franchise business in india.(complete detail guide)

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In today’s post, we will see what is franchise meaning and franchise business in India.

Shifting you’re mind from regular jobs and starting a new business is a very great decision and I must congratulate you on that.

If you want to know why a person keeps doing jobs and not business please go through this post.



Starting a new business is not the same thing for everyone, someone may have a good family background and backup with them.

they can quickly find a business idea and convert it to a strong enterprise of their own. 

On the other hand, a business can be a tough decision for an average middle-class person due to very valid reasons.

There are many things involved such as selecting the right business idea, then preparing and planning for the same.

in this process, you have to look for many many things and legal procedures to finally start your business.

This is where a franchise business comes in.

in short, you do business but at the same time, you avoid a lot of starting procedures and do not start anything from scratch.

Franchise meaning can be understood by the following definition:

 An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, e.g., providing a broadcasting service or acting as an agent for a company’s products.

‘Toyota granted the group a franchise’


In simple terms, it means the expansion of the already successful business.

Many people get confused and think what is franchise meaning in Hindi so franchise in Hindi is ऐसी वस्तु बेचना जिसे बेचने की अनुमति आपको विशेष रूप से दी गई है और यह उत्पाद किसी दूसरी बड़ी कंपनी का उत्पादन है.

anyone can apply for a franchise of reputed and well-known businesses based on their terms and conditions and in return they can run the exact same business model with their outlets.

We can notice many examples of franchise businesses around us like Cafe Coffee Day, dominos, pizza Hut, McDonald’s and many more.

The business which allows you to use their brand name and do Business is called as a franchisor.

they help your business and provide you with all support like marketing, recruitment, training.

they actually ensure the smooth running of your franchise business in return for all of this franchise owner pay initial fees and royalties for this to the franchisor.

There is also some investment required based on the company which gives you rights for franchise.

this largely depends on brand, location and service products you are offering.

Why You should start a franchise business

The franchise business in India is growing very fast since 2008.

According to the Franchise Association of India the franchise market will increase up to us 51 billion dollars, this means that there is a huge opportunity in this sector.

Franchise business is most developed in the field of food and beverage business franchises and also in the sector such as retail, education, hospitality, healthcare, beauty and many more.

Benefits of Starting a franchise business.

  • There is no need to start anything from scratch.
  • You get a trademark and whole existing system of big business.
  • No previous experience is required to get a franchise you can start learning as you take a franchise.
  • There is no need to do market research and other marketing tasks usually, you do when starting a new business.
  • There is no need to invest a large budget on advertising as this is already done by the franchisor.
  • You get a brand name of the business which is already proven and tested to work, in the process, you avoid a lot of risks.
  • When taking new franchise you get the advantage of learning new technology and new methodology of business

Types of franchise business models in India

These models of franchise business in India do not affect the way you do a franchise business, but it’s good to have a knowledge of this.

1.COCO model

As the name suggests this is the company-operated and company-owned model of a franchise business. this model has nothing to do with franchising

2.FOCO model

This is a franchise-owned, company-operated model. in this model franchise owner invest in the business and Company takes care of the operations, in return giving a fixed percentage of sales

3.COFO model

This model is owned by the company but operated by franchise this is where the company invests in the business, the franchise operates all the operations.

4.FOFO model

This model is fully owned and operated by a franchise based on the terms and conditions of the company, and this is a profitable franchise model in all.

Although there can be many franchise business models operating in the business world, large companies give franchises in the FOFO model.

How to start a franchise business

  1. After doing business research you should apply for a franchise of company and pay an initial fee for buying franchise rights.
  2. By approving your franchise application company will give you access to trademark slogans, brand names, logos, and other marketing materials.
  3. You will be allotted specific territory to do your business.
  4. You have to sign a contract with the company for a specific period that is decided by the franchisor.
  5. The period can be 7 or 10 years and you have to renew after the period is over.
  6. When your franchise business starts you have to pay decided royalty payment as per franchises terms and conditions.
  7. The franchise owner has to follow a business system that the franchisor follows.
  8. The location of the franchise can be decided by the franchisor and the outlet will work. exactly in the same way as the main business.
  9. You can take the help of professional organizations to get started correctly in a franchise business.


Best franchises in India.

McDonalds Franchise

McDonald’s is the biggest brand of the restaurant chain in the world.

they are operating in more than 118 countries and nearly about 67 millions customer enjoy their meals.

In India McDonald’s is serving for the last 20 years and is a pioneer in this field.

Cost of McDonald franchise in India

If you want to run a profitable franchise of McDonald’s you would have to invest a total amount of between 7 crores to 14 crores.

Liquid Capital requirement is around rupees 5 crore.

The initial fee for the franchise is rupees 30 lakh and there will be a service charge of 4% on total sales.


Franchise of KFC in India

Kentucky Fried Chicken known as KFC is a world leader fast-food franchise.

Opening a KFC franchise requires huge investment. it comes out to be around rupees one crore in India and there are also 4% royalty fees that you have to give.

Franchise of Haldiram in India

Haldiram is well known and reputed brands of India. this is the best food and beverage brand.

they are involved in the production of high quality and very popular snacks in India.

They deal in every type of sweet and namkeen products and popular franchise business in India.

The actual cost of starting Haldiram franchise business is not mentioned on their official website but they provide franchise opportunity in 2 ways

1.Quick service restaurant

This type of Haldiram franchise requires approximately two crores in liquid cash to start.

2.Casual dinner

This is a type of franchise where you need to invest around one crore.

Natural ice creams franchise in India

Natural ice creams were founded in India in 1984 and a very popular Ice Cream brand.

Their branches are mainly in urban communities like Mumbai Hyderabad Chennai Pune and many more.

To start their franchise you need around 800 to 1200 square feet area and rupees 25 lacs.

Domino’s franchise in India

Domino’s Pizza is a market leader in the pizza segment of food and beverage.

they have restaurants across 265 cities in India and offers like 30 minutes pizza or get free delivery.

To start with Domino’s Pizza franchise in India total investment in Indian currency comes out to be rupees 65 lacs to rupees 3.5 crores

Burger King franchise in India

Burger King is an American fast-food franchise.

To start your franchise business with Burger King you need to invest around 2.5 crores

Foodies franchise in India

Foodies manufacture all types off snacks and Namkeen.

To take franchise of foodies, you need an area of 100 to 500 square feet and investment in the range of 50k to 2 lacs.

Ekart logistics franchise

Ekart Logistics is India’s largest courier service. they ship 10 million shipments monthly.

established in 2009, they serve to 4000 pin codes all over India.

To take the franchise of ekart Logistics you may need to invest around 1 lakhs, the company will make an agreement with you for 3 to 4 years.

Above are the best franchises in India and also very popular ones that require a considerable amount of investment from your side.

Low investment franchise in India

To know about the latest franchise opportunities in India and also with low investment one can refer to popular websites as mentioned below.

These websites provide all data of every kind of franchise option available in India.

you can easily select a franchise option as per your requirement like investment and location.

Franchise opportunities are nicely organized in categories and there is a lot of option to search franchise based on various options.

Below are websites that link to franchise options and give you an easy way to apply with them.


if you want to start a small business and you are on a small budget.

you should definitely consider the option of the franchise with low investment.

On the platform, you can find a franchise with investment from rupees 10000.


Franchise business is the best option to get started with your own enterprise.

By doing franchise business you work with already established businesses that are proven and profitable.

Your risk of failing is largely minimized, it also helps you even if you do not have previous business experience.

To start a new business right from scratch is not impossible but it is difficult for a newbie.

The first few years are very difficult and according to some studies, only 1% of new businesses survive.

When done correctly franchise business gives Freedom and a lot of earning opportunities.

After running and managing a successful franchise business in India for a few years you can easily start your own brand.

then you should give your franchise to other new people.

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