Starting a business in India doesn’t always need crores of investment or massive infrastructure. If you’re looking for a low investment franchise business in India 2025, you’re in luck. From food and beverage to education and grooming, the Indian market is booming with options under ₹5 lakh. These are ideal for budding entrepreneurs, retirees, homemakers, or anyone who dreams of running a small business idea with strong brand support.
Let’s explore the top 10 trending franchise opportunities under ₹5 lakh that are making waves this year.
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Why Choose a Low-Cost Franchise in 2025?

If you’re new to business or want to play it safe financially, a franchise under ₹5 lakh is a smart entry point. Here’s why:
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Low risk, high return potential
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Strong support from the parent company
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Brand recognition and existing customer trust
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Minimal marketing cost—you’re already part of a known brand
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Scalable if you plan to expand later
Top 10 Franchise Opportunities Under ₹5 Lakh in India
Here’s a quick look at the best options for 2025:
Franchise Brand |
Industry |
Initial Investment |
Highlights |
---|---|---|---|
Giani’s Ice Cream |
Food & Beverage |
₹3.5–₹5 lakh |
Popular in tier 1 & 2 cities |
DTDC Courier |
Logistics |
₹50,000–₹2 lakh |
Trusted name with pan-India network |
Patanjali |
FMCG & Health |
₹1–₹5 lakh |
Backed by a strong Indian brand |
FirstCry |
Baby & Kids Retail |
₹2–₹5 lakh |
High demand in urban areas |
PMKVY Training Centre |
Education/Skill Dev |
₹2–₹5 lakh |
Govt-supported franchise |
Lenskart Partner Store |
Eyewear Retail |
₹3–₹5 lakh |
Digital-first retail model |
Jugnoo |
Tech & Transport |
₹25,000–₹2 lakh |
Auto aggregator with low infra |
Khadi India |
Apparel & Handloom |
₹1–₹4 lakh |
Great for rural/urban mix |
KidZee Preschool |
Education |
₹3–₹5 lakh |
Top choice for preschool segment |
Tea Time |
Food & Beverage |
₹4–₹5 lakh |
Fastest-growing tea franchise in India |
Things to Consider Before Investing
Before diving into any low investment franchise business in India 2025, keep these points in mind:
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Location Matters: Choose a place with good footfall and visibility.
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Local Demand: Know what the local market actually wants.
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Company Support: Go with franchises offering training and marketing support.
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Break-Even Time: Ideally, 6 months to 1 year for small franchises.
Pro Tips for First-Time Franchise Owners
If you’re just starting out, here are a few tips to make your journey smoother:
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Start small but think big
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Don’t skip the training provided by the franchisor
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Keep records from Day 1
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Customer service will be your best marketing tool
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Choose a brand that aligns with your passion and skills
Who Should Consider These Franchises?
These franchise under ₹5 lakh options are perfect for:
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Retired professionals looking to stay active
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Homemakers aiming for financial independence
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College grads wanting to avoid the 9-to-5 grind
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Working professionals looking for side income
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Aspiring entrepreneurs with a limited budget
Small Business Ideas That Work in India
Here are a few other small business ideas to explore if franchising isn’t your thing:
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Online tutoring or digital coaching
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Home bakery or catering service
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Reselling fashion or beauty products online
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Affiliate marketing and blogging
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Mobile car wash or doorstep services
These also require low investment and can complement or evolve into a franchise over time.
Frequently Asked Questions (FAQs)
Q1: Can I run a franchise from home?
Yes, several franchises like tutoring, reselling, or courier collection points can be operated from home, making them perfect for homemakers or side hustlers.
Q2: Which is the best franchise under ₹5 lakh for beginners?
Brands like DTDC, Tea Time, and Patanjali are beginner-friendly and come with strong support systems.
Q3: Is a franchise a good alternative to starting from scratch?
Absolutely. You get brand recognition, training, and a proven model—ideal for new entrepreneurs.
Q4: How much profit can I expect from a low investment franchise business in India 2025?
Depending on the franchise type and your effort, monthly profits can range from ₹20,000 to ₹1 lakh or more.
Final Thoughts
In 2025, there’s no better time to start a low investment franchise business in India. Whether you’re drawn to education, retail, or food, there’s something for everyone under ₹5 lakh. The best part? You don’t need to reinvent the wheel—just roll with a trusted name and grow your own success story.
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