Loan for Business

Top 10 Franchise Business Ideas in India

Q: What are the legal requirements to start a franchise business in India?

To start a franchise business in India , you need business registration, GST, Shop and Establishment licence, and sector-specific approvals like FSSAI, along with a legally vetted franchise agreement.

By Tata Capital
02 January 2026
10 mins read
2725

Top 10 Franchise Business Ideas in India

Franchise businesses in India have been growing at a 30% to 35% rate on a Y-O-Y basis. The industry also contributes to around 2% of the country’s GDP—the 5th largest in the world. While many think that opening a franchise business requires a lot of money and experience, the facts and figures tell a different story of franchise growth in India.

In this article are the top 10 franchise business ideas that are gaining momentum in the country and the most profitable ones. If you are in a dilemma about which franchise business ideas in India would work out, you can find some interesting details about the industry in this article.

What is a Franchise Business?

A franchise is a business model where an established company allows another entity to use its name and sell its products or services in exchange for a commission on sales.

For example, ABC, a popular Mumbai restaurant, offers franchise rights to Mr. X, who opens a restaurant under ABC’s name. Mr. X handles the setup and daily operations, while ABC receives a percentage of the revenue, typically split (e.g., 60:40). If the total sales are Rs. 5 lakhs, Mr. X keeps Rs. 3 lakhs, and ABC gets Rs. 2 lakhs.

The core idea is that franchisors expand through partners, sharing revenue in exchange for using their brand.

Current Scenario of the Franchise Industry in India

This is one of the best times to think about franchise business ideas in India, as the industry is growing at a fast pace. It is anticipated that the franchise industry will become a Rs. 10,000 crore industry by 2024.

After the US, India has the most franchisers, which is close to 4600 presently. There are more than 1.7 lakh franchisees of these franchisers who operate over 2 lakh outlets in the country.

For instance, multi-unit franchises have grown by more than 36% in the past two years. There are national, domestic/ regional, and global brands that offer franchise opportunities in the country.

So, for franchise business ideas, one can opt for brands at these three levels. With so many franchisers, finding the right franchise business ideas in India is becoming easier.

For instance, if someone is looking to open a multi-unit franchise, then opting for a global or national brand would be great; for someone looking to open a single-unit franchise in a particular region, opting for regional brands can be great.

Similarly, someone looking for franchise ideas for small towns in India can opt for regional brands. In the franchise industry, 50% of franchisors are regional brands. Of the remaining 50%, 16% are global brands, and the remaining 34% are national brands.

Top 10 Profitable Franchise Business Ideas in India

The most popular franchises across the country include beauty and wellness franchises, food and beverages, healthcare and diagnostic centres, and retail fashion brands.

Here are the top 10 franchise ideas in India:

1. Beauty and Wellness Franchises

With more people realizing the importance of self-love, they do not hesitate to take care and pamper themselves. This has, in turn, increased the number of people visiting spas and salons more than ever before.

In India, beauty and wellness franchises are growing at the fastest pace. Beauty and wellness salons offer franchises across the country, and even tier II and tier III cities are now becoming hotspots for these franchise units. Visit any mall, and you will know what we’re talking about!

2. Food and Beverages

After beauty and wellness, the best franchise ideas in India can be regarding food and beverages. Indians love to eat and live to eat. Following this, so many regional, national, and global brands are offering their franchises to people who want to start their own food and beverage businesses.

If someone is looking for franchise ideas for small towns in India, then food and beverages can be one of the most suitable ideas. Apart from the multi-national food chains, there are many home-grown companies that offer franchises across tier-II and tier-III cities.

3. Healthcare and Diagnostic Centres

The younger generation in the country is becoming more inclined to have a healthy lifestyle. Regular health check-ups have increased in recent years, and people are looking for genuine diagnoses and laboratories to rely on for their healthcare. This has boosted the franchise business in this sector. Such franchises are especially popular in localities and communities with a higher age group since having a healthcare and diagnostic centre in their vicinity makes healthcare easier for seniors.

4. Retail Fashion and Jewellery Franchises

People are shifting to branded clothes not only for maintaining their status symbol but also for comfort and quality in more cases. This has increased the opportunities in the retail fashion and jewellery industries. There are many Indian brands that have multiple franchises across the country that one can opt for.

5. Automotive Franchise

One of the oldest and biggest franchise businesses that have been around for years is automotive franchises. In simple terms, these are franchise businesses for selling automobiles. There are millions of vehicles that are purchased every year, and thus, this sector has immense opportunities for a franchise business. In small towns, bikes and scooters are bought more often than cars. Thus, it could be a good franchise idea for small towns in India to buy a franchise from an automobile company manufacturing a two-wheeler.

6. Retail Furniture and Décor

People are also getting more inclined to decorate their homes on a reasonable budget, which has increased the business of retail furniture businesses. There are many regional and national brands in this sector that are offering franchise opportunities.

7. Pharmacy

Online medical stores are becoming increasingly popular due to the ease of purchase of medicines and their free delivery services, all at highly discounted prices. Thus, franchise businesses in this category are rapidly growing in every corner of the country, including in tier-II and tier-III cities.

8. Pre-School

Parents want the best education for their children, and, with the rising competition to get into big schools, pre-schooling has become a thing. Multiple pre-schools are operating in all the cities and small towns to help children grow, learn and get into prestigious institutions. A preschool franchise in India can prove to be a very successful model if implemented and managed correctly.

9. Ice Cream Outlets

Nowadays, fresh ice creams or ice cream art are becoming popular. There are many ice-crease franchises operating on an India basis and generating good revenue. Visit any high street or shopping mall across India, spotting such ice-cream outlets is very common. Ice cream never goes out of fashion, and demand remains all year round.

10. Courier and Delivery Franchises

The courier service business is one of the franchise business ideas that is gaining popularity with people living in different cities away from their hometowns. As more people are relocating for their jobs, accessing quality and swift courier service is becoming critical. Food and article delivery is a hit amongst millennials and Gen Z living in different parts of the city for work and education purposes. Courier and delivery franchises can cash in on the huge demand for food/article delivery and courier services in India.

Also, read: Starbucks Franchise Cost in India & its Process

Investment Required for Franchise Business

The investment cost is something that bothers many people when they are looking for franchise business ideas. Usually, the cost or investment required for 50% of the franchise business ideas in India ranges between Rs. 5 lakhs and Rs. 10 lakhs. For some outlets, this can go higher, depending upon the brand, its market, reputation, and even the location of the franchise.

Government Schemes and Subsidies for Franchise Businesses in India

If you’re planning to start a franchise business in India, government schemes can make your journey much easier and less stressful. When you’re investing in the best franchise business in India, access to the right financial support can make it easy on your pocket.

Schemes like the PMEGP help you with margin money subsidies of up to 35%, making it easier for you to step into promising franchise opportunities in India.
If you’re starting small or cautiously, the Mudra Loan Scheme supports you at every stage, whether you’re choosing a local outlet or a top franchise in India.
For women and SC/ST entrepreneurs, Stand-Up India opens doors to latest franchise opportunities in India with easier credit access and flexible repayment terms.
Several state governments also offer subsidies and training support for franchise brands in India, especially in service-based sectors.

When you evaluate the best franchise business in India, checking your eligibility for these schemes can help you build a more profitable and sustainable franchise business in India from day one.

Also, read – Best Business Ideas for Women at Home

Legal Requirements and Licenses for Franchise Businesses in India

Before you begin your franchise business in India, understanding the legal side protects you from future headaches. While India doesn’t have a dedicated franchise law, you still need to meet essential compliance requirements to operate a top franchise in India smoothly.

First, you’ll need to register your business. It could be as a sole proprietorship, partnership, LLP, or private limited company. A valid GST registration is mandatory for almost every franchise business in India, especially when working with recognised franchise brands in India. You should also carefully review your Franchise Agreement, as it defines your rights, royalties, branding usage, and exit terms.

Depending on your industry, you may need additional licences like from FSSAI for food-related franchise opportunities in India, Shop and Establishment registration for retail, or MSME (Udyam) registration to access benefits under latest franchise opportunities in India.

If you want to run the best franchise business in India with confidence and credibility, such legal requirement must be fulfilled

Choosing the Right Sewing Machine for Your Tailoring Business

If you’re starting a tailoring unit as part of a franchise business in India, the sewing machines you choose will directly affect your speed, finish, and customer satisfaction. Many franchise brands in India, especially those positioned as a top franchise in India, expect consistent quality across outlets.

For everyday tailoring work, you should begin with a high-speed straight-stitch industrial machine that offers adjustable stitch length and strong motor output.
As your services expand, often the case in franchise opportunities in India, adding an overlock (serger) machine helps you deliver clean seams and professional finishing.
A buttonhole machine and a zig-zag stitching machine are useful if you plan to offer full-service tailoring and position yourself as the best franchise business in India.
If your work involves thicker fabrics, a walking-foot or compound-feed machine ensures even stitching.

With such modern types of sewing machines at your disposal, you can benefit from the latest franchise opportunities in India and achieve success!

Also, read – How to calculate GST on a home loan?

How to Price Your Tailoring Services Effectively

When you run a tailoring franchise business in India, pricing your services correctly helps you attract customers and stay profitable. Your prices should feel reasonable to customers while reflecting the quality you offer. If you’re working with established franchise brands in India, you may receive basic pricing guidelines, but local demand still plays an important role.

While setting prices, think about fabric quality, stitching complexity, time required, and your daily operating costs. Many top franchise in India tailoring models follow value-based pricing, where customers pay not just for stitching, but for reliability and trust.

Regularly reviewing your rates helps you stay competitive, especially as the latest franchise opportunities in India continue to evolve. It is crucial to stay updated with the times. Smart pricing strengthens your position in the franchise business in India and builds long-term customer loyalty.

FAQs

What are some franchise business ideas that I can start with low investment?

Low-investment ideas include education centres, tailoring units, food kiosks, and service franchises, often featured among latest franchise opportunities in India that can even be started with low investment.

Which are the most profitable sectors in India for starting a business?

Food and beverage, healthcare, education, and retail remain profitable sectors, offering strong returns and housing many best franchise business in India options.

How soon can I expect profit in a franchise business?

Most franchise businesses in India reach break-even within 12 to 24 months, depending on location, operating costs, and how well the franchise opportunity is managed.

What is the cost of owning a franchise business?

In India, owning a franchise business usually costs anywhere between Rs. 2 lakh and Rs. 50 lakh, depending on the sector, format, location, and scale of operations.

What are the legal requirements to start a franchise business in India?

To start a franchise business in India, you need business registration, GST, Shop and Establishment licence, and sector-specific approvals like FSSAI, along with a legally vetted franchise agreement.

How much capital is needed to start a small-scale franchise business?

A small-scale franchise business in India typically requires Rs. 2 to 10 lakh, depending on the brand, location, and whether you choose service-based or retail franchise opportunities in India.

What are the best markets for selling franchise businesses in India?

Food services, education, healthcare, retail, and logistics are strong markets, hosting many top franchise in India models due to steady demand and scalability across cities.

How can I get a business loan for my franchise from Tata Capital?

You can apply online through Tata Capital website by submitting KYC documents, a business plan, and franchise details; loan approval depends on credit profile and brand viability.

What are the challenges of running a franchise business from home?

Common challenges include space constraints, local zoning rules, limited customer visibility, and maintaining brand standards expected by franchise brands in India.

Previous Post Disclaimer Next Post

Menu