Being the third-largest consumer of products and services in the world, India is a huge potential market for franchise businesses. Learn about a few profitable franchises in India in this article.
Franchise businesses in India have been responsible for the huge presence of foreign brands in the Indian market. This model of business involves a franchisor (the actual brand that is selling a franchise) and a franchisee (the one who wants to buy the franchise).
The Franchisor helps the Franchisee with conceptual, legal, structural, and training-related support in exchange for an agreed fee. Read on to learn about the most profitable franchises in India.
Most Profitable Franchise Businesses in India
Patanjali Ayurved
Among franchise businesses in India, Patanjali Ayurved, better known as Patanjali, is a well-known name. It is an Indian multinational conglomerate headquartered in Haridwar, India. It was established by Baba Ramdev and Acharya Balkrishna in 2006.
It has now become a global brand that claims that its products have herbal and Ayurvedic benefits. Starting with only Ayurvedic and herbal products, Patanjali was successful in a very short period. Soon after, the brand expanded by selling grocery items, beauty products, healthcare products, and much more.
A franchise of Patanjali can be started with an initial budget of about ₹7 lakh and an outlet space of about 500 square feet. The investment rate also depends on the type/size of the store.
KFC (Kentucky Fried Chicken)
KFC (Kentucky Fried Chicken) is an American company established in 1939 and headquartered in Louisville, Kentucky. As the name suggests, the brand specializes in fried chicken and offers a wide variety of chicken preparations and more. With the presence of more than 22,500 locations globally, it is listed in the 201st position among the top 500 companies.
A KFC franchise cost is comparatively more expensive than some other fast-food franchise businesses. You will need to invest about ₹1 crore – ₹2 crores and have 1000-15000 square feet of restaurant space in a good location. It is one of the most sought-after franchises which can earn you a good return on investment in a short time.
Lakmé
Lakmé is an Indian cosmetic brand owned by Hindustan Unilever Limited. It was established in 1952 by J.R.D Tata and Simone Tata. Lakmé is also the lead sponsor of the Lakmé Fashion Week and is ranked 36th among the most trusted brands in India (Brand Trust Report 2014).
A Lakmé franchise in India needs an initial investment of about ₹25 lakhs and an outlet space of 500 square feet. A Lakmé franchise business can be opened for selling cosmetic products or as a beauty salon. Ranked as the number 1 cosmetics brand in India, it has more than 150 stores across India.
Bikanervala
Bikanervala is an Indian restaurant franchise headquartered in New Delhi. Established in 1950, it is well known for Indian sweets and snacks. It is one of the largest Indian restaurant chains with more than 115 outlets in India and countries like the UAE, USA, New Zealand, Nepal and Singapore. The brand has been recognized as the Best Sweet Shop in Delhi in 2012, 2013, and 2014 by the Times Food Award.
To start a Bikanervala franchise, you will need a minimum investment of ₹12 lakhs (excluding services like franchise cost, electricity bill, etc) and an outlet space of about 1200-2000 square feet. The overall investment can range from anywhere between ₹1 to ₹ 5 crores.
Domino’s Pizza
Domino’s Pizza is an American restaurant chain that was founded in 1961 in Michigan. Led by CEO Richard Allison, the company is headquartered at Domino’s Farm Office Park in Ann Arbour, Michigan. With more than 15000 stores globally (more than 1500 in India), it is the largest pizza delivery chain.
To open a Domino’s restaurant, you will need an initial investment ranging from ₹65 lakhs to ₹2 crores and an outlet space of about 1500 square feet. The investment size can vary depending on the type/size of the outlet. The company provides all the training for managers and servers and it reserves the right to change the products of the franchise at any time. The Boom of franchise businesses in India is the most essential factor in Business Today.
Lenskart
Started by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi, Lenskart is an Indian Eyewear retail chain headquartered in New Delhi. It has a presence of more than 500 stores in over 40 cities in India (as of September 2020) and also has a huge online market.
The company started as an online store for contact lenses in 2010 but it soon started selling spectacles/eyeglasses and started launching brick-and-mortar stores to improve its footprint. If you want to start an offline Lenskart franchise in India, you will need an initial investment of about ₹30 lakhs and an outlet space of about 300-500 square feet.
Dr. Lal PathLabs
Founded in 1949 by S.K. Lal, Dr. Lal PathLabs Limited is an Indian service provider of healthcare and diagnostic tests. Headquartered in Delhi, it offers a wide range of services such as blood tests, urine tests, radiology testing, lab management services, and lab staff training in countries like India, Nigeria, UAE, Bangladesh, and many more.
To start a franchise business of Dr. Lal PathLabs, you will need an initial investment of about ₹3 lakhs and an office space of about 200-250 square feet (inclusive of toilets and other services). This Franchise business is comparatively simple to establish and can earn you a return of more than ₹1 lakh monthly.
Fabindia
Founded in 1960 by John Bissell, Fabindia is an Indian store chain dealing in garments, fabrics, furnishings, and other ethnic products handcrafted by craftspeople across rural India. The brand tries to embrace and propagate Indian culture through its products.
If you want to start a Fabindia outlet, you will need an initial investment of about ₹40 lakhs and an outlet area of about 3000 square feet. It has a presence of more than 300 stores in India and 14 international stores (as of July 2020). Also, check the Bata Franchise Business Cost
Conclusion
Franchise businesses in India are very popular because you don’t need to build a brand from scratch, and it’s already well established. It is a common belief that you need to spend a lot of money as an investment to start a franchise. But it’s not true. Many franchises in India can be started with investments as low as ₹1 lakh. You just need to find the right franchise according to your investment capacity, business choices, outlet space, etc. Reach out to Vakilsearch for any queries. Each Franchise business has its terms and conditions, so make sure you read them before investing in a franchise.
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