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The allure of entrepreneurship draws many to consider owning a franchise. It combines the independence of running your own business with the security of a proven business model. But one question stands out — what are the franchise costs involved? This blog dives into the true expenses, benefits, top franchise options in India, and what you need to know before investing.
Benefits of Starting a Franchise in India
Starting a franchise in India comes with several advantages:
- Proven Business Model: No need to reinvent the wheel — benefit from an established brand’s success.
- Brand Recognition: Leverage the brand’s reputation to attract customers faster.
- Training & Support: Most franchisors provide extensive training and ongoing support.
- Marketing Assistance: National or regional campaigns often come with the package.
- Easier Financing: Lenders prefer franchises over independent startups due to lower risk.
- Scalable Growth: Once successful, you can expand into multiple franchise units.
Franchise Costs: Best Franchises You Can Start Now in India (2025)
Here are 8 of the best franchise opportunities in India today, varying across industries and budget levels.
1. McDonald’s India
- Concept: Quick Service Restaurant (QSR)
- Overview: A globally recognised brand with high footfall.
- Set-up Cost: ₹6 to ₹14 Crores, depending on format and location
2. Lenskart
- Concept: Eyewear Retail
- Overview: Omnichannel optical brand with AI tech integration.
- Set-up Cost: ₹30 to ₹40 Lakhs
3. DTDC Courier & Cargo
- Concept: Logistics & Courier Service
- Overview: Offers multiple franchise models for Tier 1–3 cities.
- Set-up Cost: ₹50,000 to ₹2 Lakhs
4. FirstCry
- Concept: Baby Products Retail
- Overview: India’s largest baby and kids retail brand.
- Set-up Cost: ₹20 to ₹30 Lakhs
5. Subway
- Concept: Fast Food/QSR
- Overview: One of the most affordable global food franchises.
- Set-up Cost: ₹50 Lakhs to ₹90 Lakhs
Looking forward to start a Subway Franchise Business, here’s more about Subway Franchise
6. The Belgian Waffle Co.
- Concept: Dessert Café
- Overview: Small footprint, scalable and popular among youth.
- Set-up Cost: ₹15 to ₹20 Lakhs
7. Patanjali
- Concept: Ayurvedic FMCG Retail
- Overview: Backed by high demand in natural wellness products.
- Set-up Cost: ₹5 to ₹50 Lakhs depending on the model
8. Kake di Hatti
- Concept: North Indian Cuisine Restaurant
- Overview: Established Delhi-based brand expanding via franchise.
- Set-up Cost: ₹30 to ₹50 Lakhs
Drawbacks of Buying a Franchise
Despite the many benefits, franchising isn’t without its downsides:
- High Initial Franchise Costs: Top franchises can demand significant investment.
- Ongoing Royalties: Monthly/quarterly fees based on revenue.
- Limited Creative Freedom: Operations must follow the franchisor’s rules.
- Territorial Restrictions: Expansion might be limited geographically.
- Shared Reputation Risks: Brand scandals affect all franchisees.
Key Takeaways
- Franchise costs vary from ₹50,000 to ₹15 Crores based on industry and brand.
- Low-cost franchises are ideal for Tier 2 and Tier 3 cities.
- Thorough research and financial planning are essential before investing.
- Choose a franchise that aligns with your budget and passion.
- Legal agreements must be read carefully — consider professional consultation.
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Conclusion
Starting a franchise in India can be a life-changing business decision — if done wisely. By understanding the real franchise costs, evaluating the market, and selecting a brand that aligns with your financial and personal goals, you pave the way for long-term success. Whether you’re a budding entrepreneur or a seasoned investor, franchising offers a balance of structure and opportunity.
FAQs
- What are typical franchise costs in India?
- Costs range from ₹50,000 (for service-based models) to ₹15 Crores (for premium F&B brands).
- Are there any hidden costs in franchising?
- Yes. Look out for royalty fees, marketing contributions, renewal charges, and setup infrastructure costs.
- Can I take a loan to start a franchise?
- Yes. Many banks offer business loans for franchises due to their low-risk profile.
- Is franchising profitable in India?
- Yes, especially with the right brand, location, and business acumen.
- Which is the cheapest franchise to start in India?
Courier services like DTDC or education-based models like KidZee have low startup costs.
- How long does it take to break even in a franchise?
- Typically 1 to 3 years, depending on location, brand, and market demand.
- Do I need prior experience to run a franchise?
- Not always. Most franchisors offer comprehensive training.
- What legal documents are required to open a franchise?
- Franchise Agreement, FDD (Franchise Disclosure Document), Lease/Rent agreements, GST registration.
- Can I own multiple franchises?
- Yes, multi-unit franchising is encouraged once you succeed with the first outlet.
- How do I choose the right franchise?
- Consider your interests, investment capacity, brand reputation, and local market demand.
