10+ Best Profitable Franchise Business Opportunities in India

India’s rank in ease of doing business improved from 142nd to 63rd in 2019 and is expected to rise further. Startups and businesses are dotted across the country. Moreover, starting a business has become easier with concepts like franchising. 

The franchise industry has taken big strides in recent years across various sectors, such as food and beverage, education, retail, and health and wellness. In a franchise model, a franchisor – a successful business entity – sells the rights to use its brand and products to a franchisee, who could be an individual or a group of people. The franchisee pays an initial amount and ongoing fees to gain access to the franchisor’s brand, marketing strategies, and operational processes. This model allows franchisees to generate profits while minimizing risks, as they benefit from an established business model. 

Now, if this franchise shop model interests you and you’re planning to start a franchise business, read on to discover the top 11 franchise opportunities in India that are known for their profitability.

1. McDonald’s

• Investment Required: Rs.25 Lakh (starting)
• Area Requirement: 1500-4000 sq. ft.
• Average Profit Margin: 29.36% net profit on sales

McDonald's has been a staple in the Indian fast-food market since 1996. With a strong marketing strategy and a menu tailored to Indian tastes—think Chicken Maharaja and McAloo Tikki burgers—this franchise provides one of the best franchise opportunities in India. For new entrepreneurs, McDonald’s is a reliable option for profitable business ventures, leveraging its brand recognition and proven business model.

2. Lenskart

• Investment Required: Rs.20 Lakh (starting)
• Area Requirement: 300-500 sq. ft.
• Average Profit Margin: 30% ROI

Lenskart is a popular eyewear brand that operates both online and through offline outlets. Known for its unique and stylish eyeglasses, sunglasses, and contact lenses, Lenskart is a great franchise business idea with a growing customer base. Due to its moderate investment and high returns, it can be an excellent choice for entrepreneurs looking to start a small franchise business in India.

3. EuroKids

• Investment Required: Rs.12 Lakh (starting)
• Area Requirement: 1500-2000 sq. ft.
• Average Profit Margin: 20%-25% ROI

EuroKids, a well-known preschool chain, has around 1000 facilities across India, Nepal, and Bangladesh. With the demand for quality early education growing, investing in a EuroKids franchise can be a profitable venture. As one of the top franchise business in India, this brand promises a strong reputation and steady returns.

4. CarzSpa Detailing Studio

• Investment Required: Rs.20 Lakh (starting)
• Average Profit Margin: 20%-25%

CarzSpa is a premium car detailing brand catering to India's rapidly expanding automobile market. With a growing trend in vehicle maintenance and appearance, CarzSpa offers high-quality services, making it one of India's most profitable business opportunities. For those interested in low-cost franchise opportunities, CarzSpa offers a significant Average Profit Margin in exchange for a reasonable investment.

5. Lakme Salon

• Investment Required: Rs.60 Lakh (starting)
• Average Profit Margin: 12%-15%

Lakme Salon is a trusted name in the beauty industry, providing top-notch beauty services. With a strong presence across cities, investing in this franchise offers entrepreneurs the chance to tap into a profitable and dynamic market with one of the best franchises in India. This is an excellent franchise business idea for those who want to be a part of the booming beauty sector.

6. Kalyan Jewellers

• Investment Required: Rs.50 Lakh - Rs.1 Crore
• Area Requirement: 1000 – 1500 sq. ft.

Kalyan Jewellers, a hyperlocal jewelry giant, is known for its exquisite gold and diamond products. With over 137 stores across India and 30 outlets in the Middle East, the brand’s success clearly indicates profitability. Aspiring entrepreneurs passionate about jewelry can benefit from its high brand equity.

7. Dr. Lal PathLabs

• Investment Required: Rs.3-5 Lakh for Collection Centres; Rs.25 Lakh for Diagnostic Centres
• Average Profit Margin: 25%-30% commission

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

8. AMUL

• Investment Required: Rs.1.5 Lakh (starting)
• Average Profit Margin: 20%-50% gross profit margin

AMUL is an iconic Indian dairy brand that offers one of the cheapest franchises in India for those looking for minimal investment options. With a wide range of dairy products popular in over 40 countries, AMUL is an ideal choice for entrepreneurs seeking low-cost franchise opportunities.

9. Jockey

• Investment Required: Rs.45 Lakh (starting)
• Area Requirement: 1000-1200 sq. ft.
• Average Profit Margin: 20%-25% net profit

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 recognized brand with steady demand and significant profitability.

10. FabIndia

• Investment Required: Rs.50 Lakh (starting)
• Area Requirement: 1000-1500 sq. ft.
• Average Profit Margin: 17%-20% net profit

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

• Investment Required: Rs.20 Lakh (starting)
• Area Requirement: 1200-2500 sq. ft.
• Average Profit Margin: 18%-20% net profit

FirstCry, specializing 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.

Another question that pops up is, this is a limited list of 11 profitable franchise models, and there are a dozen more across India. So, how do you select the right one for yourself? The answer lies in strategizing in the initial stages and considering the following factors when framing your business plan-

• Comprehensive training and ongoing support are essential in a franchise.
• A recognized brand with a positive image increases the chances of success.
• Economies of scale offer benefits like bulk discounts, better supplier deals, and efficient operations.
• A proven business model ensures stability and profitability.
• A strong reputation attracts loyal customers, boosting business growth.
• Assess financial details such as franchise fees, ROI, and royalty fees before investing.
• National or regional advertising support enhances brand visibility and customer attraction.
• Exclusive territories reduce competition and secure market space for franchisees.
• The franchise should adapt to local market conditions to ensure smooth operations.
• Alignment with personal values and goals is important for long-term satisfaction and success.

Starting a franchise business in India can be a lucrative opportunity for aspiring entrepreneurs. Whether you're looking for a small franchise business in India or want to explore low-cost franchise opportunities, there are options available across various sectors. The key is to choose the most profitable business in India that aligns with your interests, investment capabilities, and market potential. By leveraging an established brand, you can minimize risks and ensure steady returns. So, if you're wondering how to start a franchise business or which franchise is most profitable, the options listed here are a great place to begin your journey into franchising. 

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.