8 Best Profitable Franchise Options in India in 2024

Find out how teaming up with the right brand can be your ticket to a booming business, with tips and tricks to get you there!

Franchise options in India offer exciting opportunities for entrepreneurs. It’s a business model where a brand (franchisor) extends its reach by giving individuals (franchisees) the right to operate under its name.

This partnership is cemented through a franchise agreement, outlining the terms for mutual benefit and profit.  The Indian franchise business is expected to reach USD 140-150 billion in the next five years, highlighting its immense potential.

To delve deeper into the best franchise options in India in 2024, keep reading.

Advantages Of Opting Best Franchise Options In India

Good Franchising offers distinct benefits, making it a popular choice for entrepreneurs in India. Here’s why:

Business Assistance

Franchise options in India receive a turnkey business operation, including brand, equipment, and advertising plans. This comprehensive support simplifies business management.

Brand Recognition

Good Franchise Options In India come with established brands and customer bases. This recognition means immediate customer awareness and trust.

 Lower Failure Rate

Best Franchise options in India in 2024 tend to be more successful than independent businesses due to established brand support and proven business models.

Buying Power

Franchise networks can purchase in bulk, reducing costs and increasing profitability.

Potential For Greater Profits

Recognisable brands often lead to higher customer turnout and profits.

Minimise Business Risk

 Franchises usually have a lower risk profile, benefiting from tested business models and potentially easier access to loans.

Ready-Made Customer Base

 Franchises already have a loyal customer base, reducing the challenge of attracting initial customers.

Entrepreneurial Independence

Being a franchisee means being your boss, with the added advantage of support from a broader network.

Sector-Wise Best Franchise Options In India

Here are some of the best franchise options in India across multiple sectors, each offering a high potential for return on investment:

Various Franchise Options In India In Food & Beverage Sector

McDonald’s

Started by Richard and Maurice McDonald in 1940, this global brand transformed from a BBQ drive-in to the fast-food legend it is today.

The company’s real backbone. Ray Kroc, a former milkshake machine seller, was their first franchisee and eventually bought the company.

Now, over 90% of outlets are franchise-owned. Entered India in 1996, partnering with Amit Jatia and Vikram Bakshi. Now, it has over 600 restaurants across 100 cities in India.

  • Investment: Around ₹1.5 crores with 3% of the gross sales for advertising costs and 4%  of the gross sales for royalty cost.
  • Resources needed: A spacious outlet, essential kitchen equipment such as ovens and fryers, food and outlet licences.
  • Market demand: McDonald’s is poised for significant growth in India, with plans to open more outlets in multiple cities.
  • Profit margin: Estimated monthly earnings of ₹12 lakh.

The Amul Ice Cream Corporation

Established as a dairy cooperative, Amul has diversified its product range to include butter, cheese, and ice cream. They offer multiple franchise models and have about 1500 scooping parlour franchises across India.

  • Investment: ₹6 lakhs to ₹10 lakhs
  • Resources needed: An outlet ranging from 100-150 sq. ft., equipment, décor, and a dedicated team.
  • Market demand: Expected to grow at a CAGR of 14.98% from 2022-2027, reaching ₹30840 billion.
  • Profit margin: Monthly earnings can go up to ₹5 lakhs.

KFC

KFC started its franchise journey in 1952 in the USA. It’s recognized as a premium fast-food brand in India, with over 40,000 outlets globally. KFC has a robust training program for franchise owners and their staff, ensuring quality and service consistency.

  • Investment: ₹1 crore to ₹2 crores
  • Resources needed: 1000 to 1500 sq. ft. space and an additional ₹20 lakh for marketing services from the franchisor.
  • Market demand: High, as it’s considered a well-established brand in India’s fast-food market.
  • Profit Margin: Annual profits per store are estimated to be around ₹57 lakhs to ₹73.4 lakhs.

Good Franchise Options In India In Retail Sector

Lakme Salon

Known for its 6P Entre PRO-neur Model, Lakme Salon stands out for its business sustainability and growth. It encourages female entrepreneurship and has over 3.25 lakh loyal customers.

  • Investment₹50 to ₹60 lakhs upfront, with an additional 10% royalty on sales.
  • Resources needed: A minimum of 900 sq. feet of space with salon essentials like spa beds, hair brushes and pedicure carts
  • Market demand: With 400+ stores, its loyalty program and focus on female entrepreneurship indicate strong market demand.
  • Profit margin: Between 18% to 25%, which is certainly appealing.

Jockey

Jockey operates in 120+ countries, with over 20 years of experience in India. Franchisees receive extensive training and design support, as well as 24/7 call and chat support.

  • Investment: Between ₹45 to ₹50 lakhs.
  • Resources needed: An Exclusive Brand Outlet needs a space of at least 1344 sq. feet, a sales manager and required equipment.
  • Market demand: With 900+ stores in shopping malls and 104+ stores, Jockey has a robust presence and a reliable distribution network.
  • Profit margin: 30-35%

Lenskart

Lenskart offers training and support for personnel recruitment and branding.

  • Investment: The initial investment is between ₹35 to ₹40 lakhs, plus a royalty ranging from 13% to 30% of the monthly gross sale.
  • Resources Needed: 2000-2500 sq. feet. space
  • Market Demand: With 500+ stores across 120+ cities, the brand is market expected to reach $15.2 billion by 2028, 
  • Profit Margin: Varies by product—25% for prescription frames and sunglasses and 13% for contact lenses.

Best Franchise Options In India In Health And Wellness Sector

Bikram Yoga

kram Yoga, initiated in 1970 by Bikram Choudhury, offers a unique opportunity for franchisees. It’s known for its sequence of 26 postures and 2 breathing exercises, derived from Hatha Yoga. This yoga form must be practised in temperature-regulated rooms, under skilled instructors.

  • Franchise Units: Over 100 globally since 2012
  • Area Required: 1500 – 2000 Sq.ft.
  • Investment Range: ₹50 lakh to ₹1 crore
  • Initial Investment: Starting from ₹52 lakhs
  • Royalty Fees: 5%

 VLCC Health Care

Founded in 1989 by Mrs. Vandana Luthra, VLCC is a versatile organisation offering a range of wellness and beauty services. The services include weight management, beauty packages, skin and hair treatments, and more.

  • Franchise Units: 50 – 100 since 2007
  • Area Required: Varies by service (800 – 2200 Sq. Ft.)
  • Investment Range: ₹26 – 62 lakhs
  • Initial Investment: From ₹30 to ₹50 lakhs
  • Royalty Fees: 15%

Apollo Clinic

Apollo Clinic, part of the renowned Apollo Group founded in 1971 by Prathap C. Reddy, offers a comprehensive healthcare franchise.

  • Franchise Units: 50+
  • Area Required: Minimum 4000 Sq.ft.
  • Investment Range: ₹2 – ₹3 crores
  • Royalty Fees: 5%

Points To Consider Before Investing In Various Franchise Options In India

Market Research

 Understand the market demand and your financial capacity. Analyse various brands and their fit with your budget, location, and interests.

 Brand Analysis

Not all franchising brands guarantee success. Examine their growth, market value, and track record before investing.

Investment Costs

 Assess the total investment needed, including inventory, premises, staff, marketing, and operational costs. Ensure it aligns with your financial capabilities.

Competition

Consider your target audience and choose a brand that can grow in the competitive market.

Training And Support

Opt for best franchise options in india in 2024 offering essential training and guidance. Understand the operational strategies and support levels provided.

Brand Restrictions

 Be aware of the franchisor’s rules and guidelines. These standards are crucial for maintaining brand consistency.

Conclusion

Franchising in India is an excellent opportunity for those eager to start their own business. It’s a blend of brand support and entrepreneurial spirit across diverse sectors.

Before diving in, it’s important to do your homework. By weighing these points carefully, you can confidently step into franchising, paving the way for a successful business venture.

DISCLAIMER: This article is not meant to be giving financial advice. Please seek a registered financial advisor for any investments.

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