Thus nowadays franchise business is experiencing rapid growth as one of the most perspective business models in Kerala. Bearing in mind the fact that Kerala is an economy on the rise with continuously escalating consumerism, it remains one of the best markets for franchising business models.
Whether you are an inexperienced business person or a professional looking for opportunities, considering the best franchise business in Kerala may be very helpful. In the sections that follow, we present some of the top franchise opportunities in the market today and provide important information to help you make your choice.
What is a Franchise Business?
A franchise business system refers to a business format, where a company (the franchisor) allows another person or company (the franchisee) to use its brand, product, and proven business procedures. In return for these rights, the fee structure of the franchise is the initial fee and royalty payments to the franchisor. Franchising is a system where the franchisee enjoys the success of the business model and image that the franchisor establishes and where the franchisor is also responsible for offering assistance in many areas such as marketing, training, and management.
One of the main benefits is that the best franchise business in Kerala provides inexperienced business owners with a ready-made client base and unique plans. Franchisees on the other hand receive a ready-made formula for success, which eliminates some of the dangers involved in a start-up.
On the other hand, the franchisor can expand its business network without having to directly operate the new outlets, thus availability to have more outlets, and hence more revenues. The franchisee, however, has to play by the rules set by the franchisor which can be restrictive in terms of creativity and operations.
Basic Structures of Franchise Business
The franchise companies are of different types which are differentiated based on the type of business, the industry involved, and the level of investment required. The three categories of franchises are product distribution franchises and business format franchises as well as manufacturing franchises.
In a product distribution franchise, generally, the major role played by the franchisee is to sell and distribute the products of the franchisor. This model is widely used in the industries such as automobile dealing and soft drink product selling. The first and most common type is business format franchises where the franchised business is managed under a complete business model of the franchiser such as the known fast-food imaging operations. Finally, manufacturing franchises enable the franchisee to make products for the franchisor’s sale, common in the food and drinks niche.
There is a variety of support within each model and the amount of control is also different, that is why potential franchisees should decide which type of franchise is the best for them in terms of their skills, interests, and financial conditions.
Advantages Associated with a Franchise Business
A franchise business presents the following benefits and is particularly suitable for first-time business people. The largest advantage is the acquisition of a solid business plan for getting started. While starting an independent business from the ground up does not have a market-proven model, a franchise does. This greatly minimizes the possibility of failure.
Brand recognition is another main advantage associated with the use of mobile couponing. The franchisee gets customers right from the start since the franchisor already has a brand. Also, franchisors’ support and training are always available to the franchisees to ensure that the franchisees understand how to effectively run their businesses. Marketing assistance is also important since the franchisee gets to enjoy the national or regional advertisement of the franchisor.
Finally, a franchise business minimizes risk whereas maximizing the probability of success in a competitive market enables an individual to have a defined blueprint of the business.
Disadvantages of a Franchise Business
However, like any other business form, franchise business has its drawbacks. Among all the problems, one of the most serious can be regarded as the problem of the lack of self-governance. Franchisees operate within the guidelines set by the franchisor and cannot make so many changes to the way they operate.
There is the initial cost of investing in such programs plus other recurring charges that have to be incurred. The initial investment that is required when buying into a franchise differs from one industry to another and brand to brand, but it can be steep. Thirdly, franchisees have to pay ongoing royalties and marketing fees, and this drags down profit.
Lastly, performance pressures exist in the franchisees’ camp. They pay for it with their salaries, and they are expected to reach sales quotas and protect the company’s image, which can be rather stressful. It is useful to know these requirements for anyone contemplating investing in a franchise business so that they are prepared for the reality of the experience.
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.
Best Franchise Business in Kerala
1. Naturals Salon
Naturals Salon is one of the best franchise businesses in Kerala which provides 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. Making this franchise is a golden chance to enter this profitable market of the beauty and wellness industry of Kerala.
- Founded: 2000
- Services: Shampooing, masking, facials, manicures, pedicures, makeup, and bridal services.
- Investment Amount: ₹30-50 lakhs
- Profit Margin: 20-30%
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.
- Investment Amount: ₹1-1.5 crore
- Profit Margin: 25-35%
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 avenues in Kerala.
- Founded: 1996
- Services: Products: Coffee, Snacks Offered, Desserts, Soft Products
- Investment Amount: ₹30-60 lakhs
- Profit Margin: 20-25%
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
- Investment Amount: ₹30-50 lakhs
- Profit Margin: 15-25%
5. Patanjali Ayurved
Patanjali is a very popular brand name and it deals with natural products and Ayurvedic products. Patanjali possesses a franchise business opportunity that fits well into this state because Kerala has a natural preference for Ayurvedic and herbal products. Being the largest franchise business opportunity 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
- Investment Amount: ₹50-70 lakhs
- Profit Margin: 20-30%
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.
- Investment Amount: ₹50-60 lakhs
- Profit Margin: 15-25%
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 businesses 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
- Investment Amount: ₹2-5 lakhs
- Profit Margin: 15-25%
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 chance 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
- Investment Amount: ₹1 crore – ₹3 crore
- Profit Margin: 20% – 25%
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 franchise due to the welcoming and cheerful appearance of the stores and the general goodwill associated with the brand thanks to its high-quality products.
- Founded: 1945
- Services: Ice cream, frozen desserts, cakes, and beverages
- Investment Amount: ₹20 lakh – ₹40 lakh
- Profit Margin: 15% – 20%
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
- Investment Amount: INR 30–50 lakhs
- Profit Margin: 10% – 20%
Comparison Table for Best Franchise Business in Kerala
| 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% |
Why to Choose a Franchise Business in Kerala?
Selecting a franchise business in Kerala is a very viable idea for many reasons as well. Kerala is a consumption pole with high literacy rates, a well-developed economy, and growing per capita income. For these reasons, it is suitable to be a site of sundry types of franchise businesses. Furthermore, the continuous traffic of tourists in the state increases the business opportunity especially for franchise holders, especially in the hotel and restaurant industry.
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 franchise of DTDC to starting a restaurant like KFC, there are plenty of good business opportunities in Kerala. 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 business in Kerala?
The cost involved to begin a franchise business 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.
