Are you looking to start your own business but don’t want to go through the hassle of creating a brand from scratch? A franchise might be the perfect solution for you. Today, let us discuss the best franchise opportunities available in India under 5 lakhs.
Firstly, let’s understand what a franchise is. A franchise is a business model where the franchisor grants the franchisee the right to use its trademark, business model, and operating systems. The franchisee is expected to follow the franchisor’s guidelines, which ensures consistency in the brand’s quality and customer experience.
Opening a franchise in India requires a few key steps. Firstly, you need to find a franchisor that fits your interests and skills. Once you have identified a few options, you should conduct thorough research into the brand’s market standing, competition, and profitability. You should also have a clear understanding of the franchise agreement, which outlines the franchisor’s expectations, support, and fees. Finally, you will need to secure funding to cover the franchise fee, operational costs, and marketing expenses.
Opening a franchise in India requires careful planning and preparation. Here are the things you would need to start a franchise:
Research: Before investing in a franchise, conduct a thorough research about the brand’s market presence, competition, and profitability. You should also be aware of the franchisor’s expectations, support, and fees.
Funding: You will need to secure funding to cover the franchise fee, operational costs, and marketing expenses.
Legal: You will need to sign a franchise agreement with the franchisor that outlines the terms and conditions of the franchise.
Now that we have discussed the requirements for opening a franchise, let’s take a look at some of the best franchise opportunities available in India under 5 lakhs:
Delhivery
The popularity of online shopping has grown significantly in modern times, resulting in a surge in demand for courier and logistics companies. Delhivery is a notable logistics provider in India, and those interested in opening a Delhivery franchise must meet certain requirements, including being at least 21 years old, having completed 10th and 12th grade, having prior experience in courier services, possessing a suitable location for the franchise, and having a clean criminal record. The franchise necessitates a commercial space of 300 to 500 square feet for the office and 200 to 500 square feet for vehicle parking. The initial investment needed to establish a Delhivery franchise is between 50,000 and 200,000 Indian rupees, with a total investment of 6-8 lakh rupees for a complete setup.
Amul
Amul is a highly sought-after franchise business in India that offers numerous advantages to franchise owners. The cost of an Amul franchise in India is not fixed and is determined by factors such as the location of the outlet and the specific products to be sold. The price range for an Amul franchise outlet can range from ₹1.5 lakhs to ₹6 lakhs. As an Amul franchisee, you will have exclusive rights to sell all Amul products at your outlet. The ideal space required to open an Amul franchise outlet is between 100 to 300 square meters, and suitable locations include markets, schools, train stations, and hospitals. The profitability of your franchise business will depend on various factors, including operational expenses, employee costs, and the location of your store.
Mother Dairy
Mother Dairy is a leading competitor of dairy brands like Amul, but it hasn’t achieved the same level of popularity. However, the marketing team of Mother Dairy is making efforts to close this gap and become more popular. One way they are achieving this is by offering franchise opportunities to people in India. Mother Dairy is currently expanding its operations throughout the country, and you can take advantage of this by opening a franchise. The minimum investment required to start a Mother Dairy franchise is 5 lakh rupees, but a proper setup will necessitate an investment of at least 10 lakh rupees.
Tata 1mg
Tata 1mg franchise is a digital healthcare platform that connects customers with registered medical suppliers located in various localities. The franchise model generates revenue by delivering medicines online and offering other healthcare services like medical equipment, lab testing, and consultation. In today’s fast-paced world, online consultations are becoming increasingly popular as they save time and reduce unnecessary contact with others, which is especially beneficial during a pandemic. This feature helps to prevent overcrowding in medical stores. The initial investment required to invest in a Tata 1mg franchise is only ₹10,000, making it an excellent opportunity for small investors to start a business and earn a commission.
Dr. Lal Pathlabs (Collection Unit)
Dr. Lal PathLabs is a private pathology laboratory chain with a strong reputation in India that is seeking entrepreneurs to join its franchise network. Franchisees have the potential to earn over 1 lakh per month with a minimal investment. With over 60 years of experience, Dr. Lal PathLabs offers over 3500 tests that cater to the diverse needs of over 12 million satisfied customers across the country. To become a franchisee, you will need a minimum space of 100 sq. ft. and an investment of Rs. 50,000 to Rs. 2 lakhs. The franchise/brand fee is Rs. 50,000 as a security deposit, and commission rates range from 25% to 30%.
Asian Paints
Asian Paints, the largest paint company in India and operating in 15 countries globally, has a reliable reputation. Their main focus is on the manufacturing, selling, and distribution of paints, coatings, home decor products, and related services. It is important to note that Asian Paints operates exclusively through a direct dealership model and does not provide distributorship or sub-dealership options. The total investment required for an Asian Paints dealership in India is around 6 to 8 lakhs, with an additional 5 lakhs investment needed for a commercial space to open a shop. Despite the initial investment, an Asian Paints dealership offers a profit margin of around 3% to 8% on sales, along with cash discounts and RPBT discounts for dealers.
Bajaj Electronics Service Partner
Bajaj World is offering the opportunity to become a franchisee to shopkeepers or dealers who own a minimum 600 sq ft shop. By becoming an authorized franchisee, you’ll have the advantage of being directly associated with the brand, and your shop will be converted into a visually appealing showroom designed by a professional agency. Although you’ll be responsible for the civil work of the showroom, such as the flooring, roof, walls, front glass door, and infrastructure, the company will cover half of the furniture fixture cost estimate. A minimum investment of approximately 5 lakh rupees is required.
SastaSundar
Are you familiar with Flipkart Health+, previously known as SastaSundar? It’s a digital healthcare and pharmacy company located in Kolkata, West Bengal, India, that was established in 2014. The creator, Mr. Banwari Mittal, aimed to make high-quality medicines more affordable, which is now SastaSundar’s strong point. But, did you know that you can also own a SastaSundar franchise? As a franchisee, you can sell SastaSundar products as well as over-the-counter (OTC) items from well-known brands like Patanjali and Himalaya. To become a franchisee, you need a minimum of 120 square feet of space and an initial investment ranging from Rs. 50,000 to 2 lakh.
Thyrocare
Thyrocare, the rapidly expanding diagnostic company in India with more than 26 years of experience, is an ideal partner for those seeking a profitable business venture in the diagnostic industry. They have established themselves as pioneers in Covid testing labs, offering first-rate laboratory processes that are approved by NABL & ICMR and use barcoding and software-driven procedures to maintain high standards. Aspiring franchisees must have a well-maintained infrastructure of 200-400 square feet, and the franchise fee is only 2 lakh rupees, making it an excellent investment opportunity.
Franchising is an excellent business model that has gained popularity in India in recent years. It allows entrepreneurs to benefit from the brand recognition, marketing, and operational support of established businesses, without the risks associated with starting a new venture from scratch, examples of some of the franchise business that has made it big in India are:
- McDonald’s
- Subway
- KFC
- Domino’s Pizza
- Baskin Robbins
Franchising has emerged as a lucrative business model in India. With the rise of the middle class and increased disposable income, the demand for international brands has seen a surge. The franchises mentioned above are some of the most successful franchises in India, which have managed to establish a strong foothold in the Indian market despite competition from local businesses.
One of the primary reasons for their success is their ability to adapt to the Indian market. From customizing menus to suit local tastes to addressing cultural sensitivities, these franchises have invested time and effort in understanding the Indian market. This has enabled them to provide products and services that cater to the specific needs of Indian consumers.
Another reason for their success is their ability to leverage technology to enhance their customer experience. From online ordering to cashless payment options, these franchises have been able to provide a hassle-free and convenient experience to their customers. This has not only helped them retain their existing customers but has also attracted new ones.
Overall, franchising in India is a thriving industry that offers ample opportunities for aspiring entrepreneurs. However, it’s essential to do thorough research and select a franchise that aligns with your interests, values, and budget. With the right franchise, hard work, and dedication, one can achieve success in the highly competitive Indian market.
