹5 lakhs
• Royalty: 20%

Lenskart is one of the most affordable franchises focusing on redefining the eyewear industry with its online-to-offline retail model. Known for its wide range of stylish and affordable eyeglasses, the brand offers franchisees advanced training, AI-based store management systems, and marketing support.

Why Invest?

• High repeat customer rate.
• Growing awareness about eye health in India.

5. Giani’s

Category: Ice Cream & Desserts

• Investment: ₹15–₹20 lakhs
• Franchise Fee: ₹6–₹8 lakhs
• Royalty: No royalty

Who doesn’t love ice cream? Giani’s presents great franchise opportunities when it comes to desserts, with their signature sundaes and kulfis. The franchise model is designed to operate in small spaces, making it ideal for kiosks or compact outlets.

Highlights:

• No royalty model ensures better profit margins.
• Simple operational setup.

6. DTDC Courier

Category: Logistics & Courier Services

• Investment: ₹2–₹10 lakhs
• Franchise Fee: ₹1–₹2 lakhs
• Royalty: Varies

India’s logistics sector is growing rapidly, and DTDC is at the forefront. With their vast network, franchisees can tap into the ever-increasing demand for parcel and courier services. The investment is relatively low, making it one of the cheapest franchise for those on a tight budget.

Benefits:

• Low investment and fast ROI.
• High demand in both urban and rural areas.

7. Bachpan Preschool

Category: Education

Investment: ₹12–₹20 lakhs Franchise Fee: ₹4–₹5 lakhs Royalty: 20%

Bachpan Preschool is a trusted name in early childhood education, operating more than 1,200 branches across India. With their innovative teaching methods, activity-based curriculum, and child-centric approach, they’ve become a popular choice for parents. This affordable franchise provides comprehensive training, curriculum support, and operational assistance, making it an attractive option for education-focused entrepreneurs.

Highlights:

• Recession-proof business with consistent demand.
• Strong support in setting up and running the preschool.

8. Frozen Bottle

Category: Food & Beverage

Investment: ₹18–₹25 lakhs Franchise Fee: ₹5–₹6 lakhs Royalty: 6%

Frozen Bottle is among the profitable franchises for trendy dessert café specializing in thick shakes, ice cream jars, and desserts. With its Instagram-worthy presentation and unique flavors, the brand has gained immense popularity among India’s youth. Their franchise program includes training, marketing support, and assistance with location selection, ensuring smooth operations from day one.

Highlights:

• High demand for innovative desserts.
• Perfect for locations near colleges, malls, or high-footfall areas.

9. WOW! Momo

Category: Food & Beverage

• Investment: ₹18–₹22 lakhs
• Franchise Fee: ₹5–₹6 lakhs
• Royalty: 8%

As India’s go-to momo chain, WOW! Momo has a loyal customer base. Their innovative menu includes steamed momos, fried momos, and even dessert momos. This affordable franchise brand provides training, operational support, and assistance in selecting a location.

Highlights:

• High demand among youth.
• Compact setup ideal for food courts or small spaces.

10. The Tea Factory

Category: Tea Cafés

• Investment: ₹10–₹15 lakhs
• Franchise Fee: ₹3–₹5 lakhs
• Royalty: No royalty

Tea is India’s favorite beverage, and The Tea Factory brings great franchise opportunities. With stylish interiors and a diverse menu of tea-based beverages, it’s a hit among urban and semi-urban consumers. The no-royalty model makes it a highly profitable venture.

Why Invest?

• Low investment and operational costs.
• Consistent customer demand.

Tips for Choosing the Right Franchise

Before you dive into franchising, here are some tips to ensure you make the right choice:

1. Research the Brand: Look into the franchisor’s track record, customer reviews, and financial health.
2. Assess Local Demand: Choose a franchise that caters to your locality’s needs and preferences.
3. Understand the Agreement: Carefully read the franchise agreement, including royalty fees and operational guidelines.
4. Evaluate Your Interests: Pick a sector that aligns with your passion and expertise.

Profitability of These Franchises

Franchise under 25 lakhs often offer a mix of affordability and profitability. Here’s a general overview of the profitability factors, including profit margins, ROI (Return on Investment), break-even periods, and expected returns:

1. Profit Margins

Most franchises in this price range have high profit margins due to low production or service costs. These franchises offer profit margins of 20–30%, as their products are affordable to produce yet sold at higher markups.

2. ROI (Return on Investment)

Franchise ROI depends on the industry and operational efficiency. On average, ROI for these franchises falls in the range of 30–50% annually. Brands in high-demand sectors like food, education, and logistics often deliver better returns due to recurring customer demand.

3. Break-Even Period

Typically achieve break-even within 12–24 months, provided they are set up in high-footfall areas with low competition.

4. Expected Returns

The annual revenue for these franchises can range from ₹30 lakhs to ₹1 crore, depending on the franchise type and location. 

Conclusion

Franchising is a fantastic way to step into the world of business without starting from scratch. These 10 franchise under 25 lakhs offer a range of opportunities across different sectors, from food and beverages to education and logistics. With the right approach and dedication, these franchises can set you on the path to financial independence and entrepreneurial success.

Whether you're looking to serve delicious food, provide essential services, or shape young minds, there’s a franchise on this list that’s perfect for you. So, what are you waiting for? Your entrepreneurial journey begins now!

FAQs 

1. Are these franchises suitable for first-time entrepreneurs?

Ans: Yes, most of these are beginner-friendly and profitable franchises, offering extensive training, operational guidance, and marketing support to franchisees. Brands like Kathi Junction and Bachpan Preschool are especially good for those new to business ownership.

2. How long does it take to break even with these franchises?

Ans: The break-even period varies but typically ranges between 12–24 months for most franchises. Businesses with lower operational costs, such as The Tea Factory and DTDC Courier, may achieve profitability sooner.

3. Do all franchises charge royalty fees?

Ans: No, not all franchises charge royalty fees. Brands like Giani’s and The Tea Factory operate on a no-royalty model, allowing franchisees to retain more of their earnings.

4. How do I choose the right franchise for my locality?

Ans: To choose the right franchise, assess the local market demand. For example: Urban areas may benefit from franchises like Lenskart or Tumbledry. Residential areas may be ideal for Bachpan Preschool or FirstCry.

5. What are the key risks involved in franchising?

Ans: While franchising lowers risks compared to starting from scratch, potential challenges include: Competition in your area, Strict adherence to the franchisor’s policies, and Dependency on the brand’s reputation.

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.