Know The Top Franchise Business Under 20 lakhs?

A franchise is the first business that automatically comes to mind when considering how to launch a company with greater growth potential.

Without a question, the franchise industry has grown in popularity in recent years.

It enables business owners to join the market with a well-established brand.

The majority of individuals, however, believe that launching a franchise firm necessitates significant financial outlays, although this isn’t entirely accurate.

With so many affordable options on the market, consumers may now launch their franchise business with minimal financial outlays.

You can start a franchise firm for less than 20 lakhs to get into the industry. Let’s read below the best franchise business under 20 lakh.

Why Choose a Franchise Business in 2025?

In 2025, franchises will be very accessible and a viable business model and strategy for earning money and expanding in India.

The franchise business model provides a well-known brand that instantly results in loyal clients and revenue.

In order to help franchisees comprehend and grasp the standards of effectively creating and delivering items, Franchise Model also provides them with extensive training programs.

The franchisor’s constant direction and managerial assistance also promote error-free business operations and lower the chance of financial loss and company failure.

A franchise business is a good and profitable business concept in 2025 because it gives investors access to a tested business plan, marketing and promotional advantages, and increased profitability.

Also Read: Franchise Business Under 10 lakhs?

Factors to Consider Before Investing in a Franchise

Investors should carefully evaluate the following aspects before funding a franchise:

1. Reputation and Brand Recognition

Investors should examine the brand’s image with a focus on its reputation in the marketplace, product loyalty, and general market perception.

2. Operations and the Business Model

The franchisor’s business strategy should be effective and well-established in the marketplace to function smoothly and provide franchise outlets with respectable profitability and expansion.

3. Financial Aspects

The initial investment (franchise fees, inventory costs, legal fees, setup costs), ongoing expenses (royalty fees, supply costs, advertising costs), and profitability potential (revenue estimate, profit margin) are all included in the financial components. Investors should carefully evaluate the following aspects before funding a franchise.

4. Reputation and Brand Recognition

Investors should examine the brand’s image with a focus on its reputation in the marketplace, product loyalty, and general market perception.

5. Operations and the Business Model

The franchisor’s business strategy should be effective and well-established in the marketplace to function smoothly and provide franchise outlets with respectable profitability and expansion.

6. Financial Aspects

The initial investment (franchise fees, inventory costs, legal fees, setup costs), ongoing expenses (royalty fees, supply costs, advertising costs), and profitability potential (revenue estimate, profit margin) are all included in the financial components.

7. Aspects of the Market

In order to plan and operate appropriately, investors must take into account all pertinent market factors pertaining to a franchise firm and franchisor, with a particular emphasis on local product demand and market competitiveness.

8.Support and the Franchise Agreement

The franchise agreement’s terms and conditions should be carefully reviewed, as should the franchisor’s support services, such as marketing aid, training and development initiatives, and continuing help.

9. Individual Aspects

Focusing on personal talents, expertise, and lifestyle fit for franchise selection, investors should evaluate their financial and personal objectives and match them with the business budget and growth potential.

10. Choosing a site or place

A franchise outlet’s exposure, accessibility, foot traffic, sales, and profitability are all directly impacted by its location. Therefore, location analysis should be done by investors.

Best Franchise Opportunities Under 20 Lakhs in 2025

 1. Tumbledry

In 2019, Gaurav Nigam and Navin Chawla founded Tumbledry with the intention of reorganizing the disorganized laundry sector in India.

By the end of 2024, the laundry services industry in India is predicted to be valued at over INR 20,000 crores, having grown significantly in recent years.

With more than 250 locations in more than 75 cities, Tumbledry is the biggest laundry and dry cleaner chain in India and was named one of the “Top 10 Retail Start-Ups-2021” by CEO Insights.

Tumbledry is an eCommerce company that was established in 2019 with the goal of resolving the laundry problems of half a billion urban Indians.

It was founded by seasoned industry professionals with over 25 years of experience working for reputable companies like Airtel, Britannia, and Reliance.

Tumbledry has developed a franchising model that works well in tier 1, 2, and 3 cities as well as urban areas.

First of all, it can be carried out from a small place and just needs a very basic building.

Since many graduates will be moving from tier 4 and tier 5 cities to metro areas and other major locations in search of employment and to do business, Tumbledry is expected to rise several times in the upcoming years.

Convenience is increased by the smooth integration of client mobile apps with retail operations.

In addition to laundry, tumbledry establishments provide dry cleaning, shoe cleaning, shoe repair, bag cleaning, bag repair, and carpet cleaning, providing a complete solution for a range of requirements.

2. Subway

The world’s biggest sub sandwich chain is called Subway. In order to assist with his college tuition, Fred DeLucea founded Subway in the United States in 1965.

These days, every company adheres to Subway’s mission statement, which is to offer its consumers the best possible service at reasonable costs.

Since most Indians are vegetarians, the restaurant has modified its menu to accommodate them.

Because of its quickness and convenience, Subway has grown in popularity in these busy cities where the majority of working-class men and women like to eat on the run.

It is among the most affordable franchises in India.

One of the few popular fast-food restaurants that still thrives on promoting a variety of healthful eating options is Subway.

Subway has built a devoted following by offering salads and an infinite number of sandwich variations on whole wheat, multigrain, and gluten-free breads.

It is now regarded as one of the top franchise companies in India’s food and beverage industry.

3. Giani’s

One of India’s oldest ice cream shops is Giani’s. Giani Gurcharan Singh established it in 1956.

The fundamental concept behind Giani’s brand was to buck the trend of local competitors dominating a larger portion of the market in India’s ill-organized ice cream and fast food industries by offering superior products.

Rabri, Faluda, and mango shake were the only dishes offered when Giani di Hatti was first introduced among the Chandni Chowk bazaars in Old Delhi.

At the time, it won over many hearts. Since then, Giani’s has been invincible.

Gaini’s is looking to grow into tier 4 and tier 5 cities, which offers a substantial possibility, after finding success in metro areas in tier 1, 2, and 3.

Giani’s saw significant returns on its investment after opening a number of company-owned and franchised locations throughout Northern India.

It is currently one of the greatest and most affordable franchises in India, providing enormous profits on a comparatively small investment in the food and beverage industry.

4. Jockey

 The well-known brand of cozy underwear, Jockey, was founded in Kenosha, Wisconsin, in 1876. Jockey, which was first established by Samuel W. Cooper as a hosiery maker, transformed undergarments in 1938 when it unveiled its revolutionary Y-front fit for men’s briefs.

Interestingly, despite having more than 50,000 retail locations worldwide, Jockey doesn’t run any of them!

Jockey mainly uses a strong franchisee strategy, collaborating with seasoned merchants to offer its well-known comfort to consumers all over the world.

Jockey India offers its franchisees first-rate marketing and promotion assistance. Increasing brand awareness both nationally and regionally is the aim of these activities.

To promote sales, hold events, and entice customers to visit their new store in person, the marketing team will make use of digital media.

This strategy has not only supported its international growth but also strengthened ties inside the community.

The greatest franchise company is Jockey India, which is regarded as one of the most popular brands among both adults and children.

Check out this: Grocery Franchise: A Helpful Guide To Start Your Business

Steps to Start a Franchise Business in India

The following actions should be taken by prospective investors to ensure a successful franchise venture:

• Step 1: Choose an appropriate brand and business opportunity by conducting in-depth market research to evaluate various franchise choices.
• Step 2: To completely comprehend the terms and circumstances of the business, investors should attentively and thoroughly read the franchise agreement.
• Step 3: Prospective investors should obtain the capital they need to pay for the large upfront costs as well as other pertinent costs, such as setting up a location and managing inventory.
• Step 4: To ensure a seamless franchise business establishment, franchisees must get all pertinent and required licenses, certificates, and agreements.
• Step 5: It’s critical to make use of the franchisor’s readily available and accessible training assistance in order to acquire the abilities required to satisfy the business’s brand standards.
• Step 6: Since it has a direct impact on the outlet’s sales and profitability, choosing a suitable site is one of the most crucial parts of running a franchise business.
• Step 7: Investors should fulfill all regulatory requirements for effective legal compliance in order to guarantee the seamless and lawful management of franchise businesses.
• Step 8: To guarantee flawless operations and restrict their operations in accordance with the terms and conditions of the franchising agreement, the franchisee shall manage and conduct their business under the direction of the franchisor.

Challenges and Risks in Franchise Business

The following are typical risks and difficulties in a franchise business:

• Financial Concerns: Starting a franchise can result in high startup costs, increased operating expenses, and poor cash flow and debt management from franchising loans.
• Lack of Autonomy: Franchise businesses must adhere to stringent brand or franchisor requirements, which limits their ability to make decisions and fosters creativity inside the company.
• Problems with Brand Consistency: Because the target demographic is diverse and has varying demands and preferences, it might be difficult to maintain a consistent and expanding brand image throughout all franchise sites.
• Legal Complexities: Navigating the franchise agreement, making sure local and federal laws are followed, the potential for conflicts with franchisors, etc., can present legal challenges for franchisees.
• Possibility of Termination: If a franchisee or investor fails to comply with the terms of the franchise agreement or the franchise outlet performs poorly, the franchisor may terminate the franchise agreement and cause losses.
• Marketing Difficulties: Franchise locations may have trouble carrying out marketing campaigns successfully while adhering to particular brand standards and limitations.
• Problems with Customer Service: Keeping up a high standard of customer service is crucial to preserving the brand’s reputation across franchise locations, yet managing every procedure appropriately can be challenging.
• Employee Engagement: When employee engagement at a franchise location is poorly managed, it can result in significant employee turnover, which lowers operational and customer service quality and efficiency and lowers venture profitability.
• Competition: Franchises are vulnerable to intense internal and external market competition, which may result in conflicts between several franchises of the same brand operating in the same market.

Check out this: Top 15 Grocery Supermarket Franchise for 2025

Conclusion

In conclusion, there are a number of franchise company possibilities in India that will cost less than 20 lakhs of rupees in 2025.

Since the food industry is currently expanding quickly, potential investors should choose it to launch a franchise because it offers lower startup costs and better sales and profitability.

One Bite, Zaika India, Amul, and other leading franchise possibilities in the Indian food business are accessible to investors with less than Rs 20 lacs.

To choose an appropriate franchise brand or franchisor, prospective investors in a franchise firm should take into account pertinent criteria such as outlet location, market features, and brand recognition.

FAQ

1. What is a franchise business?

A franchise business involves an agreement where a franchisor allows a franchisee to operate a business using its brand name, products, services, and operational model. The franchisee typically pays an initial investment fee and ongoing royalties in exchange for these rights.

2. How much profit can I expect from a franchise under 20 lakh?

Profitability depends on the franchise model, location, and local demand. On average, franchises in India offer returns between 15-30% annually, but it can vary widely. It’s important to discuss this with the franchisor and review financial performance data from existing franchisees.

3. Are there any risks involved in investing in a franchise under 20 lakh?

While franchise businesses can be lucrative, they come with risks such as:

• High Royalty Fees: Ongoing royalty payments may affect profitability.
• Limited Control: Franchisees have limited freedom in decision-making as they must follow the franchisor’s guidelines.
• Market Saturation: If the franchise is already widespread in the area, it may be challenging to attract customers.

4. What documents and licenses do I need to start a franchise?

The required documents typically include:

• A business plan.
• Franchise agreement.
• Proof of financial capability.
• GST registration.
• Local business licenses and permits (depending on the type of business).

5. How long does it take to break even in a franchise under 20 lakh?

The break-even period usually depends on the business type, location, and how efficiently the franchise operates. Typically, it may take anywhere from 12 months to 3 years to recover your initial investment, depending on the profitability and operational efficiency.