Why do so many aspiring entrepreneurs in India prefer small franchise businesses? The answer lies in their affordability, lower risk, and proven business models. Small franchises offer a ready-made brand reputation, operational support, and established customer trust, making them a smart choice for those starting out.
They require less capital compared to large-scale franchises, yet can deliver steady profits with proper management. From food and beverages to education and retail, options are diverse and adaptable to different markets. For individuals seeking financial independence and business stability, small franchises provide a practical, cost-effective pathway to entrepreneurship in India’s growing economy.
In this blog, we will take a look at the Top 15 Small Franchise Businesses in India.
What is a Franchise Business?
A franchise business is a commercial arrangement where an individual or company (the franchisee) is granted the rights to operate a business using the established brand name, products, services, and business model of another company (the franchisor).
In exchange, the franchisee typically pays an initial franchise fee and ongoing royalties or a share of profits to the franchisor. This model allows the franchisee to benefit from an already recognised brand, proven operational systems, and marketing support, reducing the risks of starting from scratch. For the franchisor, it provides an opportunity to expand the brand quickly without bearing all operational costs.
Franchises can operate in various sectors, including food, retail, education, healthcare, and services, making it a popular choice for aspiring entrepreneurs in India who want to start a franchise business with lower risk and established market credibility.
List of Top 15 Small Franchise Businesses in India
1. Zwarma
- Investment Range: ₹3–15 lakh
- Royalty Fees: Typically 0–2% (varies by deal).
- Profit Potential: ₹60,000–₹1.5 lakh/month in busy spots (indicative).
- Return on Investment: ~4–12 months (location-dependent).
- Area Required: 50–400 sq ft (kiosk to café).
Zwarma, established in 2017, is a rapidly expanding fast-food chain specialising in Levantine-style shawarmas with over 25 tasty flavours. It started franchising in 2018 and has risen to more than 100 units in the country.
The business can be distinguished by its relatively moderate entry cost of around 4 lakh-8 lakh and the unusual condition that one does not have to pay royalty- in other words, franchisee takes all profit. It has formats such as kiosks, take-away counters and dine-in outlets with flexibility in setting up.
There is no recurring royalty hence profitability is boosted. Due to its original menu, and affordable structure, Zwarma is a go-to food franchise for business persons looking to keep their investments low and profits high.
2. Brightt Kids
- Investment Range: ₹3–6 lakh
- Royalty Fees: Usually fixed/low monthly fees; % royalty uncommon.
- Profit Potential: ₹40,000–₹1 lakh/month once batches stabilise (indicative).
- Return on Investment: ~9–18 months with steady enrollments.
- Area Required: 300–800 sq ft classroom space.
Brightt Kids, a startup constructed in 2009, works after-school phonics and literacy classes with children aged between 5 and 9. It started franchising its brand in the same year and has steadily grown in India. Franchisees pay a small 2-4 lakh, beginning franchise fee of 25,000.
It is noteworthy that Brightt Kids functions on a zero-royalty system that enables franchisees to garner the majority of their earnings. It is socially effective pedagogy as the curriculum is phonics-based and literacy-oriented.
Brightt Kids is a great opportunity available to the socially conscious entrepreneur due to its affordability, scalable business model, and the high degree of focus on early-childhood learning.
3. Momo Magic Café
- Investment Range: ₹9–20 lakh (brand fee + setup).
- Royalty Fees: ~2–5% (varies by city/model).
- Profit Potential: ₹80,000–₹1.8 lakh/month at good footfall.
- Return on Investment: ~10–18 months (reported).
- Area Required: 150–400 sq ft.
Momo Magic Café is a restaurant that specialises in Indianized momos and Chinese snacks and was established in 2018-2019. The company currently enjoys more than 120 stores in 21 states.
An investment to start an outlet is 5-10 lakh depending upon the size and location of the store. The franchise model is simplified wherein the royalty is fixed (usually around 4% of gross sales) and must be renewed after every five years.
It has 100+ stores running, thus making it one of the most fast-growing momo chains in India. It has a low start-up cost, small menu and scalability and is available to food entrepreneurs wanting entry level investment in the quick service segment.
4. One Bite
- Investment Range: ₹8–12 lakh (setup + fees).
- Royalty Fees: ~4–6% (typical QSR terms).
- Profit Potential: ₹70,000–₹1.5 lakh/month (indicative).
- Return on Investment: ~9–12 months (franchise blog estimates).
- Area Required: ~200–300 sq ft.
One Bite restaurants opened in 2019 with a trendy QSR format that focuses on gourmet appetizers and desserts. Franchise investments include 20 lakhs and 15-lakhs events depending on the size of the outlet (150-1000 sq.ft.).
One Bite uses low royalty, e.g. 2 percent of the sales, and focuses on the high performance level of the products and the brand’s consistency within the outlets. The model has an estimated relatively quick ROI of 6 to 24 months because there are 300 outlets in operation.
The ability of FOFO (Franchise Owned, Franchise Operated) structure to adapt to any entrepreneur wishing to have upscale food at affordable formats makes it open to all.
5. Punjabi Chaap Corner
- Investment Range: ₹10–20 lakh.
- Royalty Fees: ~2–3%.
- Profit Potential: ₹1–2 lakh/month at strong locations.
- Return on Investment: ~8–12 months.
- Area Required: 200–500 sq ft.
Punjabi Chaap Corner is a vegetarian chaap and North Indian street food franchised QSR which started operations in the year 2012. It has grown to more than 45 stores in India.
Its set up would cost approximately 10 lakh and the royalty payable is less at 2 percent of net sales. High Levels of Regional Flavor and effective menu contribute to the viability of the brand in relation to the desi QSR market.
It has low recurring expenses and an increasing popularity making it a monetarily beneficial and easy opportunity in the event that an entrepreneur wants to venture into a business of restaurants with regional cuisine-based franchises.
6. 99 Tasty Hub
- Investment Range: ₹6–12 lakh (kiosk/café).
- Royalty Fees: No royalty.
- Profit Potential: ₹60,000–₹1.5 lakh/month (location-led).
- Return on Investment: ~8–15 months.
- Area Required: 200–300 sq ft.
Since its founding in 2013, the 99 Tasty Hub serves a variety of snacks and desserts, which since 2016 are franchised.
Its initial investment is 6 to 9 lakhs, and the brand does not impose any franchise royalty- resulting in more profitability to a franchisee. Its snack fast-serve multitasking is designed to suit high traffic places, centering on quick turnover and on convenience.
It has minimum recurring costs, and an appeal menu that will find favor among a broad spectrum of the population thereby giving entrepreneurs an opportunity to make a high profit within the food industry.
7. Salgar Tea
- Investment Range: ₹8–14 lakh.
- Royalty Fees: Typically low (1–10%) or fixed fee per some listings.
- Profit Potential: ₹60,000–₹1.2 lakh/month (indicative for tea QSR).
- Return on Investment: ~12–18 months.
- Area Required: ~200–300 sq ft.
Salgar Tea is a specialty tea QSR brand offering global and Indian tea blends.
With over 200 franchises, the brand requires an initial investment of ₹7–10 lakh and charges a nominal royalty of ₹5,000 annually-an exceptionally low recurring cost. Salgar Tea’s cozy cafés and unique beverage range make it ideal for café-style kiosks in malls and high-street locations.
The focus on ambiance and premium tea selection appeals to urban tea lovers, providing a low-cost yet refreshing and profitable venture.
8. Drunken Monkey
- Investment Range: ₹15–35 lakh (city/model).
- Royalty Fees: ~6%.
- Profit Potential: ₹1–2.5 lakh/month at high-footfall sites.
- Return on Investment: ~12–24 months.
- Area Required: 200–1,000 sq ft.
Founded in Hyderabad in 2016, Drunken Monkey is India’s leading smoothie bar chain offering over 170 natural fruit-based smoothies, bowls, and beverages.
It began franchising in 2017 and has over 120 outlets across 45+ cities. Investment for a franchise typically ranges from ₹10 to ₹20 lakh, including a franchise fee of ₹7 lakh, and an additional royalty of 6%.
The FOFO model provides territorial exclusivity, strong training, and support. ROI is estimated within 1–2 years, with high returns of up to 450%. Its health-focused menu and rapid expansion make it one of India’s most promising beverage franchise ventures.
9. Momo Nation Cafe
- Investment Range: ~₹6–17 lakh (brand fee + setup).
- Royalty Fees: ~4–6%.
- Profit Potential: ₹80,000–₹1.6 lakh/month (brand docs/blogs).
- Return on Investment: ~8–10 months.
- Area Required: 200–300 sq ft.
Momo Nation Café, founded in 2016 and headquartered in Delhi, now operates around 75 outlets across 12 states. Serving 70+ momo varieties plus fast food items, the brand offers flexible formats including kiosk, cloud kitchen, dine-in, and express models.
Investment ranges from ₹6 to ₹17 lakh, depending on the model-from express to dine-in. Franchise fees are included in the total investment, with payback in 8–10 months and a 5-year agreement.
The FOFO operational model ensures brand consistency and straightforward management, making it accessible and profitable in varying contexts.
10. DTDC Courier & Cargo Ltd.
- Investment Range: ₹1.5–5 lakh for a standard franchise (ex-security).
- Royalty Fees: Commission-based; margins vary by product/service.
- Profit Potential: ₹60,000–₹1.2 lakh/month with steady volumes.
- Return on Investment: ~6–12 months once consignments stabilise.
- Area Required: ~200–300 sq ft counter + back office.
DTDC is a famous courier and logistics brand that has an economic franchise model that can suit small investors. DTDC has a large network of delivery points that an entrepreneur can exploit in the expanding trade in e-commerce and logistics.
It has several franchise models consisting of single unit and master franchises which suit different levels of investments. Franchisees get the training, marketing support, and use of sophisticated tracking technology of DTDC.
Its low entry price and the reputation it enjoys dominate it as the valuable option in the case of an individual in need of consistent earning within the delivery industry.
11. Lenskart
- Investment Range: ₹30–50 lakh (most stores land ₹35–40 lakh).
- Royalty Fees: Works on revenue-share/margins; specifics vary by contract.
- Profit Potential: 25–30% gross margins cited by partners/blogs.
- Return on Investment: ~24–36 months in steady locations.
- Area Required: 300–500 sq ft.
Lenskart is the market leader in India eyewear with a profitable franchise model of a sector with high demand. Lenskart, which has a variety of spectacles, sunglasses, and contact lenses, mixes online and offline selling.
Franchise partners access brand awareness, technology assistance and premiere marketing. The company offers inventory management system, employee training and customer service advice.
As awareness on eye care and fashion eyewear increased, there is steady footfall in the Lenskart stores. It would attract entrepreneurs and people who want to enter the retail healthcare market due to its low investment threshold and a high payoff.
12. Jawed Habib Hair & Beauty Ltd.
- Investment Range: ₹30–50 lakh.
- Royalty Fees: ~15%.
- Profit Potential: 20%+ margins typical; higher with premium services.
- Return on Investment: ~24–36 months.
- Area Required: 1,000–1,500 sq ft for full salons; compact formats smaller.
Jawed Habib Hair & Beauty Ltd. is one of the most popular chains of salons in India with its cheap but quality hair and beauty services. The franchise model of the brand is well developed with full operational support, training classes and marketing assistance.
Customers who rely on the experience of the company in styling attract corporate wheels to the franchisees. The cost is middle-range, and the demand of the salon industry is stable, so it will be regular income.
By having services to all age groups and an increasing interest in grooming, starting with Jawed Habib as a franchise offers sustained profitability in a recession proof business.
13. FirstCry
- Investment Range: ₹25–35 lakh (city/size).
- Royalty Fees: Generally brand/tech fees; % royalty varies by agreement.
- Profit Potential: ₹1.5–3 lakh/month for healthy stores (indicative).
- Return on Investment: ~18–30 months.
- Area Required: ~1,000–2,000 sq ft.
FirstCry baby and kids online and offline retail store is the largest such store in India that ensures a proven franchise model that anyone can take up. The brand has all types of clothing, toys, and even maternity products, so it will not have limited customers.
The franchise owners enjoy centralised supply, marketing programs across the country and training. FirstCry stores have stable demand because India has a young population and increasing expenditures on children requirements.
Its investment is not high, and its hybrid business model, which combines e-commerce with physical stores, makes it more profitable. The high brand recall and high margin product category of FirstCry is something that endears it to small business owners.
14. Amul Ice Cream
- Investment Range: ~₹2–6 lakh (kiosk/APO) to ~₹6 lakh+ (scooping parlour).
- Royalty Fees: No royalty/revenue share (Amul model).
- Profit Potential: Heavily location-dependent; parlours target brisk daily sales.
- Return on Investment: ~6–12 months for strong sites.
- Area Required: ~100–400+ sq ft depending on format.
Amul Ice Cream of the legendary brand Amul has pioneered by providing a franchise of the drink which is not only low-cost but also profitable in the growing Indian food industry.
The brand boasts one of the largest customer loyalty bases, as it is a manufacturer of delicious ice creams, sundaes, and frozen desserts. The franchise partners enjoy high supply chain, low operations cost, and royalty fees, which maximise profit margins.
The trusted brand image and right quality of the products of Amul are guarantees of the constant flw of people. An Amul Ice Cream franchise is just the thing to have if an entrepreneur wants a low investment, high profit food franchise.
15. FabIndia
- Investment Range: ₹50 lakh–₹1 crore.
- Royalty Fees: Mixed info-some say none, others cite revenue share; confirm with brand.
- Profit Potential: 15–25% retail margins typical for apparel/lifestyle.
- Return on Investment: ~3–5 years.
- Area Required: ~1,000–2,000 sq ft.
FabIndia is a major retail brand that deals with ethnic wear, home furnishing and organic productions. The investor can fit its franchise model to an investor who is interested in lifestyle and fashion retail.
With its handcrafted, sustainable products, FabIndia has a market among urban and global buyers who desire high quality. Benefits that accrue to franchisees include: Brand equity, training services and strong customer base. The investment is also greater than small food or service franchises but returns are good in the upscale markets.
FabIndia stores experience constant demand with the increased liking of India to traditional and modern designs, translating to long-term profitability of serious business investors.
Ending Thoughts
In conclusion, small franchise businesses in India offer a promising pathway for aspiring entrepreneurs seeking low-investment opportunities with high growth potential. These ventures combine the advantage of an established brand with the flexibility to operate in diverse markets, making them accessible to individuals with varying budgets and skills.
From food and beverages to retail and services, each option comes with proven business models, marketing support, and operational guidance, reducing the risks associated with starting from scratch. Choosing the right franchise aligned with your interests, location, and budget can pave the way for long-term profitability and stability, turning your entrepreneurial vision into a sustainable and rewarding business journey.
FAQs
How much investment is required for a small franchise in India?
Investment can start as low as ₹2–10 lakhs, depending on the brand, location, and business model.
Are small franchises profitable in India?
Yes, with the right brand, location, and marketing, small franchises can deliver steady profits and quick returns.
Which sectors offer the best small franchises?
Food & beverages, retail, education, and fitness sectors are among the most popular and profitable small franchise categories.
Do I need prior business experience to start a franchise?
Not always-many brands provide complete training, operational support, and marketing guidance to help beginners succeed.
