The Most Profitable Franchises in India

The Rise of Franchising in India

The franchising industry in India has experienced a great boom in recent years, with the
market expected to grow at a Compound Annual Growth Rate (CAGR) of around 30%.

As the Indian economy grows, disposable incomes are rising, leading to a growing
consumer base with more money to spend. This translates to an increased demand for
convenient and reliable products and services, which franchise businesses are good at
providing.

Indian consumers, particularly in urban areas, are increasingly attracted to standardised

products and services that offer consistent quality and brand recognition. This trend is
particularly visible in the growing QSR franchise India market, where established
fast-food chains cater to busy lifestyles and changing tastes.

Profitable Franchise Segments

Franchising opportunities exist across a wide range of sectors in India. Here’s a glimpse
into some of the most lucrative segments:

Ajay's Cafe

Ajay’s Cafe is famous for its tasty cold coffee and burgers. It has a unique and
affordable franchise model. This makes it a good choice for budding entrepreneurs who
want to start a QSR franchise in India or a fast food business.

The investment needed to open Ajay’s Cafe franchise is not very high. This makes it
possible for many aspiring business owners to start their franchises. Unlike many other
franchises, Ajay’s Cafe does not charge any franchise fees or royalties on sales. This
means the franchise owner gets to keep more profits. The Ajay’s Cafe team takes care
of setting up the entire outlet, making the launch process smooth and easy. All Ajay’s
Cafe outlets are profitable and have the shortest payback period.

Feature Information

Segment QSR (Quick Service Restaurant)

Investment Approximately ₹15 lakhs

Space Required Min. 400 sq. ft.

Total Stores 150+

Ajay’s Cafe provides complete support to its franchisees. They help in four main areas:
before opening, with products, operations/sales/marketing after opening and
training/audits. Some key things they do are:

● Assist in choosing the right location and studying if it is a good fit

● Setting up the entire outlet
● Provide guidelines on running the business efficiently
● Train staff and franchise owners (operations, finance, customer service)
● Design the outlet’s branding and identity
● Advertise and promote the new franchise initially
● Offer ongoing support from an expert team for quality, operations, costs etc.
● Regular visits by experienced professionals to improve business standards

The food and beverage industry, especially quick-service restaurants (QSR), is growing
fast in India. People want convenient, quick and affordable food options. This sector has
many opportunities from big global brands to popular local ones. Many first-time
entrepreneurs are choosing Indian QSR franchises like Ajay’s Cafe.

EuroKids

EuroKids is a top name in early childhood education. They offer franchises to open
preschools and daycares. EuroKids focuses on creating a nurturing place for
high-quality learning for young kids. This makes them popular with parents. It is also a
good opportunity for new entrepreneurs.

The preschool industry in India is growing fast at 37% yearly. The total revenue is now
Rs. 4,000 crore. Parents are increasingly interested in quality early education for kids.
EuroKids offers an affordable model requiring lower investment without compromising
on learning quality.

As India’s fastest-growing preschool chain, EuroKids gives 360-degree hand-holding

support. This includes training staff, marketing aid, operations guidance and more to
ensure the franchise’s success.

Feature Information

Segment Preschool

Investment ₹12 to 15 lakhs

Space Required Minimum 1500 sq. ft.

Total Stores NA
Their investment amount covers the franchise fee, setting up costs, equipment and
running expenses. The exact cost depends on the centre’s size and city location.
EuroKids provides full support to franchisees. They give guidelines on the preschool’s
design and look to maintain standards. They also provide curriculum materials, teaching
aids, toys, books and other essentials needed.

Carzspa Car Detailing

CarzSpa, a leading car care franchise, offers a unique opportunity for car enthusiasts to
turn their passion into a business. They specialise in providing high-quality car detailing
services, including cleaning, polishing and paint protection. Car detailing is a growing
market in India and CarzSpa stands out with its established brand and focus on quality
service.

Feature Information

Segment Car Detailing Studios

Investment Approximately ₹18 lakhs

Space Required Minimum 2000 sq. ft.

Total Stores 90
CarzSpa too offers a unique model with no franchise fees or royalties. They focus on
providing comprehensive support to their franchisees, including training and marketing
assistance.

McDonald's

McDonald’s, a well-known fast-food chain, presents an enticing franchise opportunity in

India. Since it arrived in 1996, it has expanded nationwide, successfully adapting to
Indian tastes with offerings like the Chicken Maharaja and McAloo Tikki burgers.

Feature Information

Segment Fast Food Franchise

Investment Starting at ₹25 lakhs

Space Required 1500-4000 sq. ft.

Total Stores 300+

However, it’s important to note that McDonald’s is unlike a low-cost cafe franchise in
India. It requires some serious capital and experience to jump in. It currently needs to
accept new franchise applications in India. McDonald’s franchises in India generate an
average annual revenue of ₹2.6 crore, with 20-25% potential profits.

The typical break-even period is 2-3 years. To qualify, applicants must have prior food
service experience, a net worth of ₹5 crore, a minimum ₹1.5 crore liquid capital and the
willingness to commit for nearly 20 years. Additional capital ranging from ₹6.6 crore to
₹14 crore is needed for setup costs like equipment, training and maintenance. A liquid
reserve of ₹5 crore is recommended for contingencies.

Lakmé Salon

For decades, Lakmé has been a leading name in cosmetics, known for its high-quality
makeup and skincare products. Entrepreneurs can leverage this brand recognition by
opening their own Lakmé Salon franchise. Lakmé Salon offers a promising opportunity
for entrepreneurs interested in the beauty and personal care sector.

Feature Information

Segment Beauty Salon

Investment ₹50 lakhs onwards

Space Required 800-1000 sq. ft.

Total Stores 150

Being an established brand that Indian consumers trust and with their proven business
model, entrepreneurs can benefit from Lakmé’s expertise and enjoy the support of a
successful franchise system.

Important Note: These are estimated investment ranges and payback periods based
on publicly available information and can vary depending on factors like brand, location
and franchise model. It’s crucial to conduct thorough research before making any
investment decisions.

FirstCry

FirstCry is a leading baby and kids products brand started by Mahindra Group in 2010.
They sell high-quality products online at affordable prices. In 2011, FirstCry started
offering franchises to open their retail stores.

Feature Information

Segment Baby & Kids Products

Investment ₹20-30 Lakh

Space Required 1000 – 2000 sq. ft.

Total Stores 400+

FirstCry is Asia’s largest range of baby and kids products. They sell over 2,000 top
brands like Ben10, Disney, Hot Wheels, Pampers, Barbie, Gerber’s and more. The
franchise agreement is valid for 5 years and can be renewed later. FirstCry franchise
offers a great opportunity for new entrepreneurs. They can benefit from the increasing
demand for quality baby products across India.

DTDC Courier

DTDC is a leading name in India’s logistics industry, offering courier and cargo services
for individuals and businesses. By becoming a DTDC franchisee, you can be part of this
well-established network and tap into the growing demand for reliable delivery solutions.

Feature Information

Segment Courier & Cargo Services

Investment ₹50,000 to ₹2 lakhs

Space Required Varies depending on location and service options

Total Stores Over 570 operating facilities across India

Entrepreneurs can leverage DTDC’s reputation and customer base to build a successful
business and gain access to DTDC’s expansive network, a DTDC franchise can be a
good opportunity for entrepreneurs looking to enter the logistics sector.

DTDC Courier and Cargo Ltd., a pioneer in the Indian courier market, offers franchise
opportunities with an initial investment starting from INR 50,000 to 2 lakhs. With over
12,000 franchise units, DTDC’s extensive network ensures a broad reach and a strong
customer base.

Dr Lal PathLabs
Dr Lal PathLabs, India’s leading diagnostic healthcare chain for over 60 years, offers a
unique franchise opportunity for aspiring entrepreneurs. With a comprehensive portfolio
of tests spanning nutrition, genetics, biophysics, flow cytometry, cytogenetics,
endocrinology, metabolism, molecular diagnostics and oncology, the brand has set
unprecedented standards in the diagnostic industry.

Feature Information

Segment Diagnostic Labs

Investment ₹3-5 Lakhs to ₹25 Lakh

Space Required 150-300 sq. ft. to 3,500 sq. ft.

Total Stores 1800+

Dr Lal PathLabs presents two distinct franchise models to cater to diverse investment
capabilities and preferences, i.e. Collection Centre Franchise, which facilitates the
collection of blood and other samples, which are subsequently sent to the Diagnostic
Centre Franchises for testing and generating reports.

Franchise partners are required to pay a royalty or commission ranging from 25% to
30%. By joining the Dr Lal PathLabs franchise network, entrepreneurs can leverage the
brand’s six decades of expertise, cutting-edge technology and unwavering commitment
to accurate and reliable diagnostics.

Delhivery
Delhivery has become a prominent player in the domestic courier market lately

Started in 2011, Delhivery quickly became a prominent name in delivery services. It

competes with older companies like BlueDart and Gati Ltd. Delhivery offers two kinds of
business franchises:

Cosmos: A network that integrates various stores within a compact region, the Cosmos
Delhivery franchise specialises in facilitating deliveries to both residential and
commercial entities.

Constellation: Tailored for entrepreneurs eager to embark on a journey of freight

pick-up and delivery, the Constellation franchise boasts a more expansive reach than its
Cosmos counterpart.
Feature Information

Segment Courier & Delivery

Investment ₹50K to 5 Lakhs

Space Required 400-500 sq. ft.

Total Stores 3000+

Delhivery’s service suite is comprehensive, encompassing express parcel

transportation, supply chain solutions, cross-border services and PTL & TL freight.
Delhivery processes an impressive 10 million orders monthly. Starting a Delhivery
franchise doesn’t need much money and could be a great business move.

Kalyan Jewellers
While a jewellery franchise may sound intimidating, it is massively profitable

Kalyan Jewellers began in 1993 and was founded by Mr T.S. Kalyanaraman, who has
over 45 years in business. They make and sell gold, diamonds and other precious
jewellery. They’re big in India, with stores in 21 states and UTs and they also have 30
stores in the Middle East. You can also buy their jewellery online.

Feature Information

Segment Jewellery

Investment ₹50 Lakh to ₹1 Crore

Space Required 1000 – 1500 sq. ft.

Total Stores 137+

In early 2021, Kalyan Jewellers’ profits went up by 54.05%. This means starting a store
with them could be very profitable. But, you need to have a strong business background
and at least 10 years of experience to open a Kalyan Jewellers store.

Concluding Thoughts…
As the Indian economy continues to flourish, the franchising industry presents a wealth
of lucrative opportunities across various segments. From food and beverage to
education, retail and services, aspiring entrepreneurs can choose from a diverse range
of proven business models and leverage the power of established brands. In this vibrant
mix, the fast food business, especially the QSR segment, is showing great promise.

While global giants like McDonald’s have made their mark in the Indian market,
homegrown brands like Cafe Ajay’s have emerged as formidable competitors, offering a
unique blend of quality, affordability and cultural relevance.

With its innovative menu, commitment to customer satisfaction and robust franchisee
support system, Cafe Ajay’s stands out as an ideal choice among food franchise
opportunities for those seeking a highly profitable and sustainable investment
opportunity in the thriving QSR segment.