A common misconception about the franchising business concept is that you need to have significant initial financial resources to start a franchise. Many people are not aware that you can start a franchise in India with an investment of under 5 lakhs.
To present you with franchise opportunities under 5 lakhs, we have decided to list options that can be a good investment for every entrepreneur. Franchising is a business concept that has less risk than starting a business from scratch. Because of that, many Indian people more often get into this type of business partnership.
This franchise list will be beneficial for entrepreneurs who do not have large initial investment funds available. To start your business through a franchise model, you do not need to be rich, and that is why we decided to present the best franchise under 5 lakhs in India.
Best Franchise Under 5 Lakhs in India
The Granios – Fast Food Brand
The first The Granios outlet was opened in 2013, and in 2017 they started offering the option of owning a franchise under their trademark. Currently, only a couple of franchises from this brand operate in the Indian market, but they are rapidly working on increasing the number of their franchise units.
This will be an ideal opportunity for entrepreneurs who already own an outlet but want to turn their business in a completely different direction.
The cost of this franchise is under 5 lakhs if you have your own space, and if you start from scratch, you will have to invest about 8 lakhs. This is a very affordable offer for an outlet of this type.
The Granios brand’s menu has more than 400 dishes, and each franchisee procures food preparation materials directly from the franchisor. This means that there is no royalty fee; the investor pays the obligations to the franchisor through the margin of raw materials.
Most of the customers who once have tried The Granios food were pleasantly surprised with the taste of the pizzas, burgers, and the hot and cold drinks that this facilities have on the menu. In addition to these dishes, they offer various types of sweet dishes, grill food, etc.
The initial franchise fee for opening one such franchise is only 1 lakhs. For this price, each franchisor will receive support regarding the arrangement of the location, and the purchase of appliances.
The Granios franchise package also includes food preparation training, so every franchisee will be ready to become the head chef in his franchise after a few weeks of training in the central The Granios kitchen.
This franchise will be a good opportunity for entrepreneurs who are ready to work hard with guidance from people who have many years of experience in managing fast food facilities.
This is one of the cheapest food franchises in India, and that is why it must be mentioned as one of the better options for opening franchises under 5 lakhs in India.
The Granios franchise cost in India:
- Initial fee: 1 lakhs
- Estimated total investment: 5 – 8 lakhs
- Royalty fee: payment is made through the raw materials
- Duration of franchise agreement: 5 years
The Pizza Central – Fast Food Brand
The Pizza Central opened its first outlet in 2019; they are currently working on expanding across the whole of India. Today, there are presently more than ten franchise units from this brand, and their main goal is to open their franchises in all bigger cities.
In addition to pizza, the menu of this brand also includes burgers, smoothies, and various other hot and cold drinks. Their pizza is extra crunchy and made from fresh ingredients, so it is very popular among customers.
The entire investment in opening this franchise is under 5 lakhs; this offers one of the better opportunities in the fast-food market. For franchises of this type, usually, it is necessary to invest 10+ lakhs, so this will be a perfect option for entrepreneurs who do not have a large budget.
The Pizza Central franchise package includes on-site assistance in all business segments. The franchisee will receive support in arranging the location, procuring marketing signs, and training related to food preparation.
If you want to start your fast food outlet without previous experience in this type of business, this is the franchise for you. For under 5 lakhs, you can get a business partner who will be of great help in running a business, and that is no small thing when you are an inexperienced entrepreneur.
The Pizza Central franchise cost in India:
- Estimated total investment: under 5 lakhs
- Initial fee: 1 lakhs
- Royalty fee: 5%
- Expansion locations: across the whole of India
- Duration of franchise agreement: lifetime
Kwality Walls – Ice Cream Brand
Kwality Walls has been present on the market since 1940; this puts this brand in the group of the oldest ice cream brands on the Indian market. Since 2003 they have been offering the option of franchising, and nowadays, they are working on expansion throughout all the bigger cities in India.
This franchise is ideal for ice cream lovers who want to try their luck in this type of business. The sale process takes place most often in kiosk-type facilities, so the Investment in such a facility is very affordable.
The offer from this brand is based on ice creams of various shapes and flavors. Due to its longevity, this brand has a lot of loyal customers all over India. The total Investment in the Kwality Walls franchise is under 5 lakhs, which puts this brand on our list of India’s best business start-up opportunities.
The Kwality Walls franchise package includes on-site support in all aspects of the business. For the Indians who want to start a business with an investment of under 5 lakhs, this can be one of the options.
Kwality Walls franchise cost in India:
- Estimated Total Investment: under 5 lakhs
- Duration of the franchise agreement: 3 years
- Expansion locations: Maharashtra, Chandigarh, Delhi, Haryana, Punjab, Uttaranchal, and Tamil Nadu
Shake Chili – Milkshake Brand
Prashant and Vinaya Kulkarni founded this brand because they saw the need to move the distribution of shakes from the traditional way that took place on the streets of India to Indoor facilities that provide greater hygiene; this is especially important for products that fall into the food category.
This brand currently has about forty franchise units on the Indian market, and they want to grow more in the future. The investment in this type of facility is very affordable, and it is between 5 and 8 lakhs.
If you have your own facility, then there is a possibility to start the Shake Chili franchise for under 5 lakhs.
This will be a good opportunity for shop owners who want to change the type of business. After a few days of signing the franchise agreement, the facility will be ready to operate under the Shake Chili brand trademarks.
Suppose you do not have your own facility. In that case, investment in this franchise will be about 6 lakhs, which is still an excellent opportunity because usually, this type of franchise needs much bigger start-up investment funds.
Shake Chili’s royalty fee is 0%; it is paid by purchasing raw materials from the franchisor; this is also one of the benefits that this brand gives.
Shake Chili is quite flexible as far as financing itself is concerned, so it is possible to make a deal that will be inside your current financial capabilities. The franchise package includes on-site assistance in all segments, from food preparation to the purchase of working equipment.
Shake Chili franchise cost in India:
- Estimated total investment: 5 – 8 lakhs
- Initial fee: 2 lakhs
- Royalty fee: 0% – charged through the purchase of food preparation materials
- Duration of franchise agreement: 5 years
Chai Lije – Tea & Coffe Brand
Chai Lije was founded in 2016 by several Indian bankers who have decided to start their new careers in this type of business. In 2020, they started expansion operations through a franchise model, and currently, they have outlets at a couple of locations in India.
The total investment in opening a Chai Lije franchise is under 5 lakhs. This will be a good opportunity for all entrepreneurs who want to start a profitable business venture with minimal start-up costs.
Franchises from this brand are kiosk type, and because of that, costs are reduced to a minimum.
The beverages offered by this brand are based on various types of teas, coffees, and shakes. This type of franchise does not require any special high-cost apparatus, so we had to mention this franchise as one of the best franchise in India under 5 lakhs.
The initial fee is only 1.5 lakhs, and the royalty fee is 2% of the gross revenue. This is one of the lowest royalty fees in the beverage & food industry so that investors can expect a quick return on investment.
Although this is a low-budget franchise, the Chai Lije franchise package can be compared with a package offer of leading brands in this type of business. The franchise package includes on-site support and training related to the preparation of drinks and shakes.
Also, the owners of this brand will personally support all their franchisees with all legal matters that one business must meet.
Don’t forget that the owners of this franchise are former bankers who are willing to pass that experience on to their franchisees. Their experience in the banking sector can be especially beneficial for people who are starting their first business venture.
Chai Lije franchise cost in India:
- Estimated Total Investment: under 5 lakhs
- Initial Fee: 1.5 lakhs
- Royalty Fee: 2%
- Duration of franchise agreement: 5 years
Maharaja Vadapav – Vegetarian Food Brand
Maharaja Vadapav brand started its business operations in 2015, and since then, they have stood out as an outlet where customers can taste one of the best vada pavs in India. Also, they put a lot of effort that their facilities meet all hygiene requirements and that their vada pav ingredients come directly from farmers who grow vegetables organically.
This brand offers a Kiosk type franchise, so the price of one of their franchise units is under 5 lakhs. For the entrepreneurs who already have their own kiosk, the total investment in the Maharaja Vadapav franchise will be under 3 lakhs.
The only disadvantage of this franchise is that they provide training only in Nandumbar in Maharashtra. So this franchise is not available in the whole territory of India. However, for all entrepreneurs who are located in and around Nandumbar, this will be the best option to open a franchise under 5 lakhs.
The franchisor provides on-site training, so this will be very helpful for entrepreneurs who have never before encountered the process of preparing vada pav. The franchise agreement duration is three years, and during that period, a franchisor’s support is available on a daily basis.
Maharaja Vadapov franchise cost in India:
- Estimated total investment: 3-5 lakhs
- Initial fee: 3 lakhs
- Duration of franchise agreement: 3 years
- Expansion locations: Gujarat, Maharashtra, Madhya Pradesh
Paratha on Wheels Cafe – Fast Food Brand
The first Paratha on Wheels Cafe started operating in 2013, and the franchising operations started in 2015. Although the name itself may suggest that these are mobile-type franchises, these are primarily kiosk-type franchises.
In addition to paratha, which is the trademark of this brand, there is also a variety of vegetarian and meat dishes that are well known among the customers because of their taste.
The cost of opening one such facility is very affordable, which is why this franchise is becoming more popular among investors. This is a franchise that will grow in the future, and that is why it is an ideal choice for rookie entrepreneurs who want to start their first business venture.
The total investment in Paratha on Wheels Cafe is under 5 lakhs, so we must put this brand on the list of the best low-budget franchise in India. The support provided by the franchisor is assistance in choosing a location, on-site training, and training regarding the preparation of meals.
To become the Paratha on Wheels Cafe owner, you do not need to have experience in this type of business; you will be guided by franchisor development agents who are ready to help in every segment of the business.
This franchise is available in areas of Delhi, Uttaranchal, Goe, Gujarat, Rajasthan, Maharashtra, so this is a perfect opportunity for entrepreneurs who are living near these cities.
The franchise agreement has a duration of 3 years, and franchisee support is available throughout the whole duration of the franchise agreement.
Paratha on Wheels Cafe franchise cost in India:
- Estimated total investment: under 5 lakhs
- Duration of franchise agreement: 3 years
- Expansion locations: Gujarat, Rajasthan, Maharashtra, Delhi, Goa, Chhattisgarh, Madhya Pradesh
Halla Bowl – Food Home Delivery Brand
The Halla Bowl brand started operations in 2019, and since then, they have managed to open a dozen franchises across the whole of West Bengal. The peculiarity of this franchise is that you do not need a kitchen or any appliances for preparing meals, and that is why this franchise must be on the list of the best franchise under 5 lakhs in India.
Halla Bowl franchise is an ideal opportunity for entrepreneurs located in West Bengal. The total cost of starting this franchise is only 2 lakhs, so this is one of the cheapest franchises on the territory of all of India.
For the entrepreneurs who do not have significant investment funds, this can be an opportunity they’ve been waiting for.
There are only two kitchen appliances in the franchise; an oven to keep food warm and a refrigerator to cool drinks. The food preparation process takes place in the central kitchen of the Halla Bowl brand, and after that, food is distributed to the franchise units.
The franchisee has nothing to do with food preparation, which makes this franchise easy to run. Hall Bowl franchise’s task is to sell and deliver food to end customers, and everything else will be taken care of by the franchisor.
The franchisee gets a 30% commission from the gross revenue, and this is an excellent profit for so little work that needs to be done. The only drawback of this franchise is that it is only available in the West Bengal area; however, they plan to expand to the whole territory of India in the future.
The franchise package includes assistance on-site in every aspect of the business. The franchise agreement has a duration of 3 years, and during the entire period, the franchisor’s support is available.
New Halla Bowl franchise recipients will not need too much help in running the business because the active part of the job is simplified to the maximum.
Halla Bowl franchise cost in India:
- Estimated total investment: INR 50000 – 2 lakhs
- Royalty Fee 0% – The franchisee gets 30% percent from gross revenue
- Franchise agreement duration: 3 years
- Expansion locations: West Bengali
Beontea – Tea Brand
The Beontea brand was established in 2019, and in 2020 they started franchise operations. They currently have more than 50 franchise units across the whole of India, so this is one of the fastest-growing franchise brands.
The peculiarity of the Beontea franchise is that these are kiosk-type objects that have the shape of a coffee cup. This is a visually interesting and profitable shop because the total investment in starting this franchise is under 5 lakhs in India.
In addition to tea in Beontea shops can be bought croissants and various other snacks. As these facilities are very small, the location of the kiosk itself changes very quickly. This can be an advantage because if sales are not going well, there is a possibility of changing the location to an area where the demand for the products will be higher.
The initial fee is 1.6 lakhs, and this is a cost that is primarily related to buying a kiosk. The Beontea brand franchise package includes training in outlets in Hyderabad.
Beontea franchise agreement has a duration of 5 years, and each franchisor receives premixed tea concentrates for making beverages. This will be a good opportunity for all entrepreneurs across India who want a compact franchise facility that makes good profits with low investment and ongoing costs.
Beontea franchise cost in India:
- Estimated total investment: 2-5 lakhs
- Initial fee: 1.6 lakhs
- Franchise agreement duration: 5 years
- Expansion locations: across the whole of India
Arya Fish Aquariums – Pet Brand
Arya Fish Aquariums opened their first store in 2007 in Mumbai. There are currently shops of this brand in only a few locations in India, which opens plenty of room for starting new franchise units.
The company Arya Fish Aquariums is primarily engaged in selling various accessories for aquariums, but it also offers products for all types of pets. In the stores of this brand, every pet owner can buy more than 10,000 different products: pet food, toys, etc.
Arya Fish Aquariums is on this list of the best franchise under 5 lakhs in India because the initial investment is very affordable. The total investment you will need to open this pet shop ranges from 2 to 5 lakhs.
This franchise will be perfect for animal lovers from Mumbai who want to start their own business.
The pet market in India is not oversaturated, so this kind of store can be very profitable. With the help of the owner of this concept, it will be very easy to find regular customers who will gladly use the services and products from the Arya Fish Aquariums brand.
Arya Fish Aquariums franchise cost in India:
- Total estimated investment: 2 – 5 lakhs
- Expansion locations: Mumbai
- Duration of franchise agreement: 3 years
Summary
These are some of the best low-budget franchises that are available in the territory of India. To open one of these facilities, you will need to invest under 5 lakhs. This will be an excellent opportunity for entrepreneurs who are starting their first business venture.
Franchising is booming in India, and that is why we want to introduce you to all the possibilities. It is up to you to choose a franchise that is in line with your current financial capabilities.
Franchise by total investment cost:
- Under 20 lakhs
- Under 10 lakhs
- Under 5 lakhs
- Under 1 lakhs
As you can see for yourself, there are indeed many franchise opportunities, so we are convinced that you will find a franchise that will suit you personally.