Buying a retail store franchise is an effective method of wealth creation. Franchisee owners leverage the market capitalization of the franchisor brand. By utilizing the franchisor’s robust marketing and HR training, franchisees gain a competitive edge for building thriving businesses.
But, how do you select the right franchise for your available resources?
Given below are seven of the highest-trending retail store franchises in India. We have identified the various factors to consider when buying a franchise. These include the franchise fee, the royalty fee, break-even time, etc. Following this, we have also listed the operating costs a franchisee will encounter when operating their business.
Domino’s Pizza Retail Store Franchise
Domino’s provides three different types of retail store franchises.
Traditional: The regular Domino’s restaurant with large square footage for patrons to sit and enjoy their meal.
Non-traditional: Small form factor takeaway restaurants, mostly placed at Railway stations, Airports, Toll Plazas, etc.
Transitional: A mix of both the retail forms mentioned above. Ensures that the customer can sit and enjoy a quick meal while providing options for the customer on the move.
| Industry | Food and Beverages/Restaurant |
| Number of Franchise Outlets | 1,700+ |
| Tenure | 5 years (transitional store) 10 years (non-traditional and traditional franchise stores) |
| Location Offering | Pan India |
| Franchise Fee | ₹4 lakhs (average) |
| Investment | ₹60 lakhs to ₹2.25 crore (including franchise fee) |
| Royalty | 5% |
| Return on Investment | 11% to 27% Average profit margin of 19% |
| Break-even Time | 2 – 3 years (international figures) |
| Space Requirement | 800 sq. ft to 2000 sq. ft (Traditional franchise stores) 400 sq. ft to 1,000 sq. ft (Delivery/takeout franchise stores) 200 sq. ft to 400 sq. ft (Express franchise store outlets) |
| Employee Requirement | 6 minimum |
| Set-up Time | – |
| Demographic Profile | Demographic Profile: College students or young professionals. Embrace innovation & technology Value quality and affordability Open to new experiences Socially active Location Preferences: High footfall location Proximity to colleges, offices, etc. Dining Preferences: Economical dining options Quick service sector Broad consumer appeal Interests: Casual dining experiences Affordable entertainment options (e.g., movies, casual sports) Tech gadgets and accessories Socializing with friends at cafes or casual hangout spots |
| Example of Competitor | Pizza Hut |
TATA 1MG Retail Store Franchise
Become a part of India’s largest healthcare platform and play a pivotal part in improving the health of your community by starting a TATA 1MG retail store franchise. Receive support from TATA 1MG and generate revenue for every medicine delivery after starting your 1MG retail store.
| Industry | Healthcare |
| Number of Franchise Outlets | 20+ |
| Tenure | 1 year |
| Location Offering | Pan-India |
| Franchise Fee | ₹2 lakhs to ₹3 lakhs |
| Investment | ₹10 lakhs to ₹20 lakhs |
| Royalty | 5% |
| Return on Investment | 16% (average) |
| Break-even Time | 12-15 months |
| Space Requirement | 200 sq. ft – 500 sq. ft |
| Employee Requirement | 2-5 |
| Set-up Time | 1 to 2 months |
| Demographic Profile | Demographic Profile: Residents in residential zones with diverse income levels. Individuals living in PG accommodations or residential areas nearby. Health-conscious individuals seeking affordable healthcare solutions. Value-conscious consumers with varying disposable incomes. Community-oriented individuals seeking accessible healthcare services. Target Audience: Residents seeking convenient access to medication and healthcare products Individuals with varying income levels, including those with limited disposable income Community members reliant on accessible and affordable healthcare amenities Interests: Access to a wide range of medication and healthcare products Affordable healthcare solutions tailored to different income levels Community-focused services and amenities for healthcare needs |
| Example of Competitor | MedPlus, MedLife, NetMeds, Apollo |
Mio Amore
Holding the retail store franchise of this Kolkatta-based bakery is slowly becoming one of the highly sought-after investment opportunities in the country. Started in 1994, the brand is located in West Bengal, Jharkhand, Odisha, Bihar, and Assam. The average cost for a mio amore franchise is ₹12 Lakhs.
| Industry | Bakery and confectionaries |
| Number of Franchise Outlets | 300+ |
| Tenure | 3 years |
| Location Offering | East India |
| Franchise Fee | ₹12 lakhs |
| Investment | ₹55 lakhs to ₹70 lakhs. |
| Royalty | 5% |
| Profit Magin | 20% |
| Break-even Time | 12 – 18 months |
| Space Requirement | 250 sq. ft to 400 sq. ft |
| Employee Requirement | 4 |
| Set-up Time | 12 to 18 months |
| Demographic Profile | Demographic Profile: Residents in residential zones or nearby neighborhoods Individuals living in residential areas, seeking convenient dining options. These individuals lead lifestyles that involve dining out at various restaurants or cafes and enjoying culinary experiences. Target Audience: Individuals between the ages of 18 and early 50s Target customers possess discretionary income Customers who rely on accessible and affordable dining options Prioritize value for money and seek dining options that align with their budget constraints. Interests The target audience seeks access to a diverse range of freshly baked goods and dining options, catering to different tastes and preferences. Quality dining experiences tailored to various lifestyle preferences are of interest to patrons, emphasizing the importance of ambiance and service quality. Community-focused services and amenities offered by the restaurant contribute to its appeal, providing a welcoming environment for food retail and dining needs. |
| Example of Competitor | 7th heaven, sugar and spice. |
Haldiram Retail Franchise
Started in 1937, Hadiram’s is an iconic restaurant in India. Purchasing this restaurant’s retail store franchise allows business owners to leverage the brand recognition of this famous brand to quickly build a large pool of loyal customers to generate consistent revenue.
Like the retail store franchise structure of Domino’s Pizza discussed earlier in the blog, there are three different types for Haldiram’s.
| Industry | Bakery and confectionaries |
| Number of Franchise Outlets | 150+ |
| Tenure | 5 years |
| Location Offering | North India, East India, Central India, South India. |
| Franchise Fee | ₹15 Lakhs |
| Investment | Kiosk ₹50 Lakhs Quick Service Restaurants(QSR) ₹2-4 CroresCasual Dining ₹3-6 Crores |
| Royalty | 6% |
| Profit Magin | 35% |
| Break-even Time | 2-4 years |
| Space Requirement | Kiosk 150-200 sq ft Quick Service Restaurants(QSR) 1500 sq ft Casual Dining 4000-5000 sq ft |
| Employee Requirement | Depends on the format. Between 1 and 10 |
| Set-up Time | 12 to 18 months |
| Demographic Profile | Demographic Profile: The brand targets upmarket residential areas and malls. It caters to both tier 1 and tier 2 cities. Offering economical dining options, the brand appeals to a broad demographic spectrum, making it accessible to various consumer segments. Target Audience: The brand caters to individuals seeking affordable dining experiences without compromising on quality. It attracts patrons from different economic backgrounds who prioritize value for money. With a focus on accessibility, the brand appeals to local residents and visitors, ensuring broad consumer reach. Interests Emphasizing dining affordability and quality, the brand strives to meet the preferences of its diverse clientele. It aligns with lifestyle choices and economic indicators, offering a dining experience that resonates with its target audience. By understanding consumer spending behavior, the brand aims to create an engaging dining environment that caters to the interests of its patrons. |
| Example of Competitor | A2B, Sri Krishna, MTR foods, Karachi Bakery |
Baskin Robbins Retail Store Franchise
The perfect retail store franchise for anyone with a sweet tooth. Baskin Robbins is an institution in the premium ice cream business. The average Baskin Robbins franchise cost is between rupees 11 lakhs and rupees 24 lakhs rupees but will help generate an estimated return of 40% to 50% to pay back the initial investment in 1 to 1 1/2 years.
A Baskin Robbins Franchisee receives the brand recognition of the marquee ice cream sellers ensuring large footfall traffic through word of mouth. Alongside this, the brand also provides training to the staff recruited by the franchisee to ensure seamless operation following brand guidelines.
Furthermore, like the other food-based retail store franchises in this list, Baskin Robbins offers three investment options. Kiosk, Parlour, and Lounge.
| Industry | Ice Cream and Yogurt Parlours |
| Number of Franchise Outlets | 600+ |
| Tenure | 5 years |
| Location Offering | Pan-India |
| Franchise Fee | ₹5 Lakhs to ₹ 13 Lakhs |
| Investment | ₹11 lakhs to ₹18 lakhs |
| Royalty | Royalty fee of 5.9% of gross sales and a marketing fee of 5% of gross sales. |
| Profit Magin | 46% to 52% |
| Break-even Time | 2-3 years |
| Space Requirement | Kiosk – 150 sq ft Parlour – 250 sq ft Lounge – 500 sq ft |
| Employee Requirement | 5 to 15 depending on the store |
| Set-up Time | 4 to12 months |
| Demographic Profile | Demographic Profile: Residents in urban areas, particularly near High Streets, malls, food courts, or captive locations like multiplexes and corporate parks. The target demographic includes individuals with a preference for desserts and treats. With a focus on discretionary spending, the audience comprises consumers willing to allocate a budget for premium ice cream experiences. These individuals are likely to frequent entertainment hubs or commercial complexes, seeking convenient options to satisfy their dessert cravings. Target Audience: Baskin Robbins caters to a wide age range, appealing to individuals from teenagers to adults in their late 40s. Target customers possess discretionary income, allowing them to indulge in premium ice cream offerings as a form of indulgence or celebration. They prioritize quality and variety in their dessert choices, seeking innovative flavors and indulgent experiences that align with their taste preferences. Interests: The target audience seeks access to a diverse range of ice cream flavors and dessert options, including classic favorites and innovative creations catering to different palates. Quality dessert experiences tailored to various occasions and preferences are of interest to patrons, emphasizing the importance of flavor variety and product presentation. Community-focused services and amenities offered by Baskin Robbins contribute to its appeal, providing a welcoming environment for dessert enthusiasts to indulge in their favorite treats. |
| Example of Competitor | Havmor, Amul, Ibaco, Kwality Walls. |
Nellai Karupatti Coffee Retail Store Franchise
Driving on any Southern Indian highway you will be greeted by the retail store franchises of Nellai Karupatti Coffee. These small form factor stores provide a healthy alternative to lakhs of travelers on the highway. With a small investment, franchisee owners can expect a 100% return in under 6-8 months.
| Industry | Coffee Cafe |
| Number of Franchise Outlets | 130+ |
| Tenure | Lifetime validity |
| Location Offering | South India |
| Franchise Fee | ₹2 lakhs |
| Investment | ₹2 lakhs to ₹5 lakhs |
| Profit Magin | 40% |
| Break-even Time | 10-11 months |
| Space Requirement | Demographic Profile: Professionals: Commuters traveling for work purposes or business trips. Students: Young adults from nearby educational institutions seeking a quick bite or study break. Tourists: Visitors exploring the local area or passing through the highway. Travelers on the Highway: Individuals on long-distance journeys requiring a rest stop or refreshment break. Target Audience: The cafe caters to customers of all ages, offering a diverse menu to appeal to varying tastes and preferences. Travelers and commuters looking for a convenient dining option along their route. Customers are interested in low-impact food options, such as idli, pongal, and dosa made from millet, for a nutritious and satisfying meal. Interests: The cafe provides fast and efficient service to accommodate travelers and customers with limited time. With offerings like idli, pongal, and dosa made from millet, the cafe caters to health-conscious individuals seeking nutritious meal choices. Customers can satisfy their sweet cravings with a selection of desserts available at the cafe, ranging from traditional treats to indulgent delights. |
| Employee Requirement | 1-2 people |
| Set-up Time | 1-2 months |
| Demographic Profile | Demographic Profile: Professionals: Commuters traveling for work purposes or business trips. Students: Young adults from nearby educational institutions seeking a quick bite or study break. Tourists: Visitors exploring the local area or passing through the highway. Travelers on the Highway: Individuals on long-distance journeys requiring a rest stop or refreshment break. Target Audience: The cafe caters to customers of all ages, offering a diverse menu to appeal to varying tastes and preferences. Travelers and commuters looking for a convenient dining option along their route. Customers interested in low-impact food options, such as idli, pongal, and dosa made from millet, for a nutritious and satisfying meal. Interests: The cafe provides fast and efficient service to accommodate travelers and customers with limited time. With offerings like idli, pongal, and dosa made from millet, the cafe caters to health-conscious individuals seeking nutritious meal choices. Customers can satisfy their sweet cravings with a selection of desserts available at the cafe, ranging from traditional treats to indulgent delights. |
| Example of Competitor | Kubakonam degree coffee, 99KM coffee. |
Belgian Waffle Retail Store Franchise
Let’s end this run-down of the most profitable retail store franchises on a sweet note. Starting in 2015, buying a Belgian Waffle franchise comes with huge potential upsides and no significant downsides.
With two franchise models, kiosk and Cafe, investors can select franchise models that best suit their business requirements. The brand offers franchisees support to ensure ROI within 12 months of operation.
| Industry | Bakery and confectionaries |
| Number of Franchise Outlets | 400+ |
| Tenure | 5 years |
| Location Offering | Pan-India |
| Franchise Fee | ₹8 Lakhs |
| Investment | Kiosk ₹12-13 Lakhs Cafe ₹17-19 Lakhs |
| Royalty | 8% to 12.5% |
| Profit Magin | 24% |
| Break-even Time | 12 months |
| Space Requirement | Demographic Profile: The core customer base of the Belgian waffle franchise comprises residents in residential zones or nearby neighborhoods. Target individuals include those seeking convenient dining options in residential areas. Food enthusiasts are eager to explore diverse cuisines and dining experiences. Customers are likely to lead lifestyles involving dining out and indulging in culinary adventures. Target Audience: The franchise caters to individuals aged 16 to 45, encompassing a broad age range of consumers. Customers typically possess discretionary income for dining experiences outside the home. The audience relies on accessible and affordable dining options to satisfy their culinary preferences. They prioritize value for money and seek dining options that fit their budget constraints. Interests: Customers seek access to a variety of snacks, waffles, chips, desserts, and coffeehouse treats. Quality dining experiences tailored to diverse tastes and preferences are highly valued. The audience appreciates family-friendly options and casual dining environments. Discounts and breakfast-oriented offerings are appealing to customers. Convenience and ready-to-cook items are of interest to those looking for quick meal solutions. |
| Employee Requirement | Depends on the format. Between 2 and 5 |
| Set-up Time | 1 – 2 months |
| Demographic Profile | Demographic Profile: The core customer base of the Belgian waffle franchise comprises residents in residential zones or nearby neighborhoods. Target individuals include those seeking convenient dining options in residential areas. Food enthusiasts are eager to explore diverse cuisines and dining experiences. Customers lead lifestyles involving dining out and indulging in culinary adventures. Target Audience: The franchise caters to individuals aged 16 to 45, encompassing a broad age range of consumers. Customers typically possess discretionary income for dining experiences outside the home. The audience relies on accessible and affordable dining options to satisfy their culinary preferences. They prioritize value for money and seek dining options that fit their budget constraints. Interests: Customers seek access to a variety of snacks, waffles, chips, desserts, and coffeehouse treats. Quality dining experiences tailored to diverse tastes and preferences are highly valued. The audience appreciates family-friendly options and casual dining environments. Discounts and breakfast-oriented offerings are appealing to customers. Convenience and ready-to-cook items are of interest to those looking for quick meal solutions. |
| Example of Competitor | Theobroma, Karachi Bakery, The Baker’s Dozen |
Cost Involved with Operating a Franchise Business in India
Franchises are a tried and tested investment route to generate revenue with a very low downside but huge potential upside. They provided that the franchisee selected the correct franchise business and opened the store in a location with a large presence of customers.
Another factor that you as a potential franchisee owner should consider is the location of another same-store franchisee in the same market.
You should avoid this situation where your potential customers might get pulled by this other store, thus reducing your revenue.
Selecting the correct location when starting your franchise business cannot be underestimated. If you open a store in a place with no customers for your business, you might have to close your retail store and lose your investment money.
As a future business owner, you should only consider retail franchises that can generate a return on investment of 15% to 20% after operating for two years.
The Return On Investment is nothing but,
Benefits-Cost/initial investment * 100
In other words, the profit you will earn after considering the operating expenses of your retail store franchise.
Now that we have mentioned the pitfall you need to consider before investing in a retail franchise, let us look at seven of India’s profitable retail store franchises.
Point to note about a glaring omission from our list.
While KFC is a retail franchise that can generate large revenue, the holder of the master franchise in India – Sapphire Foods, is not providing any franchise opportunity as of writing this blog. Please be wary of touts and brokers who might promise franchise opportunities with the restaurant chain.
Conclusion and Next Steps
This blog only highlights seven of the most profitable and trending retail store franchises in India.
To develop a robust franchise business, the franchisee must pinpoint the ideal location for starting their store.
A franchisee holder has two methodologies they can adopt to find a good location.
- They can either follow the gut instincts of the real estate brokers and hope that their beliefs convert into profit
- The franchise holder can utilize solutions offered by data-backed location AI platforms like GeoIQ that help the franchisee identify the precise markets for their stores, providing property-level answers.
GeoIQ has developed a data-led solution that leverages over 3,500+ location data variables to help retailers identify the exact location for a profitable expansion.
Presenting RetailIQ
RetailIQ is a cutting-edge AI solution revolutionizing offline expansion for the retail sector. It is built on top of extensive location data and brand data to give street-level answers to expansion problems.
RetailIQ is a powerful tool providing site recommendations to maximize success at the store level and minimize the risk of closure. It also helps identify the total addressable market, conduct competition analysis, better understand your target audience traits and their presence, and perform detailed site analysis and reports, all adding up to a successful expansion strategy.