Check out the list of Best Franchise under 5 lakh investment in India.
Franchise businesses are flourishing with the rise of startup culture in India. Advanced technology and new ideologies are pushing the bar high up there, and you can be a part of this evolution too.
If you are worried about investing all your savings and investment for buying the franchise rights, you may have been mistaken, as you can own many Franchise for under 5 Lakh.
Yes, within Rs.5 lakhs initial investment, you can start widely popular franchises which are getting immense popularity across the country.
This article is for your help where you will find the details about the 10 Franchise Business under 5 Lakh in India.
These ten are shortlisted based on different criteria, which will also discuss in the later part of the article. So, stay tuned and keep reading to build the best franchise in your town.
Best Franchise under 5 Lakh in India – Top 10 Franchise below 500,000 Investment
Let us check the Best Franchise Business under Rs.500,000 Investment in India.
Before getting into the Top Franchise under 5 Lakh, let’s understand the criteria we have emphasized to create this list of Franchise business under 5 Lakh.
We have kept the investment budget of Rs.5 lakhs in mind and sorted the franchises accordingly.
Then we evaluated their revenue structure, another major factor in deciding the franchises that will suit you best.
Then we have also evaluated their infrastructure requirements, support, and facilities offered to the franchisee.
As per our findings, the top Franchise Business under 5 Lakh includes some of the most popular names like Chai Kulhad Bar, What a Sandwich, Amul Ice Cream, Motilal Oswal, and six others.
Chai Kulhad Bar Franchise – Best Franchise under 5 Lakh in India
It was founded in 2020, in the year of Covid, by Vishal Parmar, and just in these two most uncertain years of the era, this became one of the Best Franchise under 5 Lakh in India.
It has its franchise outlets in Gujrat at present, but in the future, it has plans to extend to different parts of the country too.
Chai Kulhad Bar offers the KIOSK and Café models, which have different investment requirements.
The KIOSK model can be started with an investment lower than Rs.5 lakhs as the franchise fee is only Rs.1.5 lakh while the infrastructure requirement is not much, and the total investment adds up to around Rs.3.8 lakhs.
The franchisees get around 80% of the revenue share while the franchisor keeps 20% of the same. Under this setup, Chai Kulhad Bar franchises break even within a month or a little more.
The infrastructure requirement is simple, including around 100 square feet with 2-3 employees. In the KIOSK model, the kitchen is compulsory, but sitting space is not required. However, it would be best if you had your delivery facility.
From cooking training to food presentation training, everything is offered by the franchisor to make the franchisees get acquainted with their style of food preparation and presentation.
Then there is market support to make the franchise popular in the area. Apart from these, there is RM support, online tie-ups for delivery, website support for order placement, and others.
What a Sandwich Franchise – Top Franchise under 5 Lakh in India
What a Sandwich is a decade-old food and beverage franchise, one of the Top 10 Franchise under 5 Lakh.
It was founded in 2013 by Hussain Lokhandwala from Pune, where the franchise head office is located. The network of this franchise business has spread over 65 outlets across the country.
They offer a five-year franchise agreement for a franchise fee of Rs.50,000 to Rs.1 lakh, while the infrastructure cost usually varies between Rs.1 lakh to Rs.2 lakhs. So, the total investment to start this franchise would be around Rs.2 lakhs to Rs.3 lakhs.
The best part of the franchise is that it shared almost the revenue the franchisees generated and hardly retained anything.
So, the franchisees often get between 90% and 100% revenue share. This makes them break even within 3 to 6 months at the latest.
Talking about the infrastructure requirements, What a Sandwich has very minimal infrastructure requirements, including a shop of approximately 200 to 300 square feet with 2-5 employees.
The kitchen space and sitting area must be there as it is a café. Apart from these, the basic amenities like CCTVs, ACs, and internet facilities cannot be forgotten.
Also, make sure to have your delivery system as that’s mandatory in their regulations. What a Sandwich offers multiple support to the franchise holders to help them grow and prosper.
They help them with menu planning and pricing. Offer multiple training for offering the food and maintaining the best standards of the franchise.
They also help in the marketing of the franchisee. For online orders and deliveries, What a Sandwich offers website support and online-tie ups.
Amul Ice Cream Franchise – Top 10 Franchise under 5 Lakh investment
Amul Ice Cream has been there since 1946, even before India gained its independence, and is still the country’s most loved ice cream brand.
This is one of our Franchise Business under 5 Lakh which already has thousands of franchise outlets across the country, and still, there’s huge scope for exploring and market penetration.
With an investment of only Rs.25,000 to Rs.50,000, you can buy the franchise rights of Amul Ice Cream, and the infrastructure requirements are relatively low, so it usually costs around Rs.3 lakhs to Rs.5 lakhs.
Amul shares around 90% of the revenue with its franchise holder, which is why they break even within just 1 year at the max, and some of them even take as minimum as 6 months.
The Amul Ice Cream franchise outlet can also be started from a 130 square feet shop with just 1 employee. You can, of course, expand it and have a bigger space and more employees.
However, this is the basic requirement to get franchise rights. The store needs to be air-conditioned and has CCTV surveillance.
Amul Ice Cream offers marketing support to make the franchise popular in its locality. There are online and offline marketing facilities and support offered to the franchises. Apart from these, there are different training provided to the franchises too.
Motilal Oswal Franchise – Best Franchise below 500,000 Investment
Motilal Oswal is one of the top stock brokers in the country and also provides one of the Best Franchise Business under 5 Lakh in India.
Ramdeo Agarwal started it in 1987, and in this 35 years journey, it has spread its network across the country. It currently has over 7500 franchises in different cities of India and is still growing strong.
Motilal Oswal offers lifetime franchise agreements. However, they have different business models to choose from.
They have sub-brokership and Channel-partner, the top two business models they are offering currently.
For the sub-brokership model, you need to pay a franchisee fee of Rs.1 lakh to Rs.2 lakhs, while the channel partner franchise fee varies between Rs.2 lakhs and Rs.3 lakhs. The revenue share entitled for the channel partners is also higher than that of sub-brokers.
The channel partners can get between 755 and 85%, while the sub-brokers will get 60% to 70% of the revenue they generate.
Usually, as per this revenue-sharing structure, and given the brand value of Motilal Oswal, it takes hardly 4 months to break even for the franchises.
For both sub-brokers and channel partners, having infrastructure is compulsory. While the office space can vary from 200 to 1000 square feet, it must have trading terminals, a research and advisory services desk, telephone and internet connectivity, and amenities like CCTVs, and ACs.
Motilal Oswal renders all support to its franchises, from trading and advisory to marketing and website support.
They also offer training for client interaction, products, and other aspects to let the franchises grow and flourish.
Roll Singh Franchise – Top Franchise under 5 Lakh
The name of this franchise is one of the greatest attractions and so are the products and services thus, it is one of the Top Franchise brands under 5 Lakh in 2023. Roll Singh’s rolls and wraps are famous across the streets of UP and now across different cities.
This is a partnership business that was started by Vikas Negi initially in 2016 in UP. Now, it has 9 franchise outlets across the country.
Roll Singh offers 5 years franchise for a franchise fee of Rs.50,000 to Rs.1 lakh, and the infrastructure expenditure usually varies from Rs.2 lakhs to Rs.5 lakhs.
The total investment is thus below Rs.5 lakhs, but the revenue share you will receive is almost 100% as it shares revenue from 90% to 100% with the franchise holders. This makes the franchise outlets recover their investments within a maximum period of 6 months.
For setting up the Roll Singh franchise outlet, you need to have a space of at least 100-200 square feet. You need to employ one or two staff as well.
There has to be a kitchen space for making the rolls and wraps, and the sitting area can be optional. However, it would be best to have a delivery service facility for all online orders.
Roll Singh will help you by offering website support for online orders and also online tie-ups for delivery services.
Apart from these, the franchisor will provide cooking and food presentation training, marketing support, interior designing support, and much more.
Sasta Sundar Franchise – Top 10 Franchise below 5 Lakh investment
Sasta Sundar has been a game changer in the pharmacy business. It came up with an online delivery facility at Zero charges and big discounts on medicines, thus another Top 10 Franchise under 5 Lakh in 2023.
It was started in 2013 by B.L Mittal in Kolkata, and now it has franchise outlets across the country.
The franchise’s infrastructure cost usually ranges between Rs.50,000 to Rs.2 lakhs, and the revenue you can receive will be around 90% of the revenue generated at your end. It takes around a year to recover the investments.
120-300 square feet of the shop will do for opening the Sasta Sundar franchise. You need to employ a few employees to take orders, deliver and do other work at the franchise.
The support you will receive includes delivery support online, online order placement support, marketing support, and training.
LaunSmart Franchise – Franchise under 500000 in India
It is an online laundry service that Joby K M started in 2018, and it is one of the top franchises in this List of Franchise Business under 5 Lakh. LaunSmart currently has 39 franchise outlets spread across the country.
It offers a master franchise business model with 4 years of tenure and a franchise fee of Rs.2 lakhs.
The infrastructure cost is also around Rs.2 lakhs, making the total investment approximately Rs.4 lakhs.
The LaunSmart franchisees get 90% to 100% of their revenue, while the franchisor keeps hardly anything. It takes around 18 months to 2 years to break even in this business.
The infrastructure set-up includes 200-300 square feet of shop area, with a minimum of two employees.
Then there must be washing machines, dry-cleaning machines, pick, delivery facility, and CCTV set up. The LaunSmart franchisor offers training to the franchisees’ staff members.
Then they offer back office and business management software support and app support for order placement, tracking, payments, and other facilities. There is RM support available as well for the franchise holders.
Shadowfax Franchise – Franchise under 500000 investment
Shadowfax is one of the country’s top delivery or courier services and is also one of the best franchises in this Franchise Business Comparison under 5 Lakh.
This was started in 2015 by Abhishek Bansal in Bangalore and currently has around 200 outlets across the country.
The investment you would require to start this franchise is around Rs.2-3 lakhs for the franchise fee, while another Rs.50,000 to Rs.1 lakh will go towards the infrastructure cost.
On the revenue front, the franchisee will receive 90% of the revenue, while the franchise can retain only 10%. Under this setup, it takes around a year to break even.
For the outlet setup, you need to find a space that is at least 200-400 square feet in area. CCTV surveillance is mandatory as there will be lots of good.
There must be a wide road in front as there will be multiple vehicles plying in to load and unload products. Internet connectivity is mandatory as well, and the billing desk is.
The Shadowfax team offers marketing support to franchise holders. Apart from these, there will be logistic and back office support.
They are also frequently training the franchise holders and their staff to keep up the pace of work and help them understand the business.
Edelweiss Franchise – Franchise Business under 5 Lakh
Edelweiss is a reputed stock broker from Mumbai, having a network of over 2500 franchises across the country, and it is our net Best Franchise under 5 Lakh in India. This was started in 2008 by Anil Ambani/ Reliance capital.
It offers a Sub-brokers model for a franchise fee of Rs.1 lakh, and this is for lifetime tenure. They also have a partner’s model where the franchise fee is only Rs.50,000.
The revenue you can expect is 60% to 70% in the case of a sub-broker, while the partners can get around 40% to 50%.
With this revenue-sharing structure, the Edelweiss franchise holders usually break even within 1 month.
To become an Edelweiss sub-broker, you need to have an office of at least 200-500 square feet with 2-5 employees.
Trading terminals, research, and advisory services are also compulsory. The office must have telephone connections, an internet facility, CCTV surveillance, and ACs.
Edelweiss offers support from marketing, trading, dealing, and advisory services to franchise holders.
They also offer customer support for the clients, and apart from these, there is regular training and online events support as well.
Delhivery Courier Franchise – Best Franchise under 500000 in 2023
Delhivery is another courier business organization that Sahil Barua founded in 2011. It is our final franchise in this list of Top Franchise under 5 Lakh in India.
Delhivery is one of the top courier services having more than 500 franchise outlets across the country.
It offers a franchise opportunity for just Rs.10,000 but for 1 year. You can renew the same any number of times. The infrastructure requirement is also minimal, costing around Rs.50,000 to Rs.1 lakh.
The revenue shared with the franchises of Delhivery is around 90%, while the franchise retains only 10% of the same. However, it takes around 2 years to break even usually.
To set up the Delhivery franchise outlet, you need to rent or buy space of at least 400 -500 square feet in area.
You must employ 10-15 staff for delivery services, billing, stock tracking, and other work at the outlet. The internet facility and CCTVs are compulsory at the outlet.
The support that the franchisor offers to the Delhivery franchisees is RM support, procurement support, interior designing support, marketing support, website support, and training for the staff.
Best Franchise under 5 Lakh in India 2023 – Conclusion
To conclude, this article above can help you find the Best Franchise under 5 Lakh that you are looking for.
You can check and compare the different franchises mentioned here and find out the one that suits your budget and goals the best.
FAQs on Top Franchise below 500000 in India
Check out various FAQs on Best Franchise Brands under 5 Lakh investment here –
What is Franchise Business under 5 Lakh?
Franchise businesses that can be started with an initial investment of only Rs. 5 lakhs can be referred to as franchise businesses under 5 lakh.
Which is the most successful Franchise under 5 Lakh?
The most successful business franchise under 5 lakh has to be Motilal Oswal. It has the highest franchise outlets amongst these ten and has huge brand value.
How do I start my Franchise under 5 Lakh?
To start your franchise business, you need to select the one business that you want to start from the above list.
Then contact their associates, and get the franchise agreement by paying the franchise fee. Then you need to set up the infrastructure, get the required licenses, and get started.
Is a Franchise under 5 Lakh profitable?
All the ten franchises mentioned here are quite profitable. They have been not only profitable but also popular.
What is the monthly income in a Franchise business?
There is no fixed monthly for the franchise holders. They earn between 50% and 100% of the revenue they generate.
Which is the most profitable Franchise under 5 Lakh?
The most profitable business franchise under 5 lakh can be Roll Singh, which shares almost 100% of its revenue with the franchisees.
Which Franchise is best under 5 Lakh?
Amul Ice Cream can be considered the best franchise under 5 lakhs, given its experience and presence in the nooks and corners of the country.
Is a 5 Lakh Investment good for Franchise Business?
Yes, the franchises that can be started within an initial investment of Rs. 5 lakhs are quite popular and mostly have brand values in the country.
Which Franchise is cheapest in India, under 5 Lakh?
The cheapest franchise in India under Rs.5 lakh is Delhivery, which charges only Rs.10,000 for the franchise fee.
Which is the fastest-growing Franchise under 5 Lakh?
Chai Kulhad Bar can be referred to as the fastest-growing business franchise under 5 lakhs. It was started in 2020, and in two years, it has become quite popular.
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