Best Franchise in India Under ₹5 Lakhs – A Guide for New Entrepreneurs
Starting your own business is one of the biggest dreams for many people. The idea of being your own boss, making decisions, and building something you can be proud of is exciting. But for most beginners, there’s one big question: How much money do I need to start?
A common belief is that starting a business requires huge capital sometimes in crores. But the truth is, in India, you can start your own franchise business with an investment as low as ₹5 lakhs and still have a good chance of earning steady profits.
What is a franchise?
A franchise is a business model where one company (the franchisor) grants another company or individual (the franchisee) the right to operate a business using its brand, products, and business systems. In essence, the franchisee pays for the privilege of using the franchisor’s established name and proven methods, essentially buying into an existing business framework.
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In this guide, we will explore some of the best franchise opportunities in India under ₹5 lakhs, understand how they work, the investment required, and why they can be a great choice for you.
1. Wow! Momo – Riding the Street Food Wave
Official Website : Wow! Momo
| Details | Information |
|---|---|
| Investment Required | ₹4–5 lakhs |
| Business Type | Quick Service Restaurant (QSR) |
| Franchise Fee | Included in investment |
| Break-Even Period | 12–18 months |
| Ideal Locations | Near colleges, IT parks, shopping malls, busy markets |
If you’ve ever been to a busy food court or walked past a bustling street in a metro city, chances are you’ve seen a Wow! Momo outlet with customers waiting eagerly for their order. Once a simple street snack from the North-East, momos have now become one of India’s most popular fast foods.
Wow! Momo has transformed this humble snack into a modern food sensation. The menu is not just about classic steamed dumplings it also includes fried momos, pan-fried momos, tandoori momos, momo burgers, and even sweet chocolate momos. This variety keeps customers excited and coming back for more.
Hygienic preparation, consistent taste, and a strong delivery presence on platforms like Swiggy and Zomato have helped the brand stand out in a competitive market. For an entrepreneur, that means you’re not starting from zero you’re stepping into a proven system that already works.
Franchise Benefits
- Complete Staff & Owner Training: Learn the recipes, cooking process, hygiene standards, and customer service skills needed to run the outlet smoothly.
- Kitchen Setup & Equipment Support: The company guides you in setting up your kitchen, arranging equipment, and organizing the workspace for efficiency.
- Centralized Ingredient Supply: You’ll receive all the ingredients directly from the company, ensuring the same taste as every other Wow! Momo outlet.
- Built-In Delivery Orders: Already partnered with top food delivery apps, so you start getting online orders from day one.
Earning Potential
The demand for momos stays strong throughout the year, and with the right location such as a college area, office hub, or busy market you can expect steady footfall and delivery orders. Most franchise owners recover their investment within 12–18 months, after which profits can grow consistently.
Pro Tip for Success
To maximize earnings, choose a high-traffic spot where young people and working professionals hang out. Offering combo meals or seasonal specials can also boost sales.
2. Jumbo King – Turning Vada Pav into a Brand
Official Website : Jumbo King
| Details | Information |
|---|---|
| Investment Required | ₹2 – 4 lakhs |
| Business Type | Indian Street Food Chain |
| Franchise Fee | Included in investment |
| Break-Even Period | 10 –14 months |
| Ideal Locations | Metro cities, railway stations, shopping areas, corporate hubs |
If there’s one snack that defines Mumbai’s street food culture, it’s the Vada Pav. Often called the “burger of India,” it’s affordable, filling, and loved by millions across the country. Jumbo King saw the potential in this humble snack and gave it a complete makeover adding hygiene, smart packaging, and quick service to turn it into a recognizable food brand.
Instead of buying Vada Pav from a roadside stall, customers now enjoy the same taste in a clean, branded setting. The menu also includes innovative variations like cheese vada pav, butter vada pav, and other quick bites to keep things interesting.
Why It’s a Good Choice for New Entrepreneurs
Street food in India sells fast, but most small vendors lack hygiene and branding. Jumbo King solves this problem while keeping prices low enough to attract a high daily footfall. As a franchise partner, you get a proven system that works in metro cities and busy urban areas.
Franchise Benefits
- Location Selection Help: The company guides you in finding a high-traffic location that matches their customer profile.
- Standardized Recipes: Every outlet maintains the same taste and quality, building customer trust.
- Regular Supply of Ingredients & Packaging: No hassle of sourcing materials yourself.
- Affordable Menu: Low pricing ensures high daily sales volume.
Earning Potential
Vada Pav is a fast-moving product, which means quick turnover and steady cash flow. In a good location, most outlets can recover their investment in 10 –14 months.
Pro Tip for Success
Opening near local transport hubs like railway stations or bus stops can significantly increase foot traffic. Offering combo deals with drinks can also raise the average bill value.
3. Chai Kulhad Bar – Blending Tradition with Modern Café Culture
Official Website : Chai Kulhad Bar
| Details | Information |
|---|---|
| Investment Required | ₹3.8 lakhs (includes ₹1.5 lakh franchise fee) |
| Business Type | Tea Café / Kiosk |
| Franchise Fee | ₹1.5 lakhs |
| Break-Even Period | 1 – 2 months in high-traffic areas |
| Ideal Locations | College areas, markets, bus stands, IT parks |
In India, tea is more than just a hot beverage it’s a daily ritual, a conversation starter, and a symbol of hospitality. Chai Kulhad Bar takes this love for tea and adds a unique, eco-friendly twist by serving it in kulhads traditional earthen cups.
Drinking tea in a kulhad not only enhances its flavor but also gives customers a nostalgic experience. At the same time, it appeals to eco-conscious people who want to avoid plastic and paper cups. The simple menu focuses on tea varieties, snacks, and light refreshments, making it easy to run even for first-time business owners.
Why It’s a Good Choice for New Entrepreneurs
Tea has one of the highest profit margins in the food industry, and demand is consistent year-round. With a small space requirement and low operating costs, Chai Kulhad Bar offers a quick return on investment, especially in busy areas.
Franchise Benefits
- Simple Menu & Easy Operations: No complex cooking skills needed.
- Low Running Costs: Minimal staff and ingredients required.
- High Revenue Share: Owners can earn up to 80% of total sales.
- Fast Break-Even: In high-traffic locations, you could recover your investment in as little as 1–2 months.
Earning Potential
Because tea is inexpensive to prepare but sells at a good markup, profit margins are high. A kiosk in a busy market or college area can quickly become a local favorite.
Pro Tip for Success
Position your outlet near places with heavy pedestrian flow such as bus stands, railway stations, or college entrances and consider offering quick snacks to increase average sales per customer.
4. What a Sandwich – A Small Space, Big Potential Café
Official Website : What a Sandwich
| Details | Information |
|---|---|
| Investment Required | ₹2–3 lakhs |
| Business Type | Sandwich Café |
| Revenue Share | 90%–100% to owner |
| Ideal Locations | College areas, office zones, food courts |
What a Sandwich proves that you don’t need a huge restaurant to make big profits. Specializing in fresh, made-to-order sandwiches, this café brand focuses on quick preparation, minimal cooking, and almost zero wastage. The best part? Franchise owners enjoy a 90% – 100% revenue share, which means nearly all the sales income stays in your pocket.
Sandwiches have universal appeal they’re affordable, filling, and can be served in countless varieties. With a simple setup, this franchise is perfect for first-time entrepreneurs looking to start a food business without taking on high risk or complex operations.
Why It’s a Smart Choice
- Low start-up cost and minimal equipment requirements.
- Quick to prepare, reducing waiting time and increasing customer turnover.
- High flexibility to introduce seasonal or local flavors.
- Low wastage compared to full-menu restaurants.
Franchise Benefits
- Menu & Pricing Support: Expert guidance on designing a profitable menu.
- Staff Training: Ensures consistent taste and hygiene.
- Online Ordering Tie-ups: Get listed on platforms like Zomato and Swiggy for extra sales.
- Simple Operations: No need for an elaborate kitchen or highly skilled chefs.
Earning Potential
With low daily expenses and a high revenue share, a single outlet can become profitable very quickly. Sandwiches have excellent margins, especially when paired with beverages, making it easy to upsell and boost profits.
5. SastaSundar – Affordable Healthcare at Your Doorstep
Official Website : SastaSundar
| Details | Information |
|---|---|
| Investment Required | ₹50,000 – ₹2 lakhs |
| Business Type | Online Pharmacy Store |
| Revenue Share | Commission-based earnings |
| Ideal Locations | Residential areas, near clinics & hospitals |
SastaSundar is a fast-growing online pharmacy platform that makes healthcare products more affordable and accessible. As a franchise partner, you can set up a small physical store where customers place medicine orders, while the company handles delivery, inventory, and logistics. This means you don’t need to maintain stock or worry about shipping your main role is helping customers place orders and offering basic guidance.
Healthcare is one of the most recession-proof industries. No matter the economy, people always need medicines, wellness products, and healthcare essentials. With low investment and minimal daily workload, this franchise is ideal for part-time business owners, retirees, or those seeking a stable side income.
Why It’s a Smart Choice
- Consistent demand year-round, regardless of market conditions.
- No need for large storage space or refrigeration for medicines.
- Low operational costs and easy management.
- Strong brand trust in the healthcare sector.
Franchise Benefits
- No Inventory Management: The company stocks and ships all medicines.
- Delivery & Logistics Handled by HQ: You focus only on customer service.
- Minimal Training Required: Easy to learn for first-time business owners.
- Flexible Working Hours: Can be managed alongside another business or job.
Earning Potential
Earnings come from commissions on each sale, and with India’s rising healthcare needs, customer demand is only set to grow. A well-placed outlet near clinics or hospitals can see steady daily orders, ensuring long-term income stability.
6. FirstCry Mini Outlet – Always in Demand
Official Website : FirstCry
| Details | Information |
|---|---|
| Investment Required | ₹4 – 5 lakhs |
| Business Type | Baby & Kids’ Product Retail |
| Revenue Model | Product sales with brand support |
| Ideal Locations | Residential areas, near maternity hospitals, shopping streets |
FirstCry is India’s largest and most trusted baby and kids’ products retailer, offering everything from newborn essentials to toys, clothes, strollers, and more. Parents are highly brand-conscious when it comes to their children, and rarely compromise on quality which is why FirstCry’s reputation makes customer acquisition much easier.
Opening a FirstCry Mini Outlet allows you to tap into the evergreen demand for baby products, supported by the brand’s nationwide recognition, regular promotions, and proven supply chain. With a compact store size, low overheads, and strong brand trust, this franchise is a reliable choice for steady, long-term returns.
Why It’s a Smart Choice
- Consistent demand all year babies need essentials regardless of seasons or trends.
- Brand recognition instantly attracts customers.
- Wide product range increases average order value.
- Strong repeat business from loyal parents.
Franchise Benefits
- Access to Thousands of Products: From baby clothes to feeding bottles, toys, and accessories.
- Company-Managed Promotions: National-level campaigns bring customers to your store.
- Training & Setup Support: Guidance on product display, billing, and store operations.
- Trusted Brand Name: Speeds up customer trust-building.
Earning Potential
With India’s growing young population and rising spending on premium baby products, a FirstCry outlet can expect steady footfall and repeat sales. The profit margin improves with volume, and loyal customers often buy multiple products in a single visit.
7. Amul Ice Cream Parlour – Sell a Trusted Name
Official Website : Amul Parlour
| Details | Information |
|---|---|
| Investment Required | ₹2 – 5 lakhs |
| Business Type | Ice Cream & Dairy Products Store |
| Revenue Model | Fixed profit margins on all products |
| Ideal Locations | Markets, residential areas, near schools & colleges, tourist spots |
Amul is not just a brand it’s an emotion in India. Known for its affordable pricing, consistent quality, and huge product variety, Amul has an established fan base that spans across all age groups. Opening an Amul Ice Cream Parlour means you tap directly into its massive existing market, without spending heavily on advertising or brand building.
These parlours are not limited to ice creams they also sell milk, butter, cheese, chocolates, ghee, and other dairy products, ensuring year-round sales instead of seasonal demand.
Why It’s a Smart Choice
- Instant Brand Recognition: No struggle to gain customer trust.
- Low Risk, High Reliability: Dairy is an essential item in Indian households.
- Multiple Income Streams: From daily milk sales to impulse ice cream purchases.
- Strong Repeat Business: Customers often visit multiple times a week.
Franchise Benefits
- Fixed Profit Margins: Transparent earnings on every product sold.
- No Advertising Costs: Amul’s nationwide marketing benefits you automatically.
- Product Range Variety: Ensures steady sales in all seasons.
- Training & Support: Guidance on store setup and product handling.
Earning Potential
With its trusted brand name, diverse product range, and high repeat purchases, an Amul parlour can achieve steady daily income. In high-footfall areas, sales can peak during summer, but dairy products keep revenue flowing even in winter.
Why Franchises Under ₹5 Lakhs Are Worth Considering
Starting a business from scratch can be risky especially when you’re unsure about market demand, branding, or operational challenges. Low-cost franchises offer a safer entry point into entrepreneurship by giving you proven business models with minimal capital requirements.
Here’s why these opportunities stand out:
1. Low Financial Risk
With investments under ₹5 lakhs, the entry barrier is low. Even if the business takes time to grow, your financial exposure is limited compared to high-investment ventures.
2. Brand Power
Franchises let you leverage an established brand’s reputation. Customers are more likely to trust and try your products or services when they already know the brand name.
3. Faster Start
Most low-cost franchises provide ready-to-use setups, training, and supplier connections, enabling you to start operations within weeks instead of months.
4. Stable Sectors
Many of these franchises operate in food, healthcare, and retail industries with year-round demand, ensuring consistent sales even during slow economic periods.
Tips Before You Invest in a Franchise
Before signing any franchise agreement, it’s important to make informed decisions. A well-known brand alone doesn’t guarantee success your research, planning, and execution matter just as much.
1. Do Your Homework
Visit other franchise outlets of the brand you’re considering. Talk to existing owners about their experiences, daily challenges, and profitability. Observing how they operate will give you a realistic picture of what to expect.
2. Read the Agreement Carefully
Understand all terms in detail—revenue sharing percentages, renewal fees, and contract duration. Look out for hidden costs like marketing fees or mandatory purchases from certain suppliers.
3. Choose the Right Location
Location can make or break a franchise. Even the strongest brand can struggle in an area with low footfall or the wrong target audience. Ensure your chosen spot matches your customer base.
4. Know Your Role
Some franchises require hands-on daily involvement, while others can be managed part-time or with staff. Be honest about how much time and effort you can commit before investing.
Final Thoughts
Starting a business under ₹5 lakhs is possible and franchising makes it safer. You get a ready-made brand, proven products, and ongoing support, which drastically increases your success chances.
Whether you’re passionate about food (Wow! Momo, Jumbo King), love the café culture (Chai Kulhad Bar, What a Sandwich), want to enter healthcare (SastaSundar), or prefer retail (FirstCry, Amul), there’s a franchise that fits your budget and interest.
If you pick the right brand, work smart, and choose a strategic location, your small investment today can grow into a profitable business for years to come.
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