Franchise opportunities: How to choose the right one

7 min read
Charu Mitra Dubey

Be it a small town or a metropolitan city, one look around the corner and you can easily spot several brands. As consumers, McDonald's or Starbucks might look similar no matter what country we’re in. However, underneath this layer resides two completely different organizations: the company that owns the brand and the business that operates the outlet. With this blog, we will explore franchise opportunities for ambitious entrepreneurs.

About 35% of Indian franchises are owned by first-time entrepreneurs.

This is mainly because there are several advantages to getting a franchise as opposed to starting from scratch with a startup. But before diving in, you need to know what the franchises actually mean.

Related: 5 manufacturing business ideas with low investment

5 franchise opportunities in India

Check out these low investment franchise businesses in India.

  1. Kidzee.
  2. Jawed Habib.
  3. Khadim’s.
  4. Career Launcher.
  5. Firstcry.

Before we list our franchise options, let’s define what a franchise is.

What is a franchise?

In a nutshell, a franchise is basically a license provided to an entrepreneur (the franchisee) by the original owner (the franchisor). This allows the franchisee to use the brand name, logo and products, etc. to operate a business under the primary business name.

Opening a business that is recognized from day one is an enormous benefit to the entrepreneur.

It can take years for a new business in any industry to build reputation. With a franchise, you inherit the business reputation, along with a business plan that’s already proven successful.

Low investment franchise businesses in India

Convinced with the idea of opening a franchise? Here are a few low investment franchise business opportunities in India.

1. Kidzee

Franchise Opportunities Child with Crayons

One of the most profitable preschool chains in Asia, Kidzee is the first on our list of franchise opportunities. To be accepted as a Kidzee franchisee, you need to have:

  • A property with 2,000 to 3,000 square feet
  • A minimum investment capacity (check the Kidzee website for details)

Franchisees receive a proven business model, marketing support to drive enrolment, help with designing interiors and complete learning materials.

2. Jawed Habib

Want to run a salon? Get a Jawed Habib salon franchise for a modest investment. Operating in 24 states and 110 cities throughout India, Jawed Habib salons provide haircuts, hairstyling, facials, manicures, pedicures and more.

No experience is required to become a Jawed Habib franchisee. You must only be able to invest and manage your own unit.

Jawed Habib handles staff recruitment and training, salon management training, salon design and all aspects of marketing.

3. Khadim’s

Considered as one of the top footwear brands in India, Khadim’s can be a profitable franchise idea. To apply for a franchise, you must:

  • Own a commercial or commercially convertible retail space in a High Street market or mall
  • Provide an up-front investment (check the Khadim’s website for details)

Khadim’s takes care of store design and 50% of the cost of marketing for the new store’s grand opening; they also provide annual marketing. The franchisee must purchase and maintain stock of Khadim’s merchandise.

4. Career Launcher

Career Launcher is a famous franchise in India that operates in the field of education. The company prefers its franchisees to be:

  • Alumni of IITs, IIMs, NLSs and other top institutions
  • Ready to embark on their own entrepreneurial journey

You can easily get a Career Launcher franchise for a low investment (check the Career Launcher website for details).

5. Firstcry

Promoted by Amitabh Bachan himself, Firstcry is a popular kid apparel brand in India. To get a Firstcry franchise, you would need:

  • Retail space with an area of 1000 to 2000 square feet
  • To invest a minimum fee (check the Firstcry website for details)

Firstcry provides help choosing an appropriate location, setting up the showroom and marketing support.

Choosing the right franchise business

Franchise Opportunities Retail Store Display

If you plan to invest in a franchise business, the very first step is to choose the right option.

You can easily Google about franchise opportunities to explore a list of top 50 — or even top 100 franchises in India. However, choosing the right one is the trickiest part here.

Here are a few practical tips.

Make it go with your interest

Though it's not necessary to know what goes into making a hamburger, love for food production can work in your favor. When it comes to running a franchise, you can easily hire a bunch of people with interest and experience in your niche.

However, a successful business is one that incorporates both: how well you work on the business and how well you work in the business.

So before making a choice, ask yourself whether you're compatible with the idea or not.

Do you have the money to invest?

Before going ahead with any franchise idea, the next thing to consider is the total investment a franchise would need. The budget should include:

  • The franchise purchase costs
  • Cost of opening inventory
  • Amount of working capital it will require

Getting an estimate of a budget is pivotal because you don't want to be running out of cash on the brink of success!

Understand the time required to run it

Despite the differences between building a business from the ground up and running a franchise, they do have some similarities. In both cases, you need to put time and effort as much as possible.

The idea here is to understand how much you need to be involved. For example, there are seasonal franchises that require you to work harder at certain points of the year. So, in order to successfully run a franchise, you need to devote ample time for your business.

Digging about the franchisor

Researching the company is as important as researching the franchisor. Your research should be able to tell you:

  • How long has the franchisor been in the industry
  • Its average success rate
  • What franchisees say about the company

Never jump the gun. Research adequately before you conclude.

Speak to other franchisees

It is always a great idea to learn from someone else's experiences. Make sure you speak to at least a few franchisees who have survived or thrived with the business for a few years.

Here are a few questions that you should ask:

  • What are the common challenges and how did they overcome them?
  • What are the key success factors?
  • What would they advise to someone who's just starting off?
  • How much time did it take for them to start making profits?
  • What are the most important parts to take care of — e.g. marketing, sales or management?

It’s also worth asking if the franchisor responded to the owners in the time of need or they were left on their own?

The support provided by the franchisor

The biggest perk of opening a franchise over starting a business is that here you’re not alone. The brand’s reputation stands right behind you.

Make sure you know what kind of help your franchisor can provide at every step.

Franchise Opportunities Empty Classroom

Every business goes through tough times and the best thing that could happen at that moment is to get instant help. If you know that someone's got your back, then everything will get a lot easier.

The final step?

Last but not least, have you thought about your final step? An experienced entrepreneur mostly starts off with the last step in mind.

The last step could be:

  • Handing over the business to your kids
  • Selling it to someone else
  • Simply running it for a few years and then stepping back

Whatever it is, it is good to have a complete vision for your business. The better you understand your last step, the better the decisions you take while choosing the right franchise opportunity.

Franchise opportunities: your ticket to success

Ideas for low investment franchise businesses in India are plenty but you need to choose the one that fits you the best.

Yes, opening a franchise can be a great way of starting a business. Still, you need to question its purpose, what would it require and what your exit plan is. Once you have these answers, you'll be ready to choose the right franchise option.