What does a franchise cost in India?
The franchise fee is the number brands lead with. It is rarely more than a tenth of what you actually spend. This page sets out the whole cost, format by format, and the questions that separate a real quote from a brochure.
The ranges below are editorial — they describe what franchising in India typically asks for at each format size. They are not any brand's figures. Every number on a listing on this site is entered by the brand itself and reviewed before it publishes.
Typical cost by outlet format
| Format | Area | Franchise fee | Fit-out | All-in |
|---|---|---|---|---|
Kiosk or cart Mall or high-street kiosk. Rent is usually a revenue share. Exclusive territory is rarely offered at this size. | 40–100 sq ft | ₹50,000 – ₹2 lakh | ₹1 – 4 lakh | ₹2 – 8 lakh |
Counter / takeaway The most searched band in India. Two to four staff, delivery-led revenue, and the format where brands start offering a defined area. | 150–300 sq ft | ₹1 – 4 lakh | ₹5 – 12 lakh | ₹8 – 20 lakh |
Small format store Seating or shelf-led retail with a manager. Deposit and working capital start to matter as much as the fit-out. | 300–800 sq ft | ₹3 – 8 lakh | ₹12 – 30 lakh | ₹20 – 45 lakh |
Full-service outlet Kitchen, treatment rooms or a full showroom, six or more staff. You are hiring a manager you have not met yet — budget for that. | 800–2,000 sq ft | ₹5 – 15 lakh | ₹30 – 80 lakh | ₹45 lakh – 1.2 crore |
Master or area development You are buying the right to develop a territory and appoint sub-franchisees, with an opening schedule attached. | Multiple units | ₹25 lakh upwards | Per unit, as above | ₹1 crore upwards |
What the total is made of
- Franchise fee
- One-time, paid to the brand for the licence, training and launch support. Typically 5–15% of what you will spend in total, which is why quoting the fee as 'the cost' is misleading.
- Interiors and fit-out
- Civil work, furniture, lighting, signage. Usually the largest line. Ask whether the brand mandates a vendor and whether the quoted rate per square foot is carpet or built-up area.
- Equipment and initial stock
- Kitchen equipment, POS, chillers, opening inventory. Ask whether stock must be bought from the brand and at what margin.
- Deposit
- Refundable to the brand and/or the landlord. Refundable is not the same as available — it is locked for the length of the term.
- Licences and statutory
- FSSAI, trade licence, GST registration, shop and establishment, fire clearance where applicable. Small individually, not small together.
- Working capital
- Three to six months of rent, salaries, utilities and restocking. The single most common thing a first-time franchisee underestimates.
Franchise fee is not the investment
A brand quoting a ₹3 lakh franchise fee for a 250 sq ft counter is usually describing a ₹15–20 lakh commitment once interiors, equipment, deposit and three months of working capital are in. Neither figure is dishonest on its own; the gap between them is where first-time franchisees get hurt. When you compare two brands, compare all-in numbers on the same format and the same city, never fee against fee.
What you keep paying
Royalty is charged on revenue, not profit, so it is payable in a bad month too. A marketing or brand-fund contribution is often charged on top. Add rent, salaries, utilities, and any margin the brand takes on supplies you are required to buy from it. A 6% royalty plus a 2% brand fund is 8% of everything that crosses the counter before you have paid for a single sack of flour.
Reading a payback claim
Payback figures are projections built from an assumed footfall and an assumed average order value. Ask for both assumptions in writing, then ask what an existing outlet in a comparable city actually does. Break-even — the month revenue covers costs — arrives well before payback, and the two are frequently conflated in franchise marketing.
Eight questions to ask before you pay anything
- Is the quoted investment capex only, or does it include working capital and deposit?
- Is the area requirement carpet area or built-up?
- Is royalty charged on gross revenue or net, and is the marketing contribution on top?
- Can I see the unit economics of an existing outlet in a comparable city, not a model?
- How many outlets opened in the last 24 months, and how many closed?
- Is the territory exclusive, and is that exclusivity written into the agreement with a boundary?
- What does renewal cost at the end of the term, and can the brand refuse it?
- If I want to exit, what does the transfer clause allow?