low cost franchise 2021-05-26

Best Low-Cost Franchise Opportunities in India

The franchise industry has been consistently growing from the last few years and has provided thousands of entrepreneurs an opportunity to be their own boss. Read on to know more..

By Content Writer
Best Low-Cost Franchise Opportunities in India

The first thing that comes to mind on hearing the word 'franchise’ is that the investment will demand a high working capital, drain off your savings, and returns will come after a long delay. However, the matter of fact is that there are countless low-cost franchise opportunities available in India that can be set up in a short span of time and are accompanied by quick profitability.

The franchise industry has been consistently growing from the last few years and has provided thousands of entrepreneurs an opportunity to be their own boss. Naturally, low entry barriers in the franchise industry have resulted in individuals from all aspects of life setting up their own businesses as well small business owners, businesswomen, senior citizens, young entrepreneurs, the Indian franchise industry has given wings to a diverse set of individuals and helped them earn a respectable living.

The following are the most famous low-cost franchise opportunities available in India:

1. Grocery Sector:

As the Indian retail industry is still in the midst of the recovery from the Covid-19 disruptions, grocery is taking the lead to drive the entire sector out of the shackles.

Remarkably, close to 65% of India’s retail is coming from the grocery market, and its recovery post-covid can be attributed to customer affinity towards local ‘Kirana’ stores, which continued to be open throughout India’s lockdown. Experts say that grocery is a very hyper-local business and setting up an offline presence is the logical next step for e-tailers once they have set up a strong delivery system and have a strong customer base. Further, in spite of online grocery seeing a massive push due to the Covid-induced disruptions, it still commands 0.3 percent of the overall retail market and will grow to 2.3 percent catapulting into a market size of $18.2 billion, by 2024.

If you’re looking to invest in a grocery business, here are the top 2 brands that will reap you huge profits:

 1.1 Grofers: 

The online grocery market is encouraged by changing behavioral patterns in consumers' purchasing habits. Consumers are now more inclined towards purchasing online at the tip of the palm with the rising e-commerce. Grofers is a popular online FMCG retailer that has now moved from online to offline business. A brand like Grofers, which has a customer base of 10 million, does not need any promotion for attracting franchisees. 

In order to invest in Grofers franchise, you should have an area around 1000 to 2000 sq ft so as to keep close proximity with the customers. It should be in a residential area where around 4000 families are residing. Regarding the financials, 8 lakh to 12 lakh is the expected setup cost with a franchise fee of 5 lakh. The working capital would be around 15 to 16 lakh. That makes a total of about 25 lakhs of investment.

 1.2 Grocery 4 U:

Do You want to Start a Supermarket Mall in Your Area, A Modern Kirana Store Business then Grocery 4 U Kirana Store Franchise is the Best Choice for You. Supermarket is a mega store retail chain of  Grocery 4 U in India. All the products related to lifestyle, human basic needs, personal care, home care are available in this market. Grocery 4u is the Business registered under Grocery 4u Retails Pvt. Ltd. and Running Supermarket Business in India. 

Supermarket is a mega store retail chain of  Grocery 4 U in India. All the products related to lifestyle, human basic need, personal care, home care are available in this market. The company provides 2 types of franchise models that are FOCO model, which requires 300 Sq ft To 10000 Sqft area with a total cost of 3-5 lakhs. And the second one is the FOFO model, which requires 300 Sqft To 10000 Sqft area with a total cost of 5-8 lakhs.

2. Cleaning Service Sector:

In today’s modern world, the simplest of services could be turned into a huge business opportunity. The testimony to it is the surging growth of cleaning services in the Indian market. Cleaning, washing, and laundry are the most basic requirements of running any household smoothly, and it will continue to be so. With most couples working full-time today and living in nuclear families, sometimes these chores seem like too much and things just keep piling up. Only a few could have imagined that these daily activities could actually make a million-dollar industry.

With some business-minded people realizing the potential of this vibrant segment, cleaning services today are gaining momentum and increasing multifold by utilizing modern technologies, thereby taking a load off from many households. Cleaning services have become a vibrant industry in itself, which is growing with a CAGR of 30 percent. Moreover, the cleaning service industry seems to be dominated by the players who are into franchising and are earning greater returns by making a low investment. Here’s how they are doing it:

2.1 UClean:

Given the challenging times, the economy is going through, investors are looking at fail-safe businesses which do not involve high operating costs and can quickly become cash flow-positive. Laundry is an essential service based on daily needs. It involves daily cash flows, minimal operating expenses, and has a very high consumer purchase frequency, where each customer typically comes back every week to avail the services. Being a neighborhood laundry concept, rentals and setup costs remain under control with space requirements as low as 150 sq. feet. The business is largely subscription-based with monthly, quarterly, or annual packages. Hence, the customer acquisition cost is generally low and solid returns start coming within 6-7 months of going live. 

UClean has been franchising since 2017 and there are 180+ outlets till now. The total investment required is Rs 10-15 lakh with the area required is 150-250 sq ft.

2.2 Chem-Dry:

Chem-Dry is the world’s largest carpet cleaning franchise, and one of the most economical, multi-unit franchise opportunities you can own. Entrepreneur magazine has ranked Chem-Dry a top franchise system and the No. 1 carpet cleaning franchise for more than 40 years in a row.

Chem-Dry was established in 1977 and is franchising since 1978. In order to get a Chem-Dry franchise, you need an investment of Rs 15-16 lakh. It is a mobile van-based business so no area is required. The brand charges franchise fee of Rs 5 lakh and royalty of 7%. You can achieve breakeven within 18 months.

3. Stock Broking Sector:

Equity markets have emerged as an unlikely beneficiary of the pandemic as it has made a remarkable comeback after the gloom of the Covid-19 lockdown, aided by liquidity and lower interest rates. In fact, the Indian stock markets are hitting record highs amid rising optimism that Covid-19 vaccines and stimulus measures can turbo-charge economic recovery.

With the pandemic-induced lockdown and the resultant work-from-home (WFH) offering plenty of time, many people have found a way to not just invest their time but also reap some dividends. 

If you’re looking to invest in stockbroking, here are the top 2 brands that will reap you huge profits:

3.1 Motilal Oswal Financial Services Ltd: 

Motilal Oswal Financial Services Ltd rightly follows it. It calls it the “Phygital” way of doing business. Motilal Oswal treats the customer as the crux of its business. Its focus is on making the customer feel the benefit of their advice and research. That is the reason why learning and knowledge are the cultures of the organization and across its franchisees.

Motilal Oswal is a very old firm and there are various reasons why one should invest with them. It is a 30-year-old firm and has good experience in the field. It has 2000 franchisees across 300 cities. It has a strong brand and there is ongoing brand building. There is a brand development initiative where the focus is on well-defined processes, knowledge supports for systems training, best practices from an HR perspective, local marketing, networking. It is socially responsible and follows business ethics. It has a foundation that has built schools and helped in education, built hostels, and also aided in Covid-19 funds. 

The full-service stockbrokers Motilal Oswal Financial Service require an initial investment of Rs 5-10 lakh for a space of 300-1000 sq ft. The company charges a nil franchise fee and a royalty fee of 40 percent.

3.2 5paisa.com:

5paisa.com is one of the fastest-growing broking companies in the country. It has over 7 lakh customers and 5 million app users. Its USP is 0% brokerage and flat INR 10 per trade. 5paisa.com has a strategy to move online through a mobile app that serves multiple platforms. It removes the branches and relationship managers. The cost automatically lowers to a great extent. This attracts a huge customer base. Currently, it has moved to tier3 cities and beyond. 

Discount broker firm 5Paisa.com, which has over 5000 franchisees, doesn’t require any kind of investment and charges no franchise fee or royalty fee, and can be run at home.

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