- Clothing franchises are among the most profitable franchise businesses in India, with steady demand across metro and tier-2 cities
- Investment starts at around ₹20 lakhs for budget brands and can cross ₹1.5 crores for luxury labels
- Average net profit margins range between 12% and 35%, depending on the brand and location
- Most franchise owners achieve break-even in 12–24 months if they choose the right spot and manage inventory well
- Leading clothing franchise options in 2025 include Zudio, Reliance Trends, Biba, Max Fashion, Van Heusen, and Allen Solly
Starting your own fashion brand can be risky, time-consuming, and expensive. But with clothing franchises in India, you get a proven brand name, ready customers, and a tried-and-tested business model — all at your fingertips. The Indian apparel market is booming, and with growing disposable income, a young population, and fast fashion demand, 2025 is the right time to invest in a clothing franchise.
Top Clothing Franchise Opportunities in 2025
Here’s a list of India’s best clothing franchise brands you can consider in 2025:
| Brand | Investment Range (₹) | Profit Margin |
| Raymond | 50 lakh – 1 Cr | 25–35% |
| FabIndia | 30 – 50 lakhs | 30–35% |
| Biba | 20 – 40 lakhs | 28–32% |
| Van Heusen | 30 – 50 lakhs | 25–30% |
| Allen Solly | 20 – 35 lakhs | 28–32% |
| Manyavar | 35 – 60 lakhs | 30–40% |
| Zudio (Tata) | 15 – 25 lakhs | 25–30% |
How to Read This Table:
- Investment Range = Initial cost (franchise fee + setup).
- Profit Margin = % of profit you can earn on sales.
- Premium brands (Raymond, Manyavar) require higher investments but bring prestige, while budget-friendly brands (Zudio, Biba) attract mass customers in tier-2 & tier-3 cities.
Pro Insight: Brands like Zudio and Biba are booming in tier-2 and tier-3 cities due to affordable pricing and rising demand for stylish, yet budget-friendly apparel.
Investment & Space Requirements for Clothing Franchise in India
Starting a clothing franchise is not just about the franchise fee — you’ll also need to factor in store interiors, inventory, staff, and working capital. Here’s a clear picture:
1. Cost Breakdown of a Clothing Franchise
| Expense Type | Estimated Range (₹) | Notes |
| Franchise Fee | 2 – 20 lakhs | One-time fee paid to the brand. |
| Store Interiors | 5 – 30 lakhs | Includes design, branding, lighting, shelves, etc. |
| Initial Inventory | 5 – 25 lakhs | First stock supplied by the brand. |
| Staff & Training | 1 – 5 lakhs | Most brands provide training support. |
| Working Capital | 2 – 10 lakhs | Needed for rent, salaries, and monthly operations. |
| Total Investment | 10 lakhs – 1 crore+ | Depends on brand category (budget vs premium). |
2. Investment & Space by Brand Category
| Franchise Type | Investment Range (₹) | Space Required |
| Small / Budget Brands (Zudio, local labels) | 10 – 20 lakhs | 500–700 sq. ft. |
| Mid-Tier Brands (Biba, Allen Solly, Van Heusen) | 20 – 50 lakhs | 700–1000 sq. ft. |
| Premium Brands (Raymond, Manyavar, International labels) | 50 lakhs – 1 crore+ | 1000–1500 sq. ft. |
3. Investment vs Break-even Period
| Brand Type | Avg. Investment (₹) | Break-even Period |
| Budget (Zudio, local brands) | 10–20 lakhs | 12–18 months |
| Mid-tier (Biba, Allen Solly) | 20–50 lakhs | 18–24 months |
| Premium (Raymond, Manyavar) | 50 lakhs – 1 Cr+ | 24–30 months |
Example:
- A Zudio franchise in a tier-2 city mall: ~₹18 lakhs investment, ~600 sq. ft., break-even in 15 months.
- A Raymond franchise in a metro city: ~₹80 lakhs investment, ~1200 sq. ft., break-even in 28 months.
Pro Tip: If you’re starting with limited capital, consider budget brands like Zudio that work well in smaller cities. If you have higher capital, a premium brand like Raymond or Manyavar gives prestige and long-term returns.
Profitability of Clothing Franchises in India
Clothing franchises in India are highly profitable if located in the right area (malls, high streets, or tier-2 cities with growing demand). Profit margins depend on brand reputation, store size, and customer base. On average, clothing franchises earn 12%–35% net profit margins after covering expenses.
Here’s a table for better understanding:
| Brand Type / Category | Average Monthly Revenue (INR) | Net Profit Margin (%) |
| Premium Brands (e.g., Van Heusen, Allen Solly) | ₹15–25 lakhs | 20%–25% |
| Mid-Range Brands (e.g., Aurelia, Biba, Max Fashion) | ₹8–15 lakhs | 18%–22% |
| Budget/Youth Brands (e.g., Zudio, Reliance Trends) | ₹5–10 lakhs | 12%–18% |
| Luxury / Designer Labels | ₹25–50 lakhs | 25%–35% |
| Kidswear / Niche Brands | ₹4–8 lakhs | 15%–20% |
Key Insights:
- Break-even period: Usually 12–24 months, depending on investment and brand recognition.
- Seasonal spikes: Festive and wedding seasons drive up sales by 30–40%.
- High-volume sales: Budget and youth brands rely on quick inventory turnover for profits.
- Premium & luxury brands: Though investment is high, margins are stronger, and customers are loyal.
Step-by-Step Process to Start a Clothing Franchise
- Market Research – Study demand in your city, mall, or high-street area.
- Select Brand – Shortlist 2–3 clothing brands that fit your budget.
- Apply Online – Fill out the franchise request form on the brand’s official site.
- Legal Setup – Register business under GST, acquire shop & establishment license.
- Choose Location – Opt for high footfall zones: malls, metro areas, or busy local markets.
- Finalise Investment – Pay fees, complete interiors as per brand guidelines.
- Hire Staff – Recruit trained staff; brands often help with training.
- Launch Store – Use brand-led advertising campaigns & local promotions.
Pros & Cons of Clothing Franchise Business
| Aspect | ✅ Pros | ❌ Cons |
| Brand & Customers | Established brand reputation = Ready customer base | Less flexibility due to fixed brand policies |
| Risk Factor | Lower failure risk vs. starting your own label | Seasonal sales dependency (festivals and weddings boost sales, but the off-season is slow) |
| Support | Marketing, training & supply chain support from franchisor | Royalty fees and revenue-sharing reduce net profit |
| Demand | Wide and growing demand across metro, tier-1 & tier-2 cities | High upfront investment (setup + interiors + inventory) |
Key Takeaways
- Clothing franchises in India offer 12%–35% profit margins, depending on brand and location.
- Investment ranges from ₹20 lakhs (budget brands) to ₹1.5 crores+ (luxury brands) with space needs of 500–2000 sq. ft.
- Break-even is typically achieved within 12–24 months in high-demand locations.
- India’s apparel market is growing fast, expected to reach USD 135 billion by 2028.
- Top clothing franchise opportunities include Zudio, Reliance Trends, Biba, Max Fashion, and Van Heusen.
Conclusion
If you’re looking to enter the retail world, a clothing franchise in India is one of the safest and most profitable bets in 2025. From budget-friendly fast fashion (Zudio) to premium brands (Raymond, Manyavar), there’s an option for every investor. The key is choosing the right brand for your location, managing inventory smartly, and focusing on customer service. Done right, you could be running a highly profitable franchise within just 2–3 years.
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FAQs
Small brands start at ₹10–15 lakhs.
Raymond, Biba, FabIndia, and Manyavar lead profitability.
Most franchises earn 25–40% margins.
Minimum 500 sq. ft., larger brands need 1000+ sq. ft.
Yes! Brands like Zudio and Biba thrive in tier-2 and tier-3 cities.
No, most brands offer training.
GST registration, shop license, and local trade permits.
Average 18–30 months.
Yes, many brands allow franchisees to join their e-commerce network.
High investment, seasonality, and dependence on brand rules.
