Which Franchise is Most Profitable in India for New Entrepreneurs? (2025)

Starting a business in India is an exciting opportunity, but it can be challenging for new entrepreneurs to navigate the market alone. That’s where franchises come in—offering a proven business model, established brand, and built-in support system. India’s franchise sector is booming, growing at an impressive 30–35% annually, and is expected to reach ₹11.7 lakh crore by 2024.

From low-investment options like Amul kiosks to high-ROI brands like Tumbledry, there’s a franchise for every budget and business goal. In this guide, we explore the most profitable franchises in India for 2025, helping new entrepreneurs make smart decisions and achieve success with minimal risk.

Top 8 Profitable Franchise Businesses for New Entrepreneurs (2025)

Want to start your own business with a proven model? Here’s a look at India’s most profitable franchises that give excellent returns with manageable investments. These businesses have proven success records and strong market presence. They are perfect choices for new business owners in 2025.

1. Amul – ₹2–6 lakh, 20–50% profit margin

2. FirstCry – ₹20–30 lakh, 18–20% margin

3. Lenskart — ₹25–40 lakh, 25–30% ROI

4. Domino’s — ₹50 lakh–₹1.5 crore, 8% margin

5. Kidzee — ₹12–15 lakh, 20–25% margin

6. Tumbledry — ₹25 lakh, 80% ROI

7. VLCC — ₹30–50 lakh, 20–30% margin

8. DTDC — ₹50K–2 lakh, 20–25% ROI

How to Evaluate a Franchise Before Investing

Putting your hard-earned money into a franchise needs more than just looking at profit margins. Like a detective solving a case, you should really look into several aspects of a franchise to make sure it fits your business goals.

Check franchise fee and royalty structure

The initial fees are just the start. Ongoing royalty payments come from a cut of your weekly or monthly gross income. These continue throughout your agreement—even when you’re not making money yet. You should know:

• If the fee structure has minimum royalty requirements
• Whether there are extra advertising fees (sometimes these go to national campaigns instead of local marketing)
• How the royalty percentage stacks up against industry standards
• If you can make enough profit after paying all fees

Some franchisors offer better royalty rates as you make more money—the more you earn, the less you pay in percentage. This setup can affect your profits a lot over time.

Review franchisor’s training and support

A complete training program is essential for running a successful franchise. Current franchise owners can tell you if the training is good and helpful. You should also break down:

• How relevant is the curriculum to daily operations
• What qualifications and ground experience do trainers have
• Whether you get hands-on practice or just theory
• If you can get more training after the initial program

Look for operations manuals, guides, and help resources. Good franchisors give easy access to these materials and keep them up to date.

Analyse local market demand

The best franchise idea won’t work without enough local customers. Start by checking if people in your area want the franchisor’s products or services.

Think about whether the business is:

• Seasonal or year-round
• Maybe just a trend
• Able to bring customers back

Look into local demographics like population numbers, age groups, income levels, and job rates. Check economic signs such as business activity, building occupancy, and the area’s financial health.

Talk to existing franchisees

Current franchisees give honest feedback you won’t find in any franchisor’s brochure. Reach out to owners who’ve been running for just over a year—they can share valuable views.

Ask them specific questions like:

• “How did your total investment compare to first estimates?”
• “Were you happy with the training and opening help?”
• “Does the franchisor help when you ask?”
• “How long until you broke even?”
• “Would you buy this franchise again if starting over?”

Try to talk with franchisees at different stages—new owners, those running for 6 months to 2 years, and experienced ones. Each group gives unique insights into the business.

Use government portals like Startup India for validation

Looking carefully at these five key areas helps you make a smart choice about which franchise lines up with your goals, skills, and budget.

Smart Tools & Resources for Franchise Success

1. Franchise India & FAI Directories

• Franchise India: Largest franchise directory in India with 15,000+ opportunities, training, marketing help, and mentorship.
• FAI (Franchising Association of India): Connects franchisors, franchisees, and vendors; access to global franchising practices.

2. Startup India Programs

• Validates franchise opportunities and provides financial & learning support.
• Pro-bono services worth ₹489.41 million for startups (training, cloud credits, enterprise support).

3. ROI & Profitability Calculators

• Gives a clear picture of financial potential before investing.
• Helps estimate monthly payments, total costs, and potential profits.
• Evaluates franchise fees, royalties, and yearly revenue projections.

Key Takeaways

India’s franchise market is booming with 30-35% annual growth, offering diverse opportunities from low-investment options like Amul (₹2-6 lakh) to premium brands like Domino’s (₹50 lakh-₹1.5 crore).

• Amul offers the lowest entry barrier at just ₹2-6 lakh investment with 20-50% profit margins and no royalty fees
• Tumbledry delivers exceptional 80% ROI with 95% of stores breaking even within 3 months of launch
• Evaluate beyond profit margins – check franchise fees, royalty structure, training quality, and speak with existing franchisees
• Use government resources like Startup India for validation and access to pro-bono services worth ₹489 million
• Market demand analysis is crucial – research local demographics, competition, and economic indicators before investing
• Success depends on alignment – choose franchises matching your skills, interests, and financial capacity rather than just highest margins

The Indian franchise sector is projected to reach ₹11.7 lakh crore by 2024, making it an opportune time for new entrepreneurs to enter this thriving market with proper research and planning.

Conclusion

India’s franchise market offers profitable opportunities for new entrepreneurs, from low-investment options like Amul to high-ROI brands like Tumbledry. Success depends on careful evaluation of fees, royalties, training, market demand, and feedback from existing franchisees. Using tools like Franchise India, FAI directories, Startup India programs, and ROI calculators can help make informed decisions and maximize your chances of success in 2025.

Get practical guides and fresh ideas to build profitable local businesses in your city.

FAQs