India’s vibrant retail sector is undergoing a massive transformation, driven by a young, increasingly affluent population and a rapid shift towards organized shopping. The change in the market environment is nothing less than a revolution; thus, the retail store franchise in India has become an exceptionally appealing pathway for new-age entrepreneurs to tap into the dynamic atmosphere.
With the franchise market valued at over $50 billion and projected to grow at a robust 30-35% annually, choosing the right brand is the first step toward securing a piece of this economic boom.
Moreover, the industry is open to various investment levels; therefore, you can begin with a low-cost model or a big-format store, and hence it is accessible to a wide range of investors from Tier I, II, and III cities. We have analyzed the leading brand names, the investment required, and the key tactics to start a successful retail store franchise in India in this complete guide.
India’s Retail Franchise Landscape
The Indian retail landscape is a mosaic of traditional markets and modern organized chains, with franchising serving as the primary growth driver in all segments. These are the features that describe the market:
- Diverse Consumer Base: The Indian market for retail store franchise in India is benefited by the great challenge of meeting the needs of a wide range of income groups and preferences, thus providing everything from value-focused hypermarkets to luxury specialty boutiques.
- Rapid Urbanization: It is the primary growth factor, which is constantly creating new consumption hubs for retail in Tier 2 and Tier 3 cities; thus, there are new opportunities for franchises at low levels of competition to open fresh stores there.
- Low-Investment Entry Points: There are several well-known companies ready to provide franchising at a starting point of less than ₹5 Lakhs, for which the retail store franchising in India will be open to small-scale investors as well.
- Sector-Specific Dominance: The continued growth of the organized food and beverage (F&B) and apparel sectors in terms of the number of new franchises and the influx of consumers is noticeable in different regions of the country.
- Tech-Driven Operations: The implementation of centralized POS, inventory, and supply chain software solutions is welcomed by modern retail franchises due to the resulting efficiency and consistency in all franchisee outlets.
Investment Tiers & What They Mean
Knowing about the investment tiers will help you find a retail store franchise in India that will not exceed your financial capacity. A typical total investment includes the Franchise Fee, infrastructure, initial inventory, and working capital.
| Investment Tier | Typical Range (₹) | What it Includes | Best Suited For |
| Low-Investment | ₹5 Lakhs – ₹15 Lakhs | Kiosks, Small Format Delivery Outlets, Courier/Logistics, Local Grocery Partnerships. Minimal area is needed. | First-time entrepreneurs, side-business owners, Tier 3 cities. |
| Mid-Investment | ₹15 Lakhs – ₹50 Lakhs | Specialty stores (Eyewear, Beauty), QSR (Quick Service Restaurants) outlets, Apparel EBO (Exclusive Brand Outlets). | Experienced retailers, investors targeting high-street locations, Tier 2 cities. |
| High-Investment | ₹50 Lakhs – ₹1.5 Crore+ | Large-format Hypermarkets, Premium Apparel/Lifestyle stores, Flagship Salon or Beauty Centers. Significant area is needed. | Established business groups, major investors in Tier 1 cities/Malls. |
List of Top Retail Store Franchise Opportunities in India – Table
| Franchise Name | Investment (₹) | Franchise Fee (₹) | Profit Margin | Website Link |
| Ajmera Trends | ₹5 Lakhs – ₹15 Lakhs | ₹2 Lakhs – ₹5 Lakhs | 30% to 50%+ | https://ajmeratrends.com/ |
| Patanjali | ₹7 Lakhs – ₹70 Lakhs | ₹5 Lakhs – ₹10 Lakhs | 10% – 15% (Net Margin) | https://www.patanjaliayurved.net/ |
| Keventers | ₹10 Lakhs – ₹30 Lakhs | ₹9 lakhs | 25% – 35% (Gross Margin) | https://www.keventers.com/ |
| Haldiram | ₹10 Lakhs – ₹2 Crore+ | ₹3 Lakhs – ₹10 Lakhs | 15% – 25% | https://www.haldiram.com/ |
| Wow! Momo | ₹20 Lakhs – ₹35 Lakhs | ₹25,000 + GST | 18% – 25% (Net Margin) | https://www.wowmomo.com/ |
| Reliance Retail | ₹20 Lakhs – ₹50 Lakhs | ₹5 Lakhs – ₹10 Lakhs | 5% – 10% (Net Margin) | https://relianceretail.com/ |
| Domino’s Pizza | ₹30 Lakhs – ₹50 Lakhs | ₹10 Lakhs (Approx.) | 10% – 15% (Net Margin) | https://m.dominos.co.in/ |
| Bata | ₹30 Lakhs – ₹40 Lakhs | ₹2.5 Lakhs + GST | 30% – 35% (Gross Margin) | https://www.bata.com/in/ |
| Lenskart | ₹30 Lakhs – ₹35 Lakhs | ₹2.36 Lakhs | 13% – 25% (Product-specific) | https://www.lenskart.com/ |
| Spencer’s Retail | ₹30 Lakhs – ₹60 Lakhs | ₹5 Lakhs (Approx.) | 90% approx | https://www.spencersretail.com/ |
| VLCC | ₹30 Lakhs – ₹70 Lakhs | ₹8 Lakhs – ₹15 Lakhs | 15% – 20% (Net Margin) | https://www.vlccproducts.com/ |
| Nykaa (Nykd) | ₹15 Lakhs – ₹60 Lakhs | ₹2 Lakhs (Reported for Nykd) | 18% – 20% (EBITDA) | https://www.nykaa.com/ |
| FabIndia | ₹50 Lakhs – ₹1 Crore | ₹30 lakhs to ₹5 lakhs | 30% – 40% (Gross Margin) | https://www.fabindia.com/ |
| ASICS | ₹50 Lakhs – ₹1 Crore | ₹10 Lakhs – ₹25 Lakhs | 30% – 40% (Estimated Gross Margin) | https://www.asics.com/ |
| FirstCry | ₹50 Lakhs – ₹1 Crore | ₹20 Lakhs – ₹30 Lakhs | 25% – 35% (Gross Margin) | https://www.firstcry.com/ |
| Lakme | ₹50 Lakhs – ₹70 Lakhs | ₹8 Lakhs (Approx.) | 15% – 20% (Net Margin) | https://www.lakmeindia.com/ |
| Zudio | ₹1 Crore – ₹3 Crores | ₹10 Lakhs – ₹15 Lakhs | Revenue Sharing | https://www.zudio.com/ |
| Big Bazaar | ₹1 Crore – ₹1.5 Crore | ₹10 Lakhs (Reported) | 5% – 8% (Reported) | https://bigbazaar.com.co/ |
| Carrefour | ₹50 Lakhs – ₹80 Crores | ₹50 lakh – ₹1 crore | 18.3% (Gross profit margin) | https://www.carrefour.com/en |
Top Retail Store Franchise Opportunities in India
1. Reliance Retail
Reliance Retail is the largest and most successful organized retail giant in India, operating various formats like Reliance Fresh, Reliance Smart, and Reliance Trends. As a key subsidiary of Reliance Industries, the brand benefits from strong financial backing and strategic expansion capabilities.
The main reason for its dominance over the market is the company’s highly efficient supply chain, which provides competitive pricing and product availability for groceries, electronics, and fashion consumers.
- Investment: ₹20 Lakhs – ₹50 Lakhs
- Franchise Fee: ₹5 Lakhs – ₹10 Lakhs (Reported)
- Area Required (approx): 1,000 – 1,500 sq. ft.
- Profit Margin: 5% – 10% (Net Margin)
- How to Apply: Through the official Reliance Retail website, the Expression of Interest form, and the Head Office contact.
- Website Link: https://relianceretail.com/
2. VLCC (Vandana Luthra Curls and Curves)
VLCC is the leading brand in India’s beauty and wellness market with the broadest range of services related to slimming, beauty, fitness, and education, which provides a VLCC retail store franchise in India with multiple streams of income. The brand was established in 1989 and has gained a solid reputation with consumers, and now has over 300 outlets in Asia and Africa.
Additionally, VLCC commits a lot of resources to staff training, site selection support, and the supply of its exclusive product line (VLCC Natural Sciences) to the franchise. Besides that, they provide different franchise concepts ranging from a small Beauty Salon to a large, fully-equipped Slimming, Beauty, and Fitness Centre, so the entrepreneurs can pick the one that best suits their investment capacity.
- Investment: ₹30 Lakhs – ₹70 Lakhs (Depends on the model)
- Franchise Fee: ₹8 Lakhs – ₹15 Lakhs (Depends on the model)
- Area Required (approx): 800 – 2,200 sq. ft. (Depends on the model)
- Profit Margin: 15% – 20% (Net Margin, Reported)
- How to Apply: Fill out the franchise enquiry form on the VLCC Wellness official website and send an email to the dedicated franchise development team.
- Website Link: https://www.vlccproducts.com/
3. Big Bazaar
Big Bazaar has been synonymous with Indian hyper-retailing for years and is often referred to as a place for value shopping and large-format stores. However, as a result of corporate restructuring, the brand’s business operations have changed, but the brand itself is still very much alive.
Presently, the openings are mostly for partner models or small-format stores run by associate groups. Besides that, due to the vast area requirement and the consequent high investment, this is generally the high-investment category for a large retail store franchise in India.
- Investment: ₹1 Crore – ₹1.5 Crore
- Franchise Fee: ₹10 Lakhs (Reported)
- Area Required (approx): 15,000 – 20,000 sq. ft.
- Profit Margin: 5% – 8% (Reported)
- How to Apply: You can get in touch with the corporate group that holds the brand rights and fill out the Partnership Inquiry form.
- Website Link: https://bigbazaar.com.co/
4. Bata
Bata is a classic brand in the Indian footwear industry, and the brand is known for its wide range of durable and reasonably priced products. The Bata retail store franchise in India is a perfect business model that comes with instant brand recognition; thus, it is a very dependable option.
Besides that, franchisees receive the advantages of centralized inventory management, periodic product updates, and all-around staff training. Moreover, the company’s long history is an excellent source of consumer trust.
- Investment: ₹30 Lakhs – ₹40 Lakhs
- Franchise Fee: ₹2.5 Lakhs + GST (One-time)
- Area Required (approx): 1,000 – 1,200 sq. ft.
- Profit Margin: 30% – 35% (Gross Margin)
- How to Apply: You can enquire about a franchise via the form on their official website or get in touch with the Retail Operations team.
- Website Link: https://www.bata.com/in/
5. Spencer’s Retail
Spencer’s Retail, a part of the RP-Sanjiv Goenka Group, is a well-known supermarket and hypermarket chain. They offer a revenue-sharing model, which decreases the fixed cost burden of a franchisee and, therefore, gives a higher revenue potential to a well-performing retail store franchise in India.
Besides, they deal in fresh produce, gourmet foods, and general merchandise to middle and upper-middle-class consumers. Moreover, the provision of support for inventory planning and product pricing is a great feature.
- Investment: ₹30 Lakhs – ₹60 Lakhs (Infrastructure Investment)
- Franchise Fee: ₹5 Lakhs (Approx.)
- Area Required (approx): 1,500 – 2,500 sq. ft.
- Profit Margin: Revenue Sharing (Approx. 90% to Franchisee on specific products)
- How to Apply: Filling and submitting the Franchise Inquiry form on their corporate website, linking with the expansion team by phone, or email.
- Website Link: https://www.spencersretail.com/
6. FabIndia
FabIndia is the major and the most popular brand in ethnic wear, home furnishings, and organic products, widely recognized for its contribution to the revival of Indian traditional crafts and providing sustainable livelihoods. A retail store franchise with FabIndia in India connects you to a unique, value-driven consumer base that seeks authentic, high-quality products.
Additionally, the brand’s mission is to support the local artisans, which adds a strong ethical component to the business. Moreover, its established presence in premium retail locations ensures that it is highly visible.
- Investment: ₹50 Lakhs – ₹1 Crore
- Franchise Fee: ₹30 lakhs to ₹5 lakhs
- Area Required (approx): 1,000 – 2,000 sq. ft.
- Profit Margin: 30% – 40% (Reported Gross Margin)
- How to Apply: Submission of Partnership request via the corporate website, or sending an Email to the Franchise Development team.
- Website Link: https://www.fabindia.com/
7. Nykaa
Nykaa Seller, a major player in beauty and wellness, has effectively evolved its business model from being solely online to having a strong physical retail presence through store franchises in India (Nykaa Luxe, Nykaa Fashion, Nykd by Nykaa). Especially the Nykd by Nykaa format, which is a low-to-mid investment project concentrating on lingerie and sleepwear.
Besides that, a franchisee can leverage Nykaa’s vast digital presence and brand loyalty, which will result in more footfall at the offline stores. Additionally, the company offers great assistance in visual merchandising and POS systems.
- Investment: ₹15 Lakhs – ₹60 Lakhs (Varies by format)
- Franchise Fee: ₹2 Lakhs (Reported for Nykd format)
- Area Required (approx): 300 – 500 sq. ft. (For Nykd format)
- Profit Margin: 18% – 20% (EBITDA, Reported)
- How to Apply: Nykd by Nykaa franchise form submission, Email with the Business Development dept.
- Website Link: https://www.nykaa.com/
8. FirstCry
FirstCry is Asia’s largest online portal for baby and kids’ products, providing a wide variety of goods such as diapers, toys, apparel, and nursery gear. Partnering with FirstCry as a retail store franchise in India is definitely a smart move to be part of the ever-expanding children’s products market.
In addition, the brand’s omnichannel strategy (online and offline stores) means that the franchisee can be the biggest beneficiary of the brand’s strong e-commerce presence. Moreover, the company commits to supporting the franchisee in personnel recruitment and thorough training programs.
- Investment: ₹50 Lakhs – ₹1 Crore
- Franchise Fee: ₹20–30 Lakh
- Area Required (approx): 2,000 – 3,000 sq. ft.
- Profit Margin: 25% – 35% (Reported Gross Margin)
- How to Apply: Partnership form completion at the official website or by contacting the Franchise Development team.
- Website Link: https://www.firstcry.com/
9. Lenskart
Lenskart is changing the game of the Indian eyewear market through a perfect combination of technology, style, and low pricing. Given the market potential is very promising, the Lenskart retail store franchise in India would be a great high-yield opportunity.
“Besides, they offer a lot of support, such as automated inventory systems and thorough training on eye-check procedures, to the franchisees. In addition, their customer-centric omni-channel approach enables customers who book online to visit the physical stores, making the Lenskart Franchise model even more efficient and appealing for both investors and customers.”
- Investment: ₹30 Lakhs – ₹35 Lakhs
- Franchise Fee: ₹2.36 Lakhs
- Area Required (approx): 2,000 – 2,500 sq. ft.
- Profit Margin: 13% – 25% (Product-specific Margin)
- How to Apply: Filling out a franchise application form on the website, and submitting the request button.
- Website Link: https://www.lenskart.com/
10. Zudio
Zudio is a fast-fashion brand by Trent Ltd. (a Tata Group company) that has become very popular in a short time due to its trendy apparel priced at an extremely low price. The growing interest in the Zudio Franchise is a clear reflection of its rapid expansion and strong market demand.
Zudio uses the FOCO (Franchise Owned Company Operated) model in most cases, which means that the franchisee puts in the capital, and the company handles the daily operations and the supply chain. Furthermore, this makes a Zudio retail store franchise in India a relatively hands-off investment with the backing of the Tata name.
- Investment: ₹1 Crore – ₹3 Crores
- Franchise Fee: ₹10 Lakhs – ₹15 Lakhs
- Area Required (approx): 3,000 – 6,000 sq. ft.
- Profit Margin: Revenue Sharing (Details available on application)
- How to Apply: By completing the Retail Business Associate Form on the Trent Ltd. website, and the Correspondence of Interest.
- Website Link: https://www.zudio.com/
11. Carrefour
Carrefour, a hypermarket giant of the globe, is coming back or strengthening its grip in the Indian market by concentrating mainly on cash-and-carry B2B and the plausibility of smaller formats.
A Carrefour retail store franchising in India would lead to the tremendous purchasing power of the global giant and the use of advanced retail technology that would make operations easy, efficient, and attractive to customers. Plus, the partnership usually blends the world’s best practices with the local entrepreneur’s skills.
- Investment: ₹50–80 crore
- Franchise Fee: ₹50 lakh to over ₹1 crore
- Area Required (approx): Varies (Large format: 50,000+ sq. ft.)
- Profit Margin: Gross profit margin is 18.3%
- How to Apply: By getting in touch with the Carrefour Global or India Business Development team.
- Website Link: https://www.carrefour.com/en
12. ASICS
ASICS is a leading Japanese brand worldwide that mainly focuses on sportswear and sports footwear of high-performance, and the one it is most famous for is running shoes. As a retail store franchise in India, ASICS is a brand that targets the expanding population of fitness lovers, and the brand also promises to be attractive to serious athletes.
The parent firm supports every corner of the store, from store layout to visual merchandising and product knowledge, too. Besides that, the premium positioning means that the profit margin per sale can be high.
- Investment: ₹50 Lakhs – ₹1 Crore
- Franchise Fee: ₹10 lakh – ₹25 lakh
- Area Required (approx): 800 – 1,200 sq. ft.
- Profit Margin: 30% – 40% (Estimated Gross Margin)
- How to Apply: A partner enquiry form on the ASICS India corporate page, Contact with the Retail Expansion team.
- Website Link: https://www.asics.com/
13. Lakme
Lakme is a leading force in the Indian beauty and cosmetics market, a brand that has been trusted for years. Besides, known primarily for its salons (Lakme Salon), its retail cosmetic outlets also have great potential.
The Lakme Salon retail store franchise in India’s business model is a fully-fledged training program for the staff and a strong loyalty program that stabilizes the customer base. Also, the company’s collaborations with banks for credit facilities make the startup phase easier.
- Investment: ₹50 Lakhs – ₹70 Lakhs
- Franchise Fee: ₹8 Lakhs (Approx., excluding setup)
- Area Required (approx): 900 – 1,200 sq. ft.
- Profit Margin: 15% – 20% (Net Margin)
- How to Apply: “BECOME A PARTNER” link at the official site, fill in the franchise application form.
- Website Link: https://www.lakmeindia.com/
14. Domino’s Pizza
Domino’s is the world’s largest pizza chain, and India is its primary market (Jubilant FoodWorks is its operating arm). A Domino’s retail store franchise in India guarantees high volume, leveraging the brand’s immense popularity and unparalleled delivery network.
Moreover, the company provides thorough training and operational manuals to maintain the quality of service at all outlets. The investment, however, is a bit high, but the return on investment potential is quite substantial in areas with heavy footfall of the urban population.
- Investment: ₹30 Lakhs – ₹50 Lakhs
- Franchise Fee: ₹10 Lakhs (Approx.)
- Area Required (approx): 600 sq. ft. (Kitchen) + 500 sq. ft. (Seating/Storage)
- Profit Margin: 10% – 15% (Net Margin)
- How to Apply: Franchise Development team direct contact, Application form on the Jubilant FoodWorks website.
- Website Link: https://m.dominos.co.in/
15. Wow! Momo
Wow! Momo has scaled very fast from one kiosk to a leading QSR chain, focusing on momos and other snack-food formats. It provides a relatively small investment for an entry-level position in the food retail store franchise market in India, which is highly competitive.
Besides, the brand has a simple and easily scalable menu and profits greatly from the presence of online food delivery aggregators. Moreover, the company’s support program includes assistance in staff recruitment and a well-organized operational model.
- Investment: ₹20 Lakhs – ₹35 Lakhs
- Franchise Fee: ₹25,000 + GST (Reported)
- Area Required (approx): 250 – 500 sq. ft.
- Profit Margin: 18% – 25% (Reported Net Margin)
- How to Apply: Franchise form on the corporate website, Business Development team emailing.
- Website Link: https://www.wowmomo.com/
16. Keventers
Keventers was once an Indian brand known for its standard milkshake, but now, after being re-launched and modernized, it is popular among the new generation. They provide various franchise models (Minute, Mammoth, Mountainous) depending on the investment capacity and area needed, thus being a flexible food retail store franchise in India.
Besides, the brand’s retro charm mixed with the new product recipes makes it very unique in the market. In addition, the company provides full support from the selection of the site to the day of the grand opening.
- Investment: ₹25 Lakhs – ₹30 Lakhs (Varies by Model)
- Franchise Fee: ₹9 lakhs
- Area Required (approx): 100 – 400 sq. ft. (Varies by Model)
- Profit Margin: 25% – 35% (Reported Gross Margin)
- How to Apply: Franchise enquiry form on the official website, or contact the Expansion team.
- Website Link: https://www.keventers.com/
17. Haldiram
Haldiram is a synonym for Indian snacks, sweets, and casual dining. It has a rich legacy and a very diversified product range. Their full-service restaurant and sweet shop are a high investment proposition, while the company also offers distribution and retail dealership models with low investment.
Also, if a retail store franchise in India partners with Haldiram’s, the franchisee can enjoy the benefits of a brand that is very much trusted and in demand universally. Additionally, their scalable product range is attractive to all demographics.
- Investment: ₹10 Lakhs – ₹2 Crore+ (Varies by Model)
- Franchise Fee: ₹3-10 lakhs
- Area Required (approx): 500 – 4,000 sq. ft. (Varies by Model)
- Profit Margin: 15% to 25%
- How to Apply: Dealership/Franchise form on the official website, or by contacting the Sales & Distribution team.
- Website Link: https://www.haldiram.com/
18. Patanjali
One of the major forces in the FMCG and health/wellness segment, Patanjali Ayurved, by Baba Ramdev, is primarily benefiting from the ‘Swadeshi’ and Ayurvedic market trends. The company provides various franchise formats, starting from small stores to large mega stores, thus making the retail store franchise in India available at different levels of investment.
On top of that, the rapid expansion of the brand and its strong nationalistic appeal act as customer retention factors, thus ensuring a loyal customer base. Besides, Patanjali also helps franchisees with product stocking and gives them operational guidance.
- Investment: ₹7 Lakhs – ₹70 Lakhs (Depending on Format)
- Franchise Fee: ₹5 Lakhs – ₹10 Lakhs (Security Deposit/Franchise Fee)
- Approx. Area: 300 – 2,000 sq. ft. (Depending on Format)
- Profit Margin: 10% – 15% (Net Margin)
- How to Apply: Fill out the franchise application form on the Patanjali website and contact the Retail Development team.
- Website Link: https://www.patanjaliayurved.net/
19. Ajmera Trends
Ajmera Trends, a company located in Surat, deals with ethnic and western wear, thus providing a low-cost entry into the apparel retail store franchise in the Indian market. One of the major attractions to their business is their announced zero-royalty model, thereby allowing franchisees to retain a higher share of their profits.
Moreover, the company extends full support to the store through the setup, visualization of the store, and the stocktaking process. Additionally, the low initial capital investment, generally less than ₹15 Lakhs, makes it the right choice for first-time entrepreneurs.
- Investment: ₹5 Lakhs – ₹15 Lakhs
- Franchise Fee: ₹2–5 lakhs
- Area Required (approx): 300 – 500 sq. ft.
- Profit Margin: Between 30% and 50% or more
- How to Apply: Franchise consultation request on the official website, or Direct contact with the Head Office team.
- Website Link: https://ajmeratrends.com/
How to Choose & Launch a Retail Store Franchise
The most critical steps in the process of choosing and launching a retail store franchise are:
- Market Study & Target Audience: Before going ahead with something, understand the influx of people, the demographics, and the competition in the area you have chosen, so that you can be sure that the retail store franchise in India you are planning to open will have customers to come to you.
- Review Financials and Contracts: Look at the franchise disclosure document (FDD) very carefully to know and understand all the fees, the royalty structure, the renewal clauses, and the financial state of the company.
- Socialize with Existing Franchisees: This is something that cannot be skipped – current owners are the best people to talk to and find out about the daily operations, the franchisor’s support, and, in general, the net profit margins.
- Location Confirmation: A retail store is all about its location, location, location, which means you must find a place with excellent visibility, easy accessibility, and closeness to the potential customers of your brand.
- Finish Training and Setup: Dedicate your time and energy to the training courses conducted by the franchisor, which are definitely compulsory, then go about the store build-out efficiently to check that everything is up to the mark of the brand and ready to be launched.
Conclusion
Opening a retail store franchise in India is an excellent business move that combines your personal entrepreneurial drive with a tested model and an already established brand. There are both low and high-capital investment opportunities available in the market. For instance, you could start with low-investment startups such as Ajmera Trends and Keventers, or you can go high-capital with companies such as Reliance Retail and FirstCry.
What will take you to profitability is thorough financial due diligence, having a location with high footfall, and being operationally efficient with the franchisor. If you prudently evaluate the associated risks and diligently look for government and institutional support, you will be able to convert your chosen retail franchise into a long-term asset that is performing well in India’s rapidly growing consumer market.
FAQs
How much is the minimum investment to open a retail store franchise in India?
The minimum investment usually starts from approximately ₹5 Lakhs to ₹10 Lakhs for small-format models such as courier services (for instance, Delhivery Constellation), small QSR (Quick Service Restaurant) kiosks, or particular low-cost segments of the apparel industry (for example, Ajmera Trends), mainly that of basic inventory and setup costs.
What kind of retail store franchise in India has the highest net profit margin?
Performance differences exist from one to another. However specialized QSRs (Quick Service Restaurants), particularly those with a solid delivery model and high average ticket value (like Domino’s or Wow! Momo), as well as the beauty and wellness industry (e.g., Lakme Salon), can achieve higher net profit margins (15%-25%) than those of general merchandise retail.
Can hypermarket chains like Big Bazaar direct you to their franchises?
Big Bazaar’s model is complicated and mainly involves partnership or association. It requires very high upfront investments (more than ₹1 Crore) and a large operational area.
How long does it take to reach the break-even point with a retail store franchise in India?
The break-even point of a well-managed retail store franchise in India, located in a good area, can be achieved between 18 and 30 months. Nevertheless, this period is primarily determined by the total amount of the initial investment, the royalty structure, and the outlet’s operational efficiency every month.
What are the main differences between a Franchise Fee and a Royalty Fee?
The Franchise Fee is the one-time, non-refundable payment made by the franchisee to the franchisor in return for using the brand name, the business system, and the initial training. The Royalty Fee is a continuous, regular payment (usually a percentage of the gross monthly sales) that the franchisee gives to the franchisor as the latter’s support and for further brand use.
