Today in this article we will discuss the best profitable franchise business in India in different sectors. One of the most advised ways of doing business is Franchise business. The brand generally involves franchisees by giving them their Branch trademark or brand name as well as inventory to do business on their behalf. In return, franchisees have to pay loyalty for the name of the franchisor and inventory.
A franchise business has many pros and a few cons. Let’s discuss the merits and demerits of the franchise business.
Merits of Franchise business
- The brand is generally using franchise business to reduce the cost of investing in buying property in different places instead of using franchise business by giving franchisees an agreement to perform business on behalf of the brand.
- If your business is expanding in an international market, this will help you reduce the cost of investing in understanding the market as the company will get local experts that will suggest them to modify to give local touch without losing the actual essence of the brand product.
- It has a lot of advantages for franchisees as brand awareness is already there in the market and they do not have to spend money on advertising for the product.
- Brass need not invest in finding talented people to recruit in the business. All they have to do is find a perfect person to make a franchisee and this way it will be the franchisee’s responsibility to find and recruit a talented person for the team and grow the business.
- Franchise business also increases your scaleability as well as supply chain capacity and your brand presence.
Demerits of franchise business
- Once you enter into a franchise business your control over your brand name is used as someone else is using your brand name. There is a high risk of your brand name getting damaged.
- The initial cost of investing in the supply chain to the franchise is higher and may increase the overall cost of the business.
Even though there are some disadvantages, the franchise business is getting a lot of growth in India in the past few years. We can also see that there was around 35% of growth in the franchise industry in India. As per the report, we can see that this sector is contributing around 1.8% to the GDP of the country.
We can see that the franchising business was the least affected business as many brands variable to do the business despite the pandemic hit. The covid-19 pandemic brought a lot of opportunities and according to key economic indicators, we can see the sector kept growing even during the pandemic. As there was a rise in unemployment growth, this became a major reason that helped franchise businesses to grow.
Now let’s discuss the few best franchise businesses in India with figures of the investment and profits in different sectors.
Beauty and wellness Salons
If you are searching for a business or a brand to take franchise you can apply for the following companies by analysing that data and apply to the company which benefits you the most.
Kaya Clinics
- Required area for the Branches- 1000 Sq. Ft.
- Branches available in India- 117
- The approximate number of customers- 8 lakh above.
Lakme
- Required area for the Branches- 900 Sq. Ft.
- Branches available in India- 240 plus
- The approximate number of customers- 10 lakhs above.
VLCC
- Required area for the Branches- 800-1000Sq. Ft.
- Branches available in India- 94
- The approximate number of customers- 10 million above.
Shahnaz Husain Group
- Required area for the Branches- 1000-1500 Sq. Ft.
- Branches available in India- 400 franchise
- The approximate number of customers- 7 lakhs above.
Blossom Kochhar Group
- Required area for the Branches- more than 1000 sq. Ft.
- Branches available in India- 4
- The approximate number of customers- 5 lakhs above.
Looks Unisex Salon
- Required area for the Branches- 1500-2000 Sq. Ft.
- Branches available in India- 162
- The approximate number of customers- 15 lakhs above.
Affinity Salon
- Required area for the Branches- 1200-2000 Sq. Ft.
- Branches available in India- 31
- The approximate number of customers- 1 million above.
Jawed Habib
- Required area for the Branches- 500 Sq. Ft.
- Branches available in India- 790
- The approximate number of customers- 50 lakhs above.
Food and Beverage sector
In case you want to enter into a contract in the food and beverage sector you can come in contact with top foreign quick-service restaurants that are currently operating in India.
Pizza Hut
- Required area for the Branches- 1000 Sq. Ft.
- Branches available in India- 117
- Royalty fee- 6% of the revenue
Subway
- Required area for the Branches- 170-350 Sq. Ft.
- Branches available in India- 240 plus
- Royalty fee-3.5% -8% of the revenue.
Pind Balluchi
- Required area for the Branches- 2700 sq. Ft.
- Branches available in India- 42
KFC
- Required area for the Branches- 1000-1500 Sq. Ft.
- Branches available in India- 400 franchise
Kake Di Hatti
- Required area for the Branches- more than 500-600 sq. Ft.
- Branches available in India- 16
- Royalty fee- 6% of revenue
McDonald’s
- Required area for the Branches- 1500-4000 Sq. Ft.
- Branches available in India- 480
- Royalty fe
Bikanervala
- Required area for the Branches- 1200- 2000 Sq. Ft.
- Branches available in India- 117
- Royalty fee- nil
Cafe Coffee Day
- Required area for the Branches- 1000-1500 Sq. Ft.
- Branches available in India- 1174
- The approximate number of customers- 8.4 million above.
Fashion & Sportswear
In case you want to invest in the fashion and sports sector the best companies for which you can have the franchise are as follows:
Arvind Limited
- Required area for the Branches- 1000 Sq. Ft.
- Branches available in India- 500
- Royalty fee- 2.8% of the revenue
United Colors of Benetton
- Required area for the Branches-1000-1500 sq. Ft
- Branches available in India- 791
Puma
- Required area for the Branches- 500-1000 Sq. Ft.
- Branches available in India- 60
- Royalty fee- 75% of revenue.
Zara
- Required area for the Branches- 1000 Sq. Ft. plus
- Branches available in India- 21 plus
- Royalty fee- 5% -10% of the revenue.
Fab India
- Required area for the Branches- 700-1500 sq. Ft.
- Branches available in India- 309
- Royalty fee- Nil.
Adidas
- Required area for the Branches- 1000-1500 Sq. Ft.
- Branches available in India- 750 franchises.
Reebok
- Required area for the Branches- more than 1200-2000 sq. Ft.
- Branches available in India- 45
Mango
- Required area for the Branches- 800-1600 Sq. Ft.
- Branches available in India- 29
Aeropostale
- Required area for the Branches- not specified
- Branches available in India- 1300
NEXT
- Required area for the Branches- 1500 Sq. Ft.
- Branches available in India- 500
- Royalty fee- 8% of revenue.
Jewellery Sector
As we all know Indians are very fond of buying jewellery on different occasions. You also know Indian housewives are known for having the highest amount of gold in the world. And as people want more gold, diamonds, ornaments, and other jewellery this franchise can also help you to give a lot of profit. So in order to get in contact with the best brand, you can choose among the following.
Tanishq Jewellers
- Required area for the Branches- 2000-5000 Sq. Ft.
- Branches available in India- 200
- Royalty fee- 25% of the revenue
Kalyan Jewellers
- Required area for the Branches- 1000-1500 Sq. Ft.
- Branches available in India- 137 plus
- Royalty fee- 4% of the revenue.
Bluestone Jewellers
- Required area for the Branches- 500-1000 sq. Ft.
- Branches available in India- 18
- Royalty fee- 10%
Nakshatra Diamonds
- Required area for the Branches- 500-1000 Sq. Ft.
- Branches available in India- 200 plus.
- Royalty fee- 20%.
Gitanjali Jewels
- Required area for the Branches- more than 500-5000 sq. Ft.
- Branches available in India- 195 plus
- Royalty fee- 4% of revenue.
Healthcare and Diagnostic sector
As we know the demand for health care and diagnostic companies or brands are increasing rapidly. And even during the over pandemic the health care sector did not stop working. So we can say this is also a good sector where you can enter into a contract with a big brand given as the following.
Apollo Clinic
- Required area for the Branches- 4000 Sq. Ft.
- Branches available in India- 75
- Royalty fee- 5% of the revenue
Dr. Batra
- Required area for the Branches-300-700 sq. Ft
- Branches available in India- 100 plus
- Royalty fee- 5%
Thyrocare
- Required area for the Branches- 250-300 Sq. Ft.
- Branches available in India- 1122
- Royalty fee- 5% of revenue.
Ranbaxy Pathology Lab
- Required area for the Branches- 1000- 2500 Sq. Ft. plus
- Branches available in India- 500 plus
- Royalty fee- 6% of the revenue.
Apollo Diagnostics
- Required area for the Branches- 300-700 sq. Ft.
- Branches available in India- 100 plus
- Royalty fee- 5%
Dr. Lal Pathlab
- Required area for the Branches- 300-4000 Sq. Ft.
- Branches available in India- 200 plus
- Royalty fee-15%.
Lifecare Diagnostics
- Required area for the Branches- more than 300-4000 sq. Ft.
- Branches available in India- 1 lakh plus.
- Royalty fee- 8%
Lifespan Clinic
- Required area for the Branches- 1000-1500 Sq. Ft.
- Branches available in India- 40 plus
- Royalty fees- 6%
Biocell
- Required area for the Branches- 250-400 sq. ft.
- Branches available in India- 5 plus
- Royalty fee- 10%
Max Lab
- Required area for the Branches- 1200-1500 Sq. Ft.
- Branches available in India- 150
- Royalty fee- 5% of revenue.
Furniture Sector
There are both multinational and domestic firms that provide franchises for their operations in India. These are some of the top brands in the world, with strong sales in India. Purchasing these franchises would necessitate the establishment of a showroom.
Godrej
- Required area for the Branches- 1000-5000 Sq. Ft.
- Branches available in India- 56
- Royalty fee- 10% of the revenue
Pepperfry
- Required area for the Branches-1250-2000 sq. Ft
- Branches available in India- 70 plus
- Royalty fee- 5%
Confold Furniture
- Required area for the Branches- 1000-2000 Sq. Ft.
- Branches available in India- 20 plus
- Royalty fee- 35% of revenue.
Nilkamal
- Required area for the Branches- 300- 1200 Sq. Ft. plus
- Branches available in India- 70 plus.
IKEA India
- Required area for the Branches- 3000-10000 sq. Ft.
- Branches available in India- 2
- Royalty fee- 8%
Natural Living
- Required area for the Branches- 1500-2000 Sq. Ft.
- Branches available in India- 10 plus
Maruti Furniture
- Required area for the Branches- more than 2400-5000 sq. Ft.
- Branches available in India- 10.
- Royalty fee- 8%
Stylespa
- Required area for the Branches- 2500-3000 Sq. Ft.
- Branches available in India- 10
- Royalty fees- 35%
Arrivae
- Required area for the Branches- 500-750 sq. ft.
- Branches available in India- 10
- Royalty fee- 35/65%
Maharaja Furniture
- Required area for the Branches- 3000-5000 Sq. Ft.
- Branches available in India- 20 plus
- Royalty fee- 35% of revenue.
Automobile Sector
As more Indian families possess automobiles, we may notice an increase in sales of cars, scooters, and motorbikes across the country. You can also get the contract for the following top brands.
Cars24
- Required area for the Branches- 300-500 Sq. Ft.
- Branches available in India- 205
- Royalty fee- 10% of the revenue
Carwale
- Required area for the Branches-1250-2000 sq. Ft
- Branches available in India- 6826 plus.
Car Dekho
- Required area for the Branches- 300-1000 Sq. Ft.
- Branches available in India- 7918
- Royalty fee- 35% of revenue.
TVS Scooters
- Required area for the Branches- 4000 Sq. Ft. plus
Bajaj Auto
- Required area for the Branches- 2000-6000 sq. Ft.
- Royalty fee- 10%
Hero Motocorp
- Required area for the Branches- 2000-4000 Sq. Ft.
- Branches available in India- 1500 plus
- Royalty fees- 8%
Suzuki Motors
- Required area for the Branches- more than 3000 sq. Ft.
- Branches available in India- 3598.
- Royalty fee- 6.6%
Force Motors
- Required area for the Branches- 1500-5000 Sq. Ft.
- Branches available in India- 36
- Royalty fees- 7%
Mahindra First Choice
- Required area for the Branches- 1000-1500 sq. ft.
- Branches available in India- 1700 plus
- Royalty fee- 5%
3M Car Care
- Required area for the Branches- 1400-1800 Sq. Ft.
- Branches available in India- 2
- Royalty fee- 10% of revenue.
Motorz Spa
- Required area for the Branches- 3000-5000 Sq. Ft.
- Branches available in India- 1
- Royalty fee- 7% of revenue
Bosch Car Service
- Required area for the Branches- 4000-2000 Sq. Ft.
- Branches available in India- 450 plus
- Royalty fee- 30% of revenue
Entropy
- Required area for the Branches- 600-1000 sq. ft.
- Branches available in India- 100 plus.
- Royalty fees- 5%.
Prepare before registration
Every entrepreneur needs to think about which company they want to choose to work as a franchisee. You also have to make sure that you are meeting all the criteria given by the company. You also need to gather all the required documents before going to the registration.
Before existing with the company you need to follow the following steps.
- Niche Identification
- Formalities regarding addressing
- The ownership documents
- Overseeing currency risk
- Getting tax liability documents
- Human resource requirements
- And finally, apply for the license and you need to wait for the approval of the license.
After getting the license you need to work according to the standards of the franchisor. As you are using the brand’s name you need to ask accordingly or else you may face a lot of losses or legal actions.
Conclusion
In the end, we can say opening a franchise business in India is comparatively easier than in other countries because in India government promotes ease of doing business. Despite the initiative taken by the government and other companies, it becomes very difficult for a small entrepreneur to manage his business well but by getting a franchisee license you can perform better in the market and gain more profits. This article will help you find out the best brand for doing franchise business.
