Seeking profitable franchise business ventures? These are the most suitable franchises in India below the 20 lakh investment: retail franchises, food, education, and service franchises with high ROI and growth prospects in 2025.
One of the safest as well as the quickest methods of beginning to earn in India is franchise business. Franchises have lower risk and increased chances of success than any other start-up due to a ready-made brand name, training, marketing support, and a proven business model.
In case you are looking at the best franchise businesses for less than 20 lakh, the best profitable and trending ones under 2025 are given below.
Why Become a Franchise Business in 2025?
- Ready business model with Low risk.
- Brand recognition from day 1
- Company training and support.
- Increased break-even and profits.
- Tier 2 and Tier 3 cities are in high demand.
Top 10 Best Franchise business ideas less than 20 Lakh in India 2025
| Franchise Category | Investment Range | Avg Profit Margin | Best For |
| Zudio (Tata Group) | ₹8 – 15 Lakh* | 15–25% | Retail fashion |
| Amul Parlour | ₹2 – 10 Lakh | 15–25% | Food & dairy |
| DTDC Courier | ₹1–5 Lakh | 20–35% | Logistics |
| Lenskart Kiosk/Store | ₹8–20 Lakh | 30–50% | Eyewear retail |
| Bata Store | ₹10 – 20 Lakh | 15–20% | Footwear retail |
| Kidzee Preschool | ₹8–12 Lakh | 30–40% | Education |
| FirstCry Store | ₹10–18 Lakh | 20–30% | Kids retail |
| Chai Sutta Bar | ₹3 – 12 Lakh | 40–60% | Cafe/food |
| Body Fit Gym | ₹10–18 Lakh | 25–40% | Fitness |
| Airtel Store | ₹2–6 Lakh | 15–30% | Telecom retail |
The investment is slightly different depending on the city and size of the stores and franchise model.
Focus Keywords: Franchise and below 20 lakh, Best franchise in India, Retail franchise in India.
Expected Earnings & ROI
| Monthly Sales | Average Profit Margin | Net Monthly Profit |
| ₹500,000 | 25% | ₹125,000 |
| ₹800,000 | 30% | ₹240,000 |
| ₹12,00,000 | 30–35% | ₹360,000 – 420,000 |
Most franchises break even within 8-18 months of good management.
Top Cities to Open Franchises
The City Tier 2 and 3 booms franchise business:
- Agra, Lakkau, Varanasi, and Kanpur.
- Patna, Ranchi, Bhubaneswar
- Indore, Bhopal, Raipur
- Jaipur, Udaipur, Kota
- Coimbatore, Kochi, Vizag, and Guwahati.
Logic: Lower rent, increased income, decreased competition, and high demands.
Documents & Requirements
- GST Registration
- Shop & Establishment License
- Current Bank Account
- Rental Contract or Real estate Documents.
- Investment funds proof
How to make a brand-new franchise successful
- Choose according to local demand.
- Select a high-profile location for the store.
- Hire well-trained and courteous workers.
- adhere to the marketing plans of the company.
- Pay attention to deals on weekends and holidays.
Challenges to Keep in Mind
- Monthly royalty/revenue share.
- Not much control over pricing and products.
- Business reliant on brand performance.
(However, it has a higher rate of success as compared to independent business.)
FAQs
1. What is the best franchise under 20 lakh in India?
The best options are retail brands such as Zudio, FirstCry, Lenskart, and Bata and food chains such as Amul and Chai Sutta Bar.
2. Is it possible to open up with 10 lakh in a franchise?
Yes, there are plenty of alternatives, such as Amul, Kidzee, DTDC and Airtel Store and small retail/cafe franchises.
3. What is the rate at which I will recoup my investment?
Average cost in most franchise businesses takes 8 to 18 months depending on location and sales.
Final Thoughts
One of the intelligent options for becoming an entrepreneur is a franchise business in 2025. Whether it is retail, food, education, or industry, the opportunity is immense, particularly in the small cities. Your franchise can be expanded into a highly profitable enterprise with proper planning, location and marketing.
