10+ Top Profitable Franchise Businesses in India 2025

Starting an enterprise with an established business model together with a brand name and preexisting customer foundation enables new entrepreneurs to avoid all uncertainties that come with starting from scratch. That’s the magic of franchises! The flourishing Indian entrepreneur environment has turned the franchise sector into a rewarding entry point for potential business owners. People increasingly choose trusted brands so the number of legitimate franchise opportunities has reached new heights in food and beverage and education as well as retail and health and wellness industries. 

This article evaluates 11 profitable franchise businesses in India together with their forecasted development and financial potential for 2025.

1. McDonald’s

• Franchise Fee: ₹25 Lakhs to ₹40 Lakhs
• Setup Costs: ₹6 Crores to ₹14 Crores
• Marketing Fees: 3% to 4% of gross sales
• Royalty Fees: 4% to 5% of gross sales
• Working Capital: ₹30 Lakhs to ₹50 Lakhs
• Area Requirement: 1,000 – 1,500 sq. m for standalone restaurants.
• Average Profit Margin: Gross profit margin of 50% to 60%.

McDonald's has been a go to player for Indian fast-food market since 1996. Armed with a robust marketing strategy and a menu customised to Indian tastes—Chicken Maharaja and McAloo Tikki burgers — this franchise has made it in the list of best franchise business in India. The low investment and brand recognition make McDonald’s a very good business idea for new entrepreneurs who want to earn money.

2. Lenskart

• Franchise Fee: ₹2,24,000
• Setup Costs: ₹20 Lakhs to ₹30 Lakhs
• Marketing Fees: ₹30,000 annually
• Royalty Fees: 25% of revenue
• Working Capital: Approximately ₹20 lakhs to ₹30 lakhs.
• Area Requirement: 300 – 500 sq. ft.
• Average Profit Margin: 25% to 30%

Lenskart is an eyewear brand that has both online and offline stores. Popular for its fashionable, innovative eyeglasses, sunglasses, and contact lenses, Lenskart is one of the most popular as well as lucrative franchise opportunities India with a developing customer base. With moderate investment and a solid return, it can be one of the best options for people who want a low investment franchise.

3. EuroKids

• Franchise Cost: ₹2 Lakhs to ₹4 Lakhs
• Setup Costs: ₹15 Lakhs to ₹20 Lakhs
• Marketing Fees: Typically included in operational costs.
• Royalty Fees: 6%
• Working Capital: Approximately ₹2 lakhs to ₹3 lakhs
• Area Requirement: 1,500 – 2,000 sq. ft.
• Average Franchise Profit Margin: 30% to 40%

Another well-known preschool chain EuroKids has approximately 1000 facilities in India, Nepal, and Bangladesh. The rise in demand for quality early education makes a EuroKids franchise become an extremely lucrative opportunity. This is one of the best franchise to buy and ensures you a good reputation and flow of money.

4. CarzSpa Detailing Studio

• Franchise Fee: No franchise fee
• Setup Costs: ₹40 lakhs to ₹45 lakhs
• Marketing Fees: Included in operational costs, specific fees not stated
• Royalty Fees: No royalty fees
• Working Capital: Approximately ₹5 lakhs to ₹10 lakhs
• Average Profit Margin: 40% to 50%

India has a booming automobile market and CarzSpa is a national car detailing brand made for automobile owners. As the trend for vehicle maintenance and appearance grows, the high-quality services offered by CarzSpa makes it among the most lucrative business opportunities in India. CarzSpa provides a significant Average Profit Margin in exchange for a reasonable investment, making it an exciting franchise business in India.

5. Lakme Salon

• Franchise Fee: ₹8 Lakhs
• Setup Costs: ₹50 Lakhs to ₹1 Crore
• Marketing Fees: ₹5 Lakhs to ₹10 Lakhs
• Royalty Fees: No ongoing royalty fees
• Working Capital: ₹2 Lakhs to ₹3 Lakhs monthly
• Average Profit Margin: 15% to 25%

Lakme Salon is one of the best names in the industry when it comes to beauty services. As this franchise has a large presence across cities, it enables entrepreneurs to venture into a vast area of a lucrative and ever-evolving market, nonetheless emerging as one of the best franchise businesses in India. If you want to get into the growing beauty industry, then this is one of the best franchise business ideas.

6. Kalyan Jewellers

• Franchise Fee: ₹5 Lakhs to ₹10 Lakhs
• Setup Costs: ₹20 Lakhs to ₹40 Lakhs
• Marketing Fees: Typically included in setup costs
• Royalty Fees: 2% of net revenue
• Working Capital: ₹20 Lakhs
• Area Requirement: 1000 – 1500 sq. ft.

Kalyan Jewellers is a hyper local jewellery giant in India featuring exquisite gold and diamond products. The success of the brand is evident; it has more than 137 stores in India and 30 outlets in the Middle East. It is highly profitable. The brand equity of a jewellery store can be a great advantage for starting marketers interested in pursuing this field.

7. Dr. Lal PathLabs

• Franchise Fee: ₹50,000
• Setup Costs: ₹3 Lakhs to ₹5 Lakhs
• Marketing Fees: Typically included in setup costs
• Royalty Fees: 25% to 30% of revenue
• Working Capital: ₹1 Lakh to ₹2 Lakhs
• Average Profit Margin: Approximately 20%

Dr Lal PathLabs is a renowned diagnostic healthcare chain in India. Entrepreneurs can either opt for a collection centre or a full-fledged diagnostic centre. Given the rising demand for healthcare services, this brand offers one of the best franchise businesses in India.

8. AMUL

• Franchise Fee: ₹25,000 to ₹50,000 (depending on the type of outlet)
• Setup Costs: ₹1.5 Lakhs to ₹6 Lakhs
• Royalty Fees: None
• Working Capital: ₹5 Lakhs to ₹10 Lakhs monthly
• Average Profit Margin: Approximately 20%

AMUL is a popular Indian dairy brand that you can consider as one of the least expensive franchises in India for people who want to invest less. AMUL is a perfect choice for entrepreneurs looking for low-investment franchise opportunities with diverse dairy businesses spread across more than 40 countries. 

9. Jockey

• Franchise Fee: None
• Setup Costs: ₹45 Lakhs to ₹50 Lakhs
• Marketing Fees: Typically included in setup costs
• Royalty Fees: None
• Area Requirement: 1,000 to 1,200 sq. ft.
• Average Profit Margin: 10% to 12%

Jockey, a leading brand in innerwear and sleepwear, is widely known for its quality and comfort. Partnering with Jockey offers a chance to invest in a globally recognised brand with steady demand and significant profitability.

10. FabIndia

• Franchise Fee: ₹5 Lakhs
• Setup Costs: ₹50 Lakhs to ₹1 Crore
• Marketing Fees: ₹2 Lakhs to ₹5 Lakhs annually
• Royalty Fees: None
• Working Capital: ₹10 Lakhs to ₹15 Lakhs
• Area Requirement: 1,500 – 2,000 sq. ft.
• Average Profit Margin: Approximately 15% to 20%

FabIndia is a household name in India that offers ethnic wear, home decor, and personal care products. With its strong brand identity and loyal customer base, FabIndia stands out among franchise business ideas as a stable and profitable venture.

11. FirstCry

• Franchise Fee: ₹3 Lakhs to ₹5 Lakhs
• Setup Costs: ₹10 Lakhs to ₹20 Lakhs
• Marketing Fees: Not specified
• Working Capital: ₹5 Lakhs to ₹10 Lakhs
• Area Requirement: 2,000 – 3,000 sq. ft.
• Average Profit Margin: Approximately 30% to 40%

FirstCry, which specialises in children’s products, has partnerships with major brands like Disney and Pampers. As the demand for children's goods rises, investing in a FirstCry franchise is one of the best franchise opportunities in India, offering consistent returns.

Analysis of Key Success Factors for Each Franchise

There are a number of key factors that mark the success of a franchise and contribute to building a solid market presence and building customer loyalty. Here are the key success factors of all the franchises mentioned above -

McDonald's

McDonald’s put a lot of focus on its location to make sure it had outlets that could be easily reached. This gave McDonald's an edge over its competitors. Efficient operations mean service delivery where customers receive their orders more quickly. They also have a strong focus on customer service, which adds to the overall experience. Also, modifying the menu to regional tastes allows McDonald's to accommodate local tastes, which makes it more appealing in various markets.

Lenskart

By prioritising customer experience, Lenskart has transformed eyewear shopping. The brand follows an omnichannel approach; they allow customers to try their products in-store and buy online. Offering products at a low price point attracts a broad demographic, making the eyewear accessible to everyone. Moreover, innovative technology, specifically virtual try-ons, by Lenskart, attracts and retains more customers.

EuroKids

EuroKids, with its qualified teachers and superior quality of education, is a pioneer in preschool education. An interesting curriculum supports creativity and development, and nurturing surroundings put parents at ease, knowing that their kids will be in safe hands. By keeping the lines of communication open with parents, EuroKids establishes trust and engagement in their child's education and will ultimately make the experience better for families.

CarzSpa

Quality service is the top priority of CarzSpa. Skilled technicians ensure vehicles receive superior detailing, which results in satisfied customers and recurring business. Having customer loyalty programmes promotes return visitations while choosing the best location offers accessibility to clients.

Lakme Salon

Lakme Salon builds its legacy around well-qualified professionals providing an array of beauty services. Beauty is an extremely competitive industry, so you want the clientele to recognise the name and know that they can count on you for good services. Not to mention effective marketing strategies also increase visibility and attract new customers.

Kalyan Jewellers

Through quality products and a customer-centric approach, Kalyan Jewellers has created a reputation that speaks of trust and commitment. Its stores are located strategically to be accessible to customers, and customer service becomes a priority to elicit the customers’ loyalty.

Dr. Lal PathLabs

High-quality diagnostic services are delivered through a vast network of collection centres of Dr. Lal PathLabs where reliability matters most. High-end tech in diagnostics builds confidence among customers wanting precise outcomes.

AMUL

Other organisations are also following the same path like AMUL, where their cooperative model empowers farmers and gives them profits, and consumers get quality products directly. Apart from this, Amul has a really strong distribution network.

Jockey

Jockey makes and exports various types of wear, especially underwear, all over the world. The company meets diverse consumer needs with a wide product range and also engages customers actively with initiatives that build brand loyalty.

FabIndia

FabIndia focuses on community — it sources its products from communities across India, ensuring authenticity. Its bold brand personality and social responsibility speak to consumers who want to shop ethically.

FirstCry

FirstCry has a strong online presence and offers a wide range of items, making it the go-to for kids' products. It has customer-centric services, which makes the shopping experience better for consumers.

Financing Options for Franchise Businesses

If you are willing to invest a good amount of funds, then starting a franchise could be a success. Here are some of the financing options for potential franchise owners:

Business Loans

If you are an entrepreneur looking to start a franchise, business loans are typically used for this type of small business franchise financing. Both financial institutions and NBFC provide different types of commercial loans for franchise owners. These loans may be used to pay for initial set-up expenses, working capital, and other business costs. You usually have to submit a business plan, financial statements and proof of creditworthiness.

Franchise Loans

Certain lenders also offer specific types of franchise loans that are tailor-made for franchise businesses. The best part is that these loans are often offered at a favourable rate of interest along with flexible repayment options. Franchise loans help with franchise fees, setup, and marketing costs. A lot of banks and financial institutions have exclusive franchise financing products to aid entrepreneurs in raising funds.

Government Schemes

These are the various schemes of the Indian government to support small businesses and franchisees. For example, the Pradhan Mantri Mudra Yojana lends money to micro and small businesses with low paperwork requirements. The Prime Minister's Employment Generation Programme (PMEGP) also provides loans to entrepreneurs starting their own businesses, including franchises. The entrepreneurs can take advantage of these schemes by registering under Udyam Registration scheme and meeting certain eligibility criteria.

Alternative Financing Options

Venture Capitalists: If you want to grow at a fast pace, and are prepared to give equity stakes in the business, venture capital can offer good funds.

Crowdfunding: Many platforms exist that allow entrepreneurs to raise funds from many people, and this can be a great way to get initial capital.

Business Grants: The federal governments, state governments, and local governments may offer grants to aspiring franchisees. 

How to Choose the Right Franchise

Selecting the best franchise brands is a crucial step that can actually determine the overall outcome of your entrepreneurship endeavour. To help you through this process, here’s a guide to check each step off, along with a framework to guide your decision-making:

Step 1: Evaluate your Interests and Skills

Find Your Interests: What industries or sectors interest you? Passion is the fuel that drives your motivation and commitment to a sector.

Assess Your Skills: Consider your career history and skills. Identify which of these fits the potential franchise opportunities. You might be a good fit for a franchise in the retail sector, for instance, if you have experience in retail.

Step 2: Research the Market

Demand Analysis: Determine if there is demand for the product or service sold by the franchiser in your area. Focus on collecting data from market research reports and surveys.

Research the Competition: Evaluate the competitive landscape. Analyse your current competition, market leaders, and their pros and cons. These will help you to know your possible market share.
 

Step 3: Evaluate the Franchise Opportunity

Study the Franchise Disclosure Document (FDD): FDD provides crucial details about the franchise, including fees, obligations, and financial performance. This will help you see what is expected of you as a franchisee.

Talk to Existing Franchisees: Talk to current franchise owners to get insights. Inquire about profitability, franchisor support, and obstacles they encountered.
 

Assess Financial Viability: Analyze the initial investment required and projected returns. Ensure that the financials align with your expectations and capabilities.

Step 4: Secure Financing

• Assess the financial requirements to establish your franchise and run it during the period until profitability sets in.
• Research the existing financing options among business loans and franchise loans and government schemes. Select a funding source which matches your financial standing.

Step 5: Consult with Experts

• Work with franchise consultants to get their professional insights into the industry and particular franchise opportunities.
• A franchising expert lawyer must review your contracts because you need to understand all legal requirements.
• You should seek financial support from either an accountant or financial advisor to evaluate your chosen franchise's monetary impact and create a tax planning strategy.

Following the organized approach will help you pick a franchise that fits your interests as well as your market opportunities and personal skills. The process of detailed evaluation between each step increases the likelihood of launching a thriving franchise organization.

Conclusion

Franchising presents entrepreneurs with dual advantages because it grants them both self-management freedom and a reputable brand identity. Success through franchises requires investors to select the right business concept while they evaluate potential markets and finish evaluating financial requirements. The listed options present solid beginnings for entrepreneurs who wish to begin their independent business journey by investing at different levels or achieving higher returns. Your business success will increase while risks decrease when you base your business choice on personal talents combined with market trends and your area of interest.

FAQs

Q1. Which business is more profitable?

Ans. The profitability of a business depends on multiple parameters like demand for the product, product (goods or services), competition scenario, economic policies, etc. However, some generally profitable businesses include cloud kitchens, interior design, drop shipping, travel agencies, etc. 

Q2. What are some franchising examples in India?

Ans. A few examples of franchising businesses in India include renowned names like McDonalds, DTDC Cargo and Couriers, VLCC, Kidzee, Pepperfry, SUBWAY, InXpress, and Hero MotoCorp. 

Q3. What permissions are required to start a franchise in India?

Ans. To start a franchise business in India, you will need an FDD (Franchise Disclosure Document), Licensing according to the respective sector (for example, an FSSAI license is required for a business in the food industry), and GST registration for tax compliance.