Written By: Payal Das

The Indian fashion retail industry is booming, and franchising has emerged as one of the most lucrative ways for entrepreneurs to step into this competitive market. A clothing franchise, in particular, offers a lower-risk entry point into the industry, thanks to well-established brand recognition and proven business models.

Difference Between FOCO & FOFO Model Franchise in India

If you’re considering a clothing franchise, you’ve likely come across two popular franchise models—FOCO (Franchise-Owned Company-Operated) and FOFO (Franchise-Owned Franchise-Operated). Understanding the difference between them is crucial for making an informed investment decision:

• FOCO Model: The franchisee invests in the store setup, while the company manages daily operations and ensures profitability. This model is ideal for investors who prefer a hands-off approach with guaranteed returns.
• FOFO Model: The franchisee invests in the store setup and runs daily operations independently, following brand guidelines. This model offers more control and higher profit potential but requires active involvement.

In this blog, we’ll explore the top 10 most profitable FOCO and FOFO clothing franchises in India, highlighting their investment requirements, profitability, and growth potential.

Top 10 Profitable FOCO & FOFO Clothing Franchises Of India

1. FabIndia (FOFO)

Investment Required: ₹50-60 lakh Franchise Fee: ₹10-15 lakh Profit Margin: 30-35%

FabIndia is one of India’s most recognized FOFO franchise business in ethnic clothing brands, known for its handcrafted, sustainable apparel. As a franchise partner, you benefit from a loyal customer base, strong brand identity, and high footfall. Since ethnic wear has a steady demand across age groups, FabIndia remains a strong contender in the franchise business.

2. Being Human (FOCO)

Investment Required: ₹80 lakh - ₹1 crore Franchise Fee: Included in the investment Profit Margin: 25-30%

Founded by Bollywood superstar Salman Khan, Being Human is a FOCO clothing franchise in India that blends fashion with philanthropy. The FOCO model ensures that the company takes care of store operations while the franchisee earns a percentage of the revenue. Its celebrity backing and premium casual wear collections make it a lucrative option.

3. Louis Philippe (FOFO)

Investment Required: ₹1-1.5 crore Franchise Fee: ₹20-30 lakh Profit Margin: 30-40%

A part of Aditya Birla Fashion & Retail Ltd, Louis Philippe is a premium FOFO model franchise in India for men’s fashion. It enjoys a strong presence in the Indian formalwear market, catering to professionals and corporate executives. The FOFO model allows franchisees to operate their stores while leveraging the brand’s advertising and supply chain.

4. Raymond (FOFO)

Investment Required: ₹75 lakh - ₹1 crore Franchise Fee: ₹10-20 lakh Profit Margin: 35-40%

Raymond is synonymous with quality fabrics and premium suiting. It offers a FOFO franchise model, enabling investors to own and operate a store while benefiting from the brand’s legacy and trust factor. The strong demand for custom tailoring and formal wear makes this a profitable investment.

5. Van Heusen (FOFO)

Investment Required: ₹70-80 lakh Franchise Fee: ₹15-20 lakh Profit Margin: 30-35%

Van Heusen is another fashion franchise powerhouse under Aditya Birla Fashion, known for its stylish formal and semi-formal clothing. The FOFO model allows entrepreneurs to actively run their stores while enjoying brand support. With increasing demand for corporate fashion, Van Heusen remains a top choice for franchisees.

6. Blackberrys (FOFO)

Investment Required: ₹80 lakh - ₹1 crore Franchise Fee: ₹15-20 lakh Profit Margin: 35-40%

Blackberrys best clothing franchise in India specializing in premium menswear, offering formal, casual, and party wear collections. With a strong supply chain and brand recognition, franchisees in the FOFO model have the flexibility to manage their business while benefiting from a structured support system.

7. W for Woman (FOFO)

Investment Required: ₹40-50 lakh Franchise Fee: ₹8-12 lakh Profit Margin: 35-45%

As a leading FOFO franchise business among women’s ethnic and fusion wear brand, W for Woman has a well-defined customer base. The FOFO model provides franchisees with an opportunity to manage store operations while gaining from the brand’s strong marketing and design innovation. Given the consistent demand for women’s fashion, this franchise offers significant growth potential.

8. Kazo (FOFO)

Investment Required: ₹50-60 lakh Franchise Fee: ₹10-15 lakh Profit Margin: 35-45%

Kazo is a fast-growing FOFO model franchise in India for women’s fashion catering to modern, fashion-forward consumers. It operates on a FOFO model, allowing franchisees to manage operations while benefiting from high margins and a rapidly expanding customer base. The growing preference for trendy western wear makes Kazo a smart investment.

9. Levi’s (FOCO & FOFO)

Investment Required: ₹80 lakh - ₹1.2 crore Franchise Fee: ₹15-20 lakh Profit Margin: 25-35%

Levi’s is one of the most recognizable FOFO & FOCO model franchise opportunities in global denim brands, with a strong foothold in India. The brand offers both FOCO and FOFO models, allowing franchisees to choose their level of involvement. With its mass appeal, strong brand loyalty, and a wide range of products, Levi’s is a secure and profitable franchise opportunity.

10. Biba (FOFO)

Investment Required: ₹50-70 lakh Franchise Fee: ₹12-18 lakh Profit Margin: 30-40%

Biba is the best clothing franchise in India for ethnic wear, offering stylish and affordable options for women. The FOFO franchise model allows investors to independently manage their store while benefiting from the brand’s strong marketing efforts and vast customer base. Biba’s steady demand across festive and wedding seasons ensures consistent sales.

Conclusion

Choosing between a FOCO and FOFO clothing franchise depends on your business goals and level of involvement:

• If you prefer passive income with minimal operational responsibilities, a FOCO franchise like Being Human or Levi’s is ideal.
• If you want full control over your business and higher profit margins, a FOFO franchise like Raymond, W for Woman, or Biba is a better choice.

Regardless of the model, investing in a reputed clothing franchise reduces business risks and ensures faster returns, thanks to brand recognition and customer trust.

With India’s fashion retail market expanding rapidly, now is the perfect time to enter the clothing franchise business. The key to success lies in choosing the right brand, the right location, and maintaining excellent customer service. So, which clothing franchise are you considering?

FAQs 

Q1. Which clothing franchise is best?

Ans: The best clothing franchise depends on budget, location, and business goals. Raymond, FabIndia, Van Heusen, Levi’s, Biba, and Being Human are among the most profitable options, offering strong brand recognition and solid returns. FOCO models like Being Human are great for passive income, while FOFO models like Raymond and Bibaoffer higher control and profit margins.

Q2. Is a clothing franchise profitable?

Ans: Yes, clothing franchises can be highly profitable, with margins typically ranging from 25% to 45%. Established brands benefit from strong demand, brand loyalty, and marketing support. Seasonal trends, weddings, and fashion cycles further boost revenue, making clothing retail a lucrative business.

Q3. Which franchise is best for beginners?

Ans: Beginners should consider FOCO franchises like Being Human and Levi’s, as the company manages operations while the investor earns a share of profits. FOFO brands like Biba, Raymond, and Van Heusen are also good for those willing to manage the business directly with brand support.

Q4. How to start a clothing brand?

Ans: Start by choosing a niche (ethnic, casual, streetwear, or premium fashion), sourcing materials, and setting up manufacturing. Build a strong brand identity with a website and social media presence. Decide whether to sell online, open a store, or use both channels. Effective marketing is key to success.

Q5. What is the margin on clothing?

Ans: Profit margins in clothing range from 25% to 45%, with premium brands reaching even higher. Retail markups are typically 100% to 300% over production costs. Luxury and designer wear have the highest margins, while operational expenses determine net profitability.

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.