Top 9 Money-Making Franchise Business Opportunities in India
India is a country of startups. There are over 98,000 DPIIT-recognized startups in India and 107 unicorns as of September 2022. Given the speed at which startups are growing in India, competition is getting tougher. In this market, the probability of building a new brand and making it successful is low. So here is another opportunity: franchise business. Here, you can take advantage of already-established brands and build your business.
In this blog, we will help you to evaluate franchise businesses and will discuss the best franchise business in India.
How To Gauge Franchise Business In India?
Not every franchise business is good to invest in. Every entrepreneur who wants to open a franchise should consider the terms laid out by the franchisor before proceeding ahead.
The following are the criteria that you take into consideration:
Brand Recognition
When you select a franchiser, the first question that should come into your mind is ‘how recognizable is the brand you are about to collaborate with?’ The second question should be ‘How has the brand been growing in the past few years?’
These two questions will determine whether your franchise will be profit-making or not. Seldom, is it wise to opt for a budding brand rather than an established one. Because established brands levy high franchise costs.
If the smaller franchise chain has been growing consistently, there is no harm in choosing it besides, initial investment will be lower as well.
Franchise Fees
Most franchisors incur an upfront fee. This can range from a few thousand rupees to lakhs, depending on the brand value of the franchise. Before moving forward, see if the franchise fees are worth spending or not. If you have any other options at a lower cost, consider choosing them.
See if your franchisor decreases royalty fees with increasing revenue i.e. sliding royalty fees. It would be a win-win situation for both parties.
Franchise Training & Support
Seek training and guidance from the franchisor. You need a roadmap to drive your business ahead and these brands (franchisors) offer a unique customer experience for which they are preferred by the customers. Being their franchisor, you are expected to replicate the experience at your outlet for which you need training and guidance.
Also, if you get a chance speak to other franchise owners of the same brand, discuss their experience, and learn from the conversation.
Franchise Assigned
Almost all businesses aim to grow within a particular geographic area. To grow in that particular easily there should not be any competing franchises (of the same brand). Before finalizing, ask all the questions regarding your territorial exclusivity to your franchisor and proceed with the deal only when you get clear answers in document form, so there is no chance of dispute.
Franchise Tenure
How long the franchise agreement is depends upon the terms & conditions of the franchisor. Generally, it varies between 5 to 15 years in most cases. Some companies provide facilities for renewal, few don’t. Know what your target franchisor is offering you and calculate whether you will be able to earn profits in the given time frame.
Profit Margin
Now that you know almost everything about the terms & conditions of your target franchisor, now it’s time to understand the most important aspect of the franchise business i.e. Profit margin. Know how much profit margin you will get and calculate whether it is worth investing in or not.
Best Franchise Business In India
Now you have understood the nitty-gritty of evaluating a franchise opportunity, let’s have a look at the most profitable franchise opportunities.
Piaggio Vehicles Pvt. Ltd.
The Piaggio Group is one of the largest manufacturers of two-wheelers around the world. This company also holds a major market share in the sector of commercial vehicles in international markets. The company has a range of scooters, mopeds, and motorcycles with the engine capacity starting from 50 to 1200 cc, marketed under the brand name of Piaggio, Vespa, Gilera, Aprilia, Moto Guzzi, Derbi, and Scarabeo brands.
Important franchise stats
| Investment Required | ₹ 62 Lac – 1.85 Cr | ROI | 10% |
| Payback Period | 12 – 18 Months | Margin/Commission | 5% – 6.5 % |
| Space Required | 500 – 2000 Sq. ft | Other Investment Required | No |
| Exclusive Territorial Rights | No | Property Preference | Commercial |
Kabra Global Products Pvt Ltd – Skippi Ice Pops
Skippi Ice Pops is India’s first 100% RO water-based ice pops brand. Shark Tank India, was the first product-based company to receive investment from all five sharks on the panel. The best about these ice pops is that they are gluten-free, preservative-free, and also teeth-friendly.
Important franchise stats
| Investment Required | INR 50 K – 2 Lac | ROI | 90% |
| Payback Period | 3-11 Months | Margin/Commission | 10% |
| Space Required | 100 – 500 Sq.ft | Other Investment Required | No |
| Exclusive Territorial Rights | Yes | Property Preference | Commercial |
Tea Post Private Limited – Tea And Coffee Chain
Tea Post was established in 2013 by Mr. Darshan Dashani to serve quality Indian Chai and traditional snacks for officegoers. The company opened its first-ever outlet in Rajkot, Gujarat and it has a presence in 40 cities across 4 states.
| Investment Required | 10 Lac – 20 Lac | ROI | 30 % |
| Payback Period | 1-3 Years | Margin/Commission | 5% |
| Space Required | 300 – 1200 Sq.ft | Other Investment Required | Yes |
| Exclusive Territorial Rights | NA | Property Preference | Commercial |
Sunrise Bizcom Pvt. Ltd. (Brand Name – Liverpool) – Men’s Clothing
Though Liverpool is the name of a city in England, it has nothing to do with it. It is a wholly Indian brand for men’s clothing. The company’s headquarter is located in Ahmedabad and it has stores across 40 cities in India. The motto of the company is ‘Value for Money’.
| Investment Required | INR 10 – 20 Lac | ROI | 18 % |
| Payback Period | 3-11 Months | Margin/Commission | 30 % |
| Space Required | 600 – 1200 Sq.ft | Other Investment Required | No |
| Exclusive Territorial Rights | NA | Property Preference | Commercial |
Siyaram Silk Mills Ltd – Men’s Clothing
Siyaram’s Silk Mills Limited is an ISO 9001:2008 certified company of bespoke menswear. The company is well known for producing high-quality fabric with futuristic designs, annually they manufacture 60 million meters of fabric and sell across the distribution network of over 0.1 million retail stores.
Important franchise stats
| Investment Required | INR 20 – 30 Lac | ROI | 40% |
| Payback Period | 3-11 Months | Margin/Commission | 15% |
| Space Required | 600 – 1500 Sq.ft | Other Investment Required | No |
| Exclusive Territorial Rights | Yes | Property Preference | Commercial |
Nykd By Nykaa – Women’s Clothing
Nykd is a brand of Nykaa. Who doesn’t know Nykaa, especially after its sensational share price movement in Indian financial markets? Nykaa was founded by Falguni Nayar, in 2012 and headquartered in Mumbai. Nykd (pronounced Nay-Ked) is an athleisure wear brand for women.
Important franchise stats
| Investment Required | INR 20 – 30 Lac | ROI | 10% |
| Payback Period | 1-2 Years | Margin/Commission | 40 % |
| Space Required | 500 – 550 Sq.ft | Other Investment Required | No |
| Exclusive Territorial Rights | Yes | Property Preference | Commercial |
Podar Education Network – Schools
The Podar Education Network was established in 1927 by Sheth Anandilal Podar. Mahatma Gandhi was the first President of the Anandilal Podar Trust. Since the beginning, the institute was driven and motivated by the traditional Indian values of honesty, integrity, and service.
After 95 years of experience in the education sector, the group has grown into a network of 139 Podar International Schools, and 100 Podar Partner schools, with a combined student strength of more than 2,00,000 and the support of 7,800 dedicated and loyal staff members.
Important franchise stats
| Investment Required | INR 2 Cr – 5 Cr | ROI | 65 % |
| Payback Period | 3-5 Years | Margin/Commission | 5 % |
| Space Required | 65000 – 90000 Sq.ft | Other Investment Required | Yes |
| Exclusive Territorial Rights | Yes | Property Preference | Commercial |
Bata – Fashion Accessories
Bata is not just a brand, but an emotion for Indians. For more than 88 years, the company has held a place in the hearts of Indians. It offers footwear and accessories for the entire family and that’s what differentiates the company from the competition.
Important franchise stats
| Investment Required | INR 30 – 50 Lac | ROI | 42 % |
| Payback Period | 3-4 Years | Margin/Commission | 10% |
| Space Required | 1000 – 1200 Sq.ft | Other Investment Required | No |
| Exclusive Territorial Rights | Yes | Property Preference | Commercial |
PharmEasy – Pathological Labs
Founded in 2015 by Dhaval Shah and Dharmil Sheth in Mumbai. In 2022, the company commenced franchising options for doctors, pharmacists, healthcare professionals, and entrepreneurs who want to start their own businesses with minimum investment.
Important franchise stats
| Investment Required | INR 50 K – 2 Lac | ROI | 100% |
| Payback Period | 1-2 years | Margin/Commission | 15 % |
| Space Required | 150 – 250 Sq.ft | Other Investment Required | No |
| Exclusive Territorial Rights | Yes | Property Preference | Commercial |
Summing Up
So this was all about the best money-making franchise business in India. We hope after reading this blog you are now well aware of top franchise businesses, franchise business models, and distribution in India. Coming to the compliance aspect of the business, if you ever need GST accounting software, try Munim, all-in-one accounting software catering to all your requirements from accounting, and GST return filing to inventory management.
Frequently Asked Questions On The Best Business In India
Q. Is it easy to open a franchise?
Ans. It’s definitely not easy to open a franchise business in India. Compared to opening your own small businesses it would be easy because, here you’ll have the support of brand experts.
Q. Is GST mandatory for franchises?
Yes, GST is mandatory for all businesses if they deal in taxable goods or services, clocking an annual turnover aggregate turnover of 20 lakhs or above.
Q. What is the GST HSN code for the franchise fee?
The HSN CODE for Trademarks and franchises is 998396.
Q. Is the franchise fee refundable?
No, the franchise fee is non-refundable in most cases.
Disclaimer – The blog is purely for information purposes. We do not claim the data, the source of data is www.franchiseindia(dot)com.
