In 2025, the franchise business landscape in Kerala is witnessing unprecedented growth, supported by the state’s strong economic fundamentals and rising consumer demand. Kerala’s industrial sector has grown from 12% to 17%, while household consumption has increased by nearly 20% over the last three years. This growth has created fertile ground for scalable business models—especially in the food & beverage, education, and wellness sectors, where leading brands are expanding rapidly across Kochi, Thiruvananthapuram, and Kozhikode.
Whether you’re a first-time investor or an experienced investor, exploring the best franchise opportunities in Kerala can be an innovative, low-risk pathway into business ownership. In the sections below, we highlight some of Kerala’s most promising and profitable franchise options, backed by verified data and real business success stories.
Why to Choose a Franchise Business in Kerala?
Robust Economic Growth and Industrial Expansion:
Kerala’s economy is on the rise, with its industrial sector showing impressive momentum. Over the years, industrial growth has climbed from 12% to 17%, and manufacturing is playing a bigger role—up from 9.8% to 14%. In 2023-24 alone, 1,03,596 new MSME units were registered, with a total investment of ₹7,048.65 crore and employment of over 2.18 lakh people (Says Dhanam Online, 2024).
Government Support and Investment Initiatives:
The Kerala government is actively laying out the red carpet for investors. Through initiatives like the Invest Kerala Global Summit 2025 and the Kerala Startup Mission, the focus remains on fast-growing sectors such as tourism, healthcare, IT, and food processing. The state’s digital reforms — such as enabling MSMEs to pay taxes online through K-SWIFT, Kerala’s single-window clearance system (Times of India, 2025) — have further simplified business operations.
Emerging Franchise Trends in 2025:
Franchising in 2025 is all about innovation and sustainability. Kerala’s startup ecosystem is expanding by nearly 20% annually, supporting 3500+ active ventures (Economic Times, 2025). With over 11,000 franchise opportunities listed for Kerala (Franchise India, 2025), the state offers a vibrant mix of traditional and emerging sectors for aspiring entrepreneurs.
Is a Franchise Business viable in Kerala?
The answer is yes, but like any business venture, it has to do with the location, the market response, and, most importantly, the demand in the particular area. The market in Kerala is quite competitive and with an enhanced economy there is much to gain when the right franchise business is established at the right location.
Some of the important places where franchising can be set up in Kerala are Kochi, Trivandrum, and Calicut. All these cities have developing IT parks, tourist destinations, and business areas, which are suitable for franchising.
Franchise Viability Highlights — Kerala
| Indicator | 2025 Data & Source | Why It Matters for Franchising |
| MSME Growth | 3,00,227+ new enterprises in 2.5 years (Invest Kerala 2025 Portal) | Expanding small business base = ready ecosystem for franchise partners & suppliers |
| Total Investments | ₹19,446 crore attracted; 6.38 lakh jobs created (Invest Kerala 2025) | Reflects investor confidence & rising purchasing power |
| Industrial Growth | Manufacturing share up from 9.8% → 14% (Industries Dept 2025) | Strong production base supports food, retail & service franchises |
| Ease of Doing Business | Simplified via K-SWIFT single-window portal (KSIDC & TOI 2025) | Faster approvals, fewer compliance delays for franchise startups |
| New Investment Projects | ₹91,575 crore worth of projects in 5 years (2024 study, New Indian Express) | Expanding infrastructure = more prime locations for outlets |
| Entrepreneurial Momentum | 2.43 lakh MSMEs → 5.18 lakh jobs (Industries Dept 2024) | Healthy entrepreneurial culture encourages franchise adoption |
| Sectoral Push | Focus on tourism, IT, food processing & healthcare (Invest Kerala Summit 2025) | High-growth industries ideal for F&B, tech & service franchises |
Top Sectors for Franchise Business in Kerala
| Sector | Popular Examples | Investment Range | Profit Potential |
| Food & Beverage | Chai Kings, Ibaco, A2B, Wow! Momo | ₹2–10 L | 25–40% |
| Retail & FMCG | Patanjali, Zudio, Apollo Pharmacy | ₹3–15 L | 20–35% |
| Education & Training | Kidzee, SmartKidz, Brainy Bear | ₹2–8 L | 30–45% |
| Services | Laundry, salon, digital marketing | ₹1–5 L | 25–35% |
| Health & Wellness | MedPlus, Dr. Lal PathLabs | ₹4–10 L | 20–30% |
Comparison Table: 10 Best Franchise Business in Kerala for 2026
| Business Name | Founded | Services | Investment Amount | Profit Margin (%) |
| Naturals Salon | 2000 | Beauty services (shampooing, facials, manicures, pedicures, makeup, bridal) | 30-50 lakhs | 20-30% |
| KFC | 1952 | Fast food (fried chicken, burgers, sandwiches, wraps, drinks) | 1-1.5 crore | 25-35% |
| Cafe Coffee Day | 1996 | Coffee shop (coffee, snacks, desserts, soft products) | 30-60 lakhs | 20-25% |
| Lenskart | 2010 | Eyewear (hearing aid sales, optical retail, eye exams, contact lenses) | 30-50 lakhs | 15-25% |
| Patanjali Ayurved | 2006 | Ayurvedic products, personal care, foods and beverages | 50-70 lakhs | 20-30% |
| Subway | 1965 | Fast food (sandwiches, salads, wraps, beverages) | 50-60 lakhs | 15-25% |
| DTDC Courier & Cargo | 1990 | Courier and logistics services | 2-5 lakhs | 15-25% |
| Baskin Robbins | 1945 | Ice cream, frozen desserts, cakes, beverages | 20-40 lakhs | 15-20% |
| Apollo Clinic | 2002 | Healthcare (diagnostics, health check-ups, pharmacy, consultation) | 1-3 crore | 20-25% |
| Domino’s Pizza | 1960 | Pizza delivery, carryout, and dine-in services | 30-50 lakhs | 10-20% |
10 Best Franchise Business in Kerala (2026 Edition)
1. Naturals Salon
Naturals Salon is one of the best franchise businesses in Kerala with low investment, providing beauty services to fit the needs of modern women. They boast of offering quality beauty treatments at fairly cheap rates – and so it has a steady traffic of customers. This franchise presents a golden opportunity to enter the profitable beauty and wellness market in Kerala, offering an attractive investment option for those seeking to start a business in this growing industry.
- Founded: 2000
- Services: Shampooing, masking, facials, manicures, pedicures, makeup, and bridal services.
- Why It’s Suitable for Kerala: Growing beauty market; modern women seeking quality treatments at affordable rates
- Franchise Models Available: Business format franchise with complete beauty service model
- Investment Details: ₹30–50 lakhs
- Expected ROI & Payback Period: 20–30% profit margin, 3–4 years payback
- How to Apply: Contact through https://naturals.in/FRANCHISE/index.html
2. KFC (Kentucky Fried Chicken)
KFC is an international fast-food company and, certainly, people all around the world know what it is famous for – fried chicken. Being one of the top franchise businesses in Kerala it occupies a very respectable position in the fast food segment. Due to its massive brand image and numerous customers, owning a franchise of KFC ensures the owner enjoys the highest return on investment. The fact that Keralites consume a lot of fast food makes this place perfect for this franchise.
- Founded: 1952
- Services: fried chicken, burgers, sandwiches especially wraps, and drinks.
- Why It’s Suitable for Kerala: High fast-food consumption, strong brand recognition, ideal for urban areas
- Franchise Models Available: Business format franchise with proven fast-food model
- Investment Details: ₹1–1.5 crore
- Expected ROI & Payback Period: 25–35% profit margin, 3–4 years payback
- How to Apply: Apply through https://online.kfc.co.in/contactus
3. Cafe Coffee Day
Cafe Coffee Day is one of the most franchised coffee shops available in India. Kerala is an ideal franchise market for this coffee company because of the high interest in the café business in the region. The Cafe Coffee Day brand appeal due to the state’s increasing propensity towards casual dining and coffee makes it one of the most suitable franchise business in Kerala.
- Founded: 1996
- Products: Coffee, Snacks Offered, Desserts, Soft Products
- Why It’s Suitable for Kerala: Growing café culture, casual dining trends, coffee consumption habits
- Franchise Models Available: Business format franchise for coffee shop operations
- Investment Details: ₹30–60 lakhs
- Expected ROI & Payback Period: 20–25% profit margin, 4–5 years payback
- How to Apply: Submit a franchise application through https://www.cafecoffeeday.com/business
4. Lenskart
Lenskart is a reputed eyewear company and among the best franchise businesses to venture into in Kerala. Currently, Lenskart provides online and offline solutions for those customer who need stylish and affordable glasses. Thus the increase in demand for designer frames in Kerala this franchise business would be perfect for the businessman who wants to venture into the optical business.
- Founded: 2010
- Services: Hearing Aid Sales, Optical Retailers, Eye Exam, Contact Lenses
- Why It’s Suitable for Kerala: Increasing demand for designer eyewear, tech-savvy population
- Franchise Models Available: Retail franchise model with online-offline integration
- Investment Details: ₹30–50 lakhs
- Expected ROI & Payback Period: 15–25% profit margin, 4–6 years payback
- How to Apply: Apply through Lenskart’s website: https://partners.lenskart.com/pages/lenskart-plan
5. Patanjali Ayurved
Patanjali is a very popular brand name and it deals with natural products and Ayurvedic products. Patanjali has a retail franchise in Kerala that aligns well with the state’s natural preference for Ayurvedic and herbal products. Being among the top franchise businesses in Kerala, this business house has a vast product portfolio that includes even personal care products and foods.
- Founded: 2006
- Services: Ayurvedic Products, Personal Care, Foods and Beverages
- Why It’s Suitable for Kerala: Natural preference for Ayurvedic products, health-conscious consumers
- Franchise Models Available: Product distribution franchise with retail setup
- Investment Details: ₹50–70 lakhs
- Expected ROI & Payback Period: 20–30% profit margin, 3–5 years payback
- How to Apply: https://patanjaliwellness.com/franchise.php
6. Subway
Subway is one of the largest QSRs claim ch point fast food restaurant chains that deal with Sandwiches and Salads. Its fresh and healthy menu has worked for the organization and has placed Subway among the best franchise businesses in Kerala. Subway’s business model is quite promising and easily expandable due to the constant growth of the health-conscious people in Kerala.
- Founded: 1965
- Services: The needs and wants that we have addressed include sandwiches, salads, wraps, and beverages.
- Why It’s Suitable for Kerala: Health-conscious population, demand for fresh and healthy food
- Franchise Models Available: Business format franchise with standardized operations
- Investment Details: ₹50–60 lakhs
- Expected ROI & Payback Period: 15–25% profit margin, 4–6 years payback
- How to Apply: Apply through https://www.subwayfranchise.com/
7. DTDC Courier & Cargo
DTDC is a familiar name in logistics and courier services. As the courier and logistics business is on the rise in Kerala, DTDC is one of the best franchise business in Kerala with low investment for those who want to step into the logistics business in Kerala. This franchise requires low investment and the support of a well-established and trustworthy brand, which means it’s highly profitable.
- Founded: 1990
- Services: Couriers & Messengers Domestic – International, Cargoes
- Why It’s Suitable for Kerala: Growing e-commerce sector, rising demand for logistics, low entry cost
- Franchise Models Available: Service franchise model for courier operations
- Investment Details: ₹2–5 lakhs
- Expected ROI & Payback Period: 15–25% profit margin, 2–3 years payback
- How to Apply: Contact the DTDC https://dtdc.in/become-a-partner.asp
8. Apollo Clinic Franchise
Apollo Clinic is one of the largest healthcare groups in India and deals in many diagnostic services and general healthcare services. Since it’s in the healthcare sector, it is reputable for offering quality medical care, thus a strong brand. In the franchise model, the franchisor offers considerable assistance to the franchisee in training medical personnel as well as in the establishment and running of the franchised unit. This is the best franchise business in Kerala with low investment for people who want to invest in healthcare with a focus on health promotion, diagnostics, and treatment.
- Founded: 2002
- Services: Diagnostics, health check-ups, pharmacy, consultation
- Why It’s Suitable for Kerala: High healthcare demand, trusted brand presence, expanding medical infrastructure
- Franchise Models Available: Healthcare service franchise with comprehensive support and branding
- Investment Details: ₹1–3 crore
- Expected ROI & Payback Period: 20–25% profit margin, 4–6 years payback
- How to Apply: Apply through: https://www.apolloclinic.com/for-franchisee/
9. Baskin Robbins Franchise
Baskin Robbins is the largest chain of ice cream and cake specialty shops in the world. Being a diverse product line, they get a chance to flood the market of desserts, which is growing in Kerala, with different varieties of flavors and frozen desserts. This tropical location of Kerala makes the brand attractive to own as a food franchise in Kerala due to the welcoming and cheerful appearance of the stores and the general goodwill associated with the brand thanks to its high-quality products. It is considered one of the top franchise businesses in Kerala for those looking to tap into the thriving dessert market.
- Founded: 1945
- Services: Ice cream, frozen desserts, cakes, and beverages
- Why It’s Suitable for Kerala: Tropical climate is ideal for ice cream, expanding dessert market
- Franchise Models Available: Business format franchise for ice cream and dessert retail
- Investment Details: ₹20–40 lakhs
- Expected ROI & Payback Period: 15–20% profit margin, 4–5 years payback
- How to Apply: https://baskinrobbinsindia.com/pages/franchise-enquiry
10. Domino’s Pizza Franchise
Domino’s Pizza is an international pizza delivery restaurant that offers its pizzas hot within the shortest time possible. The company is one of the biggest pizza joints in the world and provides a good franchise business in Kerala expanding the fast foods segment. The appeal of the brand to young tech-savvy entrepreneurs working in the food delivery business in urban areas of Kerala is that it relies heavily on technology in ordering and delivery.
- Founded: 1960
- Services: Pizza delivery, carryout, and dine-in services
- Why It’s Suitable for Kerala: Tech-savvy urban population, delivery-centric model, strong brand appeal
- Franchise Models Available: Business format franchise with delivery and dine-in options
- Investment Details: ₹30–50 lakhs
- Expected ROI & Payback Period: 10–20% profit margin, 5–7 years payback
- How to Apply: https://biz.dominos.com/about-us/franchising/
How to Start a Franchise in Kerala (Step-by-Step Guide)
- Perform Market research and choose your suitable sector
- Analyze required investment & ROI (₹1–10 lakh range examples)
- Verify franchise credibility via checking other reports
- Understand legal requirements and agreements before investing
- Set up and promote your outlet for maximum ROI
- Manage risk and scale with local marketing
Conclusion
Kerala’s best franchise business gives many opportunities in various sectors including beauty salons and even fast food. All the franchises described here have a relatively smooth roadmap to success, mainly because of the secured brand image and well-defined blueprint. Starting from just buying a logistics franchise like DTDC to starting a restaurant like KFC, there are plenty of good low investment franchise opportunities in Kerala.
Additionally, there are also several franchise businesses in Kerala under 5 lakhs, making it easier for aspiring entrepreneurs to enter the market. Select the franchise business that you have an interest in, funds to invest, and that will turn around in the long run in Kerala.
FAQs:
1. What is a franchise business?
A franchise business is a strategic form of organization where a franchisee is given the legal right to the sale of goods and services under the franchise maker’s trade name. The party who uses the trademark or the business format buys the license from the franchisor for a fee and submits it to regular royalties. This business model enables an individual to begin a business by having an identified brand with the backing of the franchisor.
2. Which are the top franchise business companies in Kerala?
The best franchises that can be purchased in Kerala can be relative to the kind of business you want to venture into. Some popular franchise businesses in the current world include food franchises such as KFC, health franchises such as Apollo Clinic, and educational franchises such as Kumon. These franchises thus present a well-established business model and a well-established brand name that is suitable for any businessman from the State of Kerala.
3. What is the amount needed to start a franchise in Kerala?
The cost involved to begin a franchise in Kerala may cost anything from ₹5 lakh to ₹3 crore or above depending on the company and the field. For instance, to own a Subway franchise the cost is anywhere between Rs 50 lakh and Rs 90 lakh, KFC on the other hand requires anywhere from Rs 1.5 crore to Rs 3 crore. One should select a franchise according to its/their financial capability and purposes.
4. What is the trend of profit margin in the franchise business in Kerala?
Franchise businesses in Kerala earn different profit margins of franchise business depending on the business type and cost of operations. Normally, fast food chains such as KFC give only 15% to 20% profit margin and on the other hand healthcare chains like Apollo Clinic may give a margin of 20% to 25%. The level of profit that can be generated depends among other things on the location, the type of clientele to be served, and management efficiency.
