Franchise Business Under 10 lakhs?

High returns with minimal investment requirements are provided by some of the retail industry’s most profitable grocery franchises under 10 lakhs. 

The expanding middle class’s disposable income, the continued high demand for a variety of cuisines, the popularity of fast food and easily accessible food options, and the comparatively lower entry hurdles in the market all contribute to India’s food industry’s steady, rapid growth.

Some of the most lucrative food franchises in India under 10 lakhs, with a focus on the retail industry, are available to those who are interested. 

These include gfresh, tea time, amul and much more. 

Prior to choosing a franchise, entrepreneurs should consider all then factors before investing in any franchise. 

This blog post, will help you to understand factors, the list of franchises under 10 lakhs, benefits as well as challenges of grocery franchise.

Market Trends and Consumer Behavior

 The grocery industry has been greatly impacted by a number of market movements in recent years, which makes it a desirable place to invest:

• A Greater Emphasis on Health and Wellbeing: Fresh produce, organic products, and specialty diet items are becoming more and more popular among consumers. Fast growth and client loyalty have been witnessed by grocery chains that adjust by providing a broad range of health-conscious products.
• Technological Advancements: The way that customers engage with supermarket companies has changed as a result of the incorporation of digital tools, such as tailored loyalty programs and online ordering platforms. These developments increase productivity and enhance client interaction.
• Urbanization and Changing Lifestyles: As the number of people living in cities increases, so does the need for easily accessible supermarkets. Franchises can take advantage of this need by placing themselves in high-traffic areas strategically, guaranteeing consistent foot traffic and repeat revenue.
• Sustainability and Local Sourcing: Companies that prioritize sustainability and ethical sourcing methods are attracting more and more customers. Franchises that share these ideals are more likely to gain market share and promote goodwill in the community.

By understanding these patterns, we can see that supermarket franchises are dynamic and adapt to changing consumer demands and technological advancements, which enhances their long-term financial success.

Also Read: Top 15 Grocery Supermarket Franchise for 2025

Considerations to Make Before Investing in a Profitable Grocery Franchise

Brand Strength: The selected grocery franchising brand needs to be well-known, have a high level of market awareness, and have consistent customer loyalty in order to ensure profitability and business growth.
Business Model: The franchisor’s business model should include tried operational methods, marketing strategies, and effective customer services to ensure appropriate business management of the franchise outlet.
Market Analysis: To ascertain the target market’s demographics, competitive environment, and local market, it is essential to perform a market analysis before to investing in a profitable grocery franchise.

Accessible support: A grocery franchise needs to have access to training and support from the franchisor in order to guarantee faultless business operations, marketing plans, and customer service.

Financial needs: To make sure that the financial decision for a food franchise business and the investors’ budget are appropriately linked, all financial demands, including equipment costs, royalty fees, and recurring expenses, must be taken into consideration.

Franchise Agreement: Investors in a supermarket franchise should carefully review the terms and circumstances of a franchise agreement, taking into account the territorial rights, intellectual property rights, and royalty rate, in order to ensure smooth and legal business operations.

Profit and Growth Potential: Investors carefully evaluate and examine the profitability potential of food franchise operations, taking profit margins into consideration, using historical data.

Most Profitable Food Franchises Under ₹10 Lakhs in India

Let us explore the best franchise businesses To Start in 2024 under 10 lakhs

1. G-Fresh Mart

A retail chain called G-Fresh Mart provides a variety of everyday food necessities, such as fruits, vegetables, groceries, and more. Considered to be among the top supermarket companies in India, it is a huge online supermarket and grocery store.

A range of supermarket franchise options are available from G-Fresh Mart to accommodate various requirements and price ranges.

A food store can be established as a G-Fresh Mart Supermarket. For people who wish to launch a business in the retail sector, it offers a fantastic chance.

It is a well-known brand with a successful track record that provides a large selection of goods to meet consumers’ everyday needs.

Its franchise investment consists of money, marketing, infrastructure, equipment, and franchise fees. A unit franchise should ideally be located in a major street or easily accessible commercial mall.

The required investment is approximately INR 10 lakhs.

2. Amul

Amul, which stands for the Gujarat Milk Marketing Federation, is an Indian dairy firm with its headquarters located in Anand, Gujarat, and was founded on December 19, 1946.

Amul introduced the White Revolution to the nation, making it the world’s largest producer of milk and milk products. Since then, it has expanded into foreign markets.

Its specialty is butter, ice cream, yogurt, and cheese that are created from milk from Indian buffaloes, which gives them a unique flavor.

For individuals who want to start an Amul Parlour—an exclusive store that stocks and sells the whole line of Amul products—it provides franchising options.

Required investment: INR 2–6 lakhs

3. Tea Time

With its cozy, inviting ambiance and superb product quality, Tea Time has masterfully encapsulated India’s passion for tea.

The brand is a great chance for individuals new to the QSR industry because of its popularity and quick expansion.

They provide exceptional assistance with setup, marketing, and training, making sure franchisees are prepared for success.

Tea Time has a devoted fanbase thanks to its emphasis on premium products and customer service, which makes it a great franchise to invest in.

The potential for Tea Time’s success is endless, given the ongoing growth of the tea culture.

Required investment: 5 lakhs

 4. Ashwini Amrutulya

For those who are not Indian, tea might just be tea. Tea is the solution for both entertaining and comprehending the tension that comes with entertaining.

A traditional tea shop in India called Ashwini Amrutulya identified this unique demand in the Indian consumer market and became a part of its patrons’ everyday lives.

Required investment: INR 2–6 lakhs

5. Mother Dairy

Mother Dairy, renowned for her decadent ice creams and exquisite dairy delicacies, is a proud symbol of dairy perfection. Mother Dairy is a shining example of dairy genius, captivating palates with its creamy treats and frozen wonders while also improving public health by providing premium dairy products. Shrouded in mystery, the franchise appeals to entrepreneurial minds by offering a wealth of opportunities that go beyond the norm. Mother Dairy whispers promises of prosperity, dairy-driven innovation, and technology for those who dare to forge a career in culinary entrepreneurship.

Required investment: INR 3-7 lakhs

Benefits of Investing in a Profitable Food Franchise

1. Reduced Risk

The advantages of investing in a profitable, low-cost grocery franchise include a decreased chance of financial loss and failure because of the cheap initial investment.

By offering operational direction and the required training for managing business operations and customer services, the tested grocery franchise business model also lowers business risk.

 2. Quicker Return on Investment

Investing in a food franchise provides a lower cost and a quicker return on investment (ROI) since the franchisor offers central distribution and bulk purchasing, which lowers the cost of ingredients for the firm.

Faster return on investment is guaranteed in the food franchising industry by the well-established brand awareness, current clientele, effective company operations, and tested business plan.

3. Recognition of Brands

An existing brand name and understanding among the market’s particular customers are provided by a grocery franchise business model, which aids the franchise outlet in achieving steady sales and profitability from the start of the enterprise.

Customer loyalty and competitive advantages in the market are guaranteed by the franchisor’s well-known brand, which drives the expansion and prosperity of the company.

4. Comprehensive Support

Purchasing a grocery franchise entitles you to the franchisor’s full support and direction in the form of continuing operational guidelines and employee training initiatives that assist the franchise locations in guaranteeing flawless business operations and happy customers.

Additionally, franchise business models provide industry knowledge and scalability, which improves the company’s prospects of financial success and expansion.

Challenges & How to Solve Them

1. An excessive amount of competition

Focusing on the individual unique selling offer and comprehending the particular needs of the target market will help franchise businesses deal with the excessive competition they may encounter both inside and externally.

Franchise locations can effectively handle the serious problem of excessive competition by offering creative and outstanding customer service.

2. High Operating Expenses

Businesses may find it difficult to control the high operating costs of a franchise location.

People should concentrate on streamlining overall business operations and putting cost-effective strategies in place to streamline procedures in order to control franchise operating costs.

Additionally, franchisees should carefully monitor employee turnover and bargain for better supplier agreements.

3. Maintaining Customer Satisfaction

In a franchise company, maintaining customer satisfaction is crucial to preserving the brand’s reputation and guaranteeing long-term sales and profitability.

Franchise locations should ask for input frequently in order to build client loyalty and provide customization in order to maintain a distinctive brand image within the target market.

The franchisor should provide customer service training to franchisees in order to retain and increase client loyalty.

Which Franchise is the Best Option For You?

Making a preference decision is never easy, especially when there are a lot of possibilities. Gfresh meets all the requirements among the franchises listed below.

First of all, there are no royalties to pay, which increases your return on investment.

Gfresh offers you the opportunity to enter the thriving food business without taking on significant risk because of its modest investment, excellent brand recognition, and expanding popularity for quick eats.

They make sure you’re not left to fend for yourself by providing excellent training programs, marketing assistance, and a high return on investment.

Check out this: Top 10 Supermarket Franchise in India

FAQs

1. Can I start a grocery franchise business with a budget of under ₹10 lakh?

Yes, many grocery franchises in India offer investment options under ₹10 lakh. These include small-format stores, online grocery delivery franchises, and kiosk-based models.

2. What are the key costs involved in setting up a grocery franchise business?

The costs generally include:

• Franchise fee (₹50,000 – ₹5 lakh)
•  Inventory procurement (₹2 lakh – ₹5 lakh)
• Store setup and infrastructure (₹1 lakh – ₹3 lakh)
• Marketing and branding (₹50,000 – ₹1 lakh)

3. What are the basic requirements to start a grocery franchise business?

• A commercial space (owned or rented) ranging from 200-500 sq. ft.
• Initial investment of up to ₹10 lakh
•  Local trade licenses and GST registration
• Compliance with franchise agreements

4. How much profit can I expect from a grocery franchise business?

Profit margins in the grocery business vary but typically range between 5-20%. The monthly earnings depend on sales volume, location, and operational efficiency.

5. Do I need prior experience to start a grocery franchise business?

Not necessarily. Many franchisors provide training and operational support to help new franchisees run the business efficiently.

6. How do I select the right grocery franchise business?

Consider the following factors:

• Brand reputation and existing market presence
• Investment and ROI potential
• Franchise terms and support provided
• Demand for grocery products in your location

7. How can I apply for a grocery franchise business?

• Research and shortlist potential brands.
• Visit the franchise website or contact the company’s franchise department.
• Submit an application and attend discussions with the brand representatives.
•  Finalize agreements and set up the store as per franchise guidelines.

Conclusion

To conclude, there are several food franchise options available for interested investors under 10 lakhs of investment in India.

Before selecting one of the most profitable food franchises franchise business under 10 lakhs, individuals should consider brand strength, business model, available support, franchise agreement, etc.

Individuals can select one of the most profitable food franchises in India, such as gfresh, tea time etc.

The investment in a low-cost, profitable food franchise offers low risk, strong brand recognition, extensive support and faster ROI.

Individuals may also face some challenges in establishing a franchise business and need to address them properly.