Starting a venture in India would be tough to begin with especially if you consider the investment is less. Franchising is one way through which, a proven model is provided as well as brand recognition and more support from a franchisor also comes with. In this article, our franchise experts have explored some of the best franchises in India you can venture into with an investment of up to 5 lakhs or even less.
Why Start a Franchise in India Under 5 Lakhs?
Franchising is a smart way to start a business without building everything from scratch. Here are some key benefits:
- Low Risk: The franchise has an established customer base and business model, thus minimizing the chances of failure.
- Brand Recognition: Popular franchise brands attract customers more easily.
- Training and Support: Franchisors provide training, marketing materials, and ongoing support.
- Low Investment Options: Many franchises in India require minimal capital and offer good returns.
Best 10 Franchise in India Under 5 Lakhs
1. Amul Ice Cream Scooping Parlour Franchise
Amul is one of the most trusted and iconic brands in India’s dairy industry. The company provides a wide range of ice cream. These flavours are aimed at all age groups, making them a go-to choice for consumers. Amul’s scooping parlours have a proven model that operates successfully in both urban and rural areas. Amul assures high footfall and loyal customers due to its high brand equity. In addition, the ice cream business is recession-proof and works well throughout the year in India.
- Industry: Food and Beverage
- Investment: Rs. 2 – Rs. 5 Lakhs
- Franchise Benefits: Strong brand name, low operating costs, and high demand for dairy and ice cream products
Read: Top Franchise Business Opportunities in India
2. Patanjali Chikitsalay Franchise
Patanjali is a leader in the Ayurvedic market, which has been growing exponentially in the last few years. The brand is natural and herbal, and the demand for chemical-free solutions is on the rise. Government support for Ayurveda and “Make in India” is also in demand, especially in tier 2 and tier 3 cities, for Patanjali franchises. More people are turning towards natural remedies. This franchise can be a means of capitalizing on a trend and having an impact on customers’ health.
- Industry: Healthcare and Wellness
- Investment: Rs. 2 – Rs. 5 Lakhs
- Franchise Benefits: Growing market for Ayurvedic products, low investment with high returns, and extensive customer support
3. Tata 1mg
1mg, promoted by Tata Group is one of the top online healthcare platforms in India, providing medicines, lab tests, and health-related products. The demand for healthcare services is on the rise, and with e-commerce convenience, it is a very profitable business to associate with 1mg. They have a strong digital infrastructure along with an easy-to-use app, ensuring seamless customer experience. The healthcare industry is recession-proof, and thus, a stable and long-term business. 1mg offers training, technology support, and marketing assistance to its franchisees to ensure smooth operations.
- Industry: Online Healthcare and Pharmacy
- Investment: Rs. 3 – Rs. 5 Lakhs
- Franchise Benefits: High demand for online healthcare services, digital marketing and operational support, and established brand in the healthcare sector
4. DTDC Courier and Cargo
This DTDC is one name that is always on the heads of the fast-growing logistics world in India. With the help of e-commerce giants, courier services and cargo, have become inseparable. Now, DTDC has a gigantic network and impressive technology that easily ensures smooth functionality. The firm provides franchisees with comprehensive training, so there is no barrier for a fresher entrepreneur or businessman. Additionally, the shop requires minimal floor space and also staff, which makes it handy for any customer who wants a low-maintenance business.
- Industry: Logistics
- Investment: Rs. 50,000 to Rs. 2 Lakhs
- Franchise Benefits: Training and operational support, profitable business with recurring customers, and minimal infrastructure required
5. Khadi India
Khadi products have lately gained new popularity, considering their earth-friendly appeal and sustainable characteristics. The government’s initiatives supporting “Vocal for Local” have also led to Khadi franchises opening not only in cities but also in villages. Selling Khadi not only does good business but also empowers the local artisans and weavers. The firm focuses on handmade products, sustainability, and environmental protection; hence, Khadi India is appropriate for entrepreneurs who seek to make profits while supporting a cause.
- Industry: Handicrafts and Apparel
- Investment: ₹3 – ₹5 lakhs
- Franchise Benefits: Low competition in rural areas, a wide range of eco-friendly products, and support for marketing and promotions
6. FirstCry
FirstCry has emerged as the one-stop destination for baby and kids’ products. With an extensive range of items, from clothing to toys and educational tools, it caters to a rapidly growing market. Parents are willing to invest in quality products for their children, thus ensuring consistent sales. FirstCry’s dual model of online and offline presence gives franchisees access to a large customer base. The company also offers marketing and logistical support, which simplifies operations for franchisees.
- Industry: Baby and Kids’ Products
- Investment: Rs. 4 – Rs. 5 Lakhs
- Franchise Benefits: High demand for baby products, assistance in setting up the store, online and offline presence
7. KFC Street Food Cart Franchise
KFC is among the world’s most popular fast-food chains. The street food cart model would help the company penetrate smaller markets with a budget-friendly option. The cart would offer high-demand items such as fried chicken and beverages, thus allowing for high-profit margins. KFC also offers operational training to its franchisees, thus making it appropriate even for newbies. Its established marketing campaigns and customer loyalty ensure constant footfall.
- Industry: Food and Beverage
- Investment: Rs. 3 – Rs. 5 Lakhs
- Franchise Benefits: Popular fast-food brand, high-profit margins, and easy to manage and operate
8. Dr. Bubbles Tea Franchise
Bubble tea has gained immense popularity among the youth of India. Dr. Bubbles offers innovative and customizable flavours, which is a favourite among customers. The brand focuses on premium quality beverages at affordable prices. With its creative marketing strategies and visually appealing products, this franchise ensures high customer engagement.
- Industry: Beverages
- Investment: Rs. 2 Lakhs – Rs. 5 Lakhs
- Franchise Benefits: Unique and trendy products, low operating costs, and high profit margins
9. Lakme Salon Express Franchise
Lakme is a leader in the beauty industry, with a reputation for quality and trust. The express salon model is perfect for entrepreneurs with limited space and capital. Lakme provides regular training for beauticians and franchisees, ensuring high-quality service. With a growing demand for grooming services, this franchise promises consistent business opportunities.
- Industry: Beauty and Wellness
- Investment: Rs. 4 Lakhs – Rs. 5 Lakhs
- Franchise Benefits: Strong brand name, high demand for grooming services, and regular training and marketing support
10. Amazon Delivery Service Franchise
Amazon is one of the world’s largest e-commerce companies, and through its Delivery Service Partner (DSP) program, it offers entrepreneurs an opportunity to join its logistics network. This is perfect for entrepreneurs who want to operate a small delivery fleet. Amazon offers training, tools, and technology to help run the business effectively. The rapid growth of e-commerce in India means there is always a demand for delivery services, so revenue is constant. Amazon’s trusted brand name also builds credibility and trust with customers.
- Industry: Logistics and E-commerce
- Investment: Rs. 2 Lakhs – Rs. 5 Lakhs
- Franchise Benefits: Low investment with high returns, detailed training and support from Amazon, and steady demand for delivery services
Also Read: Franchise in India under 10 Lakhs
Conclusion: The growth prospects of starting a franchise in India under 5 lakhs are massive. Whether it is a healthcare franchise like 1mg, a logistics business like Amazon DSP, or a food brand like Amul, every franchise has its benefits. Make your choice after understanding your interests, skills, and market conditions. Franchising provides a successful model that, with the right choice, will help you to achieve your entrepreneurial dreams.

Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.