best franchise business categories in India

5 Best Franchise Business Categories In India That Can Make Big Profit in 2021!

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Do you dream of starting your own business? Of course, you do, which is why you are here reading the article to know about the best franchise business in India. And I am not going to disappoint you! Continue reading to know about the 5 best franchise business categories in India 2021, which you can start with very little investment. 

best franchise business categories in India

A franchise business? Aren’t they too old fashioned? Do they really make money? I know these are the questions crossing your mind and quite rightly so. 

Let me explain with a few statistics and facts. 

  • According to an article published by in December 2019, the Indian franchising industry has grown at a stupendous pace of more than 30% YOY basis.
  • It is estimated that the franchise industry in India will be worth USD 100 billion by the year 2024.
  • When it comes to the size of the franchise market globally, India stands second after the United States.
  • As of December 2019, India boasts of more than 4,500 franchisers who are active.
  • There are more than two lakh outlets run by more than 1.7 lakh franchisees in India.
  • More than a thousand new retail businesses take up the franchising model every year. 

And yet franchising in India is still at its nascent stage. So, this opens up lots of opportunities for aspiring entrepreneurs looking to start something on their own.

Let’s start with my list of the 5 best franchise businesses in India with low investment. Also, I have given a basic idea, how you can start each type of franchise business.


Cloud Kitchen – The Best Franchise Business in India 2021 That Can Beat The Pandemic Crisis 

Cloud Kitchen – One of The Best Franchise Business Categories in India to Consider After The Lockdown

Food and beverage businesses have always remained a favorite among entrepreneurs, because of their steady income assurance. Even a year back, you might have readily considered a restaurant franchise like KFC, Subway, or Taco Bell, provided you had adequate funds and resources to invest.

However, the situation has changed, now that the world is grappling with Covid19 uncertainty! People now prefer home delivery rather than spending money on fine dining. And this is reason enough to consider a cloud kitchen franchise business in India. 

What Exactly is Cloud Kitchen?

Simply speaking, it is a delivery-based kitchen setup without a dine-in facility.  Such kitchens operate online, i.e. they accept orders via the website/app of trusted online food aggregators like Zomato or Swiggy. Some cloud kitchens prefer to operate on their own by launching a website or mobile app to take orders. 

Ideally speaking a cloud kitchen enjoys lots of flexibility. It can associate with multiple brands and yet invest in a single kitchen infrastructure and resources. Thus multi-brand cloud kitchen setups can diversify their menus and attract more customers with different food preferences. 

Why Consider Cloud Kitchen Franchise In India?

According to data shared by  (link at the end), the Cloud Kitchen market in India is expanding very fast. By 2023, the market share of cloud kitchens is expected to grow by approx. US$1 billion.

In fact, this Coronavirus pandemic has actually attributed to the further growth of cloud kitchens worldwide. And the other interesting point to note is that home cloud kitchens are gaining popularity and are likely to overtake commercial cloud kitchens. 

The fact that these home cloud kitchens operate with minimal setup and resources, enables them to keep the cost down. Thus they can offer franchises at lower rates as compared to their commercial counterparts. So, anyone considering a cloud kitchen franchise business in India can benefit from this competitive scenario.  

Remember to check out these criteria before considering a cloud kitchen franchise:-

  • What is the initial investment? What are the recurring charges or costs?
  • Are they offering setup, infrastructure, and training support?
  • Are they associated with multiple brands? 
  • Do they offer any assured return on investment?

Best Franchise Businesses in India 2021 and beyond to consider in the cloud kitchen franchise space:-

  • Wow! Momo (Minimum investment is around Rs.8 – Rs.10 lacs)
  • Butter Singh (For Delhi – NCR only – Investment is around Rs.11 Lacs)
  • Shake Eat Up (Investment is around Rs.25 lacs)
  • Twigly (For Delhi- NCR – Investment is around Rs.14- Rs.20 lacs)
  • Jux Pux (Investment is around Rs.10-Rs.12 lacs)
  • Yum! Rolls (Investment is around Rs.13 lacs)
  • Kathi Junction (Investment is around Rs.5-Rs.10 Lacs)

Gather complete information before you decide to start a cloud kitchen

Grocery Store Franchise – Consider Niches Like Fruit or Vegetable Mart

Grocery Store Franchise - Consider Niches Like Fruit or Vegetable Mart

A grocery shop is always in demand and was considered the best franchise business in India 2020 too! Now you might be wondering isn’t it too expensive to open a grocery store? Not really. There are many trusted names that offer franchise business opportunities in the grocery retail segment at affordable prices. 

If you are looking for affordable grocery stores and food marts franchises in India, then remember most of them cover limited locations. Therefore, you need to do detailed research to find an affordable grocery store franchise that serves your specific store location. Maybe you can approach your local grocery stores to know if they offer any partnership or franchise opportunities. 

Also, it is important to devote full-time to run a profitable grocery store franchise business. Your product prices and delivery service need to be flawless too, to make a profit in this highly competitive business. 

Best franchise business in India under 10 lakhs in the grocery store franchise space 

  • Value4U (For Maharashtra only; Investment is around Rs.10-Rs.20 lac)
  • Grofers (Minimum investment is Rs.15 lac)
  • Vegetable Mart ( Minimum investment is around Rs.10 lac)
  • Street 24 (Minimum investment is around Rs.5-Rs.8 lac)
  • Trufood Agro (Investment is around Rs.20 lac)
  • AVI Infocom (Investment is around Rs.2-Rs.5 lac)

Online Education – One of The Best Franchise Business Categories in India With Great Income Potential!

With schools and colleges being closed for over six months, online education now has become a household name in India. According to this KPMG report (link at the end), the total value of the digital education market in India will exceed 1.96 billion within a year or so, i.e. by 2021. So, if you are looking for the best franchise business categories in India, then you simply can’t ignore the online education sector. 

The best part about the online education franchise business is that you can start it with a really low investment. This is because many educational institutions, individual educators, and consultants are now offering low-cost franchises to new entrepreneurs. Further, they assure a very quick return on investment, provided you devote full-time to grow your business.

However, it is very important to choose a niche that you can confidently handle. 

Online education topics/ subjects which are in demand now:-

  • Competitive exam coaching
  • Teaching a foreign language
  • Corporate training
  • College or University distance education
  • Coaching to get a certification
  • Professional education coaching
  • Personality development

So, once you have shortlisted a few niches, start gathering further information about companies offering franchises in your chosen field. 

And trust me, with a little bit of research, you can find many digital education franchise opportunities where the initial investment is as low as INR40000! So, yes, online education can be considered one of the cheapest franchises to start in India. 

Pharmacy or Medicine – Highly Profitable and Best Franchise Business in India 2021 and Beyond!

Pharmacy or Medicine - One of The Best Franchise Business Categories in India That Makes Money From Day One Itself

Medicine is undoubtedly one of the lucrative business segments which never fails. With the Covid19 and quarantine scare looming large in people’s minds, they now prefer home delivery of medicine. And this is the right time to consider a pharmacy franchise. It is highly advised that you look for pharmacy franchise opportunities with both online and offline presence. 

Now, you must be wondering isn’t necessary to acquire a drug license to run a pharmacy business in India? Yes, it is indeed!

First, you need to check the criteria to start a pharmacy franchise business (info link at the end), in India and make sure you fulfill them. Because if you want to get associated with reputable pharma companies, they will thoroughly check whether you fulfill all the conditions to run a medicine business. 

Can You Start a Pharma Franchise Without a Drug License?

Don’t worry, if you don’t have the drug license and yet you want to start a pharmacy franchise business. There are trusted online pharmacies like 1mg, Medlife, and SastaSundar, that offer franchise opportunities even if you don’t have a drug license. And the best part is their initial investments are quite reasonable. 

For instance, 1mg franchise is offered for only Rs.10000 whereas Medlife asks for an investment of Rs.20000. Besides offering a wide range of medicines and healthcare products, these companies also offer adequate marketing and branding support to kickstart your business. Definitely, you need to do your own research and verify credentials, to find the best franchise business in India with low investment in the Pharma or healthcare space. 

Consider Service-Oriented Business Franchise

People need service and there’s no denying that. Be it repairing the car, renovating a home, hiring a maid, repairing the laptop or mobile, submitting a tax return, or sending a gift, service is needed always.

And this clearly indicates that service-oriented franchises are all set to succeed, provided you have done a feasibility study to assess their commercial potential. 

Starting a consulting or service business is easy and cost-effective, considering the fact that most of these service franchises can be operated online. 

For instance, you can become a MAX Courier franchisee, without any investment. If you are drawn to accounting and tax, then these tax franchise businesses in India can be started with an initial investment of around Rs.50,000. You can start a home care service business as a franchisee, by investing only Rs.10000!

However, the service sector is really wide. So, you need to take the decision carefully, based on your own skill and knowledge about the particular service. 

Important Points to Remember Before Finalizing Any of These Best Franchise Business in India

If you are looking to buy a franchise then assess your investment capacity and look for opportunities accordingly. Because it is important to remember that besides paying franchise fees, you need to invest a small amount of money for the business setup and marketing.

Clarify beforehand, what sort of support the franchise company will provide. 

Understand the franchise royalty fees structure; will it be a percentage of the total sales volume or a fixed sum royalty?

Verify the company’s brand reputation, because there’s no point going for a low-cost franchise business if the brand is not trusted by customers. You can read online reviews and ratings to know about the brand and what buyers are saying about its products/services. 

To Conclude

Now that you know about the best franchise business categories in India that are expected to outperform in 2021, start doing your own research. Just because a certain franchise business has delivered results for your friend, it might not work for you. So, make an informed decision after checking these key tips to buy a franchise business

Ref. links:-

KPMG Report on online education in India

Cloud kitchen statistics in India

Criteria to start a pharma franchise business in India

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