- Low-Investment Options: Franchises under ₹20 lakhs are perfect for first-time business owners
- Diverse Sectors: Popular choices include food & beverage, education, retail, healthcare, and logistics
- Quick ROI: Many small-format franchises recover investments in 6–18 months
- Space Flexibility: Kiosks, cloud kitchens, and micro-outlets reduce real estate costs
- Strong Demand: Sectors like education, healthcare, and food remain recession-proof
Looking for the best franchise opportunities under 20 lakhs in India? With rising demand in food, retail, education, healthcare, and logistics, small-format franchises are a smart choice for aspiring entrepreneurs. They require less investment, quick setup, and often achieve ROI within 12–18 months.
10 Best Franchise Opportunities Under 20 Lakhs in India
Here are the Best Franchise Opportunities Under 20 Lakhs in India for Aspiring Entrepreneurs
1. Food & Beverage Franchise Opportunities
The food and beverage sector has some of the most available in India. These businesses cost less to start up, give returns faster, and customers just need them. Here are three excellent options that are affordable and have room to grow:
| Franchise | Investment & Fees | Key Details |
|---|---|---|
| Chaat Adda | Investment: ₹6.5–7 lakhs Franchise Fee: ₹2.5 lakhs Royalty: 0% | Space: 150–180 sq. ft. ROI: ~6 months 100+ street food items Full training & support |
| Rolls King | Investment: ₹10–20 lakhs Franchise Fee: ₹2–3 lakhs + GST Royalty: 5% of sales | Space: 100–250 sq. ft. Profit margin: 15–25% Break-even: 1–2 years 100+ outlets in India |
| Biryani by Kilo (BBK) | Investment: ₹45–60 lakhs (cloud kitchen) Franchise Fee: ₹15–20 lakhs Royalty: 6–8% | Space: 600–800 sq. ft. Sales: ₹15–25 lakhs/month Profit margin: 15–20% Break-even: 18–24 months |
Food franchises are some of the most profitable opportunities under 20 lakhs because they attract high daily footfall and repeat customers.
- Chaat Adda is perfect for small spaces with quick ROI.
- Rolls King offers steady profits with youth-focused fast food.
- Biryani by Kilo requires higher investment but delivers premium returns with a proven cloud kitchen model.
2. Cafe and Beverage Chains
Beverage franchises have gained popularity because they need less money to start and are easier to run. Here are three cafe franchises in India that need less than 20 lakhs investment and show great growth potential.
| Franchise | Investment & Fees | Key Details |
|---|---|---|
| Chai Point | Investment: ₹25–50 lakhs (small formats under 20 lakhs) Franchise Fee: ₹1.5–5 lakhs Royalty: ~6% | Space: 600–1,000 sq. ft. Break-even: 18–24 months ROI: 18–50% Multiple revenue streams – outlets, office delivery, BoxC vending |
| Drunken Monkey | Investment: ₹15–20 lakhs Franchise Fee: ₹4–5 lakhs Royalty: 6% | Space: 200–600 sq. ft. (compact 250–400 sq. ft. works best) Revenue: ₹3–5 lakhs/month Profit Margin: 15–25% Break-even: 12–18 months 170+ smoothie options |
| Café Udupi Ruchi | Investment: ₹10–20 lakhs (kiosk) Franchise Fee: ₹4 lakhs Royalty: 5% | Space: 70–150 sq. ft. Sales: ~₹4 lakhs/month ROI: ~30% Easy-to-cook mixes (no skilled chefs needed) Menu: South Indian filter coffee + fusion dishes |
The café market in India is shifting from luxury lounges to smart, small-format kiosks.
- Café Udupi Ruchi is ideal for first-time investors with a tight budget.
- Drunken Monkey appeals to health-conscious youth and is perfect for college areas and malls.
- Chai Point, while slightly higher in cost, stands out with multiple revenue streams, making it one of the most sustainable café businesses in India.
3. Retail Franchise Options
Retail franchises give entrepreneurs one of the best chances to earn substantial returns. Here are three promising retail franchise options under 20 lakhs in India that you should think over:
| Franchise | Investment & Fees | Key Details |
|---|---|---|
FirstCry – Baby & Kids Products | Investment: ₹15–20 lakhs Franchise Fee: ₹2–5 lakhs (included) Space: 1000–2000 sq. ft. | Monthly Revenue: ₹3–5 lakhs High ROI, quick payback Asia’s largest kids’ product retailer Full support in training, marketing & inventory |
| Being Human – Fashion Retail | Investment: ₹60–80 lakhs Profit Margin: 25–30% Format: FOCO (Franchise Owned, Company Operated) | 500+ outlets Celebrity-backed (Salman Khan) Profits linked with charitable causes Strong marketing & setup support |
| Khadi India – Lifestyle Brand | Investment: ₹5–10 lakhs Royalty: None Space: 500–1000 sq. ft. | ROI: 15–25% Eco-friendly, government-supported brand 5-year franchise agreements Presence in airports, post offices & malls |
Retail franchises give strong brand trust and consistent sales.
- FirstCry is best for high-footfall malls and markets, with a proven kids’ product demand.
- Khadi India is perfect for eco-conscious investors looking for low-cost, government-backed opportunities.
- Being Human, though outside the 20-lakh budget, is a premium option for those seeking celebrity-backed fashion with social impact.
4. Education & EdTech Franchises
Education franchises have become profitable investment options for entrepreneurs who want stability and a chance to make a difference in society. These knowledge-based businesses usually come with well-laid-out systems, steady income, and strong brand names. Here are three education franchises under 20 lakhs you should look at in 2025:
| Franchise | Investment & Fees | Key Details |
|---|---|---|
| Kidzee – Preschool | Investment: ₹12–15 lakhs Space: 2000–3000 sq. ft. Setup Time: ~45 days | India’s largest preschool chain (2000+ centers) 20+ years of experience 1.5M+ children taught Unique PéNTEMiND teaching method Full support in setup & marketing |
| British Council IELTS – Language & Test Prep | Flexible partnership options No fixed standard franchise fee Revenue via commissions & partnerships | 80+ years of expertise Global presence in 140+ countries Multiple partnership models (agents, schools, colleges) Strong demand from students planning to study/work abroad |
| Smart School – Digital Learning | Investment: Low-cost, under 20 lakhs Franchise Fee: Minimal Royalty: Zero | Tech-driven digital learning platforms 2M+ learning resources & 50,000+ animated videos Full training & marketing support Run multiple businesses from one location |
Education remains one of the safest and most impactful franchise sectors in India.
- Kidzee is ideal for entrepreneurs with space and interest in running preschools.
- British Council IELTS works best for consultants, schools, or institutions already in the education space.
- Smart School is a future-ready, low-investment digital model that’s great for small towns and urban centers alike.
5. Health & Wellness Franchise Picks
The remains strong even during economic downturns, which makes it a great sector for franchise investment. These businesses deliver steady returns through subscription-based revenue models, despite needing more capital upfront. Let’s explore three outstanding health franchises that could be perfect for budding entrepreneurs:
| Brand | Investment Range | USP |
|---|---|---|
| Talwalkars Gym | ₹50 lakhs – ₹1 crore | Trusted gym chain with 24% ROI & strong support |
| VLCC | ₹30 – 50 lakhs | Global wellness leader with multiple formats |
| Anytime Fitness | From ₹2.5 crore | 24/7 global gym chain with 5,200+ outlets worldwide |
India’s health & wellness industry is rapidly expanding, and franchise opportunities vary widely:
- VLCC offers the most affordable entry point close to the 20-lakh target.
- Talwalkars delivers strong brand trust with good ROI, but demands higher capital.
- Anytime Fitness highlights the future of fitness – 24/7 access gyms – though it needs much larger investment.
6. Salon & Beauty Franchise Models
Salon franchises are an exciting business chance in India’s beauty and grooming sector. People care more about their appearance now, and these businesses attract regular clients who keep coming back. Here are three leading with different investment levels.
| Brand | Investment Range | USP |
|---|---|---|
| Naturals | ₹30–55 lakhs | 800+ outlets, strong women-led franchise network |
| Jawed Habib | ₹25–35 lakhs | 636+ outlets, science-driven haircare expertise |
| Green Trends | ₹40–60 lakhs | Backed by CavinKare, strong retention & quick breakeven |
- Naturals is best for women entrepreneurs looking for affordable yet established grooming franchises.
- Jawed Habib brings international recognition and flexibility with multiple formats.
- Green Trends combines FMCG-backed reliability with fast breakeven and strong retention.
7. Service-Based Franchise Ideas
Service-based franchises succeed because customers keep coming back. These businesses generate steady income with low overhead costs. They don’t need much inventory and rely on skilled service delivery. Here are three promising service franchise options you can explore in 2025:
Home Services Franchise Comparison
| Brand | Investment / Scale | USP |
|---|---|---|
| Urban Company | Tech-driven marketplace, ₹827 Cr FY24 revenue | Full-stack model with 48,000+ service partners |
| HiCare | From ₹5 lakhs | HACCP-certified, safe and science-backed pest control |
| Mr. Homecare | Medium-scale metro presence | Premium cleaning & partnerships with Quickr, OYO, UrbanClap |
The home services franchise sector in India is booming due to:
- Urban lifestyle shifts and dual-income households
- High demand for hygiene, cleaning, and convenience-driven services
- Low entry barriers (HiCare, Mr. Homecare) compared to tech-driven giants (Urban Company)
8. Automobile Franchise Opportunities
Automobile franchises offer promising opportunities to mechanically-minded entrepreneurs through 15-year-old systems and growing market needs. These business models help you tap into India’s expanding automotive sector without starting from scratch.
| Brand | Investment & Space | Key Highlights |
|---|---|---|
| Mahindra First Choice | ₹50 lakhs – ₹1 crore 5,000–10,000 sq. ft. | 315+ workshops, 10% royalty, 30–40% ROI, payback in 1–2 years, certified training support |
| Speed Car Wash | ₹15–20 lakhs 1,000–1,500 sq. ft. | 92–100% ROI, 15-month payback, eco-friendly cleaning, 70% less water, 95% water recycling |
| Bike Studio | ₹10–25 lakhs 300–700 sq. ft. | Two-wheeler focused, roadside assistance, digital tools, doorstep service, strong training & marketing support |
The automobile franchise industry in India is growing fast, thanks to rising vehicle ownership and the need for affordable, reliable, and eco-friendly services.
- Mahindra First Choice: Best for investors seeking multi-brand positioning and higher capital strength.
- Speed Car Wash: Perfect for eco-conscious entrepreneurs with its green cleaning solutions and quick payback.
- Bike Studio: Ideal for low-investment seekers, targeting India’s massive two-wheeler service market with scalability and doorstep service options.
9. E-commerce & Logistics Franchises
The rapid rise of e-commerce has created a huge need for reliable logistics services throughout India. The will grow from USD 19.86 billion in 2023 to USD 50.2 billion by 2033, with a strong 9.72% CAGR. These three logistics franchise options show great growth potential:
| Brand | Investment & Setup | Key Highlights |
|---|---|---|
| DTDC | ₹50,000 – ₹1.5 lakhs 350–1,200 sq. ft. | 14,000+ channel partners nationwide, 3 franchise models, ROI 20%+, monthly earnings ₹30k–₹70k |
| Xpressbees | ₹2.5 – 3.5 lakhs Desktop/laptop, printer, barcode scanner, internet | Handles 50 lakh+ shipments daily, serves 50,000+ pincodes, profit ₹40k–₹60k/month in Year 1 |
Amazon DSP | ₹2 – 5 lakhs Delivery hub setup required | Last-mile delivery for Amazon, monthly income ₹50k–₹2 lakh, full training & technology support |
The logistics sector is booming in India due to e-commerce growth and rising demand for fast deliveries.
- DTDC is great for small investors with flexible franchise models.
- Xpressbees targets e-commerce heavy regions with higher revenue potential.
- Amazon DSP leverages brand trust for last-mile delivery and scalable earnings.
10. Healthcare & Pharmacy Franchises
Healthcare franchises offer resilient business opportunities that meet India’s growing medical needs. Let’s look at three promising healthcare franchises worth learning about:
| Brand | Investment & Setup | Key Highlights |
|---|---|---|
| MedPlus | ₹10 – 20 lakhs 300–500 sq. ft. | 4,500+ stores across 12 states, ROI 8–20%, support in location selection, layout, training & bank loans |
| Dr. Lal PathLabs | ₹3 – 4 lakhs 200–250 sq. ft. | Diagnostic collection center model, monthly income potential > ₹1 lakh, medical experience preferred |
| Thyrocare | ₹2 lakhs approx. (₹1 lakh refundable) Clean infrastructure with computer, centrifuge, refrigerator | Fully automated lab, services in 2,000 cities, first preanalytical barcoded vial system, sample pickup & marketing support |
The healthcare and pharmacy sector is rapidly growing in India due to rising health awareness and preventive care.
- MedPlus is ideal for retail pharmacy investors seeking brand trust and support.
- Dr. Lal PathLabs targets those with medical knowledge for diagnostic services.
- Thyrocare offers scalable preventive testing services with automation and tech support.
Key Takeaways
India’s franchise market offers diverse opportunities under ₹20 lakhs across multiple sectors, from food and retail to healthcare and logistics, providing accessible entry points for aspiring entrepreneurs in 2025.
- Food franchises deliver fastest returns: Options like Chaat Adda (₹6.5-7 lakhs) and Rolls King (₹10-20 lakhs) offer 6-month to 2-year payback periods with strong customer demand.
- Service-based models require minimal inventory: Franchises like HiCare pest control (₹5 lakhs) and logistics partners focus on skilled delivery rather than product storage.
- Education and healthcare provide recession-proof stability: Kidzee preschools (₹12-15 lakhs) and MedPlus pharmacies (₹10-20 lakhs) offer consistent revenue through essential services.
- Technology-driven franchises show explosive growth: E-commerce delivery partners like DTDC (₹50K-1.5 lakhs) benefit from India’s booming online shopping sector.
- Comprehensive franchise support reduces startup risks: Most established brands provide training, marketing assistance, and operational guidance, making them ideal for first-time entrepreneurs.
Conclusion
Starting a business doesn’t always need crores of rupees. With the best franchise opportunities under 20 lakhs, you can enter booming sectors, leverage brand power, and start earning in under a year. The key is to pick the right industry based on your interest, budget, and location.
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FAQs
Food and beverage franchises like Chaat Adda and Drunken Monkey are among the most profitable due to high demand and quick ROI.
Yes. Amazon Delivery Partner program requires just ₹2–5 lakhs investment and offers steady monthly earnings.
Yes, preschools like Kidzee need 2000–3000 sq. ft., but digital learning models like Smart School need less space and lower investment.
Most small-format franchises break even within 12–18 months. Some food kiosks can recover costs in as little as 6 months.
Yes. Brands like Chaat Adda and some education-tech models offer no royalty, letting franchisees keep full profits.
