How to Start a Franchise Business in India with Low Investment

The franchise industry in India is flourishing at a rate that no one has ever imagined. Thanks to the wide acceptance of Digital Bharat and PMKVY, Indian youth are increasingly trying their hands at business and entrepreneurship. However, the capital investment amount often seems daunting for most middle-class Indians. And this is what paves the way for this guide on low-investment franchise opportunities in India.

Why Should You Consider a Low-Investment Franchise?

Starting a business demands thoughtful first steps. But in most cases, our thoughts stagnate, considering the high amount of investments involved.

While traditional business models require a significant capital investment, opting for low-investment and low-risk franchise opportunities in India is often a favorable choice. Here’s why you should consider them;

Low Entry Fees

In the initial levels, you can join a franchise with a significantly low capital investment. It can start anywhere from between 1 to 5 lakh and typically get to the height of 20 to 50 lakh in max cases. Therefore, you can join from the pool of affordable franchises in India solely based on your capital.

Constant Brand Support and Training

As you join a franchise to expand their business further, the responsibility for your successful operation lies on their shoulders. Therefore, they will provide you with the necessary guidance, setup assistance, marketing strategies, and even thorough training for maintaining consistency in their brand’s standards.

Adaptability to Location

The best thing about franchises is that they are adaptable to urban, semi-urban, and now even rural settings. This versatility of the franchise model makes them quite profitable for you. You can capture diverse markets and earn revenue, or you can stay true to your place and people and try to uplift their way of life through your franchise service.

Scalable to Market Demands

The best franchises with high returns are those operating in industries with evergreen or growing demands. These industries are mainly the food or beverage industry, education and fitness industry, etc. This evergreen or ever-growing market demand makes franchises desirable. Moreover, their scalable model helps businesses expand with growing market demand.

High ROI

From franchises, you can expect to get a steady and sustainable return on investment, if not a flood of profit returns. Factors like low operational costs and strong consumer demand make them steady in the profit margin. Moreover, you get direct help from the parent business, along with their assistance in operational and management issues, improves your scope of profitability.

Types of Low Investment Franchise in India

The franchise sector of India is diverse, offering a great variety of business models from different entrepreneurs. However, the two tried and tested categories of franchise investment with sure success are;

1. Home-based Franchise Business

Home-based franchise businesses are flourishing at a rapid rate in India right now. We can see that women are coming to the forefront, using the opportunity to operate the business without the need for a diverse physical storefront.

• Among home-based franchises, online tutoring, beauty services, and health and wellness services are getting more prominence right now. The rise of digital education after the pandemic is unavoidable, and this leads to a low-cost opportunity with minimal infrastructure requirements.
• Meanwhile, the show-off culture facilitated by social media is paving the way for home-based salons and beauty-care services. Home-based cloud kitchen services and gym or Yoga training franchises are also running profitably by complementing each other.

2. Service-based Franchise Business

Several service-based franchise businesses offer excellent opportunities for aspiring Indians to make a profit with literally no investments. This is because they focus mainly on delivering services rather than offering physical products.

• Among service-based franchises, food delivery and cleaning services are among the most profitable right now. They require minimum investment in service equipment, and you can get service providers at low wages easily in India.
• The traditional model of service such as event planning, on the other hand, is gaining more significance as Indian weddings and other traditional ceremonies are getting grander.

Best Franchise Under ₹5 Lakhs in India

If you are looking for a franchise to start with a low investment, here are some of the best options under ₹5 lakh. 

1. Momomia Food: You can join the franchise of Momomia with only ₹2 lakhs to ₹3 lakh capital investment.
2. Amul/ Arun Ice-cream Franchise: With summers getting more intense, joining with Amul or the recent Arun ice-cream franchise can be extremely beneficial with a minimum ₹2 lakh capital investment
3. Patanjali: With Ayurveda in demand over high-voltage allopathic medicines, joining the Patanjali franchise is still relevant as you can start it with only ₹2 lakhs at hand.

You can therefore pick your preferred Service-based or home-based franchise business with the capital investment that suits you most. Choose the model that aligns well with your area of excellence as well as your goal in life.

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