Best Franchises Under 20 Lakh [Top Ideas]

The franchise business in India has become a very profitable option given how seamless the opportunities have become today. As opposed to the general assumption that they require huge investment, and one can start making a profit only after many years, there are plenty of franchises that can be acquired with low investment and are easy to implement. Let's take a look in the further sections at what is the scope of franchise business in India, how to get started, and the best opportunities in India under 20 Lakhs.

Scope of Franchise Business in India

Everyone wants to be an entrepreneur these days, mainly because of its inherent freedom and financial independence that it provides. However, starting a new business can be challenging with several factors that need to work. A franchise business can be extremely beneficial and can provide a ready framework for starting up in India. Whether you have unique business ideas, small-scale business ideas, or small business ideas franchises can make the process very effortless.

As a franchisee, you are already part of a brand that has been successfully established. With the right vision and a solid business plan, you can leverage the potential of a franchise business and get commissions of a percentage of the overall revenue. All you need to do is select the right franchise, understand and imbibe their vision, and watch your sales multiply in the long run.

How to get a Franchise in India?

There are plenty of resources in India when it comes to starting a franchise, however, there are certain ground rules. It needs a good business plan, investing capital, and thorough research of the business niche that you’re planning to acquire. Here are a few steps explained in short, to understand how you can get franchises in India.

1. Identify the niche: This is the most important step in setting up a franchise in India. Whether it is a small-scale business idea or a unique business idea, you need to have proper market research done for the franchise you choose. Demographics play a key role in looking for franchise opportunities. For e.g, if you’re in a tier -2 city and looking for a luxury brand franchise, it might be a lost cause.
2. Complete the formalities: Complete the agreement with the franchiser and then register yourself with the Ministry of Corporate Affairs. Ensure to complete all the legalities to avoid any future mishaps.
3. Licensing: Once the legalities are sorted, complete the licensing formalities. From the industry to business licensing, complete all the licensing documentation before releasing the franchise in public.
4. Ownership: Once all the licensing and legal documents are in place, it's time to take over the ownership. This too should be done through a legal process with all documents in place.
5. Once you get the ownership, you get access to business methods, equipment, marketing styles, etc, you also get the brand name, banner, logos, slogans etc, to use for setting up the franchise.

Franchise Opportunities in India

1. Food Franchise

India is one of the largest consumers of fast food in the world, and therefore most of the successful US brands like McDonalds and Subway have found a firm foothold in the country today. With the rapid growing economic strata of the urban households, fast foods have become a preferable food option. There are a range of franchises in this sector from small-scale business ideas to profitable big brand food chains where you can leverage your food management expertise. At an investment of 20 lakh this sector has a lot of popular franchises that can offer excellent returns. Here are some of the top food franchises that can prove to be the best business under 20 lakh.

1. Kathi Junction
2. Rolls & Bowls by FeedX
3. U.S. Pizza
4. Ghasitaram Halwai
5. Sports Franchise

India has a deep love for sports, and is considered like another religion in the country. Therefore a sports franchise can be a best business idea under 20 lakh. If you have a good interest in sports and are looking for unique business ideas to set up in India, sports franchises can be your true calling.There are plenty of good and established brands whose franchise can be set up in India. Here are some of the small profitable business ideas that can be set up as a franchise business under 20 lakh in India.

1. H2O Sports Franchise
2. GoalSquad Sports Shop Franchise
3. Playmart Sports shop
4. Yoova Mart Sports shop
5. Retail Franchise

In a developing country like India, most of the consumer sectors have grown exponentially in the last five to ten years. In retail and especially e-retail markets, the franchise businesses have done exceptionally well. Thanks to urban households that have given rise to preference of retail brands. Retail provides a range of products like grocery, clothing, supermarket chains, etc, and while these are unique business ideas or even with an investment of 20 lakh they are small-scale business ideas. With a minimum investment they can yield a good profit. Here are some franchises in the retail industry that can be the best business under 20 lakh.

1. Vajor - women clothing line
2. Ariave - home decor brand
3. Nut lounge - Food and beverages store
4. Hypermarket - supermarket retail store chain
5. Clear Dekho - eyewear brand

2. Restaurant Franchise

If there has been a direct beneficiary of India’s consumerism then it is the hospitality sector and more specifically the restaurant franchise. Young India spends their weekends usually trying out new restaurants. It is therefore not new to see a rise in the restaurants in all tier-2 and tier-3 cities of India as well. A restaurant franchise is a profitable venture that can yield good returns. Some of the popular franchises available in the sector as best business under 20 lakh are:

1. The J
2. Oregano - The Organic Pizzeria
3. Bos Red Chilly
4. Momo food truck
5. Wrap King

3. Education Franchise

With more people opting for building new skills, education is also a sector that has shown tremendous growth in the last few years. Whether it is for alternative skills, kids preschool or any other target age group, education is a sector that is safe from any kind of slump. There are some big brands that are available as unique business ideas, here are a list of upcoming education franchises that are best business under 20 lakh:

1. ICON preschool
2. Prerna Education
3. Jumpstart Preschool
4. The Learning Curve
5. Amigo Academy Pvt LTD.

4. Health care Franchise

With a growing population, healthcare systems in India need to be constantly updated to meet with the increasing demands. A lot of healthcare franchises are available that can be small profitable business ideas for a minimum investment of 20 lakh.

1. Patanjali
2. India IVF
3. GMM Human Care
4. Kerala Ayurvedic health care
5. Thyrocare diagnostics

5. Business services Franchise

Apart from all the basic needs, there are tons of services that the urban middle class needs on a daily basis. Research has shown that the growing middle class strata in India, has now become more open to various services online. Here are some unique business ideas that can be applied to as a franchise. These are some of the upcoming business ideas under 20 lakh.

1. Twinto cleaning services
2. Universal InfoWiz
3. Zool Ad Network
4. Adaugeo
5. eSeva World

Conclusion

In India, with a growing population and economy, there is an exponential rise in the franchise market and is only expected to grow hereon.By 2030, India is poised to become the third highest consumer in the world behind US and China with an estimation of $6 trillion. This means that along with small-scale business ideas and unique business ideas the market is bustling for the franchise opportunities in India. With more individuals choosing to go the entrepreneurial way, the franchise market is only expected to boom.

Estimates suggest that almost 35% of the franchise buyers in the market are first-timers. There is a silver lining to the idea of franchising, which is why more individuals are steering towards franchise business rather than startups. The looming economic disparity that India is facing currently can be eliminated if more franchises are brought in India. A single franchise store can potentially employ 30-40 people. The number can only grow more, if we leverage the potential that franchise business provides. The dream of India shining can soon be a reality.

Also Read:

1) What Are Some Business Ideas for Women in Manipur?
2) What Are Some Business Ideas for Women in Haryana?
3) What Are Some Business Ideas For Women In Uttarakhand?
4) OkCredit: All you need to know about OkCredit & how it works.

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FAQs

Q. How much does franchising contribute to the Indian economy?

Ans. Franchise sector contributes nearly 1.8% to the Indian GDP and is expected to rise upto 5% by 2025.

Q. Which are the major sectors in franchising?

Ans. Food & Beverage, Apparel, Lifestyle and now Edutainment, Beauty and Wellness as well as specialty retail concepts are some major sectors.

Q. What are some new trends seen in franchising?

Ans. Micro franchising, online franchising, and sports league, travel retails, local specialities and organic franchises are up and coming trends.

Q. What is an ROI period and how is it calculated?

Ans. ROI is the return on investment period in a franchise business where the owner becomes aware of the time period it would take to recover the invested money.

It depends on 4 factors:

1. Product margins
2. Operational expenses
3. Assumption of expected sales
4. Total investment