Written By: Gouri Ghosh

Are you concerned with how to invest your money in 2025? Most individuals in India are looking for better ways to invest their savings. People seemed secure and provided consistent returns. But times have changed now. FD interest rates are low, and with growing inflation, the real worth of your money does not increase significantly. You end up losing money in the long run in some instances when you account for inflation and taxes. Due to this, more individuals are opting for franchise businesses. Franchising provides you with the opportunity to receive higher returns by operating a business under a well-known brand. Properly managed, a franchise will yield you a steady income as well as long-term expansion. Here in this blog, we are going to examine the top Indian cities for franchise investment in India in 2025. 

These are the locations where having a franchise can make you more money than keeping your cash in a bank. If you are new to the business world or just looking for new investment ideas, this guide will assist you in making a shrewd and informed choice.

Why Franchise Investing is Better than Fixed Deposits in 2025?

If you are growing money in 2025, then maybe you are thinking which would be the best option. Fixed Deposits or FDs are secure, but they no longer offer high returns. That's why investors are now switching to investing in franchises. Here's why a franchise can be a better investment than an FD:

FD interest rates are low

In 2025, there is only 6% to 6.75% interest being provided by most Indian banks on Fixed Deposits. It's not sufficient when the prices of things just keep on rising.

Franchise returns are significantly higher

Most good franchises in India provide between 15% and 35% return every year. This implies that you would be making more money with a franchise than from a bank deposit.

FDs are passive and slow

You can simply keep your money in the bank through FD. It's secure, but it grows very slowly. You don't have control over it.

Franchises offer you greater control and higher income

When you invest in a franchise, you have a business based on a well-known brand. You don't begin from scratch. 

Inflation decreases the FD value

Ultimately, you don't really get much. But a good franchise can grow your money at a higher rate than inflation.

What Makes Indian Cities Suitable for Franchise Growth?

Not all cities are well-suited for opening a franchise. Some cities give your business a better opportunity to develop and thrive. Here's what to check for:

• Increasing disposable income – Individuals have more to spend on branded goods.

• Urbanization and infrastructure – Improved roads, transport, and urban planning facilitate business development.

• Young population – The youth are more willing to adopt new brands and services.

• Low competition with high growth potential – Particularly in Tier 2 and Tier 3 cities, where the economy is still unfolding.

These are the very same parameters that we applied to select the Top 10 best Indian cities for franchise investment, and you'll discover the top 7 among them featured in the section that follows.

Top 7 Indian Cities to Invest in Franchise for More Than ₹10 Lakhs

If you are interested in investing more than ₹10 lakhs, selecting a city becomes very crucial.There are seven cities in india which are best for franchise business in 2025. In all these cities, investment in a franchise can provide you with higher returns compared to investing in a Fixed Deposit.

Bangalore

Bangalore is the tech capital of India, and franchise ventures are expanding rapidly here. Each person has a good income source and a better lifestyle. 

It is ideal for:

• Food chains

• Wellness centers

• Tech service franchises

Successful franchises that originated in Bangalore are:

• Chai Point – A rapidly expanding tea café chain now spreading all over India

Since demand is strong, Bangalore has some of the most lucrative franchises in India. If we do compare to FD,  franchises can provide you with much better returns.

Hyderabad

Hyderabad is a blend of tradition and contemporary way of life, so it is best suited for new businesses.

Hyderabad-based franchise brands that are expanding quickly are:

• Minerva Coffee , A popular local café chain expanding fast in South India with origin in Hyderabad.

• Hyderabad is ideal for mid-range investments. Most individuals search for the top franchise business in Hyderabad because franchise business here yields higher returns than bank fixed deposits.

Pune

Ideal for:

• Cafés

• Quick service restaurants

• Personal care brands

Franchise brands that have been born in Pune are:

• Café Goodluck – A popular local café with franchise plans

Here, people enjoy experimenting with new concepts, which translates into regular customers for your franchise. Investment in a franchise in Pune generally yields higher returns than Fixed Deposits.

Ahmedabad

Ahmedabad is a rapidly developing city with an enterprising mindset.

Why Ahmedabad?

• Government policies are friendly to business

• Low franchise and operational expenses

Franchise brands that have begun in Ahmedabad:

• Rajwadi Rasoi – Ethnic food franchise growing in Gujarat and elsewhere

If you need lucrative franchise opportunities in Tier 2 and Tier 3 cities, Ahmedabad is one place that needs to be included. Ahmedabad franchises are usually more lucrative than bank savings.

Chennai

Chennai is a city which provides a good combination of affordability and high return.

Suitable for:

• Automobile services

• Health products

• Organic food brands

Franchise businesses from Chennai include:

• Idhayam – Popular sesame oil brand with expanding franchise outreach

The people in Chennai are familiar and confident about franchise brands and exhibit strong brand loyalty. Franchises in Chennai are able to provide you with higher income than Fixed Deposits.

Indore

Ideal for:

• Education hubs

• Training schools

• Grooming parlors

Franchise brands born in Indore are expanding, including:

• Chatar Patar – A well-known pani puri and street food chain expanding in India.

• Naaniz – An expanding fast-food brand offering a wide range of naan wraps and rolls.

• pKirana – An Indore-grown B2B e-commerce company with franchise options in the wholesale sector.

. With fewer competitors, there's greater scope for expansion. Among Tier 2 cities, the best is Indore for profitable franchise business prospects that outperform FD returns.

Kochi

Ideal for:

• Wellness centers

• Ayurveda clinics

• Tourism-related franchises

There is high demand from locals as well as tourists for quality services. Investing in a franchise in Kochi can provide you with far higher returns than keeping your money in a bank deposit.

Franchise ROI vs Bank Deposit Interest Rates

Conclusion

Franchising is no longer restricted to metros. If you are looking to open a franchise in Bangalore or consider franchise opportunities in Hyderabad, 2025 is the ideal year to invest. Here is what you can do: First, select a city that your budget can afford and one you like. Next, find out how much demand and competition there is in the city. Then, select a franchise brand that makes good profits and supports its franchise owners. If you're willing to let your money grow, having a franchise in one of these cities might prove to be a wise decision for you.

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.