The Cato institute, the American public policy think tank, submitted a report showcasing the economic freedom of different states in India. It pointed out Tamil Nadu as the 2nd state with the highest financial freedom. Therefore, It is also among the top three most preferred states for start-up investments and ranked only second behind Maharashtra in GDP in 2021. All these factors mentioned above, along with the easy availability of cheap labour and favourable Government policies, make it a preferred choice for Entrepreneurs. This article will focus on the top 10 best franchise businesses in Tamil Nadu.
Did you know? Tamil Nadu is undoubtedly one of the top states with a wide range of best franchise opportunities. Tamil Nadu was also India's second most economically competitive state, according to studies in 2021
Also Read: 9 Best Small and Profitable Business Ideas in Tamil Nadu
What is a Franchise Business?
A franchise is a kind of business that enables a specific store owner to use the business strategies and trademark of a brand and sell the services or products under that brand name. In this business management system, the owner licences the operations of the business along with its products, knowledge and branding in exchange for a franchise fee.
Is Franchise Business Profitable in Tamil Nadu?
A franchise’s success depends on the location of that establishment. The better and bigger the place is, the better opportunities you will have to run the franchise successfully. Some of the best locations in Tamil Nadu that can boost your franchise business venture are-
1. Franchise Business in Chennai
As the capital city of Tamil Nadu, Chennai has become one of the largest technological hubs in India and is also the largest commercial and industrial centre of South India with a population of nearly 1.12 crore as recorded in 2020. Due to its improving economic conditions and large population, Chennai is one of the best places in Tamil Nadu for establishing a franchise business. Other than that the geographic location and the young, energetic crowd in the city are ideally favorable to running a profitable franchise business in Tamil Nadu.
2. Franchise Business in Madurai
Madurai is the cultural capital of Tamil Nadu and is one of the longest-living cities in the world. Madurai has almost ten lakhs of citizens and is an ideal place for business opportunities as its rich culture attracts a lot of people opening the door for cheap labour. As the travellers in the city seek the best services, it poses opportunities for the franchise business in Madurai making the business profitable.
3. Franchise Business in Coimbatore
Coimbatore is referred to as the Manchester of South India as its economy is influenced by textiles and informational technology. It also has the second largest GDP in Tamil Nadu and has 4 special economic zones. Franchise businesses focused on Information Technology and Textile Industries can get a perfectly suitable economic condition in Coimbatore.
Also Read: How To Get A Business License In India?
What is the Estimate Cost of Owning A Franchise Business in Tamil Nadu?
Before you focus on a specific business franchise to own, you should check your budget and bandwidth for spending on a particular franchise. For example, KFC franchise costs in Tamil Nadu can range up to ₹ 1 Crore along with specific requirements such as if the location should be in Tier 1 or Tier 2 residential area. Here is an approximate expense of a franchise in Tamil Nadu.
1. Restaurant Franchise:
Investment required: ₹15 - 28 Lakhs
Space required: 150 - 500 sq. ft
Average breakeven time: 1 - 2 years
2. Auto Repair and Service Franchise:
Investment required: ₹ 10 - 30 Lakhs
Space required: 2000 - 4000 sq. ft
Average breakeven time: 3 - 5 years
3. Educational Training Institute Franchise:
Investment required: ₹ 10 - 15 Lakhs
Space required: 1000 - 15,000 sq. ft
Average breakeven time: 2 - 4 years
4. Computer and IT Franchise:
Investment required: ₹20 - 40 Lakhs
Space required: 2500 - 4000 sq. ft
Average breakeven time: 4 - 6 years
5. Clothing Franchise:
Investment required: ₹ 3 - 8 Lakhs
Space required: 250 - 600 sq. ft
Average breakeven time: 1 - 3 years
List of Top 10 Best Franchises in Tamil Nadu:
There are numerous profitable franchise businesses in Tamil Nadu. You can find hotel franchises in Tamil Nadu, food franchises in Tamil Nadu, bakery franchises in Tamil Nadu, restaurant franchises in Tamil Nadu and many more. Here are some brands for franchise opportunities in Tamil Nadu.
- KFC
- Recruiting hub
- Fries and Burger
- Inksta
- Madras coffee house
- Puffs and Rolls
- Gurucool
- Netstacks
- Amani
- Auto Clinic
1. KFC Franchise:
KFC is an American food chain company specializing in fast foods, especially fried chicken. KFC is the 2nd largest food chain in the world. It is quite popular because of its special exotic recipe with secret 11 herb and spices ingredients.
Founded: 1940
Franchising since: 1952
Franchising fee: INR 20 Lakhs
Space: 1000 - 1500 sq. ft
Investment: ₹60 Lakhs - 1 Crore
2. Recruiting hub:
Recruiting Hub is a B2B Online Recruitment Marketplace, where Recruiters and Employers can stay intellectually connected through ML and AI algorithms which can facilitate faster filling up of vacancies, in an efficient manner and via single contract eliminating the need to onboard new suppliers onto current supplier lists.
Founded: 2016
Franchising since: 2018
Franchising fee: ₹ 2- 4 Lakhs
Space: less than 250 sq. ft
Investment: ₹ 5-10 Lakhs
3. Fries and Burger:
This is a food culture company that creates spaces for its customers to make memories via a healthy dining experience. They give customer experience the most priority and craft intricately designed cafes with reading and dining spaces.
Founded: 2020
Franchising since: 2021
Franchising fee: ₹ 2- 5 Lakhs
Space: 1000 - 2000 sq. ft
Investment: ₹ 20- 30 Lakhs
4. Inksta:
Inksta is a popular business with local print solutions. They offer different cartridges, inks, printer sales and services to large business enterprises, and local offices with their customised AMC service plans and other premium plans for buyers.
Founded: 2020
Franchising since: 2021
Franchising fee: ₹ 2- 5 Lakhs
Space: 250 - 500 sq. ft
Investment:₹ 10- 15 Lakhs
Also Read: 10 Tips for Successful Money Management for A Profitable Business
5. Madras coffee house:
Madra Coffee House is a popular cafe in Tamil Nadu to hang out with your friends. This cafe is dedicated to good food and an engaging ambience to give you a delightful experience.
Founded: 2010
Franchising since: 2016
Franchising fee: ₹ 1 Lakh
Space: less than 250 sq. ft
Investment: ₹ 5 -10 Lakhs
6. Puffs and Rolls:
It is a bakery franchise focusing on customized sweets and cakes for special occasions. Puffs and Rolls has established itself as a trustworthy brand and managed to create a strong emotional bond with its customers by fulfilling their requirements.
Founded: 2001
Franchising since: 2003
Franchising fee: ₹ 8- 10 Lakhs
Space: 1000 - 1500 sq. ft
Investment: ₹ 15- 25 Lakhs
7. Gurucool:
This brand provides an ideal set of tools that connect learners with educators. They are also developing the Padhaa platform which is a social initiative focused on ed-tech to ensure every student in India receives quality education. Padhaa is an intelligent, free-of-cost entertaining application with great potential.
Founded: 2019
Franchising since: 2022
Franchising fee: ₹ 2- 5 Lakhs
Space: 1000 - 2000 sq. ft
Investment: ₹10- 15 Lakhs
8. Netstacks:
Net stack Technologies has come up with IT solutions to improve business insights so that you can make better decisions, increase your customer engagement, reduce operational risks and automate information-intensive processes.
Founded: 2020
Franchising since: 2021
Franchising fee: No investment
Space: 250 - 500 sq. ft
Investment: ₹ 50,000
9. Amani Franchise:
Amani aims to provide you with a wide range of premium merchandise in lifestyle and fashion. It focuses on crafting the trendiest and best from elite products and includes Fashion accessories, ladies/kids apparel, and lifestyle.
Founded: 2012
Franchising since: 2020
Franchising fee: No investment
Space: 250 - 300 sq. ft
Investment: ₹ 5- 7 Lakhs
10. Auto Clinic:
It is a two-wheeler workshop offering premium repair services within the least amount of time with efficiency to provide ultimate customer satisfaction.
Founded: 2014
Franchising since: 2016
Franchising fee: ₹ 50,000
Space: 250 - 500 sq. ft
Investment: ₹ 5- 10 Lakhs
Also Read: Tips to Become a Successful Businessman
Conclusion:
Hopefully, the above-mentioned list of franchises provided you with insight into the franchise business in Tamil Nadu, India. Tamil Nadu has the potential to become one of the best business hubs in the world opening the door for franchise businesses. You can also check the top ten franchises in India to know more about this field.
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