Best 5 Small Franchise Business Ideas for Beginners

Vaishnavi Gupta
Vaishnavi Gupta May 11 2020 - 4 min read
Best 5 Small Franchise Business Ideas for Beginners
Owning a small and low-cost franchise is one of the best options for the beginners who wish to take a plunge into entrepreneurship.

Franchise Business Ideas for Beginners

Low-cost business opportunities are always among the top picks by entrepreneurs and franchisees across different sectors and markets existing in India. Especially if you are new into the industry, you just don’t want to start your entrepreneurial journey with investing a big amount during your initial entrepreneurial phase. Therefore, low-budget businesses could be started as profitable franchises of bigger players that already exist in the market.

Owning a small and low-cost franchise is one of the best options for the beginners who wish to take a plunge into entrepreneurship. Here are the best 5 small franchise business ideas for beginners:

Laundry Service

The living standard has changed and so has the lifestyle, thereby creating a space for new needs and facilities. Earlier, we were not even close to having an idea of proper laundry service in India. But now, there has been rapid growth in the laundry business in recent years, with an increasing number of working couples, hectic work schedules than ever before.

With the inception of the startup culture, the laundry business sector has become mainstream and business ideas like ‘U-Clean’ are becoming quite popular among the millennials. Just as crazy as it sounds, laundry services are among the most demanded services in India and has a lot of potential in the near future. Buy a laundry service franchise and earn crazy returns.

Investment Required: Rs 15-18 lakhs

Expected ROI: 50%

Expected Breakeven: 18-24 months


The increasing population of working parents, their concerns towards children and increasing awareness has fueled the growth of daycare/pre-school businesses in India. According to recent reports, the preschool or childcare market in India is poised to grow at a CAGR of 22% by 2020.

In India, investing in a preschool franchise is one profitable option for investors that are planning to start something of their own. In fact, the preschool education industry is growing by leaps and bounds, which is eventually opening the gate of opportunities for aspiring franchisors. It’s a low-cost business idea that has great demand in the market and ensures greater returns.

Investment Required: Rs 2-6 lakhs

Expected ROI: 100%

Expected Breakeven: 6 months

Tours and Travel Agency

The travel and tourism in India have also emerged as one of the key growth drivers among the services sector in the country. The tourism business especially is fueled by those traveling from other countries to India for medical treatments or in search of spirituality or simply to see the varied culture distributed in mainland India.

If you are passionate about traveling and are smart enough to plan exotic tours with the lowest of budget, then tours and travel agency business is apt for you. Many travel agencies are operating under a franchise model and invite passionate franchisees to join them.

Investment Required: Rs 5 lakhs

Expected ROI: 30%

Expected Breakeven: 10 months

Ice Cream Parlors

India is one of the fastest-growing ice-cream consumption markets in the world. Be it metropolitan cities or cities in the next hierarchical position, ice-creams are the most popular dessert everywhere. Ice cream is something that delights people of almost all ages having their own flavor preferences.

The ice cream parlor business is gaining momentum in the market due to new emerging flavors that never existed a few years back. As this business model shows its immense potential, a lot of restaurateurs are experimenting with the fresh concept of ice-cream parlor. Big brands like Baskin Robbins are coming up with franchise opportunities for beginners.

Investment Required: Rs 10-20 lakhs

Expected ROI: 60-80%

Expected Breakeven: 12 months

Pest Control Business

The current Indian business ecosystem is a great region for starting a business, varying from the traditional to the latest ones. Pest control is one such business segment that is gaining popularity since the last couple of years. By investing in this business, you could provide an important service to the customers by eliminating rodents, harmful insects, and reptiles from both commercial and residential properties.

As consumer awareness and the need for a hygienic environment are increasing, the demand for such services is rising. Pest control franchises provide a better option for business aspirants to get introduced in the world of entrepreneurship in less investment.

Investment Required: Rs 10-15 lakhs

Expected ROI: 40%

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