- India = 2nd largest franchise market globally with 1.5M outlets (after the USA).
- Low-cost franchises under ₹10 lakh include DTDC Courier, Patel’s Chai & Apollo Diagnostics Collection Centre.
- Top food franchises like Domino’s & McDonald’s recover investment in 2–4 years.
- High-growth categories: Food & Beverages, Education, Healthcare, Retail, Logistics
- ROI for most profitable Indian franchises = 20–40% annually (location-dependent).
If you’re dreaming of starting your own business in 2025 but don’t want to begin from scratch, a franchise business could be your golden ticket. With proven models, brand power, and built-in customer trust, franchises are one of the safest ways to start earning from day one. But with so many options out there, how do you know which is the best franchise in India for you? Let’s break it down — opportunities, investment, and real examples.
What Makes a Franchise the ‘Best’ in India?

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Picking the best franchise in India means you need to assess several key factors that lead to success over time. The top-performing franchise businesses bring together strong brand value, detailed support systems, room for growth, and match what the market needs. A well-planned approach to choosing your franchise can substantially boost your chances of running a profitable business while keeping risks low.
Brand recognition and trust
You can’t build a strong franchise brand overnight. Here’s how to assess brand strength when picking a franchise:
- Research brand history and longevity: Brands that have been around longer usually get more customer recognition. India’s franchise sector now makes up about 2% of the country’s GDP, and experts expect it to grow substantially.
- Check customer loyalty metrics: Brands like Amul have built solid customer loyalty and trust over many decades.
- Assess brand consistency: The most successful franchises keep strict brand guidelines at every location. Your franchisor should give you clear guidelines about logos, colours, typefaces, and all visual elements.
- Assess online reputation: Take a look at customer feedback and online ratings to understand where the brand stands in its industry.
- Analyse competitor positioning: Know how the brand stands out in the market. A strong brand helps your business stand out and keeps customers coming back.
Support and training from the franchisor
The support you get from your franchisor often determines how well you’ll do:
- Review original training programs: You should get detailed training that covers brand values, daily operations, and customer service.
- Assess ongoing support mechanisms: Look for franchisors who send field representatives to visit locations regularly.
- Assess marketing assistance: The best franchisors run national or regional ad campaigns and provide marketing materials.
- Get into operational guidance: Top franchisors give you detailed operations manuals and clear documentation about standard procedures.
- Check technology integration: Tech-powered franchise models help you manage inventory, logistics, and customer relationships better.
Scalability and expansion potential
A remarkable 53% of all franchise units in India run multiple locations, suggesting strong growth potential:
- Analyse territorial rights: The franchise agreement should tell you about exclusive territories that limit competition.
- Assess multi-unit opportunities: The high number of multi-unit franchises shows you can build larger businesses.
- Assess growth trends: Experts expect the Indian franchise market to grow at 30% each year.
- Review expansion success stories: Talk to franchisees who run multiple units about their growth trip.
- Think about financial scalability: Franchise models with fair royalty structures let you grow better.
Customer demand and market fit
Making sure there’s market demand is vital for success:
- Conduct local market research: Look at the demand for your product or service where you plan to open.
- Study consumer demographics: Check if local people match your franchise’s target audience.
- Assess regional priorities: India’s diverse market means you need to adapt to local tastes and priorities.
- Assess competition density: Too many similar businesses nearby can limit your growth.
- Monitor industry trends: Focus on sectors that show steady growth and strong consumer demand.
Evaluation Criteria | What to Look For | Why It Matters |
---|---|---|
Brand Strength | Recognition, reputation, customer loyalty | Attracts customers from day one |
Franchisor Support | Training quality, operational guidance, marketing help | Reduces learning curve and operational risks |
Growth Potential | Multi-unit options, territorial rights, scalable model | Enables future expansion and higher returns |
Franchise Business Ideas by Investment Range
The right franchise can emerge when you match your investment capacity with your business goals. Here’s a breakdown of India’s top franchise options by investment brackets to help you find choices that fit your budget.
Under ₹5 lakh: Amul, DTDC
Amul Franchise:
- Check your budget: Investment ranges from ₹2-6 lakhs
- Pick your format: Either an Amul Preferred Outlet (₹2 lakhs) or an Ice Cream Scooping Parlour (₹6 lakhs)
- Get your space: 100-150 sq. ft for simple outlets; 300+ sq. ft for parlours
- Apply now: Contact Amul directly through their website
- Track your profits: Earn 2.5% on milk, 10% on dairy products, 20% on ice cream, and around 50% on recipe-based items
DTDC Franchise:
- Plan your investment: Starting from just ₹50,000 up to ₹2 lakhs
- Pick franchise type: Choose from DTDC360, Enterprise, Flex, Smile, or Smile+
- Get space: Need 300-450 sq. ft to run smoothly
- Submit online: Apply with your preferred opportunity ID
- Earn monthly: ₹30,000-₹70,000 depending on location
₹5–20 lakh: EuroKids, Dr. Lal PathLabs
EuroKids Preschool:
- Ready your investment: ₹15-20 lakhs total setup cost
- Get space: Secure 1,500-2,000 sq. ft in residential areas
- Submit documents: Apply with a location proposal
- Learn the system: Master their specialised ‘EUNOIA’ curriculum
- See returns: Approximately 50% ROI over time
Dr. Lal PathLabs:
- Start small: ₹3-4 lakhs for a collection centre
- Pick location: 200-250 sq. ft with toilet facility
- Check eligibility: Medical background preferred but not mandatory
- Start process: Apply through their business partnership portal
- Know returns: 20% commission on each test conducted
₹20–50 lakh: FirstCry, Lenskart
FirstCry:
- Plan budget: ₹20-30 lakhs original investment
- Get retail space: 1,000-2,000 sq. ft in high-footfall areas
- Complete agreement: 5-year contract with renewal options
- Fill inventory: Access to 2 lakh+ products from 6,000+ brands
- Track profits: 15-20% margins with monthly earnings of ₹4.5 lakhs
Lenskart:
- Ready funds: ₹24.56-40 lakhs total investment
- Secure location: 300-500 sq. ft in malls or market areas
- Pass verification: Background checks and location assessment
- Train team: Learn Lenskart’s tech-driven approach to eyewear retail
- Monitor ROI: Expect 25-33% returns with break-even in 9-12 months
₹50 lakh and above: Domino’s, VLCC, Kalyan Jewellers
Domino’s Pizza:
- Ready capital: ₹1.25-3 crore investment required
- Pick strategic location: 1,000-1,500 sq. ft in high-traffic areas
- Clear assessment: Rigorous selection process
- Complete training: Learn Domino’s operational excellence
- Project profits: Annual earnings between ₹36-84 lakhs
VLCC:
- Select format: Beauty salon (₹30-32 lakhs) or wellness centre (₹65-70 lakhs)
- Get space: 800-1,000 sq. ft for salon; 1,800-2,200 sq. ft for centre
- Plan royalty: 15% of monthly earnings
- Learn services: Master specialised beauty and wellness offerings
- Calculate earnings: Monthly revenue of ₹10-20 lakhs with 20-40% margins
Kalyan Jewellers:
- Ready investment: ₹16-22 crore, including inventory
- Find space: 1,000-1,500 sq. ft in premium locations
- Keep capital: At least ₹2 crore for operations
- Pass verification: Full background checks
- Track returns: 8-10% net profit margins
Franchise | Investment Range | Expected ROI/Profit Margin |
---|---|---|
Amul | ₹2-6 lakhs | 2.5-50% (product dependent) |
DTDC | ₹50,000-₹2 lakhs | 20% ROI |
EuroKids | ₹15-20 lakhs | ~50% ROI |
Dr. Lal PathLabs | ₹3-4 lakhs | 20% commission per test |
FirstCry | ₹20-30 lakhs | 15-20% profit margin |
Lenskart | ₹25-40 lakhs | 25-33% ROI |
Domino’s | ₹1.25-3 crore | 8-15% profit margin |
VLCC | ₹30-70 lakhs | 20-40% profit margin |
Kalyan Jewelers | ₹16-22 crore | 8-10% net profit margin |
Top Franchise Picks by Industry (2025)

The Indian franchise market brings exciting opportunities in multiple sectors. Each industry, from food to retail and education, comes with its own set of advantages for future franchisees. Here’s a look at the best franchise picks by industry for 2025.
Food & Beverage: Domino’s, Subway, Amul
- Research market position: Domino’s runs 1,400+ outlets in India and remains a QSR leader.
- Compare investment requirements: Domino’s (₹1.2-1.5 crore), Subway (₹50-90 lakhs), Amul (₹2-6 lakhs).
- Analyse space needs: Domino’s needs 1,000-1,500 sq. ft., while Amul works with just 100-300 sq. ft.
- Assess business models: Domino’s prioritises speed and delivery, Subway targets health-conscious customers, and Amul provides diverse dairy products.
- Calculate potential returns: Amul gives 2.5% margins on milk, 10% on dairy products, and 20% on ice cream.
Retail: Lenskart, FirstCry, Pepperfry
- Assess market potential: Lenskart dominates the eyewear market with tech-enabled stores and omnichannel presence.
- Calculate investment needs: Lenskart (₹30-35 lakhs), FirstCry (₹20-30 lakhs), Pepperfry (investment varies).
- Understand product mix: FirstCry stocks 2 lakh+ products from 6,000+ brands.
- Get into profit margins: Lenskart franchisees earn ₹3-4 lakhs monthly, FirstCry provides 15-20% margins.
- Check expansion plans: These retail brands are expanding faster into Tier 2 and 3 cities.
Education: EuroKids, Kidzee
- Research brand presence: Kidzee runs 1,900+ centres across 750 cities and stands as Asia’s largest preschool chain.
- Compare investment levels: EuroKids (₹15-20 lakhs), Kidzee (₹12-15 lakhs).
- Assess curriculum models: EuroKids uses a contemporary teaching style, while Kidzee applies its proprietary iLLUME curriculum.
- Analyse location requirements: Both need 1,500-2,000 sq. ft. in residential areas.
- Understand market trends: Education franchises show strong growth in Tier 2 and 3 cities.
Healthcare & Wellness: VLCC, Dr. Batra’s
- Study market growth: India’s healthcare market should reach ₹31,389.53 billion by 2025.
- Compare business models: VLCC runs beauty salons (₹30-32 lakhs) or wellness centres (₹65-70 lakhs), Dr. Batra’s focuses on homoeopathy (₹20-25 lakhs).
- Understand space requirements: VLCC requires 800-1,000 sq. ft. for salons, 1,800-2,200 sq. ft. for wellness centres.
- Calculate royalty structure: VLCC takes 15% of monthly earnings as royalty.
- Project returns: VLCC franchisees can make monthly revenue of ₹10-20 lakhs with 20-40% margins.
Logistics: DTDC, Delhivery
- Analyse investment range: DTDC (₹50,000-₹2 lakhs), Delhivery (₹50,000-₹2 lakhs).
- Select franchise type: DTDC provides multiple models, including DTDC360, Enterprise, and Flex.
- Secure appropriate space: DTDC usually needs 200-250 sq. ft.
- Understand earnings potential: DTDC franchisees earn ₹30,000-₹70,000 monthly based on location.
- Think over growth trends: E-commerce expansion drives logistics sector growth, with over 65% of e-commerce shipments coming from Tier 2 and 3 cities.
Industry | Franchise Options | Investment Range |
---|---|---|
Food & Beverage | Domino’s, Subway, Amul | ₹2 lakhs – ₹1.5 crore |
Retail | Lenskart, FirstCry, Pepperfry | ₹20 lakhs – ₹40 lakhs |
Education | EuroKids, Kidzee | ₹12 lakhs – ₹20 lakhs |
Healthcare | VLCC, Dr. Batra’s | ₹20 lakhs – ₹70 lakhs |
Logistics | DTDC, Delhivery | ₹50,000 – ₹2 lakhs |

How to Evaluate a Profitable Franchise in India?
The profitability of a franchise goes beyond brand reputation and needs a methodical breakdown. India’s franchise industry shows promising growth at 30-35% yearly, with a value close to ₹800 billion. Your long-term success depends on making smart decisions.
Check ROI and break-even timeline
- Your initial investment costs should include franchise fees, setup expenses, equipment, and inventory
- Monthly sales typically attract royalties between 4-10% – factor these ongoing expenses
- You should look at revenue numbers from similar franchise units
- The ROI formula helps you calculate returns: (Net Profit/Investment Cost) × 100
- Break-even periods vary by industry: education takes 2-3 years, healthcare needs 2-3 years, while food & beverage reaches it in 1-2 years
Understand operational support
- Brand values and operational processes come through initial training programs
- Regular visits and consultations form the basis of field support
- Marketing support includes local campaigns and promotional materials
- Proprietary systems give you POS and inventory management software access
- Franchisors should help with site selection and lease negotiations
Review franchisee testimonials
- The franchisor should provide existing franchisee lists
- Your questions should focus on profitability, challenges, and satisfaction
- Ground operations become clear when you visit multiple outlets
- Success stories need balanced views beyond franchisor testimonials
- Franchisee retention rates tell you about satisfaction levels
Analyse local market demand
- Your target market’s growth phase matters significantly
- Local competition patterns show market performance
- Your franchise’s target audience should match local demographics
- Industry-specific trends shape your market position
- The franchisor’s territorial exclusivity rights protect your interests
Evaluation Factor | What to Look For | Red Flags |
---|---|---|
Financial Viability | Healthcare shows 25-60% ROI, education reaches 50-100% | Profit projections that seem too good |
Operational Support | Complete training with marketing help | Minimal support after opening |
Market Alignment | Strong local demand in growing sectors | Overcrowded market, dying sector |
Steps to Start Your Franchise Business in 2025

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A franchise business needs careful planning and execution to succeed. The Indian franchise market is booming right now. With about 4,600 active franchisors running nearly 2 lakh outlets, you need a strategic plan to start your franchise ownership experience.
1. Shortlist based on budget and interest
- Define your budget range – Figure out your investment capacity, ranging from under ₹5 lakhs to over ₹50 lakhs
- Identify your industry preference – Look at options in food, retail, education, or healthcare sectors
- Research growth potential – Target sectors with steady market demand
- Create a comparison list – Pick 3-5 franchises that match your budget and interests
- Check territorial availability – Make sure your chosen franchise has room to expand in your area
2. Contact franchisor and request FDD
- Reach out formally – Get in touch with your shortlisted franchisors through official channels
- Request Franchise Disclosure Document – Quality franchisors provide detailed FDDs, though it’s not legally required in India
- Review financial information – Learn about initial fees, royalty structure, and setup costs
- Understand legal obligations – Read the terms under the Indian Contract Act, 1872
- Evaluate support systems – Look into their training programs, marketing help, and operational guidance
3. Visit existing franchise outlets
- Schedule visits strategically – Talk to multiple franchisees on the phone before planning your visits
- Prepare specific questions – Ask about location selection, staff management, and actual profits
- Observe operations closely – Take time to understand daily business operations
- Talk to franchise owners – Learn firsthand about challenges and the franchisor’s support
- Experience customer interactions – Watch how the business handles customers and delivers service
4. Secure funding and location
- Explore financing options – Look into bank loans, MSME schemes, or government programs for franchise businesses
- Check eligibility criteria – You’ll need good credit scores (685+) and business vintage of 3+ years for most lenders
- Calculate complete investment – Add up franchise fee, setup costs, inventory, and working capital
- Choose a strategic location – Study footfall, competition, and accessibility factors
- Negotiate lease terms – Get favourable rental agreements with growth provisions
5. Sign the agreement and begin training
- Review agreement thoroughly – Study territorial rights, renewal conditions, and exit clauses
- Complete legal formalities – Set up your business entity as per the Companies Act, 2013
- Obtain necessary licenses – Get GST registration and industry-specific permits
- Participate in training programs – Master brand standards, operational procedures, and customer service protocols
- Implement systems and processes – Build your inventory management, accounting, and staffing structures
Stage | Key Action | Common Pitfall to Avoid |
---|---|---|
Research | Compare multiple franchises | Choosing based on popularity alone |
Verification | Visit existing outlets | Skipping due diligence with current franchisees |
Financing | Secure adequate funding | Underestimating working capital needs |
Case Study

Success stories from the ground show why franchising continues to thrive in India. Three inspiring examples highlight different paths entrepreneurs take to achieve franchise success.
A former IT professional, Ankit Tiwari, started his entrepreneurial journey with a Chai Sutta Bar franchise in Bhopal. His initial investment of ₹10 lakhs and strategic location near a college campus paid off quickly. The outlet generated daily revenue between ₹18,000-₹22,000, and he recovered his investment within 11 months. Today, Ankit’s two profitable outlets stand as testimony to how affordable franchises can deliver quick returns.
Priya Deshmukh’s story shows a different path to success. This former homemaker ventured into entrepreneurship with a Naturals Salon franchise in Hyderabad. She invested ₹25-30 lakhs and achieved break-even in just 14 months. Her monthly earnings now range between ₹1.2-₹1.5 lakhs. The salon’s success goes beyond profits – it enables 10 women through employment opportunities.
Haldiram’s evolution from a modest sweet shop in 1919 to a global brand showcases traditional businesses adapting to modern franchise models. The brand’s three distinct franchise formats cater to different entrepreneur needs: kiosks (150-200 sq ft), Quick Service Restaurants (1000-1500 sq ft), and full dining restaurants (4000-5000 sq ft). Entrepreneurs can choose options that match their capital and capabilities.
These success stories highlight franchising’s adaptability in India’s ever-changing market, spanning various investment levels, industries, and business models.
Conclusion
Choosing the best franchise in India in 2025 depends on your budget, city, and interests. If you want low-risk + quick returns, go for food, education, or healthcare franchises. For those with bigger budgets, global QSRs (McDonald’s, KFC) bring prestige and profits.
Get practical guides and fresh ideas to build profitable local businesses in your city.
Frequently Asked Questions (FAQs)
Domino’s and McDonald’s are considered top due to demand and brand power.
Tea shops (Patel’s Chai, Chai Point) and courier services (DTDC) under ₹10 lakh.
₹30–50 lakh investment + ₹10 lakh franchise fee.
Yes, courier and tea/coffee franchises are possible in this range.
1.5 to 3 years, depending on location and demand.
No, but they reduce risk since the model is proven.
Food & beverages, education, and healthcare.
Not always. Most brands provide training.
Typically 5–10 years, renewable.
Yes, banks like SBI and ICICI offer business loans for franchises.