Recently the franchise business model has seen incredible growth in India. This model enables people to own and manage a business utilising the brand, trademarks and support of a recognised company. This method reduces risks and simultaneously increases odds of success. In this blog, the eight lucrative franchises in India that helped produce this particular franchise boom have been discussed.
Most Profitable Franchises in India
Given below are the 8 most profitable franchises in India:
1. Subway
Subway is among the best known names in fast food worldwide. Established in 1965 by Fred DeLuca, Subway serves customisable and healthy sandwiches, salads and other things.
Why It’s Profitable: Subway is popular in India since it can adjust to local preferences and tastes and features a big vegetarian part to fulfill nearly all Indians on a vegetarian diet. The brand’s emphasis on wellness and convenience makes it a favorite of the working class and health conscious.
Details of Investment: The investment for a Subway franchise in India begins at INR 25 to 30 lakhs and the franchise charge is INR 6.5 lakhs. The royalty fee is 8% of gross product sales along with a 45-50% profit margin for franchisees.
2. Giani’s
Giani’s is an Indian ice cream and snack chain founded by Giani Gurcharan Singh in 1956. Giani’s is a beloved brand with years of delicious ice cream tastes.
Why It’s Profitable: Giani’s appeals to a broad audience with their low costs and quality products. The brand’s reputation and innovation in flavours keep customers coming back.
Details of Investment: The investment for a Giani’s franchise begins at INR 10 to 20 lakhs plus a franchise charge of INR five lakhs. The royalty fee is INR 6 lakhs and franchisees can get 50% profit on sales.
3. Tumbledry
Tumbledry is a laundry & dry cleaning service in India began in 2019 by Gaurav Nigam and Navin Chawla. It seeks to organise the country’s largely unorganised laundry industry.
Why It’s Profitable: Increasing urban populations and disposable incomes have created a need for specialised laundry services. Many turn to Tumbledry for its convenience, quality and affordability.
Details of Investment: The initial investment for a Tumbledry franchise is around INR 25 lakhs inclusive of franchise fee. The royalty fee is 7.5% with a 50% profit margin for franchisees.
4. Lenskart
Lenskart, a private eyewear company of India created in 2010. It offers glasses, sunglasses and contact lenses on the internet and offline.
Why It’s Profitable: Lenskart’s success is attributed to its distinctive business model which brings together internet convenience and offline knowledge. The brand differentiates itself with technology used for eye tests and customer engagement.
Details of Investment: A Lenskart franchise runs anywhere from INR 30 to 35 lakhs and also consists of a franchise charge of about INR two lakhs. There’s no royalty fee and franchisees typically earn 13-25% on sales.
5. Pepperfry
Pepperfry is an online furniture business that began in 2011. Today, it has over 60 physical stores, known as Pepperfry studios, scattered across various Indian cities.
Why It’s Profitable: Pepperfry’s blend of online and offline presence lets clients try items in person prior to purchasing online. This model has worked very well in furniture market where stylish and low cost home decoration is in demand.
Details of Investment: The initial investment for a Pepperfry franchise is INR 15 to 40 lakhs along with 20-25% profit margin.
6. Jawed Habib Hair and Beauty Ltd
Jawed Habib is a title in hair & beauty which was founded by Jawed Habib in 2005. It operates over 900 franchised salons in India and internationally.
Why It’s Profitable: Jawed Habib’s brand reputation and increasing interest in personal grooming and beauty services make it a lucrative franchise opportunity. The extensive training and support of the brand set high standards for all franchises.
Details of Investment: The franchise fee of INR 7.5 lakhs will be the initial investment for a Jawed Habib franchise. The royalty fee is 15% of gross product sales and the typical margin of profit for franchisees is 15%.
7. DTDC Courier & Cargo Ltd
Founded in 1990, DTDC is among India’s major courier and logistics companies. It has over 1000 franchise units throughout the nation.
Why It’s Profitable: Boom in e-commerce and online shopping has increased demand for reliable logistics and courier solutions. DTDC has an established network along with a competitive franchise model which appeals to entrepreneurs.
Details of Investment: The initial investment for a DTDC franchise is between INR 50,000 to 2 lakhs inclusive of franchise fee. The royalty charge is 10% of turnover with a 20% profit margin for franchisees.
8. Kidzee
Kidzee (from the Zee Learn group) is one of the biggest preschool chains in Asia. It has over 1900 centres all over India and was established in 2003.
Why It’s Profitable: Growing awareness of early childhood education and the brand’s structured curriculum make Kidzee a top pick for parents. The support and training from the franchisor assure high education standards.
Details of Investment: The investment for a Kidzee franchise begins at INR 12 to 15 lakhs and the franchise fee is INR three lakhs. The royalty fee is 15% of sales and a 20-25% profit margin is anticipated for franchisees.
Conclusion
The franchise business model provides a golden chance for entrepreneurs to make quick profits in India. Using brand recognition, established client base and support from franchisors can lessen the risk of beginning a brand new business. The eight franchises mentioned are among the most profitable and terrific investments for new franchise owners.
As always, research and understanding the financial commitments and operational requirements are essential before buying a franchise. If approached correctly and branded, franchising could be a lucrative business.
FAQs
Which franchises return the most?
The best franchise models for investment typically have a reputation, a name and a loyal client base. The top franchises globally are McDonald’s, 7 Eleven and Dunkin’ Donuts.
Which kind of franchising is growing fastest?
The fastest growing kind of franchising is product distribution franchising. This model involves franchising a product-based organisation where individuals profit from distributing and selling brand products.
How many franchises are successful?
About 85% of franchises stay in business after 5 years compared with independent small enterprises which have a 80% success rate following the very first year, 50% after five years and two-thirds failure rate after ten years.
Which are the best 5 franchises?
The top 5 franchises typically contain internationally recognised brands with a solid market presence. These generally include McDonald’s, 7 Eleven, Dunkin’ Donuts, The UPS Store and RE/MAX with constant profitability and big support systems.
Should I purchase a franchise?
The benefit of identified brands, support from the franchisor and access to a proven business model could make taking a franchise a wise business choice. But you must research, weigh the financial commitments and ensure the franchise fits your goals and interests.
