Franchising is an established strategy for growing one’s business. Franchising provides companies with a method to sell their products to consumers without actually being present at the ground level. The interaction of consumers with the company at the ground level, takes place via franchisees who use the trademark and brand name of the company to provide their services.
Over time, this business model has been adopted by numerous companies as a way to expand their business. In this article, we will talk about 11 of the best franchise models and how they became successful.
1. Domino’s
Domino’s is one of the most popular pizza chains in the country and it has been that way for a long time now. Domino’s was initially set up in 1960 and today, it is present in more than 70 countries. It boasts of a user base of over 1 million. In India, it is present in 120 cities with over 500 outlets. Its unique taste and brilliant delivery services make it a favourite among customers.
Domino’s provides complete training of management services to each franchisee. It keeps changing the products of the franchise from time to time. To own a Domino’s franchise, a franchisee would need to invest around INR 65 lakhs to 2 crores and an area of 1000 to 1500 square feet (according to the store type).
2. KFC
KFC or Kentucky Fried Chicken is another well-renowned fast-food brand. It was launched way back in 1939 and today, it has over 20,000 branches globally. Like Domino’s, KFC too is a favourite among consumers. Its great taste makes KFC one of the most reputed fast-food brands.
KFC provides a highly profitable franchise model. Its brand name is enough to draw consumers making it an attractive franchise for prospective franchise owners. However, due to the popularity of KFC and the profit it generates, the cost of owning a KFC franchise is quite high. To own a KFC franchise, an initial investment of around INR 1 crore to 2 crores is required along with additional service charges. A franchisee would also require an area of 1000 to 1500 square feet to set up a KFC outlet.
3. Amul
Amul is the top milk provider in India and a very popular brand throughout the country. It was set up in 1946 but it adopted the franchise model in 2000. Today, it is gaining recognition for its unique and high-quality products globally. With a franchise unit count of over 2500, it is one of the most successful franchises in India.
Amul provides a very unique franchise model. The franchise units of Amul are available in different forms such as the Amul Parlour and Amul Kiosk (Amul Railway Parlour). These franchise units span over a small area of about 100 to 300 square feet but are well decorated along with air-conditioning.
The cost of setting up an Amul franchise unit is low- around INR 2 lakhs to 6 lakhs and can generate revenue around INR 5 lakhs to 10 lakhs, making it an attractive choice for franchise seekers.
4. Subway
Another popular food brand on the list is Subway. Subway primarily deals with submarine sandwiches, salads and beverages. It is an American company set up in 1974 and is a globally recognized brand with its presence in more than 102 countries.
It is a strong competitor to other food chains including Domino’s and KFC. It also requires a lesser amount of initial investment to set up a Subway franchise outlet than Domino’s and KFC- around INR 25 lakhs to 30 lakhs. Thus, numerous franchise owners consider Subway a viable business. The area required to set up a Subway outlet is also small- around 170 to 300 square feet.
Subway charges a franchise fee of INR 4.5 lakhs along with royalty fees and advertising fees of 4.5% to 8% on total sales.
5. Lenskart
Lenskart is a relatively new company as it was set up in 2010. However, it rose to prominence quickly and is now present in over 100 countries. Lenskart is a popular eyeglass brand and sells spectacles, contact lenses and sunglasses at reasonable rates. The rapid growth of Lenskart was due to its unique business idea.
Lenskart provides special programs and opportunities to women who wish to start a Lenskart franchise which is quite unique as compared to other franchise models. The area required to set up a Lenskart store is around 300 to 500 square feet and demands an initial investment of INR 25 lakhs to 30 lakhs.
The franchise fee of Lenskart is INR 2 lakhs.
6. Café Coffee Day
Café Coffee Day is a very popular café chain and is loved by coffee lovers. Its top-level service and excellent taste allowed it to become popular quickly across the country. Café Coffee Day not only specializes in coffee but also sells beverages and snacks.
The initial cost of setting up a Café Coffee Day franchise outlet is as low as INR 10 lakhs. The area required to set up a store is around 1000 to 1500 square feet. The popularity of Cafe Coffee Day’s brand name and the affordable rate to set up its outlet make it a good choice for franchise owners.
7. DTDC
DTDC is the oldest courier service in India. It was established in 1990 and as of now, it has over 5800 operating channels across the globe. The high-quality service provided by DTDC makes it a very reliable courier service for consumers. DTDC offers both national and international parcel and logistic distribution services.
DTDC offers franchisees, a lot of independence in setting up their franchises. A franchisee can start a DTDC franchise in a small room without any advanced equipment. The DTDC franchise model is categorized into 3 categories with separate investment models. The investment that a franchisee requires to make for a DTDC franchise is quite cheap as compared to other franchise models and lingers between INR 50,000 and 1.5 lakhs.
The leniency of DTDC franchise model makes it a popular choice among prospective franchisees.
8. Patanjali
Patanjali is another relatively new company as it was set up in 2006. But with its top-quality and unique products, it has grown to become a very popular and reliable brand. Patanjali primarily dealt with Ayurvedic and herbal products. But with their rapid growth, they extended their range of products by providing healthcare products, beauty products, grocery items etc.
Patanjali provides franchisees with the option to set up an outlet over a wide range of budgets ranging from INR 7 lakhs to INR 2 crores. The area required to set up a Patanjali store also varies, ranging from 300 square feet to 1000 square feet and 1200 square feet for a mega store.
Like DTDC, Patanjali too provides independence to franchisees to set up their outlets according to their budget and location.
9. Khadims
Khadims is one of the most popular footwear brands in India. Set up in 1981, it now boasts over 480 outlets all over India. It is a famous footwear brand as it sells footwear at very reasonable rates. Hence, it has succeeded in setting up a large customer base.
Khadims charges INR 2 lakhs from franchisees as a security deposit that is refundable. To start a Khadims franchise, a franchisee would need to make the initial investment of INR 20 lakhs to INR 30 lakhs. The area requirement for a Khadims store lies between 500 square feet to 1000 square feet.
10. Lakme
Lakme is a well-renowned brand in India when it comes to beauty products and cosmetics. It was set up in 1952 and is associated with Hindustan Unilever. As of today, it is present in more than 75 countries. The minimal rates at which Lakme sells its products, make it a brand with a huge number of customers.
For its franchises, Lakme provides complete training to the people involved with them. Lakme presents two types of franchises- salons and cosmetic stores. To start a Lakme franchise, a franchisee would need to invest around INR 25 lakhs and require an area of 500 square feet to 1000 square feet.
11. Archies
Archies is a famous brand that deals with greeting cards, gifts and artworks. It was established in 1979 and consists of over 500 outlets both in India and internationally. The products provided by Archies are one of a kind and are a go-to option for people who love art. As a result, Archies has been successful in establishing a loyal and large user base.
The franchises of Archies are successful in providing good service to its customers which is a major reason behind its success. An initial investment of around INR 12 lakhs is required to start an Archies outlet along with an area of nearly 500 square feet.
Conclusion
There are numerous successful franchise models present all around us. These models have been successful in establishing a huge consumer base and have earned immense popularity. This has resulted in the brands of these franchises growing exponentially and expanding their business over a large geographical area.
In this article, we provided a list of 11 of the top franchise models in India. A newbie entrepreneur who wishes to expand his or her business via the franchise model can draw inspiration from these already successful franchise models. I hope this article was informative and helpful.
