As of 2024, the franchise business in India is growing rapidly, driven by increasing consumer demand and the rise of e-commerce platforms. Here are some key statistics:

1. Number of Franchisees: In 2024 there are approximately 3.5 million franchisees operating in India, with a growth rate of 15% per annum.
2. Franchise Industry Size: The franchise industry in India is expected to reach a size of ₹1.5 trillion (approximately USD 20 billion) by the end of 2024, growing at a compound annual growth rate (CAGR) of 20% from 2020 to 2024.
3. Top Franchise Categories: The top franchise categories in India include:
   • Food and Beverage: 35%
   • Retail: 25%
   • Education: 15%
   • Healthcare: 10%
   • Services: 5%.

A franchise setup allows the franchisee to enjoy low risk and a support system, whereas the franchisor enjoys business expansion. Instead of taking risks associated with a new business in a volatile market, many people prefer owning a profitable franchise business. If you are also planning to start a franchise business, this article will be helpful. We have listed the top 10 most profitable franchise business opportunities in India. Keep reading to make a well-calculated decision.

What Is A Franchise Business?

A franchise model is a type of business owned and run by different individuals (franchisees) in various regions but branded by a single large company (franchisor). The franchisor owns the original business and licenses the right to use its brand name, service/product, knowledge, and other trademarks in exchange for a franchise fee, royalty, or commission to the franchisees. Franchise business ideas allow individuals to tap into an established brand’s success and operational framework.

Top 10 Profitable Franchise Business Opportunities in India

1.Tumbledry

Business Line: Dry-clean & Laundry
Investment: ₹25 Lakh
Area Required: 250 sq. ft.
Total Stores: 900+

Started in 2019, Tumbledry has become India’s largest laundry & dry clean chain. They have a strong franchise network of 900+ stores across more than 300+ cities. Led by industry veterans, Tumbledry aims to remove the laundry woes of urban India. Their services include dry cleaning, laundry, shoe dry cleaning, shoe repair, bag cleaning & repair, carpet cleaning, and much more.

Tumbledry charges a 7.5% weekly royalty. Their strategically planned business model is successful in metros, Tier 2 & Tier 3 cities. Tumbledry franchise partners achieve operational break-even within 3 months and enjoy heavy returns on investment.

Read More: KFC Franchise

2. Kalyan Jewellers

Business Line: Jewellery
Investment: ₹50 Lakh – ₹1 Crore
Area Required: 1000 – 1500 sq. ft.
Total Stores: 137+

Kalyan Jewellers, started in 1993 by Mr. T.S. Kalyanaraman, has a strong presence in 21 states and UTs of India, with 30 showrooms in the Middle East. They design, manufacture, and sell gold, studded, and diamond products. With a significant increase in consolidated profit, Kalyan Jewellers offers a profitable franchise business model.

Prospective franchisees must have a good financial background and over 10 years of business experience.

3. Domino’s

Business Line: Food and Beverages (Fast Food)
Investment: ₹1.25 Crore
Area Required: 1500-2000 sq. ft.
Total Outlets: 1495+

Founded in 1960, Domino’s is an American multinational pizza restaurant chain with a strong presence in more than 70 countries. The franchise model of Domino’s is highly profitable due to the high demand for their product. However, the franchise works in association with Jubilant Foodworks and charges a 5.5% weekly royalty. Ensure no other Domino’s outlet is within a 5 km radius before applying.

4. Dr Lal PathLabs

Business Line: Diagnostic Labs
Investment: Collection Centre: ₹3-5 Lakh, Diagnostic Centre: ₹25 Lakh
Area Required: Collection Centre: 150-300 sq. ft., Diagnostic Centre: 3,500 sq. ft.
Total Centres: 1800+

Dr Lal PathLabs is India’s leading diagnostic healthcare chain with over 60 years in the industry. They offer more than 1650 tests, including nutrition, genetics, biophysics, and more. Franchise options include:

• Collection Centre Franchise: Samples are collected and sent to diagnostic centres.
• Diagnostic Centre Franchise: Tests are performed and reports derived.

Franchise partners pay 25-30% royalty/commission.

5. FirstCry

Business Line: Kids & Baby Products
Investment: ₹20-30 Lakh
Area Required: 1000 – 2000 sq. ft.
Total Stores: 400+

Established by the Mahindra Group in 2010, FirstCry is Asia’s largest baby & kids product range. The franchise agreement is valid for 5 years, requiring renewal thereafter. Prospective franchisees should have entrepreneurial and leadership skills to adapt to market trends. Store staff should be polite, courteous, and attentive to parents’ needs.

Read More: Success Business Ideas

6. VLCC

Business Line: Health & Wellness
Investment: Beauty Salon: ₹30-32 Lakh, Beauty & Wellness Center: ₹65-70 Lakh
Area Required: Beauty Salon: 800-1000 sq. ft., Beauty & Wellness Center: 1800-2200 sq. ft
Total Outlets: 236+

Founded in 1989, VLCC is a leading wellness brand. They offer two franchise options:

• Beauty Salon
• Beauty & Wellness Center

Franchisees use the VLCC brand name, products, and standards for five years, with a 15% monthly royalty. Franchise fees vary by location.

7. Kidzee

Business Line: Pre-school
Investment: ₹12-15 Lakh
Area Required: 2000-3000 sq. ft.
Total Centers: 2000

Kidzee has transformed preschool education, with over 900,000 children enrolled. Franchise premises must have internet connectivity, CCTV, AC, and suitable indoor and outdoor play areas. Franchise partners share 15% of total revenue with Kidzee.

Read More: Best Bank For Startups

8. Jockey

Business Line: Clothing
Investment: ₹45-50 Lakh
Area Required: 1000 – 1400 sq. ft.
Total Outlets: 900+

Jockey International Inc., based in Wisconsin, USA, is renowned for its innerwear, sleepwear, and sportswear. The brand has a high return ratio, with sales growing 35% in FY 2022. Prospective franchisees must open an exclusive Jockey store in a prime location.

9. Delhivery

Business Line: Courier & Delivery
Investment: Cosmos: ₹50 Thousand-2 Lakh, Constellation: ₹2-5 Lakh
Area Required: 400-500 sq. ft.
Total Centers: 3000+

Founded in 2011, Delhivery is a major player in express logistics, offering two franchise types:

• Cosmos: Network of stores in a small area for local deliveries.
• Constellation: Larger area for individual freight pick-up and deliveries.

Delhivery processes approximately 10 million orders monthly, indicating strong performance.

Read More: Top 5 Startups in Chennai

10. Lakme

Business Line: Beauty & Wellness
Investment: ₹50-60 Lakh
Area Required: 900 sq. ft.
Total Salons: 400+

Lakme is a leading beauty brand with a vast customer base. Franchisees should have a customer-centric approach and commitment to business ethics. Lakme offers sustainable growth in its business model.

Franchise Business Models

The franchise business model is a dynamic system where all parties benefit from collaboration and shared success. In this model, the franchisee pays fees and royalties to the franchisor for the privilege of using an established brand name and a proven business system. This symbiotic relationship allows the franchisor to expand its brand with minimal capital investment while the franchisee starts their venture with a tried-and-tested framework, enhancing their chances of success. In essence, franchising creates a win-win environment where both the franchisor and the franchisee can grow their businesses and achieve their goals.

Franchise Business Ideas in India

India has seen a surge in franchise opportunities, particularly in sectors like health and wellness, educational services, and eco-friendly products. Let’s explore these exciting and profitable franchise business ideas.

Health and Wellness Businesses

Health and wellness franchises are booming in India. Popular options include:

• Yoga Studios and Wellness Centers: These centers offer more than just yoga classes. They provide stress management programs, nutritional consultations, and resources for maintaining physical fitness.
• Fitness and Rehabilitation Centers: Facilities focusing on physical therapy, rehabilitation, and fitness training are gaining traction, providing comprehensive health solutions.

Educational Services

The educational services sector is expanding rapidly, offering lucrative franchise opportunities:

• Tutoring Centers: These centers provide high-quality tutoring services, personalized attention, and innovative technology to help students excel in exams, language courses, and career guidance.
• Online Education Platforms: With the rise of digital learning, franchises offering online courses and educational resources are thriving, catering to a tech-savvy generation.

Eco-friendly Businesses

Eco-friendly franchises are becoming increasingly popular as sustainability gains importance:

• Green Energy Solutions: Franchises offering renewable energy solutions, such as solar panels and wind turbines, are helping combat climate change.
• Organic Food Stores: These stores provide organic and sustainably sourced food products, promoting healthy eating and environmental conservation.
• Waste Management Services: Franchises focused on waste reduction and recycling are essential in fostering a sustainable lifestyle.

Why Invest in These Franchise Business Ideas?

The emergence of these sectors presents a golden opportunity for investors looking to tap into India’s growing economy. Health and wellness, educational services, and eco-friendly products are not only profitable but also contribute positively to society.

By investing in these franchise business ideas, you can benefit from the following:

• Established Brand Recognition: Leverage the reputation and customer loyalty of well-known brands.
• Proven Business Models: Start with a framework that has been tested and refined for success.
• Comprehensive Support: Receive training, marketing, and operational support from the franchisor.
• Sustainable Growth: Align with sectors that have long-term growth potential and societal impact.

Conclusion

The franchise business model offers a pathway to success by combining the strengths of both the franchisor and the franchisee. With the rise of health and wellness, educational services, and eco-friendly franchises, there are ample opportunities to invest in profitable and impactful business ventures. Explore these franchise business ideas and embark on a rewarding entrepreneurial journey in India!

Starting a franchise business in India is a lucrative opportunity with numerous profitable options. By understanding the investment, area requirements, and support system of each franchise, you can make an informed decision. Explore these franchise business ideas and take the first step towards a successful business venture!

Frequently Asked Questions