Out of most business models prevalent in today’s market, franchises have gained immense popularity and success.
In countries like India where the local markets are varied and diverse, franchising is one of the best options to expand the business, establish a consistent revenue stream, and grow the brand outreach.
That’s why so many franchise businesses exist in the present-day Indian market.
But what exactly a franchise is?
This is a specialized business model where the franchisor or the business owner licenses the product, service, or operations to another business or franchisee.
The franchise will pay a certain amount as fee for acquiring the rights to use the franchisor’s brand and name while the franchisor offers ongoing support, brand recognition, and market expertise.
All About Profitable Franchise Business in India
Considering how well-connected the franchise market in India is, this article will highlight the most profitable names below to help you decide which one to go with further.
Types of Franchise Business in India
Understanding the franchise types is imperative for every person planning to become a franchisee and establish a business setup. In the below section, we have briefly explained the five major types of franchise models prevalent in today’s market.
1. Job-Franchise Business
As the name implies, a job franchise offers a job opportunity to the franchisee since the person will be responsible to offer the products or services to the end users by himself.
It does not require a large operational team or a huge business base. Instead, the franchisee can himself carry out the services by himself, either at the job location or from the comfort of his home. Examples of job franchise business includes cleaning services, maintenance services, drain cleaning, and lawn care.
2. Investment Franchise Business
An investment franchise is just the opposite of job franchise since here the capital needed is on a significant level. The franchisee will have to appoint a full-fledged operational and management team to conduct the day-to-day business operations.
Also, the person should have enough experience in the concerned business market to make profits through the franchise model. Examples of investment franchises include retail, gyms, Hotels, and restaurants.
3. Distribution Franchise Business
The distribution franchise model is quite different from other types since here the franchisee is expected to sell the products or services to the end users acquired from the franchisor. Here, the franchisee might use the products offered by the franchisor but the selling can be done under their own brand identity.
In other words, the franchisee can create his/her separate brand name rather than adopting that of the franchisor. Car dealerships and electrical appliance retailers are examples of distribution franchisee.
4. Business Format Franchise Business
One of the most common and thriving franchise model is the business format franchise. Here, the franchisor will offer everything to the franchisee required to setup the business from scratch, like setup, equipment, customer base, marketing support, and so on. Sometimes, the franchisor also offers the area required to setup the business and conduct the day-to-day operations.
It is a diverse model that covers broad spectrum industries, including fast food chains, restaurants, coffee shops, and personal care.
5. Conversion Franchise Business
Last but not least, you have the conversion franchise model. Here, the franchisor will convert an existing, operating business setup into a franchise option and hand over the operational and managerial control to the franchisee.
It allows the franchisor to quickly expand the network and open new setups while ensuring the existing units are well-managed under the franchisee’s supervision. Examples of conversion franchises include dental clinics and real estate offices.
21 Most Profitable Franchise Business in India
1. Amul Franchise Business
| Industry | Dairy |
| Founded in | 1946 |
| Founded by | Verghese Kurien and Tribhuvandas Kishibhai Patel |
| Investment | INR 50K to INR 1.5 lakhs |
| Franchise units | Above 6000 (as of 2022) |
| Estimated profit | INR 5 lakhs to INR 10 lakhs per month |
Considered as one of the oldest and most reliable business options for franchising in India, Amul will bring substantial profits to you every month. With over 10,000 dealers actively operating in the country, the network is too vast to comprehend.
Besides, the brand focuses on a wide range of products, from ice creams to milk, cheese, paneer, and other types of dairy elements. Therefore, the customer base is also broad and will help you achieve the turnover quickly.
Also you can read here about: Business Model of Amul
2. Kidzee Franchise Business
| Industry | Pre-school education |
| Founded in | 2003 |
| Founded by | Ruma Chakrabarty |
| Investment | INR 12 lakhs to INR 15 lakhs |
| Franchise units | 1900 |
| Estimated profit | 20% to 25% profit margin |
With over 1900 centers in Nepalese and Indian cities, Kidzee has become one of the leading education chains for preschoolers. Following a groundbreaking pedagogy of “Interactive ILLUME”, it has set education standards high for toddlers.
Apart from this, Kidzee offers excellent franchising opportunities for entrepreneurs looking forward to tap into an already-established customer base while planning to enjoy inclusive services from the franchisor.
3. Delhivery Franchise Business
| Industry | Logistics |
| Founded in | 2011 |
| Founded by | Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan and Kapil Bharati |
| Investment | INR 50K to INR 2 lakhs |
| Franchise units | 200 to 500 |
| Estimated profit | 15% ROI in addition of royalty commission |
Although established recently, Delhivery has set the standards high in the logistics market, owing to its norm-breaking operational protocols. With 1800 retail partners spread all over the country, it is one of the largest ecommerce logistics players, handling over 3 lakhs shipments regularly.
The company offers two franchise options, namely Constellation handling the freight pick-up and delivery channels and Cosmos overlooking the retail delivery stores.
4. Domino’s Franchise Business
| Industry | Pizza restaurant |
| 1Founded in | 1960 |
| Founded by | Tom Monaghan and James Monaghan |
| Investment | INR 50 lakhs to INR 1.5 crores |
| Franchise units | 12000 |
| Estimated profit | 8% on total revenue |
One of the largest pizza chains in the entire world is Domino’s and expectedly the fastest-growing restaurant franchise business in India. It not only receives a huge customer support due to the quality and diversity of food options the restaurant offers but also ensures to maintain optimal user satisfaction through its prompt services.
Offering home deliveries, seasonal offers, and variety of Indian-specific flavors, Domino’s is definitely the best option for every franchisee looking forward to establish the name in the food industry.
5. McDonald’s Franchise Business
| Industry | Fast food |
| Founded in | 1940 |
| Founded by | Ray Kroc |
| Investment | INR 25 lakhs to INR 30 lakhs |
| Franchise units | 40275 |
| Estimated profit | 29.63% on total sales |
With a business coverage across the entire world, McDonald’s is one of the best profitable franchises in India. With a tailored menu to suit Indian palette specifically, the restaurant chain has a humongous customer base in every city. Furthermore, the innovative food options and the wonderful combo offers attract customers like a moth to the flame.
What truly makes it a suitable franchise option is the effective marketing strategy that not only reduces the customer acquisition costs but also prevents failures of advertisement campaigns.
Also Read: McDonald’s marketing strategy
6. FirstCry Franchise Business
| Industry | Kids and baby shopping |
| Founded in | 2010 |
| Founded by | Supam Maheshwari |
| Investment | INR 20 lakhs to INR 30 lakhs |
| Franchise units | 350 |
| Estimated profit | 18% to 20% of net profit margin |
FirstCry is one-of-its-kind in the Indian market, offering specialized products and services to kids of all age groups. The brand has formed profitable collaborations with top-notch retailers in the world, including Disney, Pigeon, Barbie, and many more.
It offers an initial franchise contract with a validity of 5 years. After the tenure ends, you will have the option to renew it if the profit margin settles well with you.
7. KFC Franchise Business
| Industry | Fast food |
| Founded in | 1930 |
| Founded by | Pete Harman and Colonel Sanders |
| Investment | INR 96 lakhs to INR 2 crores |
| Franchise units | 25000 |
| Estimated profit | 7% to 8% on sales |
Another amazing franchise business model in the Indian market is KFC. It has overcome the bottlenecks of the local markets by offering food options catering to the Indian palette.
The signature dish, fried KFC chicken has proven to be the best-selling item across most outlets in the country. What’s more is the special combo offers and affordable prices that truly have made the business profitable in our country’s landscape.
8. Lakme Franchise Business
| Industry | Beauty and personal care |
| Founded in | 1952 |
| Founded by | Simone Tata and J.R.D. Tata |
| Investment | INR 50 lakhs to INR 60 lakhs |
| Franchise units | 350+ |
| Estimated profit | 18% to 25% ROI |
Offering a distribution franchise model, Lakme is a fastest-growing brand in the beauty and personal care industry. Thanks to its linkage to Hindustan Unilever and availability of multifaceted products from skincare and makeup range, the brand has positioned itself at the top place in the market.
Apart from this, the brand has also opened a chain of salons offering personalized care and treatment to its customers. So, as an entrepreneur, this franchise model option will definitely bring you tons of profits in the long run.
9. Giani’s Franchise Business
| Industry | Food and beverages |
| Founded in | 1956 |
| Founded by | Amarjeet Singh and Paramjeet Singh |
| Investment | INR 10 lakhs to INR 20 lakhs |
| Franchise units | 135+ |
| Estimated profit | 20% net profit margin |
Tapping into the versatile market of fast food and desserts, Gianni’s is a premium choice for franchisees looking forth to establish a profitable business. With so many outlets across the country, it offers excellent opportunities to entrepreneurs.
What’s special is the higher profit returns that every franchisee can enjoy once the business sails smoothly after establishment.
10. Subway Franchise Business
| Industry | Fast food and beverage |
| Founded in | 1965 |
| Founded by | Fred DeLuca and Peter Buck |
| Investment | INR 54 lakhs to INR 90 lakhs |
| Franchise units | 600+ |
| Estimated profit | 10% ROI |
Another outstanding franchise business setup in India offering excellent profits is that of Subway. The famous “SUBs” are loved by most people, especially the youth owing to the healthy tag.
After incorporating Indian ingredients and dishes with the exotic menu, the brand has made a huge customer base for itself in the past years. Furthermore, the promising quality offered to the customers has increased the loyalty and retention rate.
11. EuroKids Franchise Business
| Industry | Pre-school education |
| Founded in | 2001 |
| Founded by | Prajodh Rajan and Vikas Phadnis |
| Investment | INR 10 lakhs to INR 20 lakhs |
| Franchise units | 1000+ |
| Estimated profit | 20% to 25% ROI |
With a low investment franchise model and a well-established customer base in more than 350 cities spanning over three countries including India, Nepal, and Bangladesh, EuroKids has created a stellar reputation for itself.
What started as a mere publishing company has now transformed itself into a full-fledged playschool chain. Its “child first” ideology has propelled the brand towards a golden future and the promising services to the parents have helped in creating such a profitable market.
12. Lenskart Franchise Business
| Industry | Eyewear |
| Founded in | 2010 |
| Founded by | Peyush Bansal |
| Investment | INR 30 lakhs to INR 35 lakhs |
| Franchise units | 500+ |
| Estimated profit | 30% ROI |
Founded by one of the Sharks in India, Lenskart offers trending products in the eyewear industry to its customers. With trend-setting marketing strategies like home services, online AI avatars for trials, and many more, the brand has made a stellar name for itself in the industry.
After including offline retail stores in its business chain, the overall profits have increased further, thereby branding itself as one of the best franchise business options in India.
13. Kake Di Hatti Franchise Business
| Industry | Food and beverage |
| Founded in | 1942 |
| Founded by | Dhruv Singh |
| Investment | INR 20 lakhs to INR 30 lakhs |
| Franchise units | 10 to 20 |
| Estimated profit | 20% net profit on total sales |
What started merely as a small food shop in the busy streets of Chandni Chowk has now grown to a successful franchise business in the entire northern region.
Serving delicious eatables, the business has gained a diverse customer base with higher loyalty rate. Although the number of franchise units is less compared to other businesses, the profit margin seems to be pretty high.
14. Dr Lal PathLabs Franchise Business
| Industry | Healthcare |
| Founded in | 1949 |
| Founded by | S.K. Lal |
| Investment | Starting from INR 2 lakhs |
| Franchise units | 200+ |
| Estimated profit | 20% ROI |
With the highest network of pathology labs in India, Dr. Lal PathLabs is one of the most profitable franchise businesses. It has formed collateral partnerships with over 10000+ hospitals and clinical centers, thereby acquiring a vast customer network.
Furthermore, it is a trustworthy name in the healthcare industry, which is why the business thrives with huge profits annually.
15. Tumbledry Franchise Business
| Industry | Laundry and dry cleaning |
| Founded in | 2019 |
| Founded by | Gaurav Nigam |
| Investment | INR 25 lakhs |
| Franchise units | 500+ |
| Estimated profit | 50% of profit margin |
Operating in more than 80 cities in the country, Tumbledry has become the largest dry cleaning and laundry business.
Since its establishment in 2019, it has ensured to provide optimal services in various domains, like carpet and bag cleaning, dry cleaning, shoe repair, and many more.
16. Pepperfry Franchise Business
| Industry | Furniture and home décor |
| Founded in | 2011 |
| Founded by | Ambareesh Murty and Ashish Shah |
| Investment | INR 15 lakhs to INR 40 lakhs |
| Franchise units | 30+ |
| Estimated profit | 20% to 25% profit margin |
A modern-day online furniture retailer, Pepperfry has over 70 physical store outlets sprawled across 28 locations in the country.
The accent design statements, high-quality materials, and impeccable service commitments are what propelled the business towards its glorious success.
Furthermore, the ecommerce business also offers creative interior designing ideas, thereby catering to trending customer demands in today’s fast-paced market.
17. VLCC Franchise Business
| Industry | Beauty and wellness |
| Founded in | 1989 |
| Founded by | Vandana Luthra |
| Investment | INR 15 lakhs to INR 30 lakhs |
| Franchise units | 78 |
| Estimated profit | 20% of net sales |
One of the most profiting franchising businesses in India is VLCC, given its humongous customer base and the service commitment.
The signature blend of various skincare and wellness products has created an upscaled position for the brand. What truly adds to its success is the efficient marketing strategies, expert operational teams, and sheer dedication towards achieving the goals and objectives.
18. DTDC Franchise Business
| Industry | Courier and delivery |
| Founded in | 1990 |
| Founded by | Subashish Chakrabarty and Debashish Chakrabarty |
| Investment | INR 50K to INR 2 lakhs |
| Franchise units | 1000+ |
| Estimated profit | 20% of ROI |
Operating one of the largest courier delivery networks in India and other countries, DTDC offers excellent business opportunities to budding entrepreneurs through franchising.
The setup cost is indeed minimal and the business offers quick turnover with higher profit margins. Also, the acquired customer base eliminates the tension of marketing and sales.
19. InXpress Franchise Business
| Industry | Delivery and shipping |
| Founded in | 1999 |
| Founded by | John Thompson |
| Investment | INR 10 lakhs |
| Franchise units | 500+ |
| Estimated profit | 20% profit margin |
Operating a large and diverse network of shipping and logistics, InExpress offers profitable franchising options to everyone in India.
Its efficient marketing strategies and different business solutions ensure the franchisees can make optimal profits through the services.
20. Kalyan Jewellers Franchise Business
| Industry | Jewelry |
| Founded in | 1993 |
| Founded by | T.S. Kalyanaraman |
| Investment | From INR 1 crores |
| Franchise units | 150+ |
| Estimated profit | 12% to 20% profit margin on overall sales |
Another most profitable franchising business option in India is offered by Kalyan Jewelers, a thriving name in the Indian market. With over 235 showrooms, the brand offers jewelry options in different materials including gold, platinum, and silver.
Furthermore, the addition of precious gems like diamond and emerald in their offerings has skyrocketed the sales and increased the profit margin.
21. Café Coffee Day Franchise Business
| Industry | Food and beverage |
| Founded in | 1996 |
| Founded by | V.G. Siddhartha |
| Investment | INR 10 lakhs to INR 15 lakhs |
| Franchise units | 1700+ |
| Estimated profit | 15% ROI |
Last but not the least we have Café Coffee Day on our list of topmost profitable franchise businesses in India. Having the USP of fused comfort and affordability, the brand has made quite a huge name for itself. The service quality and offerings make the brand way more popular amongst customers of varying demographics.
Conclusion
Franchising is indeed a smart business model as it offers access to an already established market base and audience to the franchisee. Besides, with different franchise models, one will get the opportunity to choose the best that suits the requirements and offer the best prospective for the future.
As we have already discussed the top 21 profitable franchise business options in this article, you simply have to weigh the options and list down the names that seem to be best-suited for your business goals. Rest assured, franchising will help you create a consistent revenue stream while saving you from the risks of business failures and bottlenecks.
CA Rahul Malodia is the founder and CEO of Malodia Business Coaching Pvt. Ltd. He is a Business Coach, Mentor & Investor. He has trained over 25,000+ Businessmen across India.
