Launching a business is undoubtedly challenging and can be considered among the most difficult choices you have ever made. You must first be satisfied by your idea, have a sizable quantity of operating capital, and then develop a plan for business development, advertising, branding, and other aspects. Seems like a complex problem to solve? The franchise business enters the picture here.
This post will go over a lot of topics, including what a franchise is, how it operates, what you must know before starting one, and a lot more. Let’s explore how franchise business prospects can help you and how advantageous they are over launching a new business.
A Franchise Business: What Does It Mean?
A franchise is an expansion of a business that is already operational. The franchise entrepreneur must run their enterprise in the exact same manner as the parent corporation does. It’s a business strategy where a much larger corporation sells the rights to a private group of people to use its name, logo, and other trademarks.
Franchisees are the private business holders or operators that operate these businesses. There is a contract between the franchisee and the owner. Numerous franchises are visible to us in our surroundings, including Zomato, Delhivery, Dominos, Starbucks, McDonalds, Cafe Coffee Day, Pizza Hut, KFC, and many more.
Top Business Loan Offers for Franchise Funding in 2024
| Loan Provider | R.O.I | Processing Fees | Loan Amount | Cibil Score |
| HDFC Bank Business Loan | 16% – 20% (Reducing Per Annum) | 1% – 2% | 1.00 Lacs – 10.00 Lacs | 700 |
| Poonawala Finance Business Loan | 18.75% – 20% (Reducing Per Annum) | 2% – 4% | 2.00 Lacs – 10.00 Lacs | 700 |
| Bajaj Finserv Business Loan | 21% – 24% (Reducing Per Annum) | 2% – 3% | 1.50 Lacs – 30.00 Lacs | 720 |
| Tata Capital Business Loan | 22% – 25% (Reducing Per Annum) | 3% – 4% | 1.00 Lacs – 15.00 Lacs | 675 |
| Lendingkart Business Loan | 21% – 40% (Reducing Per Annum) | 3% – 4% | 1.00 Lacs – 1.00 cr | 600 |
| Incred Business Loan | 16% – 33% (Reducing Per Annum) | 2% – 5% | 50.00 k – 10.00 Lacs | 650 |
| Flexi Business Loan | 18% – 30% (Reducing Per Annum) | 3% – 4% | 1.00 Lacs – 25.00 Lacs | 700 |
| Indifi Unsecured Business Loan | 18% – 30% (Reducing Per Annum) | 3% – 4% | 1.00 Lacs – 30.00 Lacs | 700 |
| PaySense Business Loan | 18% – 22% (Reducing Per Annum) | 2% – 6% | 50.00 k – 10.00 Lacs | 700 |
| Ayefin Business Loan | 28% – 29.5% (Reducing Per Annum) | 2.5% – 3% | 5.00 k – 3.50 Lacs | 650 |
| Faircent Eazzy Loan | 25% – 30% (Reducing Per Annum) | 7% – 8% | 50.00 k – 1.50 Lacs | 630 |
| Money View Business Loan | 16% – 36% (Reducing Per Annum) | 2% – 5% | 5.00 k – 5.00 Lacs | 650 |
| Hero Fincorp Business Loan | 19% – 27% (Reducing Per Annum) | 2% – 4% | 1.00 Lacs – 5.00 Lacs | 630 |
| Faircent Business Loan | 25% – 30% (Reducing Per Annum) | 7% – 9% | 50.00 k – 10.00 Lacs | 550 |
| Ambit Finance Business Loan | 20% – 28% (Reducing Per Annum) | 3% – 3.5% | 2.00 Lacs – 50.00 Lacs | 675 |
| Choice Finserv Business Loan | 22% – 26% (Reducing Per Annum) | 2% – 3% | 1.00 Lacs – 7.50 Lacs | 700 |
| Get Vantage Business Loan | 16% – 20% (Reducing Per Annum) | 5% – 8% | 5.00 Lacs – 10.00 cr | 700 |
| Recur Club Business Loan | 16% – 20% (Reducing Per Annum) | 2% – 3% | 10.00 Lacs – 10.00 cr | 650 |
| MAXEMO Business Loan | 22% – 30% (Reducing Per Annum) | 4% – 8% | 5.00 Lacs – 30.00 Lacs | 650 |
| ARKA Business Loan | 18% – 20% (Reducing Per Annum) | 2% – 3% | 1.00 Lacs – 30.00 Lacs | 700 |
| FINAGG Supply Chain Finance | 18% – 20% (Reducing Per Annum) | 2% – 3% | 1.00 Lacs – 50.00 Lacs | 700 |
| Stashfin Business Loan | 2.45% – 4% (Fixed Monthly) | 1% – 1% | 10.00 k – 5.00 Lacs | 725 |
| HDFC Bank Business Loan | 16% – 18% (Reducing Per Annum) | 1% – 2% | 1.00 Lacs – 75.00 Lacs | 700 |
| ICICI Bank Business Loan | 16% – 18.5% (Reducing Per Annum) | 1.5% – 2% | 10.00 Lacs – 1.00 cr | 700 |
| Yes Bank Business Loan | 16.5% – 19.5% (Reducing Per Annum) | 2.5% – 4% | 5.00 Lacs – 50.00 Lacs | 650 |
| Induslnd Bank Business Loan | 16% – 20% (Reducing Per Annum) | 2% – 3% | 10.00 Lacs – 50.00 Lacs | 680 |
| AXIS Bank Business Loan | 16% – 18% (Reducing Per Annum) | 1.75% – 3% | 5.00 Lacs – 75.00 Lacs | 700 |
| Kotak Mahindra Business Loan | 16% – 18% (Reducing Per Annum) | 2% – 3% | 5.00 Lacs – 2.00 cr | 630 |
| Deutsche Bank Business Loan | 16% – 20% (Reducing Per Annum) | 2% – 3% | 15.00 Lacs – 1.00 cr | 680 |
| IDFC Bank Business Loan | 16% – 19% (Reducing Per Annum) | 1.5% – 3% | 10.00 Lacs – 75.00 Lacs | 700 |
| Standard Chartered Business Loan | 16.5% – 18% (Reducing Per Annum) | 2% – 3% | 10.00 Lacs – 1.00 cr | 720 |
| Unity Bank Business Loan | 16.5% – 22% (Reducing Per Annum) | 2% – 3% | 10.00 Lacs – 50.00 Lacs | 700 |
| Bajaj Finserv Business Loan | 17% – 20% (Reducing Per Annum) | 1.75% – 3% | 5.00 Lacs – 50.00 Lacs | 700 |
| Aditya Birla Business Loan | 15.75% – 20% (Reducing Per Annum) | 2% – 3% | 5.00 Lacs – 50.00 Lacs | 700 |
| Aditya Birla Business Loan (Small) | 23% – 29% (Reducing Per Annum) | 2.5% – 3.75% | 1.00 Lacs – 10.00 Lacs | 700 |
| Tata Capital Business Loan | 17% – 20% (Reducing Per Annum) | 2% – 3% | 7.50 Lacs – 50.00 Lacs | 700 |
| Hero Fincorp Business Loan | 18% – 21% (Reducing Per Annum) | 2% – 3% | 7.00 Lacs – 40.00 Lacs | 700 |
| Piramal Finance Business Loan | 16.49% – 25% (Reducing Per Annum) | 2.75% – 4% | 1.00 Lacs – 15.00 Lacs |
When Should You Opt for a Franchise Business Model?
When to launch a franchise firm is an essential question. Since you are spending a significant amount of capital into a system that has already been shown to work, there is very little chance of failure with any franchise business. The fact that you have nothing to worry about about your firm expanding is another crucial component. It is not necessary to spend time establishing a firm from the ground up and watching it develop.
Starting a new business will require you to handle all of the bumps on the road on your own; however, a franchise business does not operate in this manner. With the assistance and direction of your franchisor, all of your concerns will be addressed.
DTDC Courier
DTDC courier services are getting more and more popular. Therefore, you want to think about making an investment in the courier sector, of which DTDC is a perfect example. DTDC was established in 1990 and currently serves both local and international clients through more than 12,000 franchisees in India.
Getting a DTDC franchise is simple because there aren’t many criteria. It takes 100 square feet of area and an expenditure of Rs 1.5 lakhs. It is imperative that you hire delivery staff to ensure timely deliveries in order to preserve DTDC’s excellent reputation. One of the most economical franchise opportunities available in India is DTDC Courier.
Fintech Franchise
Fintech, or financial technology, refers to the innovative approaches that use data, artificial intelligence, and digital platforms to give businesses and customers better, faster, and more affordable financial services. Fintech is revolutionizing the traditional financial sector in a number of ways, including opening up new business opportunities, improving consumer satisfaction, boosting reliability and safety, and having an impact on society.
Within the current dynamic digital environment, the fintech sector has become a hub for innovation and expansion. The term fintech, which stands for financial technology, refers to a broad category of technical advancements that are fundamentally changing how we handle and engage with our financial resources.
Fintech companies, ranging from robo-advisors to mobile payment systems, are revolutionizing the financial services sector. The fintech industry is growing at a pace never seen before, and this is the ideal time to think about investing in a fintech franchise.
The Reasons for Choosing ReferLoan as Your Franchise Partner
- If you wish to grow your company PAN India.
- If you wish to provide your clients with the greatest financial products.
- If your goal is to earn six digit figures or more.
Refer Loan offers franchise options that start at the city or pincode level, guaranteeing each franchisee exclusive rights in their assigned region. When necessary, franchise holders can add or remove agents from their teams as they are built and managed. Franchisees can expand their businesses profitably with an enticing 80% profit-sharing plan. ₹11,000 is the startup cost of a franchise.
You have access to a multitude of tools and services as a ReferLoan Silver Franchise partner, all of which are designed to support your success. This involves access to more than 300 banks and NBFCs, a partner dashboard specifically designed for that purpose, over 300 DSA codes, and more than 40 APIs for prompt digital sanctions.
Lenskart
The largest online retailer of eyewear in India, Lenskart offers a broad selection of items, including sunglasses, contact lenses, glasses, and accessories. It runs more than 600 physical offices around the nation and offers free eye exams, home trials, and doorstep delivery to clients.
With little initial investment and substantial profits, Lenskart is among the most lucrative and rapidly expanding franchises in India. Lenskart Lite and Lenskart Studio are the two franchise categories of models that the company supplies. A floor space of 100 to 150 square feet and an expenditure of Rs 10 to 15 lakhs are needed for the Lenskart Lite kiosk concept. A floor area of 300 to 500 square feet and an investment of Rs 25 to 35 lakhs are needed for the Lenskart Studio shop model.
Suguna Chicken
Suguna Chicken achieved its goal to establish a reputation for itself in the poultry sector upon its founding in 1984 by farming premium chicken on its farms. The growing market for chicken products makes it worthwhile to invest in the Suguna Chicken franchise prudently.
A 300–400 square foot location and an investment of Rs 5–10 lakhs are needed to be considered for the Suguna Chicken franchise business.
KidZee School
KidZee is one of the most well-liked preschool brands in Asia and abroad. There are franchises similar to the business-education-focused KidZee School. With more than 1900 locations spanning 700 Indian cities, KidZee is a well-liked franchise option for early childhood education.
An approximate investment of 12 lakhs and 2000–3000 square feet of the school’s space are needed for the franchise.
Amul Ice- Cream and Yogurt Parlour
You might consider starting an Amul Ice-Cream Parlor since, after almost 75 years of continuous high-quality production, Amul has grown into a household name. Amul, the biggest ice cream business in India, operates more than 1,500 stores.
A minimum of 300 square feet of tastefully furnished, air-conditioned space is needed for an Amul Ice Cream franchise. The initial investment requires between 2 and 5 lakhs of rupees. The main advantage of owning an Amul franchise is the ease with which your inventory can be transported to your location. Amul Ice Cream retail sales are among the most well-liked and affordable franchise options in India.
Paragon
In the footwear market, Paragon is well-known for its flip-flops, sandals, floaters, and footwear for casual as well as formal situations. They also make shoes for other ethnic groups outside their own. Since 1974, this footwear firm has been leaving its mark on the market. Because of its solid reputation, dependability, and profitability, Paragon is a great place to start if you want to enter the footwear industry.
Why Should You Go for a Low-Investment Franchise?
According to statistics, India is the world’s second-most populous country after China and ranks seventh in terms of area. India is the world’s second-fastest-growing market in terms of total development. As a result, there is a very good likelihood that investments made by various MNCs will yield profits globally.
- India’s franchise market has been rated as one of the most appealing on a global scale.
- Reputable global businesses are aiming to expand their operations in India by focusing on the Indian market.
- There are specialized professional organizations that assist franchise owners in launching their businesses by addressing a range of issues.
What Differentiates Own Business from Franchise Business?
If you intend to launch a new company, you may be considering the advantages of franchising versus going it alone.
The largest advantage of a franchise is the opportunity to enter a large, well-established industry. You face relatively little risk in terms of growth and profits. It supports you at every turn, particularly in the event that you lack prior business expertise.
When your business is first starting out, the first few years can be rather challenging. In actuality, just 1% of company startups in India manage to get off the ground and thrive.
Consequently, one must decide whether to create their own firm or choose a franchise in order to feel secure.
Bottom Line
You should think about everything that was said above before investing in a franchise. Although launching a new business is a delightful idea, there are always obstacles and problems involved. The likelihood of your survival is low if you want to launch your own firm on your own without any help and lack experience. If you lack the necessary experience, it is best to choose a franchise.