India is the third-largest consumer of products and services in the worldwide market. Launching a cheap franchise in India is a tried-and-true method. One of the model brands which has embraced expansion in India is the franchise business, and there are numerous low-cost franchises available in the country. Automobiles, beauty, fast food, education, wellness, postal service, fashion and healthcare are among the most popular franchise domains.
You can find the best low-cost franchise business prospects in India, such as the retail, cafe, health care, entertainment and education sectors. These franchises have the potential to expand and become successful businesses swiftly.
Did you know?India has nearly 200,000 franchise outlets operated by almost 170,000 franchisees!
What is a Franchise?
Have you ever wondered why the Indian market has so many international brands? Franchise business is the answer. It is one of the most important routes via which international companies and brands have established themselves in the Indian market. In exchange for an upfront start-up fee and royalty payments, a franchisor (franchise brand) gives the franchisee (franchise outlet owner) conceptual, structural, legal and training-related support.
The revenues from owning and selling a franchise benefit both the franchisor and the franchisee. The franchisor can further develop the business in new markets, increasing market share and revenues once the franchisee has access to the brand's loyal consumer base, creative help, legal guidance and training support.Before entering this model and signing it, investors and enterprises must thoroughly investigate their potential business partners. Sticking to well-known names and brands is safer for investors.There is a claim that the franchise concept necessitates a significant financial investment. Let's dispel this misunderstanding. The most profitable and viable form of business opportunity is franchising; all one needs to know is how to get a franchise. You may even start a franchise just for ₹1 lakh!
How to Pick the Best Low-Cost Franchise Companies?
Becoming a franchisee of a corporation is akin to joining a business partnership, and you should treat it as such. Finding one of the top low-cost franchises is not difficult. Here is a list of tips to help you find low investment franchise businesses in India:
- Do your study before signing a franchise deal with a corporation
- Investigate and analyze the situation thoroughly
- Be very precise about what you want from the parent company
- Always pursue a career in a field that you are passionate about, as working with enthusiasm will be less difficult than working as a mercenary
- Remember that your franchising company should provide tangible support to you throughout the business cycle.
- For the next 5–10 years, stick to the existing pattern since businesses are changing quickly.
Top Franchise in India with Low Investment
The Pradhan Mantri Kaushal Vikas Yojna (PMKVY) is a Government of India initiative run by the Ministry of Skill Development and Entrepreneurship. The major goal of this project is to provide various sorts of vocational training to India's youth to improve their skills.
You can open a training centre using the PMKVY. To become a training partner, you must meet the standards established by the Skill Management and Accreditation of Training Centres (SMART). It will also evaluate and track your progress as a Training Center.
According to the training in various areas outlined in three separate categories, the government grants basic costs per candidate at the rate of ₹30.30, ₹36.30, or ₹42.40. You must pay ₹12000 in annual accreditation application fees and ₹8000 in annual monitoring expenses.
KidZee is one of the most well-known pre-school franchises in Asia, and not just in India. You can choose the KidZee School franchise to focus on business education. KidZee has over 1900 centres across India, spread throughout 700 cities and is a popular pre-school franchise opportunity in India.
A minimum investment of ₹12 lakhs and a school area of 2000-3000 square feet is required for the franchise. KidZee will manage your marketing, enrollment, infrastructure design and accounting.
Café Coffee Day
Nowadays, Café Coffee Day cafes are highly popular. You've probably heard the well-known coffee shop chain Café Coffee Day's motto, "A lot can happen over coffee." CCD operates over 1700 coffee shops across 200 cities and has stores in Nepal, Bangladesh, Egypt, Vienna and the Czech Republic.It is, without doubt, the best coffee shop and low-cost franchise option. You can establish a CCD franchise with around ₹10 lakhs investment. You will also need a 1000-1500 square feet facility with a minimum frontage of 25 feet and enough parking.In exchange, you will receive the CCD's advanced coffee-making machine, which produces excellent coffee in a short amount of time. CCD also offers a variety of refreshments.
Jugnoo offers taxi and rickshaw services and is rapidly growing, with about 29 million rides completed to date. They are eager to expand their business and is inviting more franchisees to join them. Jugnoo is one of the top low-cost franchise enterprises.
Dominos is one of the leading pizza delivery businesses and now has over 500 locations around the country. Their concept of guaranteed pizza delivery within 30 minutes has been quite popular in India.Given the widespread popularity of pizza, you can start a Dominos franchise business with a healthy profit margin. You will require 1500 square feet of space and a minimum investment of ₹50 lakhs for a traditional outlet and ₹30 lakhs for a non-traditional one. Jubilant Food Works Limited manages Dominos' operations in India. After you sign a contract with them, they will provide you with the necessary training and orientation to run the business successfully.
Amul Ice Cream
Amul is a well-known brand in India and has become a household name, thanks to nearly 75 years of business and exceptional quality. As a result, opening an Amul Ice Cream Parlour can be a good business idea for you. In India, Amul has about 1500 ice cream parlours.
For an Amul Ice Cream franchise, you will need at least 300 square feet in a favourable location, and the space must be well-decorated with air conditioning. The initial investment ranges between ₹2 and ₹5 lakhs. The largest benefit of the Amul franchise is that the merchandise will be delivered directly to your location. The Amul Ice Cream retail franchise is one of India's most popular low-cost franchise options.
Patanjali began operations in 2006 and has become popular among Indians, making it a valuable commercial enterprise. It has around 47000 retail outlets across India and specializes in Ayurvedic and herbal treatments, cosmetics, personal care and food products.
Given the widespread popularity, investing in the Patanjali franchise will be a rewarding enterprise for you. You will require a minimum of 500 square feet and a minimum investment of ₹7 lakhs to open a Patanjali store franchise.
Himalayan Range is a brand of unusual kitchenware. Currently, the organization works in 11 different online marketing channels worldwide and has a strong web presence in nine countries across four continents. Himalayan Range follows a customer-centric approach to business and believes in the principles of value and variety for billions of retail customers. By 2020, the organic products business will grow by eight times its current size. As a result, now is the greatest moment to get started with this creative concept line.
Bean Here is a well-known Allahabad based brand that has won numerous honours for its performance and unique offers (Best Themed Cafe, Best Stand Alone Cafe, to name a few). Bean Here is a cafe that serves a wide range of delights such as bubble iced tea, waffles and live ice cream rolls, among other things. The company provides franchisees with great expansion opportunities and supports them in their future aspirations with Bean Here.
There are many low-cost franchise opportunities available in various industries or domains in India. But choosing which franchising company to work with is a substantial endeavour that requires extensive inquiry. Always calculate the return on investment (ROI) using the capital expenditure (start-up cost) and revenue expenditure as the starting point (running cost). Your enthusiasm for the business, unit-level economics (how much profit per transaction) and product demand are just a few of the factors that influence your ROI.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.