If you're looking to start a business in India but don't want to build everything from scratch, franchising might be your best bet. But not all franchises are created equal. Some drain your cash. Others put money in your pocket fast. So which ones actually make the most money in India today?
The answer isn't about brand names you see on billboards. It's about models that work in Indian markets - with low overhead, high repeat sales, and strong local demand. Based on real franchisee earnings reports from 2024 and early 2025, here are the top performers.
Food & Beverage: The Real Cash Engine
Food is always in demand. But not every food franchise works in India. Chains like Starbucks or McDonald’s have high entry costs and long payback periods. The winners are the ones that serve quick, affordable meals with low kitchen complexity.
Take Chaayos. It’s not a global giant, but it’s growing fast. With outlets in over 80 cities, Chaayos sells tea-based drinks and snacks at ₹80-150 per order. The average outlet makes ₹3-5 lakh per month in revenue. After rent, staff, and ingredients, net profit hits ₹1.2-2 lakh monthly. That’s a 40-50% margin - one of the highest in the sector.
Another standout is Haldiram’s Snacks. Their kiosks and small stores focus on ready-to-eat snacks: samosas, jalebis, chivda. Setup cost: ₹15-25 lakh. Monthly profit: ₹1.5-3 lakh. Why? Low labor needs, no cooking on-site, and high footfall in metro markets.
Even smaller players like Chai Point and Behrouz Biryani are seeing 60-70% gross margins. Their secret? Standardized recipes, centralized kitchens, and delivery-first models that cut down dine-in space costs.
Education & Skill Training: High Demand, Low Overhead
Parents in India will spend anything to give their kids an edge. That’s why education franchises are booming - especially in Tier 2 and Tier 3 cities.
Byju’s Learning Centers (licensed partners) charge ₹8,000-15,000 per student per year. A center with 100 students brings in ₹8-15 lakh monthly. After teacher salaries and rent, net profit is ₹4-7 lakh. The kicker? You don’t need a big space. Many operate from rented rooms in residential buildings.
Another winner is Allen Career Institute’s franchise model. They focus on competitive exam prep - JEE, NEET, UPSC. Setup cost: ₹10-18 lakh. Monthly profit: ₹3-5 lakh. Demand doesn’t drop, even during economic slowdowns. Students still need coaching.
Even niche players like English speaking institutes (e.g., British Council partners or local brands like SpeakFluent) are pulling in ₹2-4 lakh/month with 50-70 students. All you need is one teacher, a projector, and a quiet room.
Health & Wellness: The Silent Winner
After the pandemic, Indians are more health-conscious than ever. But gyms with expensive equipment? Too risky. The smartest franchises are low-cost, high-margin wellness services.
Anytime Fitness has over 300 outlets in India. Membership fees range from ₹800-1,500/month. With 300 members, that’s ₹2.4-4.5 lakh monthly revenue. Operating cost? Around ₹1.2 lakh. Net profit: ₹1.2-3.3 lakh. No trainers needed - automated check-ins, self-service equipment.
Even better: Yoga and meditation studios. Brands like Art of Living or local franchises like InnerHour run group sessions. Cost to start: ₹5-8 lakh. Monthly profit: ₹1-2.5 lakh. They use community halls, not rented spaces. No equipment. Just mats and a speaker.
Another surprise: diabetes and hypertension management clinics. Franchises like Medanta’s Wellness Hub offer monthly health plans for ₹999-1,999. With 200 subscribers, that’s ₹2-4 lakh revenue. Profit margin? 65%. These clinics partner with local labs and doctors - you don’t need to hire full-time staff.
Beauty & Personal Care: Repeat Customers, Low Investment
Women in India spend ₹2,000-5,000/month on beauty. That’s a goldmine for franchises with simple services.
WOW Skin Science runs beauty parlors focused on chemical-free treatments. Setup cost: ₹8-12 lakh. Services: facials, hair removal, skin peels. Average ticket: ₹800. With 50 customers a week, monthly revenue hits ₹1.6-2 lakh. Net profit: ₹90,000-1.4 lakh. They use local staff trained in 2 weeks.
Salon.com is another example. They offer salon services in small spaces - 3 chairs, 1 stylist. Monthly revenue: ₹1.8-2.5 lakh. Profit: ₹1-1.6 lakh. No need for a big location. Many operate from ground floors of apartments.
Even hair growth clinics are pulling in ₹1.5-2.5 lakh/month with minimal investment. They use FDA-approved devices and local technicians. No doctors needed. Just certified staff.
What Franchises to Avoid in India
Not all big names are good investments. Stay away from:
- Car wash franchises - high equipment cost, weather-dependent, low customer frequency.
- Big-ticket apparel brands - high inventory risk, slow turnover, intense competition from online sellers.
- Home automation or IoT franchises - low awareness, poor after-sales support, high technical complexity.
- International coffee chains - too expensive to set up, slow ROI, and Indian consumers prefer chai over lattes.
These models look glamorous on paper. But in practice, they require deep pockets, long wait times, and constant marketing - and even then, profits are thin.
Key Factors That Make a Franchise Profitable in India
What separates the winners from the losers? Five things:
- Recurring revenue - customers who come back every week or month. Food, beauty, and education win here.
- Low setup cost - under ₹25 lakh. Anything higher takes 3+ years to break even.
- Minimal staff - 2-3 employees max. No need for managers or specialists.
- Delivery or pickup model - reduces rent and space needs. Customers don’t need to sit around.
- Brand support - marketing, training, and supply chain help. Don’t pick a franchise that leaves you on your own.
Franchises that hit all five? They’re the ones making ₹1-3 lakh profit per month within 8-12 months.
Where to Find Real Franchise Data
Don’t trust franchise sales reps who show you projected earnings. Ask for:
- Actual franchisee income statements from the last 12 months
- Proof of supply chain - do they deliver ingredients or products on time?
- Exit rate - how many franchisees quit in the last 2 years?
- Franchisee association contact - call 2-3 current owners. Ask: "Would you do it again?"
Franchise India (franchiseindia.com) and the Indian Franchise Association have verified data. Use them. Don’t sign anything without checking.
Bottom Line: What’s the Most Profitable?
Based on 2024-2025 performance data, Chaayos and Byju’s Learning Centers are the top two. Chaayos wins for speed of return - you can break even in 6-8 months. Byju’s wins for scalability - one center can turn into five with the same model.
But if you’re starting with under ₹15 lakh, go with Haldiram’s Snacks or a local beauty kiosk. They’re easier to run, have higher margins, and don’t need fancy locations.
Profitability isn’t about the brand name. It’s about the business model. Pick one that fits Indian realities: low cost, high repeat, and simple operations. That’s how you win.
Which franchise has the highest ROI in India?
Chaayos and Haldiram’s Snacks have the highest ROI, often breaking even in 6-10 months. Chaayos averages ₹1.2-2 lakh monthly profit per outlet with a ₹10-15 lakh investment. Haldiram’s kiosks return ₹1.5-3 lakh monthly with similar setup costs. Both rely on low overhead, high footfall, and repeat customers.
Can I start a franchise with ₹10 lakh in India?
Yes. Several franchises work under ₹10 lakh. Look at Haldiram’s Snacks kiosks, small beauty parlors (WOW Skin Science), or English tutoring centers. These require minimal space, 1-2 staff, and no heavy equipment. Monthly profits range from ₹80,000 to ₹1.8 lakh. Avoid anything requiring expensive machinery or large stores.
Are food franchises more profitable than education franchises in India?
It depends. Food franchises like Chaayos have faster cash flow and higher daily sales. Education franchises like Byju’s have higher per-customer value and longer-term contracts. Chaayos might make ₹2 lakh/month with 100 customers. Byju’s might make ₹5 lakh/month with 100 students - but it takes longer to enroll them. Food wins for speed; education wins for scale.
What’s the cheapest franchise to start in India?
The cheapest viable options are home-based tutoring (₹5-7 lakh), mobile beauty services (₹6-8 lakh), or snack kiosks (₹8-12 lakh). Some wellness franchises like yoga or meditation circles can start under ₹5 lakh using community spaces. Avoid anything requiring a shop, license, or heavy equipment.
Do I need prior business experience to run a franchise in India?
No. Most successful franchisees in India have no prior business background. What matters is discipline, willingness to follow the system, and good customer service. Franchisors like Chaayos, Byju’s, and Haldiram’s provide training, operations manuals, and marketing support. You don’t need to be an expert - just consistent.
