It is without a doubt that nowadays, the brands being seen on international markets are also seen on the local side of Indian streets. The simple and easy reason for this is the franchise being available in these chains. International brands are using Franchise Business to expand their market share in India.
All of the foreign brands know that India is a huge market, and getting a chunk of this market share will make their company “n” times profitable. Hence, most international brands want to expand their profits by opening stores and investing in the Indian market.
Many business-minded people have opted to go with a franchise model business rather than starting something from scratch. The main question now is what is Franchise Business, and how does one start or get it.
What is a Franchise Business?
A franchise is a kind of business model wherein the owner, also known as the franchisor, gives the interested person known as the franchisee (the owner of the new store) their license to operate their products along with knowledge and their brand name for a nominal fee also known as a franchise fee.
The franchisor is requested to give out all information to the person buying the franchise product. The owner has to pay a royalty fee which is pre-decided at the time of agreement and can vary anywhere between 4.6% to 12.5% depending upon the industry they are in and the store’s profits.
Franchise Business is considered one of the best moves to increase the market share and has been considered quite successful. The Franchise Business helps the franchisor get good returns as they are paid a hefty franchise fee. Further, they will be paid for all the training and support they provide, and finally, monthly or quarterly loyalty will also be paid by the store owner to the franchisor.
Top 20 Franchise Businesses in India
- Patanjali
Patanjali is one of the famous ayurvedic stores and has stores all over India and worldwide as well. Patanjali was first founded in 2006 by Baba Ramdev. Patanjali, which started off with just Ayurvedic products for healthcare, has now got into skincare and food products, thereby taking over the FMCG market share. Patanjali is one of the top companies, which is also listed on the BSE and NSE market, and is a fully private company as well.
| Franchise Cost | INR 1 Crore |
- Domino’s Pizza
Whenever we hear about Pizza in India, Dominos is the first word that comes to our mind. Dominos Pizza has spread its franchise in India at an alarming rate and is considered one of the top franchise companies in India. The customer reviews also support this claim, and the business is thriving here. Dominos Pizza is considered one of the top eateries worldwide due to its large customer base.
| Franchise Cost | INR 30 to 50 Lakhs |
- Subway
Subway is considered one of the healthiest eating options in fast food and has taken over the country. The main motto of the brand is to provide good quality food on the go and at a cheap price. Subway provides various eating options, and every other store can be easily found within a 5 km radius.
| Franchise Cost | INR 54 to 90 Lakhs |
- Archie‘s
No other company has taken over the gifting industry as much as Archies did. Archies is considered one of the go-to shops for buying gifts for any age group. Archies was established in 1979 and had more than 500 national and international stores. It is known that with Archies store, the owners can easily make a profit of 25 – 30% depending upon the store’s location.
| Franchise Cost | INR 12 Lakhs |
- Giani’s
Giani is considered one of the top dessert places and is an Indian company founded by Giani Gurcharan Singh in 1956. The specialty of Giani is ice cream and a variety of dessert options. Giani is quite famous in north India, and an outlet can be very easily spotted in almost all the malls. As of today, there are more than 50 franchise outlets of this brand.
| Franchise Cost | INR 10 to 12 Lakhs |
- Jawed Habib Hair & Beauty
This is one of the well-known brands in the grooming& wellness industry and has outlets in almost all the major cities around India. Jawed Habib, the founder of this company, comes from a family of barbers and has taken this business to new levels. Any of the outlets of this brand is packed with customers for most of the day.
| Franchise Cost | INR 20 to 30 Lakhs |
- Hero Motor Corp
One of the leading companies in the automobile sector Hero Motor Corp also has a big franchise empire with more than 300 stores around India. Hero Motor Corp has the largest manufacturing of 2 wheeler and is considered as one of the top profitable companies of all time.
| Franchise Cost | INR 50 Lakhs to 1.2 Cr |
- Dr Batra`s Hair Clinic
Hair loss is an important issue for both men and women, and the best cure for this is provided by Dr. Batra’s Hair clinic. What started as a small venture is now a multi-million company operating in more than 5 countries with over 105 clinics in most major cities. Dr. Batra’s Hair clinic has treated more than 1.5 million people and has a long line of qualified doctors.
| Franchise Cost | INR 20 to 30 Lakhs |
- KFC
One of the leading brands in the fast-food industry – KFC, is also one of the leading franchise businesses in India. KFC, which is an American food company, has been loved by Indian consumers and enjoys a good share of the market in the fast-food industry.
| Franchise Cost | INR 50 Lakhs to 1 Cr |
- First Cry
Shopping for toddlers is a huge thing as there are many things one needs to consider. Seeing all this, First Cry was launched, which caters only to young kids with good quality products. First Cry also has a huge Franchise business in India with good profit-sharing margins. Most parents prefer the first Cry for their kids.
| Franchise Cost | INR 20 Lakhs |
- Pizza Hut
Pizza Hut is another fast-food brand that is quite famous for selling pizzas in India. Pizza Hut is said to provide quality food products with mostly large dining areas as well in most of their outlets. Pizza Hut franchise makes about 1 to 3 Lakhs INR every month as profit depending upon the location it has been set.
| Franchise Cost | INR 14 Lakhs |
- InXpress
InXpress is one of the largest delivery companies available in India and is well known for its timely delivery of products. The customer reviews state that InXpress is quite economical and can be used to deliver products even in rural India, as their network has been so strong over the years. They have around 20 to 50 stores in India.
| Franchise Cost | INR 5 Lakhs |
- Lenskart
Lenskart is India’s one of the biggest companies founded by Piyush Bansal and is regarded as one of the most successful companies as well. Lenskart provides the best frames and glasses available in the market and is also a testing center, making it quite easy for the customers. Lenskart is now available in more than 1000 stores and is a profitable company.
| Franchise Cost | INR 30 Lakhs |
- DTDC Courier Services
DTDC, founded in 1990 in the city of Bangalore, is one of the most popular courier services in India and is also used by many small to large-scale companies for transporting goods and products. DTDC is available in most parts of India with more than 1000 franchise stores.
| Franchise Cost | INR 50,000 to 2 Lakhs |
- 3M Car Care
3M Car Care is one of the go-to stores for all automobile people as they have made their name by providing the best service. Many of the automobile showrooms at the time of purchase also recommend 3 M Car Care for services, and now the company has more than 80 stores in India and is available in most of the major cities.
| Franchise Cost | INR 30 to 50 Lakhs |
- Kalyan Jewellers
Kalyan Jewellers, which was initially started in Kerala, has now expanded to most of the major cities with its large flagship stores. One of the reasons why the customer loves Kalyan Jewellers is its wide variety of options in Gold, Silver, and Diamond and the good service the staff provides. Kalyan Jewellers is one of the most profitable businesses in India.
| Franchise Cost | INR 50 Lakhs to 1 Cr |
- FabIndia
FabIndia has been gaining popularity daily due to its large collection and up-to-date designs they keep producing monthly. FabIndia has been ruling the retail industry, has more than 175 franchise stores, and is giving good competition to companies like Pantaloons and Forever 21 as the products here are pretty affordable for the general public.
| Franchise Cost | INR 40 to 50 Lakhs |
- Starbucks
Starbucks is the first name that comes to mind whenever someone thinks of coffee. Starbucks has expanded its market share “n” times by opening its franchise stores under the partnership of Tata all over India. Starbucks is known for its amazing range of coffee collections and positive ambiance.
| Franchise Cost | INR 1.5 Cr to 2.2 Cr |
- McDonald’s
The other name for a burger around the world is Mcdonald’s, as they are the market leader in this food item. With time Mcdonald’s has captured a good portion of the fast-food industry in India as well as expanded its market share exponentially. Mcdonald’s is quite well known for its affordable prices and a good variety of food items along with drinks sections.
| Franchise Cost | INR 6.6 Cr to 14 Cr |
- Pepperfry
Shopping for furniture can be exhausting as one needs to find good designs followed by good quality. Pepperfry offers both at an affordable price range, making it one of the most attractive stores in the furniture & home décor industry. Pepperfry has more than 20 franchise units and is available in most of the major cities of India.
| Franchise Cost | INR 15 to 20 Lakhs |
Advantages and Disadvantages of the Franchise Model
One of the major advantages of the Franchise model is that entrepreneurs can get an already established business and would know all the operations, so there is no need for trial-and-error formula. On the other hand, in the Franchise model, many businesses have a pre-defined setup like what should be sold, what should be the uniform for the employees, and there would be a standard operating procedure that the owner will have to follow if they want to run the franchise of that particular brand. Another disadvantage is the huge initial setup cost, which many people may not bear.
Learn more –
Types of Industries – Primary, Secondary & Tertiary?
Top 20 Franchise Businesses in India FAQs:
1. Is franchise an asset?
Yes, a franchise can be considered an asset if proper research is done before buying it, and one also needs to operate it effectively to make an adequate profit.
2. Which is better, owning a franchise or starting your own business?
One of the major advantages of owning a franchise is that the business model is well laid out, and SOPs have been pre-defined. One doesn’t need to go through the trial-and-error stage.
3. Who is a franchisor?
Yes, many of the franchise fees can be negotiated to an extent; however, the final franchise fee depends upon the area the store is being set up and on the franchisor.
4. How does a Franchise work?
The owner or entrepreneur who wants to be a part of an already established business pays a nominal fee, also known as a franchise fee, to the franchisor (the owner who has the trademark for the business) and then starts their own outlet. The entrepreneur also has to pay a monthly or quarterly royalty to the franchisor.
5. When to Franchise your business?
This purely depends upon the owner of the business. If they think that they have created good SOPs and there is huge demand from other cities as well, then franchising could be a good option to increase the market share of the product.
6. Can The franchisors fire franchise owners?
Yes, franchise owners can be fired if the franchisor sees some irregularity. This clause is always added to the agreement, and both parties must agree.
7. Can Franchise fees be negotiated?
Yes, many of the franchise fees can be negotiated to an extent; however, the final franchise fee depends upon the area the store is being set up and on the franchisor.
8. What is the best store for a franchise?
First, one needs to know what industry they want to enter, is it fashion & retail or the food industry or the apparel industry, and from there on, the need to look and the profit margin and the market share that the business has in that particular domain.
9. How do contact the franchise owner to buy a trademark from them?
The first and foremost option is to go through an online medium. Many of the top brands have franchise contact listed on their official website, from which entrepreneurs can contact the company.
10. What is the difference between franchise and chain stores?
In the chain stores business model, all of the stores are fully owned by the main owner on behalf of their shareholders, while in franchise models, individual entrepreneurs have ownership of a single store.
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